Chinese Consumers are Embracing Digital in an unprecedented way Presented By Calvin Chan COO @AdMaster Date: April 10, 2014
Chinese Consumers are Embracing Digital in an unprecedented way
Presented By
Calvin Chan COO @AdMaster
Date: April 10, 2014
AGENDA
�What are the characteristics for the online behaviors of Chinese consumers?
� How are Australian brands doing on Chinese social media?
� Case Sharing: how to make better business decisions by leveraging the power of digital and social?
Chinese Internet Users reach 618 million, 27 times the population of Australia!
8.5% 10.5% 16.0% 22.6% 28.9% 34.3% 38.3% 42.1% 45.8%
0.0%
20.0%
40.0%
60.0%
020000400006000080000
2005 2006 2007 2008 2009 2010 2011 2012 2013
Size of Chinese Internet users and Internet penetration rate
Netizens Peneration%
10000 persons
18.3 18.7 20.5 25
0
10
20
30
2010 2011 2012 2013
Average weekly time spent per Chinese Internet user
Hour
191 230 268 320
0
100
200
300
400
2010 2011 2012 2013
Number of websites in China 10000 persons
Data Source: CNNIC, 2014.1, Statistical Report on Internet Development in China
65.9% 69.3%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2012 2013
Number of Users and Utilization Ratio of
Online Video
Number of users of Online VideoUtilization ratio of Online Video
10000 persons
82.9% 86.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
0
10000
20000
30000
40000
50000
60000
2012 2013
Number of Users and Utilization Ratio of
IM
Number of users of Instant Messaging
Utilization ratio of Instant Messaging
10000 persons
+13.7%
IM, Online Video, Online Shopping keep growing at double-digit rate
+15.1%
42.9% 48.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
5000
10000
15000
20000
25000
30000
35000
2012 2013
Number of Users and Utilization Ratio of Online Shopping
Number of online shoppers
Utilization ratio of online shopping
10000 persons
+24.5%
Data Source: CNNIC, 2014.1, Statistical Report on Internet Development in China
Mobile is BIG! Mobile Internet exceeds PC and will be the new battlefield for marketing
70.6%
45.9%
74.5% 69.7%
44.1%
81.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Desktop Laptop Mobile Phone
Usage of Internet-based Devices
2012 2013
32.0%
49.3%
0.0%
20.0%
40.0%
60.0%
0
10000
20000
30000
2012 2013
Number of Users and Utilization Ratio of Mobile Online Video
Number of users of Mobile Online Video
Utilization ratio of Mobile Online Video
13.2%
28.9%
0.0%
20.0%
40.0%
0
10000
20000
2012 2013
Number of Users and Utilization Ratio of Mobile Online Shopping
Number of users of Mobile Online ShoppingUtilization ratio of Mobile Online Shopping
Data Source: CNNIC, 2014.1, Statistical Report on Internet Development in China
Compared to TV and PC users, mobile users have higher education background, higher income and more senior position, especially Pad users
45.9 45.6 52.4 47.4
TV PC PAD SMART PHONE
University or above
4.8 4.9 5.8 6.1 4.7 4.2 5.5 4.0 10.6 11.3 12.4 12.8 2.1 2.2
3.4 3.7 9.6 8.7 11.7 10.5
25.2 24.1 22.3 20.9
TV PC PAD SMART PHONE
Employee
Department Manager
Senior Management
Self-employed
Professional (Lawyer, Doctor)
Civil Servant
11.5 11.2 14.1 12.6
11.8 10.4 16.7 15.6
TV PC PAD SMART PHONE
6000-9999RMB 10000RMB and above
The difference of education background across platform Unit:%
The difference of income across platform
The difference of occupation across platform
Data sources : AdMaster;Pool 4 13 projects in total,5 medias :2013.9-2014.3
Unit:%
Unit:%
Cross-screen study shows that Mobile better increase brand awareness and purchase intention than PC and TV
8
9.3 9.6 10.2 11.7 12.8 14.8 15.8 20.0
5.5 7.3 6.6 6.5 Brand AwarenessPurchase IntentionPreference
TV ad Increase rate
Online video (PC) Increase rate
Online video (Pad) Increase rate
Online video (Phone) Increase rate
All categories Brand awareness of different platforms
Unit:%
Data sources : AdMaster;Pool 4 13 projects in total,5 medias :2013.9-2014.3
In FMCG industry, smart phones drive higher purchase intention than other platforms, esp. for the matured brands
9
14.3 12.7 12.7 11.7
9.7 12.3 11.7
15.0
Brand Awareness Purchase Intention
