WHAT CAN SOCIAL MEDIA IN CHINA TEACH THE WORLD? DR. LINDA XU CHIEF - - PowerPoint PPT Presentation

WHAT CAN SOCIAL MEDIA IN CHINA TEACH THE WORLD?

• DR. LINDA XU – CHIEF CLIENT OFFICER

KANTAR MEDIA CIC

Why social media in China is so different

The Chinese Internet serves as a powerful platform for entertainment, information, socializing, and purchasing

Limited Variety of Entertainment Media Not Trusted Limited Socializing Unbalanced Shopping Access

Social Media in China is: Unique, Fragmented, and Dynamic

2008 2010 2011 2012 2013 2014 2015

BATS make China’s landscape uniquely PRACTICAL

BATS: Baidu, Alibaba (Tmall/Alipay), Tencent (Wechat/QQ), Sina (Weibo)

V

VIRAL INFORMATIVE PRACTICAL

Wechat Weibo Baidu Weibo Wechat Tenpay Wechat Weidian Sogou

P I

X Blocked

Firewall has driven localization and much more

 ACCESSABLE

Baidu Search/百度搜索 Tieba/贴吧 Taobao/淘宝 Tmall/天猫 Alipay/支付宝 Wechat/微信 QQ Weibo/微博

WeChat public accounts functions are innovative and comprehensive

Third-party plugins

(Forum, FM, Magazine…)

Scan bar code to get product stock information Brands can feed group-buying and discount content to consumers, and insert e-commerce site within banner

Real-time customer

services to answer followers’ questions/complaints

Gamification drives

netizens participation to better deliver brand/product feature

Discounts, credit

and other membership services can be utilized on WeChat to enhance consumer loyalty

Third-party plugins make

more functions possible on WeChat

Forum FM Magazine

Other Functions Membership Service Third-party plugins Gamification Real-time Customer Service E-commerce

WeChat Feature

Brands enjoy new ways to connect with customers

Membership Service Product Sampling Store Search Customer Service E-commerce Survey Brand Community Campaign Channel (Post and HTML5) Product Information

Influence of social platform in China

63.0 249.9 308.6 280.8 248.8 230.5 271.4 19.6 46.2 50.6 76.3 102.0 117.0 148.0 144.0 149.3 120.5 129.1 119.0 120.8 175.9 235.1 244.2 275.1 277.7 161.5 201.7 240.4 284.0 325.3 371.8 428.2 433.0 503.9 544.6 4.6 15.8 34.7 49.4 161.8 221.6 294.5 318.6 373.0 436.6 466.8 40.0 46.5 47.3 170.9 244.0 272.0 353.0 415.0 467.8 532.2 587.8 624.1 666.3 94 111 137 210 298 384 457 513 564 618 649 688 731

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Microblog BBS SNS Video Blog IM Internet User

Social Media User Base in China (December 2016)

Social media user base steadily grows in China

Source: The 39th Statistical Survey Report on the Internet Development in China by CNNIC, January 2017 Notes: Internet user number includes mobile internet number; WeChat user was included into mobile IM user. According to Tencent Financial Report, Q3, 2016, WeChat user reached 846 million by the end of September, 2016. Notes: SNS user number isn’t counted from December 2014; blog user number isn’t counted from December 2015. Million

Mobile Internet Users in China Internet Accessing Facilities

Mobile is the most widely used device to access the Internet

50 73 118 155 233 277 303 318 356 388 420 464 500 527 557 594 620 656 695

0% 20% 40% 60% 80% 100% 100 200 300 400 500 600 700 800

Mobile internet user scale the proportion of mobile users in total netizens

282 309 345 359 377 380 398 410 430 440 459 457 465 459 439 233 277 303 318 356 388 420 464 500 527 557 594 619 656 695 118 155 209 224 240 242 259 277 272 276 280 284 266 273 269 226 225 216 217 230 101 106 123 150 183

