WildBlueSkies - Trends and strategies in Digital Media

As this article in China Knowledge@Wharton mentions, online advertising is booming in China with marketers beginning to recognize the shift in consumer habits - not surprising, when the China Internet Network Information Center estimates 140 million users online in China. Forecasts estimate that within five years China will overtake the United States as the largest group of Internet users as broadband services are rolled out into fourth and fifth tier cities and as disposable incomes increase. The Chinese are already the world’s heaviest Internet users, spending more time online than any other nationality, including Japanese and Americans.
iResearch, an independent consulting firm, forecasts the online ad market to grow at least 30% annually for the next eight years. The numbers of both Baidu, the leading search engine in China with approximately a 70% market share, and Google have been increasing as they ramp up their China operations. In 2006, Baidu pulled in $106 million in online marketing revenue in China while Google brought in $32 million compared to only $38.1 million for Baidu in 2005 and $19.4 million for Google. The numbers show that more and more companies are buying into the idea that online advertising works, and as the case studies of Pepsi and Samsung show, involving consumers can help to develop brand affiliation stickiness.
Some pointers for successful online advertising, which is relevant not just for China:

1. Consumer activism and sharing of information is extremely important in China and is a key factor in why so many people reach out to blogs and BBS. In fact, in a world full of propaganda, people tend to view bloggers as a more truthful source of information than the media.
2. Consumers control the online environment so brands need to think about facilitating user-created actions, not just user-generated content.
3. The Internet is about utility. Consumers read the newspaper, they watch TV, but they use the Internet. In other words, actively involving consumers through the Internet can be more effective than many forms of traditional advertising if done correctly.
4. Originality and association is key - the focus should be on launching campaigns that are viewed as hip and not a copy-cat. Choose the right spokespeople that consumers relate to or idolize.

Filed under: Business, Digital culture