The Rules of Social Media Marketing in China - Aperto

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The Rules of Social Media Marketing in China - Aperto
The Rules of
Social Media Marketing
        in China
The Rules of Social Media Marketing in China - Aperto
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    This Chinese boom takes on increasing importance
least 91% have a social media account and spend an        for western companies within the country, as it is
average of 46 minutes on social networks, daily. This     deemed by many as one of the most important future
rapid development and the profusion of cheap smart-       markets. Whether for car manufacturers such as
phones have enabled millions of Chinese consumers         Volkswagen and BMW, or smaller machine production
to use innovative social, localized and mobile            companies, the significance of the Chinese market is
(SoLoMo) services — often months before comparab-         escalating — and with it, the need for a strong social
le services are available with western brands. As a re-   network presence.
sult, 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.

                                                                                                                   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                            3   User Engagement
    More Socially Influenced
                                                           The Chinese are highly active internet users, creating
For Chinese consumers, personal reviews and recom-         and sharing more content than their western peers.
mendations have a 28% higher influence over the            The internet in China is for the most part a ‘participa-
decision to purchase than for American consumers.          tory internet’ which, especially in a state-controlled
And these recommendations are increasingly found           media landscape, offers a new outlet for exchanging
on social media which, despite censorship, is a more       opinions and self-expression. Which, in turn, makes
trusted source than other, even more heavily censo-        the much-hyped ‘brand engagement’ — the interacti-
red, media outlets.                                        on 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       Most of these networks are clones, adapting western
tool becomes a vital success factor, many western        business models to the Chinese market: Renren and
companies still struggle to manage their social media    Kaixin mimic Facebook; YouKu takes after Youtube;
presence in China. One reason for this is the fragmen-   SinaWeibo and Tencent Weibo are advanced versi-
ted digital media landscape, where the multitude of      ons of Twitter, and WeChat the advanced version of
service providers, niche user groups and profiles pro-   WhatsApp. Interestingly, the fundamental interaction
ve overwhelming. Consequently, none of the global        models and marketing mechanisms of China’s social
internet companies are able to get a firm foothold in    media are practically identical to those of western
the Chinese market. As the nationally controlled         brands. Relevant content, reward systems and gamifi-
internet’s ‘Great Firewall’ prevents access to           cation elements in China are all comparable — and
Facebook, Youtube and Twitter, so it has ensured the     equally popular — making a complete overhaul of the
ascent of national services such as SinaWeibo, Qzone,    planning and social media marketing policy unneces-
Renren, Kaixin and WeChat.                               sary.

                 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       profile, the content and interactions must be designa-
vastly increase the likelihood of success, particularly     ted accordingly. The micro-blog network, SinaWeibo,
in a market whose breakneck development causes              for example, provides an ideal stage for brands to
regular and unforeseen changes of course. Every             present themselves on and run campaigns. Other net-
marketing activity within social media should pursue        works, such as the messaging service WeChat — that
very distinct and quantifiable goals that will ultimately   has evolved from a WhatsApp clone to a full-blown,
define the best approach.                                   multi-service social network — lend themselves to
                                                            newer mobile services and customer retention mea-
The chosen social media marketing strategy must             sures. Even the geographic coverage of the various
then be implemented within the relevant social media        social networks has to be considered.
channels. As each of the bigger social networks has
its own characteristics, in terms of audience and user

               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        whether or not a brand wants to position itself as part
media with so-called Key Opinion Leaders (KOL) —           of the ‘new generation’ or in line with a more confor-
celebrities and prominent internet personalities —         mist representative.
emerging as the equivalent of small media outlets
with a wide reach. Chinese actor, Chen Kun, for            Beware of the Zombies
example has a following of over 70 million SinaWeibo       China’s social media is riddled with fake profiles
users. The involvement and assured visibility of KOLs      and bought user activity, with an estimated 50% of
has proven essential, particularly in the seeding phase    individual networks being made up of ‘zombie ac-
of social media campaigns.                                 counts’ used to artificially inflate audience numbers.
                                                           Not only does this put companies’ claimed reach into
The selection of the right KOL, however, should not        perspective, it also underlines the importance of di-
be made purely on an exposure or cost-per-impres-          scerning real users from fake users. In order to obtain
sion basis. The deciding factor is ultimately the fit of   more qualitative data, it’s imperative to scrutinize all
a brand to the figure’s following, in terms of gender,     monitorings and evaluations — especially those from
age, income and location. The political stance of the      service providers — and to establish a multi-tiered KPI
KOL is also a point of consideration, especially as        system that tracks the outcome of user behavior in
many KOLs came to prominence through their wil-            relation to the output numbers. Without the knowled-
lingness to address controversial topics and, to some      ge of the broader context, a superficially successful
degree, defy the communist party.                          campaign may prove itself to be nothing more than a
                                                           Potemkin village without any added brand value.
The desirability of an association with a more rebel-
lious image differs from case to case, depending on

B2C Casestudy: The Volkswagen People’s Car Project

Volkswagen initiated the People’s Car Project — so         integrally connected to social media, formed the core
far the company’s largest digital marketing project —      of an almost two year campaign that provided multip-
to establish the broader impact of innovation within       le digital tools with which one could create and share
the digital sphere, while also gaining insights into the   one’s own submissions. While the tools were fun to
automobile preferences of potential clients. Users,        use, and reinforced Volkswagen’s image as an inno-
together with Volkswagen, were invited to develop          vative brand, the company was able to find out what
their own ideas for a car of the future. A digital hub,    future car features Chinese customers would value.

                                                                                                                      7
Digital since 1995

We are Aperto. A progressive communications agen-        We believe in creating a better digital world, and love
cy that offers the right services for the digital age.   doing it together with our clients. We are working
As fusionsts, we combine strategy, technology and        from five locations spread across three continents.
creativity to put the Wow into the How for brands and    From Berlin to Beijing to Ho Chi Minh City to Dubai to
organizations alike. We offer diverse talents with a     Basel. With a team of 400 passionate fusionists, we’re
common passion for excellence, and a unique culture      at the forefront of the digital era and determined to
in which ideas and innovation thrive.                    stay there.

Looking for Challenges

We are driven by projects that both inspire and          Aperto AG
challenge us. So if you’re looking for an agency to      In der Pianofabrik
collaborate and grow with, you’ve found the right        Chausseestraße 5
partner. Focusing on three primary areas—                10115 Berlin
strategy, creation and technology—to deliver a
holistic solution, we provide the right service for      +49 30 28 39 21 - 505
the digital era.                                         info@aperto.com

                                                                                                                   8
Sources & Imprint

Sources

• CNNIC

• McKinsey

• WSJ

Copyright

An Aperto AG Whitepaper

Text:     Jan Pilhar

www.aperto.com

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