The Impact of Social Media on Public Affairs in China

Alan VanderMolenPresident, Asia Pacific, Edelman

28 April 2010, Hong Kong

• Internet-linked

• Many-to-many, user-generated content

• A keyboard and a point-of-view gets you into the discussion

• Governments, companies and citizens are becoming their own media companies

What is Social Media?

Traditional Influencing Model

Brands

The World Does Not Revolve Around You:

The Public Engagement Cloud

Brands

Conversations start anywhere– and involve influencers of all stripes

• Conversations can start anywhere within a network

• Influence flows from multiple sources – no longer the sole domain of mass media

• Influence can spread in any direction

• Real people can be influencers and/ or amplifiers

• Different psychographics: Watchers, Sharers, Commentators, Producers, Curators

curators

producers commentators

sharers watchers

Public Engagement Imperative

InnovationBrands Insight Collaboration

The Challenge Is To EVOLVE

from pitching to informing

from control to conversation

from static stories to dynamic

narratives

from influencing to advocating

• 338 million users

• 181 million bloggers, 119 million active

• 155 million access using mobile phones

• 124 million social network (SNS) users

• 102 million BBS users

• 62.8% of users are aged 10 - 29

Data source: CNNIC reports June and November 2009

China Internet: The Numbers

• QQ /Tencent from IM to gaming to blogs

• BBS: from tianya.cn to People’s Daily to Baidu.com to tiexue.net…

• SNS: Kaixin001.com, Renren.com, 51.com

• Blogs and news commentary: Sina.com, Sohu.com

• Video: Youku.com, Tudou.com

• Microblogging: Sina, QQ

• Auction/e-commerce: Taobao.com

Major Websites in China All Have Social Media Components

• 84.3% of Chinese Internet users believe that the Internet is their most important source of information.

Data source: CNNIC, June 2009

• Chinese social networking Websites, especially Sina, Weiboand Kaixin001, are reshaping the overall online communications ecosystem.

Source: Edelman Digital Brand Index, April 2010

China and the Internet

27%

56%

30%

40%

47%

43%

33%

16%

41%

22%

30%

43%

37%

27%

13%

27%

11%

37%

22%

15%

23%

19%16%

7%

28%25%

15%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China India Japan S. Korea Indonesia Singapore Australia

Online search engines Free content sources Social networking sites Blogs

Credible Sources of Information – Digital

China JapanIndia IndonesiaS. Korea Singapore Australia

11

E84-97. Now I’m going to read you a list of places where you might get information about a company. Please tell me how credible you

believe each one of them is as a source of information about the company—is it extremely credible, very credible, somewhat credible, or

not credible at all? (Top 2 box, very + extremely credible) Informed Publics ages 25-64

Online search engines most credible digital information sourceRivals credibility of traditional media sources in many countries

• National pride

• Anti-establishment: Chinese Netizens love challenging authority

• Sensational: Chaozuo 炒作

• Replicable: Zhuanzai 转载

The Unwritten Rules

A View from the Government

• The characteristics of online public opinion crises– suddenness 突发性– destructiveness 破坏性– urgency 紧迫性

• In the Internet age, many of the means of news control that were effective in the past are no longer useful, and many in fact bind our own feet and hands, creating passivity in the handling of crises by the party and the government.

在网络时代，许多过去行之有效的新闻管理办法有的已经不起作用，

有的反而束缚我们自己的手脚，造成党和政府处理事件的被动。

Source: government document ‘How public prosecutors canneutralize online opinion crises’ — August 2009

http://media.nfdaily.cn/content/2009-08/13/content_5553979.htm

How important is social media to your broader public affairs strategy in China?

Extremely important 17%

Very important 28%

Somewhat important 29%

Not particularly important 14%

Not at all important 13%

74%

Importance of “Social Media” to Overall Public Affairs Strategy in China

To what extent do you believe opinions expressed in online and digital social media channels influencecontemporary public policy in China?

The most influential mediachannel available

10%

Often more influential thanother media channels

57%

No more influential than othermedia

24%

Less influential than other mediachannels

9%

67%

Social Media’s Influence Over Public Policy

Statements About Social Media

Digital Public Affairs Case Studies in China

How story broke: Unstructured announcement• GM Chapter 11: Hummer to be discontinued• One day later: GM says MOU signed with Chinese buyer

Social media reaction• Online criticism and allegations: deal is money

laundering; exporting capital from China

Deal is confirmed• Formal announcement 5 months later

Tengzhong - Hummer Deal

Government & Social Media Reactions

• Ministry of Commerce had not received applications from Tengzhong

• Bloggers: “Against Chinese government's commitment to low-carbon economic development and environmental laws“

Lessons Learned

• Poor communication between buyer and seller

• Treated as ‘transactional, top down’; ignored digital

• Online commentary: national pride issues can attract celebrity bloggers who have clout of mainstream media with strong following

Tengzhong - Hummer Deal

Hangzhou 70kph

Media report fatal car accident• “Working class" man hit and killed; although driver’s

speed excessive, police issued minor citation for driving at 70 kph

Social media reaction: “Human flesh search engine”• Netizens outraged at deference to driver’s wealthy

background and nonchalant attitude• “Human flesh search engine" investigates driver• "70 kph" becomes online catch-phrase

Police reaction

• Hangzhou police update speed to between 84 and 101 kph

• Driver sentenced to three years in prison

• Netizens compare photos at crime scene; suggesting driver paid someone to take his place in jail

• Driver later expressed regret and offered proof of his identity

Lessons Learned

• Authorities are subject to same online forces as companies

• Chinese netizens are sensitive about apparent abuses by the wealthy

• Slow police reaction to online criticism enhanced netizen suspicions

Hangzhou 70kph

Mineralized Water

Story broke on BBS website

• “Master Kong, where is your water source?” accuses Master Kong (康师傅) of quality problems – mineral water is merely tap water

• Huge response from netizens, accusing the company of false advertising

Traditional media picks up story

• National Business Daily notes bottling plant is located in an area without natural springs

• Master Kong representative: "Everyone does it. A one or two kuai bottle of water can't be natural spring water"

How Story Played Out

• Government regulators get involved, review bottled water standards

• Master Kong apologizes for "gap in understanding“, not adequately explaining its "superior source”. Water is now labeled as “distilled,” “mineral” or mineralized”.

• Online China Youth Daily poll: 57.3% of respondents will no longer buy Master Kong water; 72.9% believe supervision of the water industry needs to be strengthened

Lessons Learned • Social media is the world’s biggest fact-checker and can rapidly expose

false advertising• Traditional media now feeds off social media

Mineralized Water

Insights for Engagement

Listen With New Intelligence

Start by listening to stakeholders from all stripes

Participate in Conversation: Real time/All the time

Insight InnovationCollaboration

Find and participate in conversations in a transparent way

Social networking sites

Message boards

Credible voicesParticipate as equals

Be transparent

Widgets Blogs

Every Company Is A Media Company:Create And Co-Create Content

Every organization must create content, not rely on media

Champion Open Advocacy

Advocate for change. State where you stand and why.

The Impact of Social Media on Public Affairs in China

Alan VanderMolenPresident, Asia Pacific, Edelman

28 April 2010, Hong Kong