Digital And advertising in China
Although the new media was not replaced traditional media, traditional media began to erode dominance. Advertisers confronted with a wide range of platform options, especially in digital media, events, sponsorship and other forms of branded content. Each of these platforms offer, to achieve new ways and with consumers. China's media market is about to launch a hyper-fragmentation era, media agencies and advertisers have many choices when Media plans to develop. This may surprise foreign advertisers who are used to having less choice in China. The biggest challenge for advertisers in China is how to manage these decisions and to evaluate, while increasing the effectiveness of the media and to generate higher returns.
Generally performed China advertising market increased by 9.8 percent compared to last year in the year of 2009. In 2010, benefited the Chinese media market of the Shanghai World Expo and the Asian Games in Guangzhou, Guangdong, as well as accelerated economic growth. Advertising spending in China is likely to increase 12.8 percent in 2010, according to estimates by GroupM China. For many advertisers, China remains an important market with a promising future.
Media market influences
exceeded the average daily use of time on digital media, that time spent daily on digital media time per person exceeded on television for the first time in 2014. And 50% in the year, 2015. Chinese spend about 50.4% of their daily time on new media, 43.6% on TV, 3.1% on the radio, and appreciated only 2.9% on printed products such as newspapers and magazines in 2015, by iResearch.Four main elements have influenced the development of the market for Chinese media in 2010 and to do so in the year 2011th Incomes for Brands ?
has been Although the final 2010 statistics from China has not been released, per capita income increased by 173 percent between 2000 and 2009 in urban areas, of ¥ 6,280 ($ 945) to ¥ 17.175 ($ 2.584). the volume of retail sales nearly tripled during this period. The Gross Domestic Product (GDP) of China rose by 9.1 percent in 2009 and the International Monetary Fund predicts that China will help lead the recovery of the global economy, expanded by 10.5 percent in 2010 and 9.6 percent in 2011 continued expansion in consumer spending is investment to be the basis for advertising in China's growth in various media platforms. retail trade The growing number of stores and other retail outlets makes brands more lower-tier cities. Advertisers need to invest to reach and attract new customers in the cities of second and third tier, which are growing faster than the developed cities such as Beijing, Guangzhou and Shanghai (see CBR November to December 2010, reaching the China Next 600 cities) ,
Price of the media in China : Huge inflation
The increase in communication costs will force advertising budgets to increase. TV remains the medium of advertising seller where large chains such as China Central Television (CCTV), Beijing TV and Shanghai Media Group to exercise enormous power and influence. This achievement is not only commercially: For example, CCTV remains vocals of the central government and the media is the social, political and cultural. The airtime demand far exceeds on major TV channels, subject to the strict limitations airtime. Local suppliers are able to price list (full price lists of the media owner rate published) to define, in accordance with and to maintain revenue growth. Advertisers should understand that the strategic marketing considerations are often a low priority for this TV channel. The dominance of television ensures that China's media market will continue to provide price inflation in the foreseeable future, and advertisers should maintain a positive relationship with large TV for the best prices.
Government policy
The Chinese government introduced in 2009, the Tri-play policy (including TV broadcasting, Internet and telecommunications) and a new rule of radio advertising. The Tri-political game designed to promote the development of digital media; the distribution usually limits the amount of advertising time on national television allowed. Today the media owners are on different platforms should work together all the advantages of the complex media environment and rich history in China and take notice.
TV in China
TV dominates the investment vehicles in 2009 with a share of 63 per cent of the total expenditure of China to set advertising, television and continue the direction of the advertising market. Toiletries, food and pharmaceuticals were the top advertising categories representing together approximately 40 percent of all investments in television advertising.
China TV coverage reached 97 percent in 2009. As a result, the TV still receives the largest audience and keep its advantage as the primary means in the short term. Television advertising in China probably rose 9 percent in 2010 and an increase of almost 10 percent in 2011, according to forecasts of GroupM. Four trends will influence future development of traditional television.
