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Module 1: China Internet User Profile Module 2: Mobility
Presented by: Shane Crombie
China Digital Marketplace Overview: Q2 2010
A bit about me..
●1996-2001: Digital creative production, ad serving & project management with Carat Fusion in San Francisco & Wunderman in Los Angeles●2001-2008: Digital media planning & buying with Tribal DDB & Carat in Australia & UM in China.●2008-2010: Executive sales consultant with Sina & Wanmo●Key category experience: IT, Travel, Auto & FMCG●Key client experience Microsoft, Intel, Tourism Australia, Cathay Pacific, Jaguar, Nissan, Unilever & Roche●Key specialisms: Ad serving, social media & haggling
Presentation Structure
1.0 Thought Starters1.1 Demographic Profiling1.2 Usage Trends2.0 Mobility- Global Survey2.1 Mobility- PRC Overview 2.2 Conclusions
1.0 THOUGHT STARTERS
Digital is a phenomenon …
Average hours per week media consumption
Internet
Analogue TV
Digital TV
Analogue radio
Digital radioCine
ma
Outdoor
Wireless
Games
010
20
30
40
50
60
70
80
90
100
1900
1920
1940
1960
1980
2000
2020
Source: Aegis
What are we most curious about?
China searches focused on
wealth management
badooFacebook
DailymotionWebkinzEbuddy
SecondlifeHi5
Club penguin
International searches
predominantly 2.0 social networks
1.1 DEMOGRAPHIC PROFILE
Key Demographic and Internet Metrics
Source: eMarketer, March 2007
China Internet Population Growth 2002-2009
60.8% of Internet usage is mobile
8.9% of Internet usage is mobile only
Source: CNNIC Mar 2010
CNNIC WEBSITE
Key Market Internet Penetration
Source: Internetwordstats.com Dec 2009
Internet Penetration by Region
Source: CNNIC Mar 2010
Internet Penetration By Province
Source: CNNIC Mar 2010
GDP Vs. Internet Penetration By Province
Source: CNNIC Mar 2010
Age Distribution
Internet population is moving into the over 30
category
M/F ratio still lags mature
markets
This situation is consistent with a new
internet market
Male/Female Ratio:54.2/48.8
Over 30 now 38.5%
Source: CNNIC Mar 2010
China and USA age profile comparison
Source: Internet June 2010
Education Distribution
*Tertiary education here refers to college education received through full-time study and also includes adult education and other equivalent education
Early adopters more
educated/higher income
Growth or pre tertiary usage indicative of rural usage
growth
Primary school uptick due to earlier age adoption
Source: CNNIC Mar 2010
Employment distribution
Students & junior office staff
like using the internet (!)
Growth in Unemployed
usage likely due to recession
Source: CNNIC Mar 2010
Income distribution
Greater unemployed
using the internet
Salaries are rising leading to
a skew in the Income usage
profile Source: CNNIC Mar 2010
Urban Vs. Rural Usage
Growth slowed in rural areas in 2009 vs. 2008
40% of non usage due to
lack on knowledge, 20%
due to lack of access
Rural knowledge gap may develop
leading to socio- economic divide
Source: CNNIC Mar 2010
1.1 USAGE TRENDS
Access Time & Costs
At work audience relatively small in
China, internet mainly used for
leisure purposes
2 hours per week is a considerable
increase= 96 more hours online
in 2009 per netizen
Source: CNNIC Mar 2010
Access Device Profile
The desktop is dead long live
mobility!!!
The computer is dead long live smart phones!!
Source: CNNIC Mar 2010
Mobile Usage comparison by age
Under 30 netizens prefer mobile internet,
suggesting this is the future for all internet usage
Small screen size is not a barrier for
content consumption
Source: CNNIC Mar 2010
Mobile Content Consumption Profile
Reading content and txt
messaging/IM predominant
usage indicating lack of 3G penetration
Search is a popular aspect of mobile internet, no info on what
the key topics are
Source: CNNIC Mar 2010
Global Broadband Speed Comparison
Yes China has ‘broadband’ but at 800 kbps its half the global average of 1.5
mbps
Korea has fastest
broadband at 14.6 mbps,
HKG at 7.6 and the USA 18th at
3.9mbps
Source: CNNIC Mar 2010
Preferred Access Locations
Home and work access continued usage growth due
to more importance assoc
with internet
iCafe usage decline attrib. to mobile internet usage increase
Source: CNNIC Mar 2010
Internet Content Consumption Profile
Why the 5% decline in IM
usage?
