China's digital marketers can skip some of the mistakes made in
other more established markets as they go through a huge digital
growth spurt and probably develop new tools (and associated
mistakes) on their own. I expect the same thing to happen with some
tactics.
As a westerner living in Shanghai, I've certainly had to
re-evaluate what I understood about China, including the way to
approach digital marketing when taking on the world's largest
internet market. Here's what I've figured out so far:
1. There is plenty of life beyond Facebook, Twitter, and
YouTube.
And that's a good thing, since these banned sites are
non-players in the Chinese market. Although the social media space
is fragmented, there are major players with hundreds of millions of
users that rival even the biggest players.
Although a myriad of players exist in this complex social media
space, start by learning about platforms like Kaixin (social
network), Sina Weibo (micro-blogging), Youku (video sharing), and
QQ (instant messenger). Re-learning the platforms can be
challenging, but is possible for non-Chinese speakers by accessing
them through Google Chrome with its automatic language translation
function. The brand communications principals behind authenticity,
transparency, and value in social media still apply, though.
2. Bulletin board sites (BBS) thrive in
China.
BBS culture formed the foundation of the social web long before
there were social networks in the rest of the world. They provide a
rich and fertile digital ecosystem of like-minded people aligned
around online communities, physical communities, common passions or
needs, or even groups of friends or individuals. Arguably the
largest social platform (in aggregate), they provide unique insight
into the Chinese consumer and should be addressed in any
comprehensive digital marketing campaign.
3. Forget leveraging a user's social profile (for
now).
One of the most (r)evolutionary digital enhancements outside of
China in recent years was Facebook Connect (now OpenGraph) which
allowed marketers to personalize digital experiences based on a
user's social profile. It allowed for new types of digital
experiences that were exponentially more relevant to the consumer.
This technology doesn't exist in China yet, but keep your eye out
for the first social network to release a platform like this one,
as they're sure to grow rapidly and become the darling of China's
digital marketing community. Of course they'll still be up against
the challenge of China's internet community being wary of sharing
their personal information.
4. Think mobile first for many digital users in
China.
The number of people who accessed the internet on a mobile
device doubled last year with the introduction of 3G services. Many
of these individuals will have their first digital experiences at
school, university, work, or an internet caf?, but their one
consistent experience with the internet will be through their
mobile device as opposed to a PC as they might not have the ability
to own one.
5. Never underestimate the rate of
change.
The rate of change is staggering and only reflective of a
society that is undergoing a mind- boggling transformation into the
kingdom of capitalist might while simultaneously holding firmly
onto their traditional roots. China added 131 million internet
users to its population between 2008 and 2009 and another 60
million by July of this year. This same staggering rate of change
exists in the growth of the population and simultaneously the
sophistication of the population. Expectations around the quality
of digital marketing will rise more rapidly then expected.
6. Penetration may be low, but smart phones are big
business in China.
Don't base your thinking on any statistic you read as a
percentage point. It's very easy to forget scale in China. For
example, China's smart phone penetration is approaching 11%--a
small number until you remember that it reflects around 180 million
people. In tier one and tier two cities?the provincial capitals and
main urban (and wealthy) centers?average penetration is even
higher.
7. E-commerce plays a different role in
China.
Mega players like Amazon and Ebay have never been able to take
on domestic China offerings like Alibaba Group's B2C e-commerce
platform Taobao. China's great rush of consumerism has driven
desire for premium brands beyond the tier one cities, but consumers
don't have access to the retail outlets of top tier cities or are
unable to afford their new aspirations. E-commerce players like
Taobao are able to provide access to these goods across China and
appear to be able to provide deep discounts not available at retail
locations.
8. Don't expect insights into people's offline behaviors
to reflect their behavior online.
In China, the internet provides an outlet for people to live an
online identity that is quite different from their offline
identity. Sometimes these online personas are a reaction to a
repressed cultural environment due to religion, the government, or
society-based traditions.
In other scenarios, it can be an opportunity to live out
escapism and fulfill people's dreams through a virtual world.
Social networks in China boast games like "buying houses" and
"parking lot" for example. Don't rely on standard research and
consumer insights to reach your audience as you might find unique
opportunities by understanding a consumer's online persona and how
it's connected back to their offline persona.
Digital marketing in China is at a very exciting stage in its
development. It has huge scale and reach, the budgets are growing,
marketers' understanding is maturing, and most importantly
creativity is emerging in new and exciting ways. Avoid some of the
pitfalls and join the fray.
Freddie Laker is SapientNitro's
executive director for digital strategy in Asia, based in Shanghai.
A regular contributor to Advertising Age's DigitalNext blog, he
founded the Society of Digital Agencies, a collective of notable
digital agencies in the U.S. focused on thought
leadership.