Prolonged TV viewing time in rural areas
see TV time longer in rural markets is a driving force in the development of the television industry, especially when combined with the further expansion of the advertisers in the cities of the second and third. In 2009, the average per capita TV listening time is increased by 10 minutes per day in rural markets, but the average fell by 1 minute per day in urban markets. TV market in China several levels is more complicated than Western markets. CCTV, top broadcaster China alone has 18 channels. In addition, China has more than 270 provincial and 728 local television stations or city level. Most resorts can use advertisers TV to their pressure distribution and presence fit, either locally or nationally. As businesses expand distribution networks in small towns, they will also increase their TV advertising investment. Chains of national and provincial television, in particular will benefit from the increase in television advertising budgets.
Adoption of new media
Traditional TV is facing tough competition as new media for a greater share of competing time viewing. The competition is particularly acute among young audiences and higher income in urban upper class. In 2009, spent the average time Chinese youth (15-34 age) reduced television, while the 45 and older 5 minutes spent watching TV each day compared to 2008. traditional media companies to this change, the adoption of new and traditional platforms integrate. National television stations have their own websites, such as China Television Network, Jinying Hunan and Anhui station web constructed to increase the audience.
Rules stricter Laid
In September 2009, the PRC State Administration of Radio, Film and Television (SARFT) issued new rules on radio and television advertising. The rules limit the amount of advertising space at certain intervals and to prohibit certain advertising content. SARFT in the same month were also regulations that limit the platforms and the timeliness of the TV shopping advertising programs and home shopping. In April 2010, Shanghai has Oriental Media Group, the Shanghai Oriental Shopping Channel, the first analog channel created dedicated 24 hours teleshopping. Shanghai Oriental has the first teleshopping license in China, to improve the access of Chinese consumers on teleshopping market. This movement shows the intention of the Government of the PRC to normalize the teleshopping market. The rate hike national inflation from China are channels debit card average of about 11.5 percent in 2010 from 17.0 percent in North China at 10.7 percent and 13.6 percent in the central and southern regions. Overall the TV card inflation probably reached 13.4 percent in the year of 2010.
Internet, and the age of Digital Marketing
The population of China Internet (Internet users) has reached 420 million by June 2010, an increase of 22 percent over the previous year, according to the Internet Network Information Center China (CNNIC). About 98 percent (364 million) of Internet users to the Internet via broadband. The number of Internet users in rural areas reached 115 million in June 2010, 27 percent of the total population of China Netizen. The growth of Internet users in rural areas in China slowed 2008-2009, however.
The total rapidly growing number of Internet users is supported by rising disposable income, trade policy positively to the electronics and information technology (IT) infrastructure development. The introduction of third generation network in China has more people makes the Internet with mobile phones to access. In June 2010, 66 percent of Chinese Internet users on the Internet with mobile devices. present The rise of mobile Internet users more options for advertisers in the mobile market.
In 2009, revenue from Internet advertising in China reached ¥ 20.7 billion ($ 3.1 billion), according to iResearch Consulting Group. Network services and applications, automotive and IT products are the main categories of online advertising that make for almost 50 percent of the market for Internet advertising together. The advertising revenue search engine in China reached nearly 7 billion ¥ ($ Euro 1 billion) in 2009, which provide an increase of 38 percent over the previous year and a strong reflection of the ability of the environment, a cost effective and targeted communication. Online display advertising, classified ads, social networking and online video sites have fueled the development of Internet advertising; Advertising revenues in each of these categories has increased dramatically in the year of 2009.
Ecommerce in China !
China's e-commerce market was growing the best performing sector in 2009 in accordance with the use of 68 percent over the previous year. Of all the e-commerce applications (including online shopping, online payment and booking travel online), online payment has experienced the fastest growth, with the use of 81 percent compared to 2008 due to the growing population of online shoppers stimulated. The number of online shoppers in China reached 142 million in June 2010, representing nearly 34 percent of Internet users. According to iResearch, the advertising revenue from sites online has sold in China more than in 2009 by 2008 in a ¥ 263 billion ($ 39.4 billion) doubled.