80 180 280 380 480 580 680

Desktops Mobile Laptops Tablet TV

Source: The 39th Statistical Survey Report on the Internet Development in China by CNNIC, January 2017 Note: Since 2014.12, TV has been used as an Internet Accessing Facility Million Million

TV 40.6% Radio 2.7% Newspapers 4.1% Magazines 1.3% Outdoor 9.0% Internet 42.3% TV Radio Newspapers Magazines Outdoor Internet

Share of Spending by Media

TV 35.8% Radio 2.3% Newspa pers 1.9% Magazin es 0.8% Outdoor 8.5% Internet 50.8%

Advertising Spending by Media USD Billion

SOURCE: GROUPM Note: The Internet category includes Mobile Internet, E-commerce, Search, Online Video and Social Media.

Internet has become the leading media channel for ad spending in China

2015 2016

30.1 2 3 1 6.7 31.4 28.6 1.8 1.5 0.6 6.8 40.6 10 20 30 40 50 TV Radio Newspapers Magazines Outdoor Internet 2015 2016

14 8.5 2.2 22.1 10.2 3.2 58% 20% 46% 0% 20% 40% 60% 80% 10 20 30 40 50 60 Mobile Internet E-commerce Social Media 2015 2016 Growth Rate

Advertising Spending by Category USD Billion

Ad spending on Mobile Internet, E-commerce and Social Media grew with government support

Internet, Smartphone and E-commerce has growing penetration in China

Xinhua: Internet To Countryside 2.0 Xinhua: Traditional Mobile Service are Struggling and Goes to Rural Area for Survival People's Daily: Further Release E-commerce Potential

Note: Mobile Internet includes display and search. E-commerce includes Taobao, Tmall, JD, Qunar,etc, Search, Social Media includes blog, Baidu Tieba, Qzone, WeChat, Sina Weibo, etc. SOURCE: GROUPM / eMarketer / iResearch

1.3 2.2 3.2 73% 69% 44% 0% 20% 40% 60% 80% 1 2 3 4 5 2014 2015 2016 Social Media Ad Spending Growth Rate

Social Media Advertising Spending USD Billion

Skyrocketing Ad spending on social media in past few years

Note: Mobile Internet includes display and search. E-commerce includes Taobao, Tmall, JD, Qunar,etc, Search, Social Media includes blog, Baidu Tieba, Qzone, WeChat, Sina Weibo, etc. SOURCE: iResearch

78.7% 67.4% 34.0% 11.1% 86.8% 67.8% 37.1% 8.1% 7.6% 7.0% WeChat at QQ Zon

• ne

Sin ina Weib ibo Douban Zhih ihu Tia ianya ya Jun-16 Dec-16

SOURCE: CNNIC

Mobile App Penetration in China, 2016

Impact of social campaigns in China

Trending Stories on Social Media in China

Ce Cele lebrit ity & Fandom

Celebrity Endorsement

I.P I.P. (In (Intelle lectual Property)

Brand Sponsorship

KOL & Cy Cyber Star

New Economy

KOL: Key Opinion Leader

Flou lourishing E-commerce

Traffic Guidance

24 Hours 1.5 .5 M USD

Sales les Volu lume e (A (April il 6th

th, 2017 )

Hot I.P. + Celebrity + Platform Integration

12,1 12,170,8 ,884 @HERO趙又廷 Liv Live Broad Broadcasti ting for

• r lau

aunch cam ampaign War arm-up: Cel Celebrity pos post t & Pro romotio ion vi video

