I have been pulling together slides for me that were useful for the work that I have been doing. I thought it would be worthwhile sharing these slides with a wider audience.
This month, I have selected a few slides that shed a light on advertising and consumer behaviour in China.
Looking at platforms it is hard to over play the importance of Tencent in the Chinese internet. Looking at mobile behaviour Tencent is responsible for at least four of the top ten properties: WeChat, QQ, QQ Browser and Tencent Video.
If we look at two Chinese internet companies Tencent and Netease we can see how the companies have massively increased the number of non-game apps that they provide to keep consumers in their eco-system for their digital lives.
(Microsoft’s high number is driven by a number experimental project apps and enterprise apps). What this means is that the mobile OS becomes less important, which is one of the reasons why western brands from Samsung to Apple have been hit in the market. Their platforms give them less leverage.
If we look at advertising spend in the Chinese market we can see that digital and radio advertising spend over-indexes. In some ways this is surprising. Online content is huge and historically the government controlled traditional media much more tightly than online media – to the detriment of watchable content on the television. More recently, government regulation has tightened across platforms.
Print advertising only slightly over-indexes in comparison to digital or radio. On the face of it there looks to be a massive opportunity in television advertising.
If we look at the media market consumption habits two things immediately stand out. Television and radio are largely holding their own in the face of rapidly growing digital consumption. The rapid growth in digital consumption is being driven by non-PC devices.
If you want to know why Huawei has partnered with Leica to boost the perception of its smartphone camera function, one of the factors involved is the massive growth of photography in Chinese mobile behaviour. This is especially interesting when one compares it to messaging and social – WeChat the largest mobile social platform is all encompassing in its functionality and place in modern Chinese life. A second factor is the way manufacturers are trying redefine the premium smartphone sector, at a time when innovation and experiential difference have become incremental.
You can see the full presentation here