Your Performance Marketing Company

© 2010 SinoTech Group (China) Limited

Social Media in China

Presenter: Dr Mathew McDougall

Social Media Marketing

MARCOM BEIJING 2010

So you want to know about social media in China.

So you want to know about social media in China.

This presentation will…

Give you a basic overview of China’s social media landscape

Offer some practical advice for companies looking to engage Chinese consumers through social media.

Provide a starting point for learning more and staying informed about the Chinese market.

(Download this presentation to access hyperlinks for additional information)

China’s netizen population is increasing…

420 million users in June 2010

… and adoption of social media is growing.

What about Facebook, YouTube and Twitter?

China’s digital media landscape is dominated by local players.

Government regulated Local players

What makes China’s Internet landscape

unique?

Who the netizens are.

Mostly urban (71.7%) – However, over 95 million rural netizens and growing.

72.4% have a monthly household income of less than 2,000 RMB (~290 USD)

31.7% are students. 7.4% are unemployed.

Only 12.4% have a Bachelor’s degree or higher.

Source: CNNIC’s 24th Statistical Report, June 2009.

How they access the web.

65.9% of Chinese netizens access the Internet by mobile phone.

33.6% access the web through Internet cafes.

(however, declining as broadband access

increases) Source: CNNIC’s 26th Statistical Report, June 2010.

Why they access the web.

Source: CNNIC’s 26th Statistical Report, June 2010.

Why they access the web.

*Source: “The Uniqueness of Social Media in China.”

“Chinese netizens are looking for ways to express … their freedom on the Internet.” * 73% of Chinese netizens agreed with

the statement: “Online, I feel free to say and do things I wouldn’t do or

say offline,” compared to only 32% of US netizens.*

How they’re participating. Chinese users are more engaged in their online lives.

86% of Chinese youth live “some of their lives” online, compared to 42% of American youth.

Source: 2007 survey by IAC and JWT

How influential it is. 56.3% of users said that they

“got to know brands” through online channels.

58.7% actually made purchase decisions based

on user-generated online info (compared to only 19%

in U.S.).

Even when not making a purchase, 89.9% of users

still pay attention to online word of mouth.*

81% of BBS and blog users check online word of mouth before purchasing a product.*

*Source: “Making Sense of Internet Word of Mouth.” CIC 2009.

5 points that companies should consider when doing

social media in China?

1. Listen to your audience. . •  What are they saying about your brand? Is it positive or

negative? •  What are they saying about your competitors’ brands? •  What language are they using? Chinese, English, Japanese …. •  Is the conversation dominated by a small number of contributors

or is there widespread involvement? •  Are they located in a particular part of China or is it

geographically widespread?

2. Understand local netizens.

… and how they’re different from netizens in other markets.

•  What are their motivations for using social media? •  How do they interact with different social media channels? •  How to they interact with each other across these channels? •  What drives them to participate and spread messages? •  What kinds of messages will they be receptive to?

3. Use the right channels. Before you jump on the social media bandwagon ensure you know where your target consumers are located and how this relates in a share of voice sector comparison- blogs vs. forums vs. social networking sites vs. micro-blogs.

4. Know what incentives work for engaging a community

Why should Chinese netizens engage with your brand and spread your message? Is it social currency? Opinion leadership among peers? Ego driven? Timely and compelling content? Access to exclusive promotions? Incorporate incentives that will drive interest and participation.

Be authentic and transparent in communicating across social media.

Try to add legitimate value to netizens’ online experiences. Most importantly, don’t try to deceive netizens – it will only lead to backlash and reputational damage.

5. Gain and maintain trust.

Some cool things companies have done using Chinese social media:

Apple’s social networking site campaign

Some cool things companies have done using Chinese social media:

Qatar Airline campaign develops online engagement leveraging micro-blogs and BBS

Some cool things companies have done using Chinese social media:

BMW launches niche, high end social community in China

Some cool things companies have done using Chinese social media: Clinique/Sony Product Placement and “Sufei’s Diary”

Some cool things companies have done using Chinese social media:

Accor Hotels in China “Invite a friend”

And some not-so-cool things they’ve experienced across social media.

The Melamine Milk Powder Scandal

And some not-so-cool things

they’ve experienced

across social media.

“Starbucks faces eviction from the Forbidden City”

And some not-so-cool things they’ve experienced across social media.

Chinese netizens rally against Carrefour

And some not-so-cool things

they’ve experienced

across social media.

The KFC Coupon Crisis

And some not-so-cool things they’ve

experienced across social media.

China’s social media landscape is constantly growing, innovating, evolving.

Consumers are adopting new technologies and interacting with them in different ways.

And new conversations can engage millions of netizens in a matter of days, or even

hours.

By the time you view this presentation, the facts will have changed.

Knowing the market requires you to stay informed!

Here is the leading tool to get you started

Online Reputation Management

[click for more information]

outperforming our competition

Beijing: � +86 (10) 6561 5818

Shanghai +86 (21) 3363 2739

Email: info@sinotechgroup.com.cn

Web: www.sinotechgroup.com.cn

@sinotechgroup sinotechgroup sinotechgroup sinotechgroup