The document discusses the digital landscape of China in 2015, highlighting internet penetration rates, the influence of mobile devices, and the rise of e-commerce among Chinese consumers. It emphasizes that digital advertising has overtaken traditional TV advertising, with significant growth forecasted in various sectors including programmatic advertising and social media engagement. Key players in the market, such as WeChat, Alibaba, and Tencent, are pivotal in shaping consumer behavior and advertising strategies.

1. J.WALTER THOMPSON CHINA DIGITAL LANDSCAPE 2015

2. INTERNET PENETRATION IN CHINA
Sources: eMarketer December 2014
47.5% of total population
For age 18-40: 85%

3. WITH ONLY 47.5% PENETRATION, CHINA STILL HAS ROOM FOR GROWTH
Sources: eMarketer December 2014
INTERNET USERS AS PERCENTAGE OF POPULATION

4. Source: CNNIC June 2014
RURAL USERS DRIVING GROWTH

5. Source: CNRS
ECONOMIC DEVELOPMENT SHAPES INTERNET BEHAVIOR ACROSS CITY TIERS

6. OVERALL CHINESE ARE AMONG THE HEAVIEST INTERNET USERS GLOBALLY
Sources: eMarketer August 2012; CNNIC 2014
FREQUENCY OF INTERNET USE BY COUNTRY

7. DAILY DEVICE USAGE
Sources: CNRS 2014

8. Sources: CNRS; 36 cities
THE INTERNET TAKES TIME AWAY FROM TRADITIONAL MEDIA
TIME SPENT ON MEDIA (MINUTES / PER DAY)

9. DIGITAL ADVERTISING SHARE OF SPEND FINALLY OVERTOOK TV IN 2014
Note: excludes Hongkong; numbers may not add up to 100% due to rounding;
**excludes digital
Source: eMarketer, Dec 2014
％OF TOTAL MEDIA AD SPENDING IN CHINA
Of digital’s 37.2%
11.7% is mobile.
(up 6* YOY)

10. DIGITAL ADVERTISING SHARE IS EXPECTED TO ACCOUNT FOR MORE
THAN HALF OF TOTAL MEDIA SPENDING
Sources: eMarketer, Dec 2014

11. THE CHINESE INTERNET

12. THE INTERNET, BUT NOT AS YOU KNOW IT

13. Source: Baidu Annual Report 2013; Alibaba Annual Report 2013; Tencent Annual Report 2013
EVERYONE’S TALKING ABOUT “B.A.T.”

14. BUILDING AN ECOSYSTEM

15. Sources: Kantar Retail Research and Analysis 2014
TO COLLECT YOUR LIFE’S DATA

16. FOUR KEY PRIORITIES FOR MARKETERS

17. 1. MOBILE

18. MOBILE IS THE PRIMARY DEVICE FOR INTERNET ACCESS
WITH MORE THAN 527 MILLION CHINESE ACCESSING THE INTERNET VIA MOBILE
Sources: CNNIC June 2014

19. DRIVEN BY RAPID ADOPTION OF HIGH SPEED MOBILE INTERNET
Sources: Mobile Provider Claimed Data
TOTAL 3G AND 4G SUBSCRIBERS IN CHINA (MILLIONS)

20. 69% OF CHINESE HAVE BOUGHT ON MOBILE
Sources: Go Globe April 2014

21. Sources: Kantar Worldpanel Dec 2014
ANDROID DOMINATES IN CHINA

22. BUT iOS USERS SPEND MORE
Sources: Go Globe April 2014

23. CHINESE ARE FAR MORE LIKELY THAN AMERICANS
TO WATCH TV ON THEIR PHONE OR TABLET
Sources: August 2014 polling by GfK for the Interactive Advertising Bureau (IAB)

24. AND THEY ARE MULTI SCREENING
Sources: Millward Brown Ad Reaction 2014
MINUTES PER DAY SPENT MULTI-SCREENING

25. FIVE REASONS MARKETERS LOVE WECHAT

26. MARKETERS GO MAD FOR “O2O”
NOT TO MENTION 02020…

27. THE NEW PICK-UP LINE
Sources: CNNIC; NIELSEN 2014 H1
But did you know…
Only 30% of China’s 550m mobile users use QR code.