TV ad Increase rate
Online video (PC)
Increase rate
Online video (Pad)
Increase rate
Online video (Phone)
Increase rate
Chocolate category Brand KPI increase rate on different platforms
1 1 2 2
7 10 10
14
Brand Awareness Purchase Intention
TV ad Increase rate
Online video (PC)
Increase rate
Online video (Pad)
Increase rate
Online video (Phone)
Increase rate
Beverage category Brand KPI increase rate on different platforms
Unit:% Unit:%
Data sources : AdMaster;Pool 4 13 projects in total,5 medias :2013.9-2014.3
Social Media Usage: WeChat and Weibo are most frequently used
53.4
20.7 21.6
59.6
24.5
26 27.9
20
9.5
19.8 17.4
11 6.9
13.7 15.5
5.5 3 8.4 9.7
1.7 2.7 11.5 8 2.2
0%10%20%30%40%50%60%70%80%90%
100%
Weibo SNS Blogs WeChat
Multiple times / day Once a day 4-5 times / week
1-2 times / week 1-3 times / month <1 time / month
High frequency of use
Using it anyw
here
……Weibo: � “Logged � in � 10+ � times, spent 10mins to an hr”
……WeChat: � “always � on, retweet and leaving messages � to � friends”
1+ per day
Unit:%
N=1217
Data source: AdMaster
When it comes to purchase decision, Chinese social media users are highly influenced by their friends and colleagues, esp. the younger demos
22.4 24.7 31.7
20.3 28.1 30.3
38.5
28.9
56.5 59.9 63.5
50.8 48.8
68.1 67.3
57.8
83.6 81.9 75.0
66.4
6.9 9.1 6.7 8.6
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
P18-24 P25-34 P35-39 P40+
Celebrity People w/ social status Relatives Colleagues Friends Strangers
Unit% N=1125
Data source: AdMaster
Inventory Price Delivery Service
E-Shopping Experience Buzz Volume
28%
26%
27%
29%
7%
22%
47%
10%
-65%
-52%
-26%
-61%
NeutralPositiveNegative
E-Shopping Experience Buzz Sentiment
Inventory
Price
Delivery
Service
Consumer journey
When they purchase online, delivery is their top concern
Data source: AdMaster
Weibo IWOM is a good channel for online finance products to obtain users Yu E Bao user growth showed the same trend as Weibo buzz growth
0
5
10
15
20
25
30
35
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Jun Jul Aug Sep Oct Nov
Weibo Buzz Volum
YuEBao User Amount
Weibo Buzz Volume YuEBao User Amount (in million)
Data source: AdMaster (Buzz Volume) Alipay (User Volume)
* Remark: YuEbao did not release User Volume of Aug.
AGENDA
�What are the characteristics for the online behaviors of Chinese consumers?
� How are Australian brands doing on Chinese social media?
� Case Sharing: how to make better business decisions by leveraging the power of digital and social?
13 Australian brands are being talked about on Sina Weibo Bridestowe did many promotion campaigns
20043
16786
7333
132352
67155
14509
0
20000
40000
60000
80000
100000
120000
140000
0
5000
10000
15000
20000
25000
Buzz Performance
Buzz Volume Engagement
Data source: AdMaster Data period: 2014/1/1 to 2014/3/20
When they mentioned “Blackmores”, what are they talking about?
Data source: AdMaster Data period: 2014/1/1 to 2014/3/20
Among the 13 brands, only 7 have a Sina Weibo official account
Data source: AdMaster Data period: 2014/1/1 to 2014/3/20
Yellow Earth
23,614 fans 31 months
UGG Australia
49,579 fans 30 months
Bridestowe
22,198 fans 5 months
Cheviot 86 fans 13 months
Oroton
7,697 fans 31 months
WOOLMARK
115,505 fans 31 months
Blackmores
111,852 fans 31 months
How are these 7 brands operating their owned media on Weibo? A positive impact showing for UGG Australia!
107 168
1445
11462
4710
10 715 19
324
102
238
142
4
31
0
50
100
150
200
250
300
350
0
2000
4000
6000
8000
10000
12000
14000
Tweet Number Consumer engagement
Weibo Performance for Australian Brands w/ Sina account
Consumer Engagement Tweet number
Data source: AdMaster Data period: 2014/1/1 to 2014/3/20
Your Chinese Target Audience love Food, Travel and Fashion! And they are a different group from local Chinese brands’ TA
Top 5 User Tags on Sina Weibo for Australian Brands
Music 10% Movie 10% 80s 8% Travel 7% Food 6%
Local Brand Li-Ning User Tags
Data source: AdMaster Data period: 2014/1/1 to 2014/3/20
AGENDA
�What are the characteristics for the online behaviors of Chinese consumers?
� How are Australian brands doing on Chinese social media?