93,243 14,709 95,748 Link

7,43 7,430,0 ,000 Vie Viewership

Kiehl’s Tmall Fla lags gship Store Openin ing

5,000,000+ 10,000,000+

1 Month

Hot I.P. Effect

High Popularity Weibo Post Short Video

Brand + Celebrity + E-commerce

4,96 4,964,8 ,815 @KobeBry ryant Weibo + + Sho Short Vi Video + + E-commerce

Promotion of

• f NBA #K

#KB20# T-shirt

• NBA Most

Valuable Player

• 5 Times NBA

Campions

• 18 Times All Star

Player

67,643 32,611 189,451

Link

E-commerce Link + Short Video

One Day 7,000 Orders $380,000

Retweet Comment Like

@Ba Bags包先生

A A fas ashi hion KOL Lo Loves s bag bag

French Luxury Fashion Brand Elegance, dignity, delicacy

• Mr. Bag

Bag recommended Giv Givenchy rep epeatedly ly

Expert KOL and luxury brand cooperation

• Note: 1: Data source: Digitaling. 2: Data source: Kantar Media CIC.

Fashio ion High-end Rich and beautifu ful lady Delic icacy

• Mr. Bag

Givenchy

Givenchy and and Mr. . bag bag fans ans image an analysis

2

Fan base：

400,0 ,000+

Average reads:

100,0 ,000+

1

80 Bags 12 Minutes 175,000 USD

• Mr. Bag X Givenchy

Limited edition bag: Givenchy Horizon

The only purchase channel

Special color for Mr. Bag’s fans:

Baby Pink

Success with limited editions for loyal fans

Crisis management in China’s digital world

Response attitude directly impacts crisis scope and brand purchase intention

Response Attitude Average Duration (Days) Changes in purchase intention% （within 24 hours） Changes in purchase intention% （within 4 Days） Changes in purchase intention% （within 1 week） Denial of issues 20

• 403%
• 370%
• 312%

Admit problems and apologize 28

• 348%
• 301%
• 234%

Immediately release a response indicating an investigation is underway before making any conclusion 13

• 219%
• 156%
• 113%

Brand K Brand A Brand D  Quick response  Single message ‘our products are safe’ = is not convincing  Consumers feel not taken care of  Lacks of responses  Simply highlight ‘safety’ = not convincing  Consumers feel being cheated  Immediate response  All aspects of information  Caring tonality

Quick, Convincing, and Considerate Communication during crisis

13% 5% 80% 2%

Issue: Denise supported the independence of Hong Kong

Topic c Angles es

Denise HO Key Mi Mile lest stone ne

• Guardian Report every 4 hours
• Continuous monitoring on

weekend

Others Boycott involved brands Criticized involved brands/celebrity Forwarded the news

Note：The final evaluation would be based on the most severe index

Celebrity political views may lead to brand crisis

Key takeaways

Social content has become more rich, visual, interactive, real-time, and immersive

01

TEXT

02

PICTURE

03

AUDIO

04

VIDEO

Iterated from portals to forums, from micro-blogs to WeChat Instagram and NICE: cross-platform social apps, social contents mostly in pictures Rise of audio based social platforms: XiMaLaYa, Qingting FM Short-video apps: Miaopai and Meipai

Integration of content, KOL and platform drives traffic & conversion

Live-stream KOL Agency Social Platforms E-commerce FANS

Generate contents Consume contents Supply contents Incomes sharing Incubate Professional division of work Interact, traffic diversion, promotion Self-operated online stores cooperated with brands

Monetization Fans management Interact Consumption

KOL

In conclusion

 Chinese social media is not only unique….it is uniquely important in China as a source of information and as entertainment and purchase channel  While good content is necessary, it may not be sufficient for success. The mechanics of dissemination for different platforms are critical for success  Weibo and WeChat are ‘core’ platforms, but new platforms are emerging. A multifaceted approach has become the norm  Content, Tactics, KOL and hot topic are key drivers for both E-commerce as well as brand success on social  Look to social intelligence on KOL, hot topics and issues to inspire relevant content

Chinese social media is a powerful force in the world’s number one ecommerce market driven not only due to the scale, influence and engagement of social media, but also the innovative practical services most importantly payment, all available cross-device and

• verwhelmingly active on mobile

Thank You!