Social Media in ChinaA Very Preliminary Introduction to the

World’s Largest Internet Market and Its Social Media Applications

Created by Mindy Zhang for COMM215November 2009 // Twitter: yaycaffeine

*Artwork from omjii

*

So you want to know about social media in China.

So you want to know about social media in China.

This presentation will…

Give you a *very* preliminary overview of China’s social media landscape (the users, the tools, the unique market characteristics).

Offer some basic, practical advice for companies looking to engage Chinese consumers through social media.

Provide a launching point for learning more and staying informed about the market.

(Download this presentation to access hyperlinks for additional resources!)

China’s netizen population is increasing…

338 million users in June 2009

… and adoption of social media is growing.

Source: CIC, 2008.

What about Facebook, YouTube and Twitter?

China’s digital media landscape is dominated by local players.

Government censorship Local players appeal to domestic users

And they are innovative players, not just “copycats.”

Chinese entrepreneurs generally start with a service they see being successful somewhere else. If it does not work [in the Chinese market] "as is", they diverge until the service becomes quite different.

- Benjamin Joffe, PlusEightStaron Techno-Darwinism and the

5C’s of Chinese Innovation

And they are innovative players, not just “copycats.”

$1 billion in revenue last yearOnly 8.4% advertising revenue in Q2On track to 50% growth this yearRead more about Tencent

What makes China’s Internet landscape unique?

Who the netizens are.

Mostly urban (71.7%) – However, over 95 million rural netizens and growing.

72.4% have a monthly household income of less than 2,000 RMB (~290 USD)

31.7% are students. 7.4% are unemployed.

Only 12.4% have a Bachelor’s degree or higher.

Source: CNNIC’s 24th Statistical Report, June 2009.

How they access the web.

46% of Chinese netizens access the Internet by mobile phone.

35.5% access the web through Internet cafes.

(however, declining as broadband access increases)

Source: CNNIC’s 24th Statistical Report, June 2009.

Why they access the web.

Source: CNNIC’s 24th Statistical Report, June 2009.

1. Entertainment 2. Information 3. Communication

Why they access the web.

*Source: “The Uniqueness of Social Media in China.”

“Chinese netizens are looking for ways to express … their freedom on the Internet.” *

73% of Chinese netizens agreed with the statement: “Online, I feel free to say and

do things I wouldn’t do or say offline,” compared to only 32% of US netizens.*

What they’re using.

Blogs54% of netizens own a blog.

However, only 35% have updated in the past 6 months.*

“Most Chinese blogs are little more than online diaries… [but] that doesn’t mean crises never

originate with blogs.” - Kaiser KuoDirector of Digital Strategy, Ogilvy China

*Source: CNNIC’s 24th Statistical Report, June 2009.

What they’re using.

Bulletin board systems (BBS)

Over 100 million netizens use online forums (aka BBS), and 96% of these users spend at least 1 hour a day on

these websites. (The Hive)Source: “Pepsi’s so-so social media campaign” Littleredbook.cn.

“The real place where conversations about brands

occur on the Chinese Internet.” – Kaiser Kuo

What they’re using.

Social networking sites (SNS)

124 million SNS users in 2009.

Each user has on average 2.8 accounts.*

*Source: China Internet Watch.

Primary purpose is entertainment.27.4% log in just to play games.*

Qzone by Tencent. Read about it here.

What they’re using.

Social gamingLow-cost entertainment,

attractive to students, low-income individuals, and young office workers. Often accessed

through SNS websites.

*Source: “China’s growing addiction: online farming games.” Venture Beat. “An estimated 15 million urban

white-collars spend more than five hours a day on Happy Farm.”*Interesting Article: “

Happy Farms Game Destroys Chinese Jobs, Relationships.”

What they’re using.

Video-sharing websites

65.8% of netizens use online video sites. CNNIC’s 24th Statistical Report.

Only 30% of videos on popular websites Youku and Tudou are user-generated. The rest consists of (mostly

pirated) film and TV content.**Source: WebProChina, February 2009.

How they’re participating.Higher percentage of “Creators” and “Critics” in China.When compared with countries like the U.S., urban Chinese netizens are generally more active in contributing to online content (rather than simply consuming it). For more information about what these labels mean, see Forrester’s Social Technographics Ladder.

Creators Critics Collectors Joiners Spectators Inactives0%

10%20%30%40%50%60%70%80%90%

44% 46%37% 32%

79%

17%24%

37%

21%

51%

73%

18%

Metro China

U.S.

Netizen Participation in Metro China vs. United StatesSource: Forrester’s Consumer Profile Tool, 2009 Data.

How they’re participating.Chinese users are more engaged in their online lives.

86% of Chinese youth live “some of their lives” online, compared to 42% of American youth.

"Sometimes I feel 'addicted' to living online"

"I have experimented with how I present myself online"

"I have adopted a completely different persona"

"Online interactions have broadened my sense of identity"

"Online interactions have made me more self-aware"

"The Internet helps me make friends"

"I use the Internet to find opinions or share my own"

42%

69%

69%

66%

60%

77%

73%

18%

28%

28%

26%

26%

30%

43%

Youth Netizens: China vs. United States

U.S.

China

Source: 2007 survey by IAC and JWT

How viral it is.

Viral memes proliferate across the Chinese web and become

cultural phenomena.