28. 2. E-COMMERCE

29. CHINESE LOVE SHOPPING ONLINE
ONLINE SHOPPING RATES IN CHINA ARE MORE THAN DOUBLE GLOBAL PEERS
Sources: PWC 2012 Global multichannel consumer survey

30. 11/11 SINGLE’S DAY PHENOMENON
THE WORLD’S BIGGEST ECOMMERCE SALES EVENT
2014 SET NEW RECORDS

31. Sources: Kantar Worldpanel 2014
WHAT ARE PEOPLE BUYING?
TOP 3 ONLINE SHOPPING CATEGORIES BY DEVICE

32. Sources: 2011 McKinsey IConsumer survey; McKinsey Global Institute analysis; McKinsey analysis
TRANSFORMING ALL LEVELS OF SOCIETY
ONLINE SPENDING ACROSS CHINESE CITY TIERS

33. KEY ECOMMERCE PLATFORMS
Sources: China E-commerce Research Center
TOP 3 CHINA B2C E-COMMERCE SITES ARE TMALL, JD AND SUNING

34. Sources: Kantar Worldpanel MAT June 2014
FROM VALUE SEEKERS TO PREMIUM SEEKERS
DIFFERENCES IN SHOPPERS ACROSS CHINA’S ECOMMERCE SITES

35. WATCH OUT ALIBABA!
BAIDU+TENCENT+WANDA (CHINA’S BIGGEST DEVELOPER OF SHOPPING CENTERS) TEAM UP TO CREATE NEW 020 ECOMMERCE PLAY

36. 3. SOCIAL

37. SOCIAL DOMINATED BY WECHAT & WEIBO
Sources: Tencent/Sina earnings report Q3 2014

38. CHINESE RELY HEAVILY ON SOCIAL PLATFORMS TO DISCOVER AND RESEARCH BRANDS

39. KEY CHARACTERISTICS SHAPE THIS SOCIAL TREND

40. OTHER SOCIAL PLATFORMS TO WATCH

41. 4. VIDEO

42. GROWTH IN ONLINE VIDEO VIEWING
Sources: iResearch 2013

43. KEY ONLINE VIDEO PLATFORMS

44. FULL LENGTH SHOWS DOMINATE ONLINE VIDEO WATCHING IN CHINA
Sources: iResearch 2012

45. Sources: Youku 26/11/2013
VIDEO PLATFORMS INVEST IN ORIGINAL CONTENT STUDIOS
AS WELL AS LICENSED SERIES AND MOVIES

46. 5. OTHER TRENDS

47. PROGRAMMATIC IS EXPECTED TO GROW BY 8 TIMES IN 2015 AND 100 TIMES BY 2018
Note: includes digital display ads, digital video ads and mobile display ads, including video;
*includes all digital display ad spending on upfront, programmatic direct deals secured using pre-existing, real-rime bidding (RTB) technology infrastructure
Sources: International Data Corporation (IDC), “Forward Markets 2013-2018: Moving Direct Display Ad Sales onto the RTB Platform” sponsored by The Trade Desk, March 2014
PREMIUM PROGRAMMATIC DIGITAL DISPLAY AD SPENDING IN CHINA,2013-2018

48. DEFINITION OF CONTENT MARKETING STILL EVOLVING
Sources: PR Newswire,” Content Marketing Trends and ROI Impact Assessment by Companies in China,” Dec 6, 2013
CONTENT MARKETING TACTICS MOST FREQUENTLY USED AND CONSIDERED MOST
EFFECTIVE BY MARKETERS IN CHINA, DEC 2013 % OF RESPONDENTS

49. J. Walter Thompson Shanghai
eugene.chew@jwt.com
FOR MORE INFORMATION:
EUGENE CHEW
CHIEF DIGITAL OFFICER

50. J.WALTER THOMPSON THANK YOU