The Rules of Social Media Marketing in China

The Rules of Social Media Marketing in China

Contents 1 China A Social Media Country 2 Three Characteristics of the Chinese Market 3 Fragmented Social Media Landscape 4 Success Factors for Social Media Marketing in China 5 About Aperto 6 Sources & Imprint 2

China A Social Media Country The internet in China is exploding, fast transforming the country into a ravenous digital consumer society. As social media becomes an increasingly crucial marketing tool, so western companies must understand the key success factors to assert their own position. Of the roughly 618 million internet users in China, at least 91% have a social media account and spend an average of 46 minutes on social networks, daily. This rapid development and the profusion of cheap smartphones have enabled millions of Chinese consumers to use innovative social, localized and mobile (SoLoMo) services often months before comparable services are available with western brands. As a result, there is a growing culture of product awareness and exchange of brand experiences and preferences. This Chinese boom takes on increasing importance for western companies within the country, as it is deemed by many as one of the most important future markets. Whether for car manufacturers such as Volkswagen and BMW, or smaller machine production companies, the significance of the Chinese market is escalating and with it, the need for a strong social network presence. This Chinese boom takes on increasing importance for western companies within the country. 3

Three Characteristics of the Chinese Market Apart from the vast reach and intense usage, there are three primary aspects of social media in China that make it an essential part of every marketing plan: 1 The Decision to Purchase is More Socially Influenced For Chinese consumers, personal reviews and recommendations have a 28% higher influence over the decision to purchase than for American consumers. And these recommendations are increasingly found on social media which, despite censorship, is a more trusted source than other, even more heavily censored, media outlets. 3 User Engagement The Chinese are highly active internet users, creating and sharing more content than their western peers. The internet in China is for the most part a participatory internet which, especially in a state-controlled media landscape, offers a new outlet for exchanging opinions and self-expression. Which, in turn, makes the much-hyped brand engagement the interaction with a brand s image, values and products much easier to achieve. 2 Brands Are Welcomed Chinese users are particularly receptive to offers and interaction with brands. Users of SinaWeibo an enhanced, Twitter-like platform with a user base of roughly 560 million typically track the profiles of up to eight brands. Within the digital sphere, brands are seen as welcome points of contact, especially if they offer entertaining and relevant content. 4

Fragmented Social Media Landscape But even if the use of social media as a marketing tool becomes a vital success factor, many western companies still struggle to manage their social media presence in China. One reason for this is the fragmented digital media landscape, where the multitude of service providers, niche user groups and profiles prove overwhelming. Consequently, none of the global internet companies are able to get a firm foothold in the Chinese market. As the nationally controlled internet s Great Firewall prevents access to Facebook, Youtube and Twitter, so it has ensured the ascent of national services such as SinaWeibo, Qzone, Renren, Kaixin and WeChat. Most of these networks are clones, adapting western business models to the Chinese market: Renren and Kaixin mimic Facebook; YouKu takes after Youtube; SinaWeibo and Tencent Weibo are advanced versions of Twitter, and WeChat the advanced version of WhatsApp. Interestingly, the fundamental interaction models and marketing mechanisms of China s social media are practically identical to those of western brands. Relevant content, reward systems and gamification elements in China are all comparable and equally popular making a complete overhaul of the planning and social media marketing policy unnecessary. A complete overhaul of the planning and social media marketing policy is unnecessary. 5

Success Factors for Social Media Marketing in China Marketers should take into account several key points when it comes to social media marketing in China: The Goal Determines the Choice of Media Clear objectives for a social media marketing project vastly increase the likelihood of success, particularly in a market whose breakneck development causes regular and unforeseen changes of course. Every marketing activity within social media should pursue very distinct and quantifiable goals that will ultimately define the best approach. The chosen social media marketing strategy must then be implemented within the relevant social media channels. As each of the bigger social networks has its own characteristics, in terms of audience and user profile, the content and interactions must be designated accordingly. The micro-blog network, SinaWeibo, for example, provides an ideal stage for brands to present themselves on and run campaigns. Other networks, such as the messaging service WeChat that has evolved from a WhatsApp clone to a full-blown, multi-service social network lend themselves to newer mobile services and customer retention measures. Even the geographic coverage of the various social networks has to be considered. Every marketing activity within social media should pursue very distinct and quantifiable goals that will ultimately define the best approach. 6

Using KOLs to Guarantee Reach Endorsement deals play a big role in China s social media with so-called Key Opinion Leaders (KOL) celebrities and prominent internet personalities emerging as the equivalent of small media outlets with a wide reach. Chinese actor, Chen Kun, for example has a following of over 70 million SinaWeibo users. The involvement and assured visibility of KOLs has proven essential, particularly in the seeding phase of social media campaigns. The selection of the right KOL, however, should not be made purely on an exposure or cost-per-impression basis. The deciding factor is ultimately the fit of a brand to the figure s following, in terms of gender, age, income and location. The political stance of the KOL is also a point of consideration, especially as many KOLs came to prominence through their willingness to address controversial topics and, to some degree, defy the communist party. The desirability of an association with a more rebellious image differs from case to case, depending on whether or not a brand wants to position itself as part of the new generation or in line with a more conformist representative. Beware of the Zombies China s social media is riddled with fake profiles and bought user activity, with an estimated 50% of individual networks being made up of zombie accounts used to artificially inflate audience numbers. Not only does this put companies claimed reach into perspective, it also underlines the importance of discerning real users from fake users. In order to obtain more qualitative data, it s imperative to scrutinize all monitorings and evaluations especially those from service providers and to establish a multi-tiered KPI system that tracks the outcome of user behavior in relation to the output numbers. Without the knowledge of the broader context, a superficially successful campaign may prove itself to be nothing more than a Potemkin village without any added brand value. B2C Casestudy: The Volkswagen People s Car Project Volkswagen initiated the People s Car Project so far the company s largest digital marketing project to establish the broader impact of innovation within the digital sphere, while also gaining insights into the automobile preferences of potential clients. Users, together with Volkswagen, were invited to develop their own ideas for a car of the future. A digital hub, integrally connected to social media, formed the core of an almost two year campaign that provided multiple digital tools with which one could create and share one s own submissions. While the tools were fun to use, and reinforced Volkswagen s image as an innovative brand, the company was able to find out what future car features Chinese customers would value. 7

Digital since 1995 We are Aperto. A progressive communications agency that offers the right services for the digital age. As fusionsts, we combine strategy, technology and creativity to put the Wow into the How for brands and organizations alike. We offer diverse talents with a common passion for excellence, and a unique culture in which ideas and innovation thrive. We believe in creating a better digital world, and love doing it together with our clients. We are working from five locations spread across three continents. From Berlin to Beijing to Ho Chi Minh City to Dubai to Basel. With a team of 400 passionate fusionists, we re at the forefront of the digital era and determined to stay there. Looking for Challenges We are driven by projects that both inspire and challenge us. So if you re looking for an agency to collaborate and grow with, you ve found the right partner. Focusing on three primary areas strategy, creation and technology to deliver a holistic solution, we provide the right service for the digital era. Aperto AG In der Pianofabrik Chausseestraße 5 10115 Berlin +49 30 283921-505 info@aperto.com 8

Sources & Imprint Sources CNNIC McKinsey WSJ Copyright An Aperto AG Whitepaper Text: Jan Pilhar www.aperto.com 9