Blogs and social networks
About 58 percent (221 million) of Internet users in China has blogged in 2009, according to CNNIC. Among them, the number of active bloggers (those who updated their blogs in the past six months) increased by 38 percent over the previous year to 145 million euros. The main factors for this increase were the increase in Internet penetration and popularity of micro-blogs, which allow users to send updates to small fragments. Micro-blogs are becoming increasingly popular in China, because they incorporate the features of the traditional blogs, instant messaging and mobile communications across platforms. more interactivity and ease of use have led to more regular updating of micro-blogs than traditional blogs in general. The growing popularity of microblogging in China requires advertisers and agencies to review their marketing strategy and communications. Advertisers need to create micro blogs to promote new products, deliver brand messages, and build relationships with consumers and maintain.
With the growth of Internet penetration and acceptance of online applications that extend the user their real relationship to the company online (see Social Media in China: the same but different). Hence arise many social networking sites. Nearly 50 percent (210 million) of Internet users in China visited social networking sites in June 2010. Advertisers should consider social networking sites as well as traditional online display ads, especially when communication with young target group. Advertising on these sites is likely to significantly increase in the next two years and require an interactive and responsive communication strategy.
Online games
Online gambling is the only form of entertainment in line with the increase in use in China, with 296 million online game players in June 2010 by almost 12 percent since the end of 2009. Although advertising in online games is still stuck in its infancy, have most customers indicated a willingness in this area, because to invest in that the platform offers the opportunity to strengthen the commitment and brand association. For example, Coca-Cola Co. and Nike Inc. have each entered into agreements to expand with online gaming companies in China, its presence on the Chinese market. Companies that advertise should be aware in online gaming that the industry still lacks a strong control over the content and the ability to monitor data, however.
future Clients via Social networks
With the acceleration of economic growth, major events such as the Shanghai Expo and the 2010 World Cup in South Africa, and the increasing popularity of online video and social networking sites, GroupM provides that revenue from advertising on the Internet annual China increased by 30 percent increase in 2011, a greater proportion of advertising expenditure in the near future coverage of the Internet increases, the Internet will attract advertisers and gain the content improves and understand advertisers as they make optimum use data collected online campaigns. The Internet will dominate the marketing strategy of advertisers who spend the largest growth areas advertising are likely to appear, sponsorship, joint promotion and original content otherwise in 2011 and 2012..
newspapers is failing down !
In 2009, the main sources of advertising revenues in newspapers and business services, real estate and construction, automotive, which together accounted for approximately 50 percent of advertising revenues in newspapers China were. Driven by the Shanghai Expo, domestic services and tourism can cause in newspapers to higher advertising spending. The advertising revenues of newspapers is likely to increase 13 percent in 2010 and an increase of 5 percent in 2011, according to forecasts of GroupM. Despite rising advertising revenue, the newspaper industry is facing significant external and internal challenges. Intern unfair competition on prices, discounting and conflicts between the media groups developments in the sector have hindered. The external challenge comes from the emergence of new digital media. China's first digital newspaper, Zhejiang Daily, launched in February 2006 and 33 newspaper groups, more than 300 newspaper offices and more than 500 issues of the newspaper had gone digital by the end of 2008 How the pace of life increases in urban areas, citizens, no time or patience to sit a full story in the newspaper and read, prefer to access the latest news and entertainment information via the Internet or by mobile phone. In June 2010 230 million active users read the messages on mobile phones. If traditional newspapers adopt digital technology, for example by mobile newspapers, they are more market opportunities and challenges of the growing popularity of digital media. Thereby the efficiency of investment and the attractiveness of advertising in newspapers increased.
