Evento Mobilidade 2016 - Chinese mobile marketing - Chen Yong - IAB China

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CHINA MOBILE MARKET CHEN YONG Presidente IAB China

Transcript of Evento Mobilidade 2016 - Chinese mobile marketing - Chen Yong - IAB China

Page 1: Evento Mobilidade 2016 - Chinese mobile marketing - Chen Yong - IAB China

CHINA MOBILE MARKETCHEN YONG

Presidente

IAB China

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Hello everyoneBoa tarde a todos!

November 2016

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China Mobile Market

01

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Ad Market Outline02

In 2015:

Ad market scale: RMB 597.3 BILLION;

Ad industry practitioner: over 3.07 MILLION;

TV: RMB 114.6 BILLION;

Newspaper: RMB 50.1 BILLION;

Radio:RMB 12.4 BILLION;

Magazine: RMB 7.2 BILLION;

Interactive advertising: RMB 198 BILLION

互动

电视

报纸

广播

杂志

Interactive

TV

Newspaper

Radio

Magazine

Ad spend by media

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Population / Mobile Phone / Internet03

People & mobile:

•Population: 1.3746 BILLION (in 2015)

•users: 1.306 BILLION, penetration: 95.5%

Internet user & mobile internet:

•Internet users: 710 MILLION, 51.7% of the population

•Mobile internet users: 656 MILLION, 92.5% of internet users

Internet environment:

•3G/4G used:91.7% , increases 2.9% than previous year

•Wi-Fi access:92.7% , increases 0.9% than previous year

•Average time spent on internet per person: 26.5 hours / week

农村网民

城镇网民

网民男女比

例构成男

网民男女比

例构成女

0

10

20

30

40

10-19岁 20-29岁 30-39岁 上网年龄结构

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Regional environmental advantages05

Rate of urbanization increases by 1 persentage

every year

Urban population in 2020 : about 840m 56.1%

Rate of urbanization in 2015

Urban population

771M

Increases 0.6-0.8 percentage every year

Urban population in 2030:almost over 900M

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Humanity advantage of Chinese mobile

developing in global background07

3,1 2,014,96

13.7

2,50,23 0,5 1,262,5 1,71

3,66

7.7

1,3 0,2 0,41 1,18

US Brasil EU Mainland Indonesia Taiwan Korea Japan

China

Total population (100m)

Urban population(100m)

US 80.6%; Brasil 85%

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Advantage of population distribution06

City sizeNumber

of cities

Above 10 million

6

5-10 million 10

3-5 million 21

1-3 million 103

0.5-1 million 138

Under 0.5 million

378

Total of cities 656

Total of towns 20515

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Why mobile internet develops rapidly04

High penetration rate of mobile user

Rapid development of mobile technology

Broadband (3G/4G) develops in high speed

Multi-level and full coverage of mobile phone

People’s desire of pursuing better life

Mobile device brings convenience to life, entertainment and study

Younger generation highly depends on mobile

Sufficient capital involved in

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08

WeChatSocial tools brings

people closer to mobile

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Social function09

1. Social platform: WeChat combines instant messaging &

moments. When your friend posts a video, link or photo, you can

response immediately

features: strong privacy, non-visible for non-friends

2. Social media: over 20m official accounts on WeChat. Brands,

individual & journalist are allowed to issue news, information, ads

or promotion through it.

It is a life service+social platform in nature.

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Social function10

3. Electronic pay: powerful paying and account transfer. WeChat

has subsituted cash to a large extent. 58% WeChat users largely

use WeChat wallet to pay. By scaning QR code to pay, you can

directly transfer accounts to WeChat friends

4. City service: “WeChat city service” is the official platform of

governmental affairs and people’s well-being service, where

citizens can easily handle medical care, transportation, traffic

service, social ensurance, housing fund, exit-entry administration,

household registration, education, etc.

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Social function11

5. Sticker gallery and game center: WeChat

users can also save and download their

favorite emoji in sticker gallery, some of

them needs to be paid. Also, in the game

center in WeChat, you can find hot Tencent

mobile games like King of Glory and Cross

Fire and check what games friends are

playing recently.

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Commercialization function12

1. WeChat Moments Ads

2. Scan QR

Code

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Commercialization function13

3. Shake

4. Brand

emoji 5. Red Packet

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14

E-CommeceWith convenient life services,people cannot live withoutmobile

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11.1115

Mobile GMV : 83.62%

Covers 235 countries & region

Tmall shopping platform: RMB120.7B/day

Turnover till the 56th seconds breaks RMB 1B

At 6’58’’, turnover exceeds RMB10B

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E-commerce pushes rapid development of mobile payment16

Number of payment in e-commerce platform expands

by 278 times;

Internet consuming scale index expands by 219 times;

From 2009-2016:

Total number of payment with Alipay: 1.5B

Spike of payment on 11.11 exceeded 120,000 / seconds;

Successful Payment rate: 99.99%

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Trend17

There will be no the concept of “e-

commerce” in the future, instead is

the “new retailing” combining

various services online and offline.

