Online Marketing China
The internet has developed for almost 20 years since it was setup in 1994 in China, but there is still no fixed mode of marketing. Because it changes just that quickly!
Now, both local Chinese companies and foreign companies are putting more effort in developing their online marketing in China: 60% of the companies have increased their web marketing budget in 2012, over 50% at average; besides, 36% companies take online marketing as the major marketing way.
How they spend money? The following chart about corporal investments in different segments of online advertising in China (2010 Q1-2012 Q2):
From the chart, we can see significant changes in market segmentation of China online advertising have undergone in the 2nd quarter of 2012.
Search engine ads (shown in green bar) still hold the 1st position, taking 36.3% of the market. Following is VI (visual image) advertising (shown in yellow bar), with 27.7% of the market. However, VI advertising loses its share greatly. Its share in the market drops from 45.3% in 2010 Q1 to 27.7% in 2012 Q2, by 18.6%.
The 164.7% growth of online video marketing is the most eye-catching change in online advertising in China.
The limitation regulation on inserted advertising in TV programs is a heavy blow on the TV advertising while it’s proven to be a shot in the arm for Chinese advertising market. A study before the regulation shows that 28.3% enterprises have used online video as a part of their marketing strategy.
Another trend in video marketing in China is the change of video player device. The percentage of videos played on portable device such as mobile phones and tablets have greatly increased. The adaption of ad video to those devices turns out to be a challenge for companies who used to put traditional ads.
Another significant trend is the rise of China SNS. Successful stories from Sina Weibo greatly have encouraged companies to invest their marketing resource on SNS. It’s estimated that 47.6% of the companies in China are using SNS for their online marketing now.
Some companies even totally rely on SNS such as Xiao Mi and Kuai Shu Bao.
Kuai Shu Bao doesn’t have a real store and its orders are all from its online store, online B2C and C2C websites and Weibo (micro blog in China). No matter where the order comes from, Kuai Shu Bao claims that their customers can get their goods in one hour after they placed orders.
Hard facts support the booming of mobile marketing.
- Among 564 million Chinese netizens now, there are 388 million mobile netizens, occupying almost 70% of the total netizens population;
- The number of mobile payment users has surpassed 44 million;
- The number of mobile consumers has hit 37 million last year.
As a result, 20% companies are using mobile marketing.
Major marketing tools in China marketing
A nice website is very important for the image of your company and for showing your consumer the information about your products.
SEM is the best solution to increase your company awareness among target people. SEM includes SEO/PPC on search engines, especially Baidu and Google in China.
SEO is technical solution that helps a company website appear on the first of your keywords in the result of search engines.
PPC is a direct and fast way to get traffic by publishing searching ads in the result.
Viral marketing allows a great increase of brand awareness in a very short time. Viral marketing campaign content can be a video, pictures or stories.
PR (press relation):
Press relation campaign is a very good way to improve the image of your company, by publishing news on highly trustful media which has tremendous influence. Besides, it’s also a very cost-efficient solution.
Reputation is the key to the conversion rate. That’s the difference between companies who can turn 20% of the visitors into customers while some of them can only make 1%.
90% of Chinese 546 million netizens are using SNS now. Due to many limitations, most influential Chinese SNS are Chinese SNS.
Internet Marketing Committee of China (IMCC), Yi Guan, iResearch, MIIT of China