� Case Sharing: how to make better business decisions by leveraging the power of digital and social?
New opportunity from consumer insights: Skin damage is the no.1 concern for consumers on heavily polluted days, growth areas for beauty brands
1
5
Consumers’ Skincare Concerns on Heavy Air Polluted Days
3%
5%
7%
9%
16%
21%
40%
0% 10% 20% 30% 40% 50%
Coarse Pores
Breathing Problems
Acne
Skin Cleansing Challenges
Skin Dryness
Allergy
General Skincare Problems
Key Concerns Categories
Data Period: 2013/01/01-2013/06/15
Data source: AdMaster
Renewed perspective about your customers: Redbull learned new things about the profiles, psychology & behaviors of their target audience
2
5
Data source: AdMaster
Post 80s & 90s Mostly live in Guangdong
Like variety shows & entertainment
Sarcastic & Showoff their daily life
Love Traveling, but of actions
Passionate about Sports
Freedom-spirit
Local
Big data to guide better decision making: Coca Cola’s summer campaign (nickname bottles)
3
5
WeChat for real-time CRM: SO-LO-MO and very personal channel to connect with Chinese consumers
4
5
WeChat Billing & Notice 9 Transaction notice 9 Check & pay bills 9 Increase credit limit 9 Edit personal profile 9 Credit card payment 9 Lookup deals locally 9 Smart voice chat …
Data analytics for enhanced consumer engagement : Engaging Weibo campaigns helped drive followers for Visit California
5
5
z During the period from April 8th to May 28th 9,453 new twitters become VCA’s followers, leading to a 33.7% net increase refer to April 8th’s level
z The average quality of these new followers is 24, significantly higher than @VCA’s original follower quality (14)
27,887 28,060
37,513
311 312
630
300
350
400
450
500
550
600
650
25,000
27,000
29,000
31,000
33,000
35,000
37,000
39,000
3/18 3/25 4/1 4/8 4/15 4/22 4/29 5/6 5/13 5/20 5/27
Follower Amount
Tweet Amount
Follower Number Tweet Volume Tweet Volume and Follower Growth of @VCA
April. 8th, Campaign
Launch
#我摇去加州#
Topic #奢华之旅#
Data source: AdMaster
Aligning Weibo posting with users’ active time 5
5 z In general, the posting time of VCA is in accordance with its participants’ active
time (blue boxes); however, from 15:00 to 17:00, when VCA ‘s posting time peaks, participants’ active time touches a trough(red box)
0%
2%
4%
6%
8%
10%
12%
14%
16%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
VCA Posting Time Participant Comment Time Participant Retweet Time
@VCA and Participants’ Active Time in 24hr
Data source: AdMaster
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Power of Social Media Blackmores China
April 10, 2014
Social Media Overview in China
Latest social media structure released by CIC.
building awareness
content/interaction
service/trade
Social Media Chain Value:
Social Media Strategy
Attention Interest Search Action Share
People’s purchase decision-making process is changing…
Xanthigen Campaign with
social media support
X‘mas Card to Fans
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Increasement
Accumulative
Aver./Day
Blackmores Fans on Weibo x10 times in 2013
House Wife
吃了一阵子这个@Blackmores澳佳宝 的高浓度深海鱼油了,大变化倒没感觉出来,但是,不能不提的是我明显觉得自己记忆力好了很多,同事也说我眼神跟以前不一样了,犀利了哈哈~ 一天一粒也蛮方便的~ 希望不是什么心理作用 哈哈哈~
KOL - Beauty
哇,终于收到澳佳宝的鱼油了。好大一瓶,满满的期待。澳佳宝在澳洲的口碑很不错,好多朋友都推荐呢。希望这个鱼油可以让我耳聪目明,身体棒棒。嘻嘻。 Office Lady
@blackmores澳加宝: 葡萄籽收到啦!美美地!@OfflineButAlive @haohaostudy @wffxdg 姐妹们吃了没?
对美容资讯情有独钟 容易受到美容类KOL影响
渴望自己也成为KOL
对减压话题有兴趣 喜欢在姐妹团内分享心得
注重生活质量 对健康有专业诉求 喜欢点评尝试过的产品
对家庭无微不至
111,852 fans
Blackmores Weibo Review
Community marketing : Celebrity’s Wechat publicity on our Xanthigen.
Our WeChat Upgraded from Subscription Account to Service Account, bringing into interactive interfaces.
Our new WeChat Subscription Account, delivering more health and regimen topics.
Blackmores @Wechat
Xanthigen Campaign: Online + Offline
Publicity & Interaction
Award delivery & Direct contact
Paid Media
Owned Media
Blackmores Social Media Strategy
www.blackmores.com.cn
Earned Media
Thank You!