Listening at the Chinese Digital Space Project offering web edition Shanghai, 2013
Contents of the document Overview of China Digital Space Our Digital Proposal 2
Digital at glance China internet population is today already the largest in the world and is expected to grow even more. It has entered pervasively into daily life 538 million with PC as access point 388 million with mobile as access point 324 million micro-bloggers 194 million on-line purchasers All of them communicating in Chinese 19.9 hours/week on-line 3
Evolution of internet users The Internet is today used by 538 million through PCs and 388 Million on mobile devices Total users (in million) Average time spent weekly 420 457 485 513 538 CAGR (07-11 ) 17% hours/ per week 18.7 19.8 18.3 18.7 18.7 19.9 384 PC internet 338 155 384 277 303 318 356 388 2009 H2 2010 H1 2010 H2 35% Segmentation by age 2011 H1 2011 H2 Age <10 1.4% 153 2012 H1 Population (mln) Mobile internet Age 10-19 4.3% 178 2009 H1 2009 H2 2010 H1 2010 H2 2011 H1 2011 H2 2012 H1 Age 20-29 Age 30-39 12.0% 25.5% 225 203 Internet Penetration 26% 29% 32% 34% 36% 38% 40% Age 40-49 Age 50-59 25.4% 30.2% 245 154 Above 60 1.2% 186 Source: CNNIC, US census 4
Profile and habits of Chinese social network user Brand and company info are among the most frequent topics Over 70% of Sina Weibo users search for hot trend news, followed by friends and celebrities It is noteworthy that 28% search for brand information and 20% search for company information Social media is now being leveraged by leading commercial organizations for advertising, marketing and public relations. Investment on social media has skyrocketed and will continue to thrive User profile Information search by category Gender Hot trend news Friend 70% 65% Male 53% 47% Female Celebrity Work & study info 54% 45% Brand info 28% Company information 20% Age Above 41 Under 18 Age 31-41 11% 13% 19% Educational background Senior high school and below 18% 57% 82% Age 19-30 College and above Other Micro-blog content Express personal feelings Life and work trivias Release emotions Share information Learning something new Know about friends Search interests For news Relax 2% 49% 47% 43% 40% 39% 38% 38% 38% 35% Source: iresearch, 2012 Show out self 30% 5
In China, Internet is Chinese Most popular international social network sites being blocked by the government, equivalent purely Chinese applications have developed rapidly and filled the space International leader Equivalent Chinese Popularity by Nielsen Total users million, 2012 Micro-Blog 97% Tencent Weibo Sina Weibo 163 Weibo 120 324 425 RenRen 147 SNS 70% Kaixin001 Pengyou 82 64 LBS 10% Jiepang 20 300 Source: Survey from Nielsen, 2012, GMI China 6
China E-commerce is booming China e-commerce is showing rapid growth. It reached 1,304 bn Rmb in 2012 and expected to continue developing China's online shopping Segmentation by category Billion Rmb 1,850 2,450 3,020 CAGR (08-16 ) 52% 3,600 2012 Others 43% 27% Apparel and bags 1,304 785 461 128 263 2008 2009 2010 2011 2012 2013e 2014e 2015e 2016e Books and audio-visual products Baby products 3% 4% 6% 18% Cosmetics 3C electronics China online shopping, is booming in recent years, has emerged as a major sales channel for retailers, with combined sales of about 1.3 trillion Rmb in 2012 By 2016, the Chinese market expected to reach an estimated 3,600 billion Rmb in revenue to become the world largest e-commerce market Source: iresearch 7
Contents of the document Overview of China Digital Space Our Digital Proposal 8
Leveraging the digital space We have identified 3 steps to leverage the digital space Listening Monitor social media conversations about your category, brand, and competitors across thousands of websites Analyze results to obtain consumer and market intelligence. Gain insights from unbiased conversations Respond Identify sales leads across hundreds of social networking sites, blogs, micro-blogs, and forums Publish new content and manage content marketing workflow across your organization Influence Identify and recruit influencers relevant to your target audience Convey messages and address conversations Monitor marketing impact 9
What is Digital Listening? The activity is key to provide the necessary knowledge to then actively leverage the communication to and between users on the web We use technology (a dedicated software) to: And obtain answers to relevant questions: Monitor social media conversations about your category, brand, and competitors across thousands of websites Who is talking about the brand How old they are? Where are they? Man vs Women Obtain consumer and market intelligence while monitoring marketing impact How much are they talking How many conversations? When are they talking? On which digital platform? Gain insights from unbiased conversations What are the topics discussed What is the general sentiment? What are the topics? What are the most important / dangerous conversations? How the brand is perceived as to its key competitors How is it compared to key competitors? To which competitors is the company associated? 10