The human flesh search engine phenomenon (HFSE) prompts netizens to dig

up personal details and reveal scandals across social media.

“China has a more tightly integrated Internet community. Everything you do is social media… virality is so much more ferocious.” – Kaiser Kuo

How influential it is.

56.3% of users said that they “got to know brands” through online

channels.

58.7% actually made purchase decisions based on user-generated online info (compared to only 19%

in U.S.).

Even when not making a purchase, 89.9% of users still pay attention

to online word of mouth.*

81% of BBS and blog users check online word of mouth before purchasing a product.*

*Source: “Making Sense of Internet Word of Mouth.” CIC 2009.

What should companies do about social media in China?

1. Listen to your audience.• Monitor the channels they’re using.• What are they saying about your brand?• What are they saying about competitors’ brands?• Pre-empt reputational crises. Be ready to respond when

necessary.

2. Understand local netizens.… and how they’re different from netizens in other markets.• What are their motivations for using social media? • How do they interact with different social media channels?• How to they interact with each other across these channels?• What drives them to participate and spread messages? • What kinds of messages will they be receptive to?

3. Be visible on the right channels.

Don’t simply jump on the social media bandwagon. When engaging Chinese consumers through social media, know which medium is right for your message and your objective – i.e. when to use corporate blogs vs. forums vs. social networking sites. After selecting your channels, make sure your brand is highly visible to the public.

4. Know the incentives for participation and engagement.

Why should Chinese netizens engage with your brand and spread your message? Is it social currency? Opinion leadership among peers? Timely and compelling content? Access to exclusive promotions? Incorporate incentives that will drive interest and participation.

Be authentic and transparent in communicating across social media. Try to add legitimate value to netizens’ online experiences. Most importantly, don’t try to deceive netizens – it will only lead to backlash and reputational damage.

5. Gain and maintain trust.

Some cool things companies have done using Chinese social media:Lancome’s campaign offers optimized engagement[click for case study]

Some cool things companies have done using Chinese social media:Apple’s social networking site campaign [click for case study]

Some cool things companies have done using Chinese social media:BMW launches niche, high end social community in China[click for case study]

Some cool things companies have done using Chinese social media:Clinique/Sony Product Placement and “Sufei’s Diary”[click for case study]

Some cool things companies have done using Chinese social media:ProChile and Chilean Wine in China[click for case study]

And some not-so-cool things they’ve experienced across social media.

“A failed viral ad: the Lenovo red laptop girl” [click for case study]

And some not-so-cool things they’ve experienced across social media.

“Starbucks faces eviction from the Forbidden City” [click for case study]

And some not-so-cool things they’ve experienced across social media.

Chinese netizens rally against Carrefour[click for case study] [and some lessons learned]

And some not-so-cool things they’ve experienced across social media.

Image: China Digital Times.

The Future of Social Media in ChinaPotential for growth - Only 25% Internet penetration

China’s social media landscape is constantly growing, innovating, evolving.

Consumers are adopting new technologies and interacting with them in different ways.

And new conversations can engage millions of netizens in a matter of days, or even hours.

By the time you view this presentation, the facts will have changed.

Knowing the market requires you to stay informed! Here are some

resources to get you started.

(And I will update this section as I find new stuff)

Additional Resources+ A R T I C L E S (to brief you on China’s social media landscape!)

Social media landscape: The Chinese Social Media LandscapeHandbook of Online China (2008)The Uniqueness of Social Media in China

Blogs and blogosphere: Lessons from the Chinese Blogosphere

Forums/BBS: BBS: The Chinese Social Networking PhenomenonUses and Gratifications of BBS Among Chinese Youth

Social networking sites: Top 10 Social Networking Sites in China(Note: Article written before RenRen was formed)China Social Networking Site Statistics 2009

Online gaming: China SNS Gaming Applications: What’s Next?Video-sharing websites: Internet Video in China: Who are the players?

Examples of Branded Viral Videos in China

Additional ResourcesB L O G S T O F O L L O W

The hottest from the Chinese blogosphere, translated into

English:

Hao Hao ReportchinaSMACK

English language blogs – China-related news and media:

CNReviewsDanwei10 Eclectic China Blogs You Should Follow

Digital and social media in China and Asia:

China Web 2.0 ReviewLittleRedBook [dot] CN Web2Asia BlogMobinodeWeb 2.0 AsiaDaily Youku Buzz: Viral Video Ads

Additional ResourcesT W E E P S T O F O L L O W

@kaiserkuo Kaiser Kuo, Director of Digital Strategy at Ogilvy China@elliottng Elliot Ng, China Web 2.0 Investor, Co-Founder of UpTake Inc

@web2asia Georg Godula, Co-Founder of Web2Asia@benjaminjoffe Benjamin Joffe, Founder of PlusEightStar

@cwr China Web 2.0 Review@danwei Danwei [dot] org

@communicateasia Dr. Michael Netzley, Singapore Management University@samflemming Sam Flemming, Founder and CEO of CIC

Additional ResourcesA D D I T I O N A L R E S O U R C E S

General Resources Digital Media Across Asia Wiki: China

SlideShare Accounts to Follow

Plus8Star PresentationsWeb2Asia PresentationsCIC Presentations on Internet Word of Mouth

More 2009 Primers China’s Internet Word of Mouth Trends (2009)CNNIC’s 24th Report on Internet Development in China

Mindy Zhang // Twitter: yaycaffeine