Phone users drive on­line mar­ket­ing

China Daily (Canada) - - BUSINESS - By REN XIAOJIN renx­i­ao­jin@chi­

China’s ad­ver­tis­ing and mar­ket­ing com­pa­nies are mov­ing rapidly to­ward the on­line and mo­bile sec­tor, and some are eye­ing big­ger mar­kets abroad, thanks to a grow­ing num­ber of smart­phone users.

As Frost & Sul­li­van, an in­ter­na­tional con­sult­ing com­pany, re­cently re­ported, China’s mo­bile mar­ket­ing man­age­ment busi­ness has seen a leap from 58.6 bil­lion yuan ($9.25 bil­lion) in 2012 to 216.9 bil­lion yuan in 2016 with an an­nual growth rate of 38.7 per­cent.

The con­sul­tancy also pre­dicted that by 2020 on­line mar­ket­ing man­age­ment will sur­pass the off­line mar­ket in China, ac­count­ing for 52.3 per­cent of the mar­ket share, and is ex­pected to grow to 767.1 bil­lion yuan by 2021.

China now has the world’s largest num­ber of mo­bile phone users and busi­nesses are re­spond­ing to this. Yan­nick Bol­lore, CEO of Havas Group, one of the world’s largest mar­ket­ing com­pa­nies, re­marked on how quickly China is head­ing to the on­line and mo­bile mar­ket.

“I think it is a revo­lu­tion. Dig­i­tal tech­nol­ogy is go­ing to change com­pletely how we com­mu­ni­cate,” Bol­lore said. “We used to ex­press mes­sages from tele­vi­sion and ra­dio us­ing a top-down method. But now it is dif­fer­ent. There are so many Chi­nese peo­ple who have WeChat ac­counts.”

And dig­i­tal and mo­bile is where Chi­nese ad­ver­tis­ing and mar­ket­ing com­pa­nies are head­ing.

“There is a promis­ing fu­ture for a mar­ket­ing man­age­ment plat­form spe­cial­iz­ing in one as­pect,” said Hu Jian, founder of In­, a Bei­jing­based mo­bile ad­ver­tis­ing plat­form, the world’s first mar­ket­ing com­pany spe­cial­iz­ing in mo­bile game demos.

Game users are forced to watch ad­verts in the mid­dle of a game, which sig­nif­i­cantly low­ers the user ex­pe­ri­ence. Hu and his team em­ploy in­ter­ac­tive tech­nol­ogy that al­lows users to in­ter­act with the ad­verts.

“The game mak­ers are will­ing to put 50 to 60 per­cent of their rev­enue into ad­ver­tis­ing,” Hu said.

He said the mo­bile ad­ver­tis­ing mar­ket for games was about $25 bil­lion in 2017, and would grow to $35 bil­lion by 2020.

The com­pany is over­seas mar­kets tar­get­ing in­clud­ing North Amer­ica, Ja­pan and South Korea, and Hu is ex­pect­ing rev­enue of 100 mil­lion yuan in 2018.

The in­dus­try was ex­cited by the re­cent Nas­daq list­ing of iClick In­ter­ac­tive Asia Group Ltd, a mile­stone in the com­pany’s quest to­ward global mar­kets.

It is China’s largest in­de­pen­dent on­line mar­ket­ing tech­nol­ogy plat­form with a 5.4 per­cent do­mes­tic mar­ket share. Driven by mo­bile tech­nol­ogy and big data, the plat­form has an­a­lyzed about 670 mil­lion ne­ti­zens in China, and more than 70 per­cent of its rev­enue comes from the mo­bile side, ac­cord­ing to the com­pany’s prospec­tus.

Sammy Hsieh, co-founder and CEO of iClick, said the com­pany’s am­bi­tions are not lim­ited to the dig­i­tal mar­ket­ing sec­tor. “Data and tech­nol­ogy will not only be used for mar­ket­ing, iClick will ex­pand its ad­van­tage to other fields.”


The booth of YeahMobi — China’s lead­ing mo­bile mar­ket­ing com­pany — at the Global Mo­bile In­ter­net Con­fer­ence in Bei­jing.

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