Online News in China
China has more than 9,500 journals, but they represent only 2.3 percent of national advertising investments. Toiletries, cars, and personal items accounted for more than half of total advertising revenue magazine of China in 2009. The advertising revenue of the magazine GroupM increased 12.8 percent compared to 2009 projects that income increased 18 percent in 2010 and to increase 5 percent in the year 2011th
The key factor for this growth is the increasing affluence of Chinese consumers. Rich consumers have a wider choice of lifestyle and leisure. Magazines who respond to wealthy consumers a small but loyal readership and offer value for brand advertising to strengthen. For example Bazaar Men, HisLife, Mr. Leon Modern and L'Officiel Hommes have all launched in China in the past two years to life have publishers the opportunity identified for magazines menswear in the Chinese market. China overtakes the US as the second largest luxury market in the world in 2009 and the future of his industry magazine advertising is bright. facing Like other traditional media, but the magazines are a threat to the digital media. The publication of Amazon.com Inc. Kindle in 2007 marked the beginning of the tablet era. Other companies such as Axus Technology, LLC; BenQ Corp. Fujitsu Ltd. Google Inc. Hanvon Technology, Inc. and Sony Corp. also entered this market. In 2009, Chinese consumers bought 693,000 e-readers, up 121 percent over the previous year. This boom began in 2010 with more than 3 million sales of electronic readers.
Home Consumption in China
Although the performance of China outside the home (OOH), which remained stable from 2008 to 2009 promotes market for consumers in public places such as on billboards or traffic systems, the prospects for OOH advertising continues to be positive. GroupM projects Ooh advertising spending approximately 16 percent increase in 2010, mainly by the advances in digital OOH advertising. Three important factors affect the OOH market development in 2010: The Chinese government has made great efforts, the OOH market before and to regulate some traditional OOH panels during the Shanghai Expo and Guangzhou Asian Games, in particular by deleting. This left more space for the media to digital signage such as billboards mega-LED. To adjust these important events, the Chinese government has increased investment in the traffic in the city, which the development of liquid crystal displays in buses, subways and taxis has progressed. three-dimensional films have a mainstream cinema and cinema-advertising revenues were attracted increased accordingly. In the longer term, due OOH shipping restrictions in some cities and government restrictions on OOH advertising formats for major events, there may be fewer opportunities as sign display for the traditional formats of OOH advertising. OOH will survive in the cities, if it is a part of life in the city, and to integrate them into the planning and urban infrastructure.
radio, old fashion style
Businesses and services, cars, finance and post and communication are some of the largest categories of radio advertising. However, the most dynamic categories are detergent, clothing and household electronics. In particular, the cleaning sector increased its annual spending on radio advertising by 208 percent in the year of 2009. Consumers in shopping malls, supermarkets and fast food restaurants have great opportunities for radio advertising. Some radio stations have already begun to test in this new environment business. For example, broadcast Central Radio Voice popular programs in the city parks and shopping malls in Beijing for national holidays.
With the introduction of a better radio advertising monitoring system in 2009, advertisers are now more confident to invest in radio. Radio advertising revenue is likely to increase 22 percent in 2010 and by 10 percent in 2011. to increase in the long run, the radio must also incorporate new media. For example, Beijing Radio Listening Pub one of the most popular radio programs in Beijing. In the future, the radio can use the mobile Internet technology to enable online listening. Radio is no backup in the future planning of advertising if it is well equipped with more premium content, especially digital audio platforms.
Advertisers have more opportunities and more challenges ! Although television advertising media is currently dominant, the future of new media looks promising. A fast and complex advertising market in China will multiply the options, especially in digital media, events, sponsorship and other branded content. Each platform offers new ways to reach and engage with consumers. In addition, companies need to develop interactive and engaging communication strategies to reach consumers and maintain.
sources :
http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/understanding-social-media-in-china
http://www.chinainternetwatch.com/15669/chinese-half-daily-time-online-video-2015/
Photo @ http://ecommercechinaagency.com/digital-agency-china/
http://www.iresearchchina.com/
http://www.groupm.com/
