China's Digital Landscape
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The document discusses the digital landscape of China in 2015, highlighting internet penetration rates, the influence of mobile devices, and the rise of e-commerce among Chinese consumers. It emphasizes that digital advertising has overtaken traditional TV advertising, with significant growth forecasted in various sectors including programmatic advertising and social media engagement. Key players in the market, such as WeChat, Alibaba, and Tencent, are pivotal in shaping consumer behavior and advertising strategies.
China's Digital Landscape
- 1. J.WALTER THOMPSON CHINA DIGITAL LANDSCAPE 2015
- 2. INTERNET PENETRATION IN CHINA Sources: eMarketer December 2014 47.5% of total population For age 18-40: 85%
- 3. WITH ONLY 47.5% PENETRATION, CHINA STILL HAS ROOM FOR GROWTH Sources: eMarketer December 2014 INTERNET USERS AS PERCENTAGE OF POPULATION
- 4. Source: CNNIC June 2014 RURAL USERS DRIVING GROWTH
- 5. Source: CNRS ECONOMIC DEVELOPMENT SHAPES INTERNET BEHAVIOR ACROSS CITY TIERS
- 6. OVERALL CHINESE ARE AMONG THE HEAVIEST INTERNET USERS GLOBALLY Sources: eMarketer August 2012; CNNIC 2014 FREQUENCY OF INTERNET USE BY COUNTRY
- 7. DAILY DEVICE USAGE Sources: CNRS 2014
- 8. Sources: CNRS; 36 cities THE INTERNET TAKES TIME AWAY FROM TRADITIONAL MEDIA TIME SPENT ON MEDIA (MINUTES / PER DAY)
- 9. DIGITAL ADVERTISING SHARE OF SPEND FINALLY OVERTOOK TV IN 2014 Note: excludes Hongkong; numbers may not add up to 100% due to rounding; **excludes digital Source: eMarketer, Dec 2014 ％OF TOTAL MEDIA AD SPENDING IN CHINA Of digital’s 37.2% 11.7% is mobile. (up 6* YOY)
- 10. DIGITAL ADVERTISING SHARE IS EXPECTED TO ACCOUNT FOR MORE THAN HALF OF TOTAL MEDIA SPENDING Sources: eMarketer, Dec 2014
- 12. THE INTERNET, BUT NOT AS YOU KNOW IT
- 13. Source: Baidu Annual Report 2013; Alibaba Annual Report 2013; Tencent Annual Report 2013 EVERYONE’S TALKING ABOUT “B.A.T.”
- 15. Sources: Kantar Retail Research and Analysis 2014 TO COLLECT YOUR LIFE’S DATA
- 16. FOUR KEY PRIORITIES FOR MARKETERS
- 17. 1. MOBILE
- 18. MOBILE IS THE PRIMARY DEVICE FOR INTERNET ACCESS WITH MORE THAN 527 MILLION CHINESE ACCESSING THE INTERNET VIA MOBILE Sources: CNNIC June 2014
- 19. DRIVEN BY RAPID ADOPTION OF HIGH SPEED MOBILE INTERNET Sources: Mobile Provider Claimed Data TOTAL 3G AND 4G SUBSCRIBERS IN CHINA (MILLIONS)
- 20. 69% OF CHINESE HAVE BOUGHT ON MOBILE Sources: Go Globe April 2014
- 21. Sources: Kantar Worldpanel Dec 2014 ANDROID DOMINATES IN CHINA
- 22. BUT iOS USERS SPEND MORE Sources: Go Globe April 2014
- 23. CHINESE ARE FAR MORE LIKELY THAN AMERICANS TO WATCH TV ON THEIR PHONE OR TABLET Sources: August 2014 polling by GfK for the Interactive Advertising Bureau (IAB)
- 24. AND THEY ARE MULTI SCREENING Sources: Millward Brown Ad Reaction 2014 MINUTES PER DAY SPENT MULTI-SCREENING
- 25. FIVE REASONS MARKETERS LOVE WECHAT
- 26. MARKETERS GO MAD FOR “O2O” NOT TO MENTION 02020…
- 27. THE NEW PICK-UP LINE Sources: CNNIC; NIELSEN 2014 H1 But did you know… Only 30% of China’s 550m mobile users use QR code.