——Jack Ma

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UNDERSTANDING

DIGITAL COMMERCE

IN THE US & CHINA

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Research result: China & US are both mature e-commerce markets

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10 features of Chinese digital shoppers18

Younger More Male More Mobile

Crazier More Frequent & Enthusiastic

More adept at online/offline comparison &

driven by price

Feel more unsecure Stronger experience

sharing

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10 features of Chinese digital shoppers19

Younger

on one hand,average age of Chinese digital shoppers is

lower than their US counterparts;on the other hand,

there are more ”new comers” of digital shoppers in China

than in the US

More male

more male digital shoppers than female in China,and the

difference is obvious in China than in the US

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10 features of Chinese digital shoppers20

More mobile

Chinese digital shoppers more prefer mobile devices

More of a“black sheep”

Chinese is more willing to pay in e-commerce

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10 features of Chinese digital shoppers21

More Frequent

There are far more digital shoppers with shopping

frequency “ 1 + times per week”or“daily”in

China than in the US

More Enthusiastic

The trend of staying away from in –store shopping

and crazy about digital shopping is obvious with

Chinese than Americans

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10 features of Chinese digital shoppers22

More adept at online/offline comparison

Chinese digital shoppers research & compare

price in store more often,more tend to regard

physical store as showroom of online shopping

Value more on price

“price driven” is more obvious with Chinese

digital shoppers

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10 features of Chinese digital shoppers23

Feel more unsecure

Chinese digital shoppers suffer

double unsafety from“internet

information secure”and“sellers’

fraud”

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10 features of Chinese digital shoppers24

More happy to share

Chinese digital shoppers more tend to decrease risk by sharing post-purchase experience and participating in

“group mutual aid” in social posts

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Consumption behaviour of post-80s’, 90s’ & 00s’

You have captured future market

once you capture new generation consumers

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Consuming habits of young people25

Post-80s’has been core consumption force in the society, while post-90s’is rapidly catching up

Post-90s’population

170M

1.3 Japans3.4 Koreas2.6 Britains

=“more money”is key,more important is “willing to spend”

%average monthly spend of main personal daily use / average individual monthly income

* average monthly individual spend refers to spend on daily use, including skin care, cosmetics, mobile communication, using internet, cloths, shoes(except for sports shoes )

Individual average income(m)

Individual average spending(m)*

ratio

Post-70s’ ¥6,427 ¥1,209 19%

Post-80s’ ¥6,654 ¥1,549 23%

Post-90s’ ¥4,561 ¥1,237 27%

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Consumption concept of post-90s’:obvious in sensational consumption & consumption of belonging26

Based on data, comparing with other generation, post-90s’consumption concept is more sensational & casual , and has stronger consumption of belonging and is more willing to keep pace with the masses. Thus, post-90s’consumption concept is gradually being shaped

% agree “as long as I like, I will buy even I don’t need or it is useless”

37,333,2

38,641,1

Total post-70s’ post-80s’ post-90s’

% agree“I’d better own the product which everybody owns”

4337,9 40,7

45,7

Total post-70s’ post-80s’ post-90s’

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Post-90s’consumption concept:wiling to share, comment & communicate27

For buzz communication,post-90s’is active,too. They are willing to share consumption information and deliver the product information they accept

This demographic

group

consume self-willedly;

big-time spender;

in large size % agree “when I find a new

product that I like very much, I must share my finding with others”

62,6

67,1

69,1

post-70s’ post-80s’ post-90s’

% agree“I often discuss with other people the products & brands I find recently”

58,7

63,964,9

post-70s’ post-80s’ post-90s’

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Post-90s’concept of advertising: like new media & new format28

For ad impact,post-90s’more like creative ad and more accept the ad on mobile app

% agree“I think internet ad is very creative and make me more and more like to watch”

27,4

35,6 36,2

post-70s’ post-80s’ post-90s’

% agree“I can often notice the ads on mobile app”

24,1

31,4 32,5

post-70s’ post-80s’ post-90s’

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Aim of advertisers choosing different media

0 50 100

Radio

Magazine

Newspaper

Film

Mobile

Pc

Ooh

TV

0 20 40 60 80

promote/strengthen brand image

31%

0 50 100

boost

sales/promotion26%

0 20 40 60 80

consumer relationship maintaining15%

Source: C1: Below is the main aim/motivation of advertisers to marketing. Which media will your company choose for brand marketing for the main marketing aim____

promoting brand reputation

28%

30

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Mobile choice for advertisers

superior media for advertisers

Internet & mobile internet is popular

0 20 40 60 80 100

Magazine

Newspaper

Tech platform

Ooh

Mobile

E-commerce

TV

internet0 20 40 60 80 100

TV mobile

Streamingvideo

Digitalretailer

HunanTV WeChat iQiyi taobao

Zhejiang TV

Weibomobile app Youku Tmall

Dongfang TV

TencentMyapp

Tencentvideo JD

JiangsuTV Netease LeTV YHD

cctv-5 ToutiaoSohuvideo

Dianping

Source: E1: Among the various TV/internet/video/e-commerce platform/OOH/media platform&technology/digital retailer,which is your company’s superior choiceE2: Which media’s prospect do you expect? Please choose 3-5 media brand you would superiorly to choose

advertisers' superior mediaSuperior choice of media brand in marketing

Prospect of media brand mostly being expected

OOHTech platform

Focus Media

BaiduLianmeng

bus online Alimama

JCDecaux Miaozhen

White Horse Yoyi

Touch Media

Google AdSense

Superior media for advertisers

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Role of IIACC(IAB China)30

Three phases:

1996—2005,cultivate and educate market to promote industry development

2006—2012,provide professional service to accelerate market development

2013 till now,unify market standard and drive market development

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National Standard of Mobile Advertising31

Interactive Advertising part 1:terminology & introduction

Interactive Advertising part 2:requirements on launching & verification

Interactive Advertising part 3:requirements on results metrics

Interactive Advertising part 4:interface requirement

Interactive Advertising part 5:requirements on privacy protection

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ThanksObrigado!

November 2016

Chen YongPresident of [email protected] +86-10-63317929