The state of Digital in China: Industry Landscape, Trends...
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Presented by Calvin Chan, COO@AdMaster The state of Digital in China: Industry Landscape, Trends and Forecast
Transcript of The state of Digital in China: Industry Landscape, Trends...
Presented by Calvin Chan, COO@AdMaster
The state of Digital in China:Industry Landscape, Trends and Forecast
Digital Landscape & Trends
China netizens reached 731M (53.2%)
Data Source: CNNIC
Chinese netizens on average own 4.1 devices (mostly mobile)
Data Source: CNNIC
China’s Digital ecosystem quite different from Western World
Global Trends – Mobile, Mobile and Mobile
Mobile netizens reached 695M
Data Source: CNNIC
WeChat, QQ & Taobao are leading Apps with Top MAU
Data Source: QuestMobile
Tipping point at 2015Q2, Mobile surpassed PC as the #1 device
Video Ad Impressions by device
10,7%
16,6%
28,6%31,2% 33,3%
47,3%49,6%
53,6%57,7%
61,0%64,7%
68,1% 69,9%
89,3%
83,4%
71,4%68,8% 66,7%
52,7%50,4%
46,4%41,4%
37,3%32,1%
27,3%24,4%
2014,Q1 2014,Q2 2014,Q3 2014,Q4 2015,Q1 2015,Q2 2015,Q3 2015,Q4 2016,Q1 2016,Q2 2016,Q3 2016,Q4 2017, Q1
Mobile Ad Imp PC Ad Imp
Data source：AdMaster Ad Measurement
“Singles Day”(aka Double 11 by Alibaba)
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
0
20
40
60
80
100
120
140
2014 2015 2016 2017
Singles' Day - YOY performance (2014-2017)
Sales YOY Growth
RMB (Billions)
Data Source: Alibaba
In China, Mobile = A gateway to real Business!
Data Source: Alipay
32%
2013
43%
2014
69%
2015
82%
2016
Mobile payment share of Double 11
When it comes to Social, WeChat still in leadership position
98%
81%
56%
36%
13% 13%8% 8%
Wechat Weibo Qzone Tieba Momo Douban Zhihu Renren
Penetration for Social Media
Base: all respondents，n=2800
Data Source: 2016 China’s social media user behavior Report, AdMaster
Data Period：2016/08/05-2016/08/10
Official Accounts – a significant channel to influence consumers
Actions driven by Official
Account in past 6 months
51%
40%
35%
35%30%
26%
23%
Follow another official account
Redeem coupons
Search for a product/brand
Download an AppParticipate in a campaign
Follow an e-Store
Bought a product
Data Source: 2016 China’s social media user behavior Report, AdMaster
Data Period：2016/08/05-2016/08/10
Live streaming recorded rocket-like growth in 2016
85%87% 88%
80%
86%
89%
79%
90%
81%
15-24 25-29 30-34 35+ Tier 1 Tier 2 Tier 3 Male Female
Data Source: 2016 China’s social media user behavior Report, AdMasterData Period：2016/08/05-2016/08/10
Top Live streaming App/Website
28%
24%21% 21%
20% 18% 17%15% 15%
12%
美拍 快手 斗鱼tv yy 映客 陌陌 花椒 一直播 熊猫tv 虎牙tv
Top10 Live streaming app/website
Data Base: Live streaming user, n=1803Data Source: 2016 China’s social media user behavior Report, AdMasterData Period：2016/08/05-2016/08/10
Example – the power of Celebrity KOL
25.6 million Sina Weibo fans
Search volume
Baidu Tiebafans
Baidu Search Index
9.0 million
3.16 million
2.8 million
31,000+ Social Buzz
Data Source: 129 cases from Sina Weibo & AdMasterData Period：2016/10
USA: Netflix & Hulu & Amazon
China: PGC (ad supported model) and CPM buy
IP / Content Marketing – Market size beyond imagination
Variety Shows/Dramas
GamesMotion Picture
s
SportMarketi
ng
Celebrities/KOL
Reading/Animations
USD 55B in 2016, ~72B for 2017, 30%+ YOY
Data source: Analysys, Zhiyan, public information and forecast
Key Implications to Business
Current Business Challenges
Economic
Slowdown /
Downturn
Demographic
Dividend
Fading Away
Elusive
Chinese
Consumer
Digital
transformation &
Data Silos
China
Build Data Platforms to
enable Smart Decisions
Critical Actions for Brands
Ride on
“Premiumization”
Connect
With Internet Giants /
Tech Partners
With China’s consumption pattern evolving into “Middle-class+”,
products with more engaged decision making process becoming the new battlefield
Marketers need real-time big data to understand better the Digital Consumer Journey
Key Forecast for Digital Marketing
Key trends Brands should watch out for…
People-based Measurement Solution (PMS) Redefines Digital Ad Measurement, which better measures Cross-device Audience Reach
The People-based Measurement Solution is powered by Tencent’s more than 900
million active social accounts (Covers 90% Netizen) and AdMaster’s
accumulated advertising measurement solution in the past 10 years driven by
cutting edge data technology. Now also enrich demographic by interest tags
based on weibo account system.
The leading marketing technology
company with 10 years experience on
Ad Measurement
China's top social media
platforms
*Tencent Social Ads owns QQ and WeChat data.
Selling 10,000 lipsticks in 2-hour Live Streaming!
Fan-based economy: Activating the power of celebrity
Brand: MaybellineCelebrity: AngelababyViewers: 5,000,000Items sold: 10,000 lipsticksSales: USD 212,000
Analog TV
Digital CATV OTT
IPTV Smart TV sets
Connected TV (CTV) - the “Sleeping Dragon”?
2016/2017► Connected TV
101011
1990 1995 2000 20152005 2010
Upward growth trends for CTV ownership
31.000.000
49.810.000
76.800.000
81.500.000
-
10.000.000
20.000.000
30.000.000
40.000.000
50.000.000
60.000.000
70.000.000
80.000.000
90.000.000
2014,12 2015,6 2016,1 2016,6
Data Source: 奥维云网(AVC)
Data Period：2013-2016.11
Highly Important to build up the ‘brand & consumer’
bonding with the help of Data Management Platform (DMP)
ConsumerCatch Close Continue
Earned Media (Social) Sales (E-Commerce) Owned SitesPaid Media (PC/Mobile)
First Party Data Management Solution
ConnectBrand
Using LBS and online/offline data connection to drive better sales leads or even conversion
View
Ads &
Click
Store
Visit
???
Apply
Test
Drive
China’s Digital Ecosystem
The Romance of the 3 Kingdoms
The Data Environment in China - Meet the Giants (1/2)
Info Mobile Entertainment SearchSocial Life
真实个体
接近
• BAT (Baidu, Alibaba & Tencent) have almost every type of data of Chinese netizens through
their own products and portfolio companies;
• Example: Tencent – 938M+ WeChat MAU accounts, 861M QQ MAU accounts, products
cover all scenarios and time from consumer’s wake-up to sleep
The Data Enviroment in China - Meet the Giants (2/2)
Name Data Type Remarks
Baidu Search mainly Partially open (PC more open)
AlibabaE-Commerce/payment mainly, butalmost every aspect of an user
Some external data partnership
TencentAlmost every aspect of anonline user
Open for media optimization
Weibo Social Higher Availability (data API)
WIFI Vendors Wi-Fi behavior data with locations Provide online to offline data at airports, train stations, stores
Telcos Consumer data on mobile network Partially Available, relatively expensive
Other 3rd partyData Providers
Miscellaneous Still Fragmented (Getui, TD, vertical publishers, e.g. BabyTree, etc)