Growth in eCommerce
signals greater trust in internet
45% of netizens below to a social
network
Gaming now at close to 70% penetration
Source: CNNIC Mar 2010
Blog Usage
221 million netizens now
read blogs, 145 million netizens author a blog
Huge engaged audience but
limited marketing
penetration so far.
Source: CNNIC Mar 2010
2. MOBILITY
"In just a decade, we'll have gone from half the world never having made a telephone call to half the world owning a phone" Pesce, 2007
2.0 GLOBAL TRENDS
Device penetration by market
Device ownership is
high in developing
markets
Laptop ownership is
lower in China due to relative purchase cost
Source: UM ‘Anywhere Anytime’ Global Survey, 2007
Percentage that completely agree with the statement “I like the idea of having one portable device to fulfill all my needs”
Affluent markets prefer, and can afford,
multiple aspirational
devices
China consumers have
mixed preferences
Source: UM ‘Anywhere Anytime’ Global Survey, 2007
Penetration of content sources on mobiles
Both India and the US fail to reach 60%
uptake, interesting given their differences
China consumers love
to listen to music on the go, perhaps highly cultural trend
Penetration of cameras on mobile phones Penetration of music players on mobile phones
Source: UM ‘Anywhere Anytime’ Global Survey, 2007
Global Mobile Usage Index: All data points
All regions & continents
evenly distributed in
rankings, suggesting
nation-unique usage profiles
US consumers use phones to make phone
calls only
Source: UM ‘Anywhere Anytime’ Global Survey, 2007
Acceptiveness to advertising on mobile devices
Developed markets have lower levels of acceptiveness
The key question is will this bifurcation change
as developing markets become
more sophisticated over time
Source: UM ‘Anywhere Anytime’ Global Survey, 2007
2.1 PRC MOBILITY OVERVIEW
We are:
DEMAND
THE GO
ALWAYS ON
ALWAYS
*
The New Mobility
Customization: You order from a menu, a la carte is out.Personalization: You decorate in your own styleInteractivity: You react, respond & recordConvenience: You text & talk to anyone, anytime, anyplaceFreedom: You control your destiny
We have a highly personalized relationship with our mobile phone. It’s with us 24/7, we depend on it and its a symbol of who we are. Its our ‘mini me’ The traditional role of a phone, to send and receive calls & messages, is no longer relevant. Today, we ask for more:
750 millionmobile users
50 millionactive MMS users
27.3%(44 million users) Access to internet
51%diploma education+
61.6% Professionals, young executives and students
430 billionSMS were sent last year
90%+aged 18-40
60 millionactive WAP users
Source: Multiple
*
2009 Mobile landscape in China
Selection of current PRC mobile marketers
Available mobile marketing programs
Interact with brandsUser engagement / participation – survey, voting, etc.Event / product promotion
CRMCRM database integrationCustomer retention – coupons, reminders
Mobile Surveys
Drive brand awarenessText / audio/ images / videos
Performance marketingClick-to-callLead generationCustomer acquisition
Mobile targeting capabilities
By geography (i.e., Beijing, Shanghai or not Guangdong)By handset brand and model (i.e., Nokia Nseries with S60 platform)By handset retail price segment (i.e., Targeting only 2,000RMB handsets and aboveBy handset classification (i.e., High-end and smart phones or female and music phones)
Shanghai UserSony Ericsson W550
Beijing User Nokia N70
FullyOptimizedInventory
Ad Version 3
Ad Version 2
Ad Version 1
Ad Version 4
Ad Version 5
Ad Version 6
Day 1 Day 2
OptimizedInventory
Time Period
New Ad Version
Rotation
New Ad Version
….
End of Campaign
Optim
ized
OptimizedInventory
Time Period
Time Period
Ad Versions
Optimization capabilities
Optimize ad serving by analyzing ad version CTR in a specific ad position by campaign and hour of the day, and automatically rotate in new versions for best performance.
X √ X
Platform optimization
●Serving optimized mobile ad banner automatically to fit different screen resolutions of different phone models
●Optimize approx. 97% of the mobile handsets in China
Conclusions
●With less than 30% internet penetration and annual growth of 70 million new users, China is on track to have half a billion netizens in late 2011.●The internet is going mobile and the demand for custom content and platforms will shift internet resources and thinking to mobility●The new popularity of social networking is showing signs it may impact popularity of standalone platforms like Baidu, 10Cent and gaming verticals.●With close to 150 million active bloggers, marketers must execute brand building programs successfully in this space to maintain market share. Seeding & banners only offer so much.●Netizens are getting older and richer and looking for engaging content experiences that match their evolving interests
EPIC 2014