- 28. 2. E-COMMERCE
- 29. CHINESE LOVE SHOPPING ONLINE ONLINE SHOPPING RATES IN CHINA ARE MORE THAN DOUBLE GLOBAL PEERS Sources: PWC 2012 Global multichannel consumer survey
- 30. 11/11 SINGLE’S DAY PHENOMENON THE WORLD’S BIGGEST ECOMMERCE SALES EVENT 2014 SET NEW RECORDS
- 31. Sources: Kantar Worldpanel 2014 WHAT ARE PEOPLE BUYING? TOP 3 ONLINE SHOPPING CATEGORIES BY DEVICE
- 32. Sources: 2011 McKinsey IConsumer survey; McKinsey Global Institute analysis; McKinsey analysis TRANSFORMING ALL LEVELS OF SOCIETY ONLINE SPENDING ACROSS CHINESE CITY TIERS
- 33. KEY ECOMMERCE PLATFORMS Sources: China E-commerce Research Center TOP 3 CHINA B2C E-COMMERCE SITES ARE TMALL, JD AND SUNING
- 34. Sources: Kantar Worldpanel MAT June 2014 FROM VALUE SEEKERS TO PREMIUM SEEKERS DIFFERENCES IN SHOPPERS ACROSS CHINA’S ECOMMERCE SITES
- 35. WATCH OUT ALIBABA! BAIDU+TENCENT+WANDA (CHINA’S BIGGEST DEVELOPER OF SHOPPING CENTERS) TEAM UP TO CREATE NEW 020 ECOMMERCE PLAY
- 36. 3. SOCIAL
- 37. SOCIAL DOMINATED BY WECHAT & WEIBO Sources: Tencent/Sina earnings report Q3 2014
- 38. CHINESE RELY HEAVILY ON SOCIAL PLATFORMS TO DISCOVER AND RESEARCH BRANDS
- 39. KEY CHARACTERISTICS SHAPE THIS SOCIAL TREND
- 40. OTHER SOCIAL PLATFORMS TO WATCH
- 41. 4. VIDEO
- 42. GROWTH IN ONLINE VIDEO VIEWING Sources: iResearch 2013
- 43. KEY ONLINE VIDEO PLATFORMS
- 44. FULL LENGTH SHOWS DOMINATE ONLINE VIDEO WATCHING IN CHINA Sources: iResearch 2012
- 45. Sources: Youku 26/11/2013 VIDEO PLATFORMS INVEST IN ORIGINAL CONTENT STUDIOS AS WELL AS LICENSED SERIES AND MOVIES
- 46. 5. OTHER TRENDS
- 47. PROGRAMMATIC IS EXPECTED TO GROW BY 8 TIMES IN 2015 AND 100 TIMES BY 2018 Note: includes digital display ads, digital video ads and mobile display ads, including video; *includes all digital display ad spending on upfront, programmatic direct deals secured using pre-existing, real-rime bidding (RTB) technology infrastructure Sources: International Data Corporation (IDC), “Forward Markets 2013-2018: Moving Direct Display Ad Sales onto the RTB Platform” sponsored by The Trade Desk, March 2014 PREMIUM PROGRAMMATIC DIGITAL DISPLAY AD SPENDING IN CHINA,2013-2018
- 48. DEFINITION OF CONTENT MARKETING STILL EVOLVING Sources: PR Newswire,” Content Marketing Trends and ROI Impact Assessment by Companies in China,” Dec 6, 2013 CONTENT MARKETING TACTICS MOST FREQUENTLY USED AND CONSIDERED MOST EFFECTIVE BY MARKETERS IN CHINA, DEC 2013 % OF RESPONDENTS
- 49. J. Walter Thompson Shanghai [email protected] FOR MORE INFORMATION: EUGENE CHEW CHIEF DIGITAL OFFICER
- 50. J.WALTER THOMPSON THANK YOU
Editor's Notes
- #9: China TV open rate has dropped from 70% 3 years ago to 30% in 2013. Seniors became the majority of traditional TV audience.