Digital Listening - Sources and topics The Digital listening activity will allow to have a clear picture of what sentiment and perception of the your brand in the digital space Source of the information Typical words to be tagged Topics to be investigated Large number of conversational platforms from the Chinese internet such as: SNS (e.g. weibo - Sina, tencent & wangyi - kaixin, renren etc...) Forums (e.g. douban, onlylady etc...) E-commerce (e.g. Tao bao etc...) Movie sharing (e.g. Tudou, youku) Relevant words will be tagged in English AND Chinese: Brand s name Relevant competitors Words describing the key values of the brands Names of product lines Products specific features.. How much are people talking about your brand? What topics are people talking about? Are the conversations positive or negative (about the brand)? Where are these people talking? Who are these people anyway? Information sources, words to be tagged and topics to be investigated shall all be customized according to the specific situation and needs 11
Digital Listening - Structure of the output Besides the standard structure other analysis can be done according to specific client s needs Demographic Breakdown by Location Male vs Female Breakdown by Age Volume Conversation topics Breakdown by sentiment (Positive / Negative/ Neutral) Major topics by sentiment cluster Analysis of perception (Brand+ Key tag word 1 vs Brand + Key tag word 2) Total volume of conversations Volume of key words Focus on Weibo Volume by platform Competitors Examples of most interesting posts/ threads Number of conversations with Client+ another brand Number of conversation by brand name vs its Chinese translation 12
Digital Listening - Examples of deliverables 13
Why listening at the Digital Space? (2/2) Through the conversations the company can collect useful feedbacks on different topics such as retail format, store locations search, convenience of different locations, ect Examples from different cases Is it true that XXX is about to open a shop in Wuhan? (young men located in Wuhan) Wooo, just back from the new ZZZ shop. Cool!!!! (young women located in Shanghai) (about brand YYY) Don t like the new products, not stylish and too expensive (young men located in Chendu) Did you see the new campaign of WWW? Bahhhh!!!! (young women located in Shanghai) 14
Project Example: Benchmarking successful digital strategies for China Situation Core questions Results - The client was preparing the launch of a new product in China - The same product is elsewhere supported with intensive digital promotion and interaction - The client needed to gain an in-depth understanding of China Digital Space and the benchmark the strategies adopted by its key competitors - What kind of reach have different media in China (TV, Internet, Radio, )? - What is the current situation and the ongoing trends? - What are the relative costs for each media? - What marketing mix other relevant FMCG companies have adopted to launch their products in China? - Overall picture and detailed information enabling the client to develop a digital media plan Proceeding / methodology - Desk research - Interviews to media companies, advertising agencies and industry experts - Store checks 15
What is Digital Responding? We keep track of user questions and concerns on social networks, than we take action according to client guidelines to optimize the brand image on the web We use technology (a dedicated software) to: We actively reply to drive the conversation toward your benefit Monitor social media conversations about comments that users make about your brand and product We assess the meaning of the topic under discussion (positive, neutral and negative comments, questions and concerns) Reply and engage users in order to satisfy their questions and their concerns We help users to understand their questions and we prevent false rumors from being considered true by the web audience We suggest propose you digital strategies to support your brand reaching higer performances on social medias We keep tracking the conversations and we discuss with you a possible solution 16
What is Digital Influencing? We identify and recruit influencers able to boost your online brand performance We identify and recruit influencers relevant to your target to: We actively monitor the results of the campaign Boost your performance on social networks providing you influencers which are able to write the right comments to engage the web audience We organize offline activities which will influence consumers to write positively about your brand on social medias We monitor the market impact and we report you the results of our activities We assess where consumers are more interested bringing you suggestions to improve your market intelligence We keep informed social groups interested in your initiatives 17
Contact details Fortune Gate Unit 3007, N.1701 Beijing West Road 200040 Shanghai Tel: +86 21 31265735 Fax: +86 21 6137 8596 info@battaglia-as.net www.battaglia-as.net 18