Lets get down to business… Ye Baby!! Who is Digital Jungle? Chinese Online Marketing Trends Looking at the numbers Implications for Advertising Agencies
Digital Jungle… Rockin’ Digital!! A Leading Social Inﬂuence Marketing Agency Specializing in Chinese & Asian social media solutions Industry Focus: Tourism, Luxury & Automotive Ofﬁces in China & Australia Beijing, Shanghai, Hong Kong & Sydney
The ‘Motherhood’ Statement The mission of Digital Jungle is to help our clients improve their business position and gain real value from their digital marketing investments Through our expertise in social media digital marketing programs andI’m Dr . Matt the application of search, afﬁliate and online marketing, we commit to: CEO, D McDou igital J gall,! ungle • Providing exceptional value • Driving incremental direct revenue • Generating ROI unrivaled by traditional media • Protecting your online reputation • Increasing your market share over your competitors • Building your brand awareness We look forward to working with you.
Prediction #1… Mobile! Mobile is not simply smartphones but covers tablets. This medium will attract advertisers to move campaigns into this form. Expect to see cross platform gaming, eCoupons, banners and search delivered via this device type
Prediction #2… Gaming! Gaming made a lot of money for companies via virtual currency, subscription models etc. but in 2012 Digital Jungle expects many Brands leverage social/casual games create ‘stickiness’ on social media sites and campaign pages given the additional pressure to not just grow fans but to increase engagement
Prediction #3… Search! Search is not an option for campaigns but a required component. Brands fully understand the importance search plays in online in consumer behavior. More budget will continue to be allocated (increasing spend outside Baidu in 2012/2013) Chinese Search Engines: Google HK: www.google.com.hk Baidu: www.baidu.com Yahoo CN: www.yahoo.cn SoSo: www.soso.com Youdao: www.youdao.com Sogou: www.sogou.com Bing CN: cn.bing.com Zhong Sou: www.zhongsou.com Sina Search: search.sina.com.cn
Prediction #4… eCommerce! eCommerce has had a big impact on the way consumers look/value a Brand. Although B2C is dominated by 2-3 players in China, Digital Jungle expects to see more FMCG & Luxury Brands create direct eCommerce capabilities in 2012
Prediction #5… Sharing and fairing! Social sharing & fairing. When the number of microblog users exceeded 200 million, the role of microblog shifted from ‘new media’ to ‘hot media’. Not only Sina, organisations such as Sohu, Netease, and Tencent also are competing to expand their activity in this space. Expect to see more ‘vertical’ social sites developed by Brands in 2012
The Digital Landscape… Highlights iResearch data suggests that eCommerce and Mobile will continue to grow although the actual market is also growing and therefore we can expect all sectors to see growth abet at different rates. Digital Jungle is predicting that in 2012 more Brands will embrace mobile – not just apps but gaming and ads. Search will remain strong and used routinely in campaigns. Media buying will become more targeted and ‘verticalised’
Digital Marketing… Steady as you go! In 2012, the online advertising market will continue to maintain its steady momentum, though with a slowing growth rate. Video websites and new media types such as the vertical websites will generate a more forceful impact on the market. Especially in travel, automotive and luxury sectors Meanwhile, social websites and the Weibo marketing will also be among the hot issues in the Chinese market.
Search… Growing & developing! In 2010, China’s search engine market scale amounts to 10.98 billion RMB (approximately 1.65 billion UD$) with a year-on-year growth rate of 57.7%. The market share of search engines in the overall internet advertising market makes up 30.8%. 2011 saw Baidu being challenged Sina’s and Netease’s search offerings (soso, youdao)
E-Commerce… Super Hot!!! In 2010, China’s e-commerce industry continues to hold a rapid development with the trade size amounting to 4.8 trillion RMB over the year and with a year-on-year growth rate of 33.5%. Internet retailing is set to increase in constant value by 42%, rising to RMB458 billion by 2015 M-commerce is reported to be worth RMB 117 billion in 2011
Summary… Cutting to the chase! Market Size: China’s Internet Economy Market Size Amounts to 151.32 billion China’s internet economy market scale amounts to 151.32 billion RMB in 2010, with a year-on-year growth rate of 53.9%. Digital Marketing: Digital Jungle is predicting that in 2012 more Brands will embrace mobile – not just apps but gaming and ads. Search will remain strong and used routinely in camapigns. Media buying will become more targeted and ‘verticalised’ E-commerce: Expecting to see more growth and e-commerce market will continue to maintain a rapid growth momentum. China’s e-commerce market amounts to 4.8 trillion RMB with a YOY growth rate of 33.5%. It is expected that in the future three to ﬁve years Netizens: China has the largest number of online netizens (485 million). These netizens have a high propensity to purchase online, create content, make friends and share. Source: 2010-2011 China’s Internet Economy Market Research Report (iResearch), CNNIC Dec, 2011
A NEW ROLE FOR AGENCIES " " " " " " " "in 2012!
Power to the people… the marketingspiral! Given the power in 2012 of social media, the way Brand connect and engage needs to be rethought. Messages and communication strategies need to considered as ‘push/pull’ and not simply ‘push’ Micro-targeting is more possible given the sophisticated level of marketing technologies
Communicating …. not always the same!You can’t take a one size ﬁts all approach to communicating amessage and engaging netizens.
The Digital Marketing Phases Phase I Phase II Current Online Situation Assessment Build Digital Media Plan (typically 4-6 weeks) (typically 3-4 weeks) A B C D E Monitor Optimize Listen Segment Strategy Measure Reﬁne Sets the Stage for Phase III Execution (varied/ongoing) Digital Marketing Campaigns Optimization of Marketing Online Marketing Outreach (Considering all online channels) Assets (SMM + Marcom)
Digital Marketing… Example Plan! Phase I Phase II Phase III Current Digital Marketing Build the Digital Marketing Plan Program Execution Situation Assessment • Monitoring the digital landscape • Assess existing assets • Optimization plan for current digital media assets • Mapping the segments online • Create engagement strategy ecosystem/ marketing touch • Execution of digital strategy points • Create outreach strategy and campaigns • Social Media Presence • Understanding and proﬁling the • Active conversations and target segment • Establish social marketing plan community participation and roadmap • Amplify with Search (SEO/ SEM) • Establish monitoring, metrics and reporting strategy and KPIs • Integrated campaigns • Measure results Key Phases, Activities and Timing On-going Ongoing Week 1 Week 4/6 Week 7/10
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