Evento Mobilidade 2016 - Chinese mobile marketing - Chen Yong - IAB China
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This document summarizes China's mobile market and trends in digital commerce. Some key points: 1. China has the world's largest mobile market with over 1.3 billion users and 656 million mobile internet users in 2015. Mobile internet and payment are highly developed due to factors like broadband expansion and mobile dependency. 2. WeChat has become a leading social platform with over 800 million monthly active users. It integrates social media, payments, content and services into a popular mobile app. 3. E-commerce is huge in China, led by platforms like Alibaba's Taobao and Tmall. Mobile drives over 80% of e-commerce sales. Young generations are frequent mobile shoppers and
Evento Mobilidade 2016 - Chinese mobile marketing - Chen Yong - IAB China
- 1. CHINA MOBILE MARKETCHEN YONG Presidente IAB China
- 2. Hello everyone Boa tarde a todos! November 2016
- 4. 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
- 5. 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
- 6. 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
- 7. Humanity advantage of Chinese mobile developing in global background07 3,1 2,01 4,96 13.7 2,5 0,23 0,5 1,26 2,5 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%
- 8. Advantage of population distribution06 City size Number 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
- 9. 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
- 10. 08 WeChat Social tools brings people closer to mobile
- 11. 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.
- 12. 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.
- 13. 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.
- 14. Commercialization function12 1. WeChat Moments Ads 2. Scan QR Code
- 15. Commercialization function13 3. Shake 4. Brand emoji 5. Red Packet
- 16. 14 E-Commece With convenient life services, people cannot live without mobile
- 17. 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
- 18. 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%
- 19. 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
- 20. UNDERSTANDING DIGITAL COMMERCE IN THE US & CHINA
- 21. Research result: China & US are both mature e-commerce markets
- 22. 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
- 23. 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
- 24. 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
- 25. 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
- 26. 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
- 27. 10 features of Chinese digital shoppers23 Feel more unsecure Chinese digital shoppers suffer double unsafety from“internet information secure”and“sellers’ fraud”
- 28. 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
- 29. Consumption behaviour of post- 80s’, 90s’ & 00s’ You have captured future market once you capture new generation consumers
- 30. 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 Japans 3.4 Koreas 2.6 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%
- 31. 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” 37,3 33,2 38,6 41,1 Total post-70s’ post-80s’ post-90s’ % agree“I’d better own the product which everybody owns” 43 37,9 40,7 45,7 Total post-70s’ post-80s’ post-90s’
- 32. 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 63,9 64,9 post-70s’ post-80s’ post-90s’
- 33. 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’
- 34. Internet is indispensable in post-90s’life Mobile social intercourse is their life focus29 According to data， social intercourse is NO.1 in post- 90s’life(75 %，2 times of online shopping % TOP5 things done yesterday by post-90s’ using internet NO.1 NO.2 NO.3 NO.4 Social intercourse 75% Digital shopping 34% Streaming video 55% Digital news 46% Search engine 52% 72% Total populaion Index 100 90% post- 90s’ Index 124 NO.5 Daily reach of internet
- 35. 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/promotion 26% 0 20 40 60 80 consumer relationship maintaining 15% 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
- 36. 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 internet 0 20 40 60 80 100 TV mobile Streami ng video Digital retaile r Hunan TV WeChat iQiyi taobao Zhejian g TV Weibo mobile app Youku Tmall Dongfan g TV Tencent Myapp Tencent video JD Jiangsu TV Netease LeTV YHD cctv-5 Toutiao Sohu video Dianpin g Source: E1: Among the various TV/internet/video/e-commerce platform/OOH/media platform&technology/digital retailer,which is your company’s superior choice E2: 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 OOH Tech platform Focus Media Baidu Lianmeng bus online Alimama JCDecau x Miaozhen White Horse Yoyi Touch Media Google AdSense Superior media for advertisers
- 37. 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
- 38. 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
- 39. Thanks Obrigado! November 2016 Chen Yong President of IIACC [email protected] +86-10-63317929