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China Digital Marketing Report 2019

China digital marketing report 2019

Chinese society has progressed continuously, comprehensively and profoundly. Under the forces of China’s macro-strategy, economic policy and technology-driven, China’s advertising and marketing market, like other industry markets, has shown strong vitality and sustained growth.

In fact, whether it is “Internet +” or “double innovation”, or supply-side reform and consumption upgrade, it provides opportunities and challenges for China’s advertising and marketing industry from all levels. These opportunities and challenges are two Significant features are reflected.

The first is the continuation and expansion of digital advertising. What we see is the expansion of digital marketing scale and share, the transformation and entry of traditional advertising groups or consulting organizations, technology companies, or the strengthening of data as a core capability, and even the internal marketing chain and organizational structure of the brand owners. they are the embodiment of this continuation;

The second is the emergence and exploration of the “next generation”. The digitization process led by the Internet has had a strong influence on the new “external factors” in the past two years. The transformation of intellectual factors and trust systems by AI and blockchain technology may subvert the production methods and market logic in the past economic fields. In this case, the corresponding entities in the advertising and marketing industries will inevitably make corresponding changes.

Both of these aspects fundamentally determine the fundamental form of China’s digital marketing industry and market. As the three most important players in this market: brand owners, media and agency service providers adopt various strategies or means to adjust and optimize their adaptability and service capabilities for the entire media, consumer and policy environment – ​​these environments Including the relative scarcity and absolute cost of high-quality traffic, increasingly diverse and unpredictable user attitudes, brand owners’ more paranoid pursuit of marketing effects, the values ​​and ethical dilemmas of technology applications, and increasingly stringent regulatory policies, etc.

Chinese digital marketing industry has made remarkable achievements in the past few years and made remarkable progress. However, there are still some shortcomings that need to be the direction of future efforts. There are two more important ones. First of all, it is a research and attention to the Chinese society in the three major directions of informatization, urbanization and aging. These three trends will have a major impact on China’s future economy, market, production and consumption, and services. Secondly, it is not enough for the institutions in the digital marketing industry to actively participate in the market governance and policy design of the overall industry. These are all things that need to be improved.

Digital Marketing Overview

Background

Global Digital Economy Overview

The size of the US digital economy reached 11 trillion US dollars, accounting for 59.2% of GDP; Chinese digital economy is 3.8 trillion US dollars, accounting for 30.1% of GDP, Japan is about 2.3 trillion US dollars, accounting for 45.9% of GDP, the United Kingdom It is about 1.43 trillion US dollars, accounting for 54.5% of GDP. The digital economy has become an important driving factor for economic growth in various countries. Although China’s overall digital economy is ranked second, the proportion of digital economy to GDP is still significantly lower than that of the United States, Britain, and Japan. The future development potential of the digital economy is huge.

From the perspective of the size of global netizens, as of June 2018, the total number of Internet users reached 3.89 billion, and the penetration rate reached 51.7%. Among them, China Mobile’s Internet users reached 970 million, ranking first in the world; India’s Internet users reached 355 million, a year-on-year increase of 28%, becoming the world’s second largest Internet market after China. The continuous penetration of Internet into developing countries has become an important support for the digital economy to continue to tell growth.

We also noticed that among the top ten global market capitalization companies in 2017, the number of digital companies climbed to seven, which was only one and five in 2007 and 2016 respectively. As an important unit of the national economy, the digital enterprise tells the growth that the development of the digital economy has become a common choice for the world’s major powers and regions to reshape global competitiveness.

Data has become the core production factor driving economic growth. The integration of big data and cloud computing has promoted the rapid development of the Internet of Things and realized the interconnection of people, people and things, things and things, resulting in explosive growth of data volume. . The global data growth rate is in line with the “Big Data Moore Law”, which doubles every two years.

The sheer volume of data and its processing and application requirements have spawned the “big data concept” and data is increasingly becoming an important strategic asset. Experts believes that big data is “new oil in the future” and “another core asset in addition to land rights, sea power and air power.” The data is even considered to have exceeded the value of oil and has become the “currency” in the digital economy. Data, like the land, labor, and technology of the industrial era, has become a production factor in the digital economy era and is the core production factor. Data-driven innovation is expanding into various fields such as economic society, science and technology research and development, and has become a key form and important direction for national innovation and development.

Overview of China’s Digital Economy

1,China’s overall economic environment

In 2017, Chinese gross domestic product (GDP) reached 827.12 billion yuan, an increase of 6.9% over the previous year. This is the first time since 2011 that China’s economic growth has reversed the downward trend and stabilized. While the Chinese economy is maintaining rapid growth, the total GDP has also reached a new level, breaking through 80 trillion. In the past year, China’s economic growth has exceeded 8 trillion yuan, equivalent to the total economic output of the 14th country in the world in 2016. Moreover, the contribution rate of the Chinese economy to the world continues to increase. According to estimates, China’s contribution to world economic growth is around 30%.

In 2017, China’s economy was dominated by supply-side structural reforms, promoting structural optimization, power conversion and quality improvement. The national economy was stable and better than expected, economic vitality, momentum and potential were continuously released, stability, coordination and Sustainability has been significantly enhanced, while import and export exceeded expectations and achieved steady and healthy development. The online retail sales of physical goods increased by 28%, the online retail sales of non-physical goods increased faster, and the express delivery business maintained a growth of nearly 30%. New business models such as sharing economy, sharing economy, digital economy and platform economy grew rapidly and became new kinetic energy. . Mass entrepreneurship, innovation, and “release, management, and service” reforms have mobilized the enthusiasm of market players such as enterprises, which has strongly supported employment and innovation. In 2017, the new economic development is still booming.

In 2018, China continued to maintain the largest country of digital users and the largest mobile payment country. It continued to deepen its efforts. The number of mobile netizens exceeded 980 million, accounting for one-fifth of the total number of Internet users worldwide. China has built the world’s largest 4G network, with an average user experience rate of 13.5 megabits per second. In 2017, China’s global speed ranking increased by more than 50, ranking 23rd in the world.

The accumulation of new kinetic energy in the digital economy has created three major digital dividends: one is to create a consumption growth dividend. China’s mobile payment transaction volume has exceeded 81 trillion yuan, ranking first in the world. In 2017, the national online retail sales amounted to 7.18 trillion yuan, a year-on-year increase of 32.2%, which is more than 20 percentage points higher than the growth rate of total retail sales of social consumer goods, indicating the digital economy. Greatly stimulate market consumption. The second is to create a digital economic dividend. In-depth promotion of the “Internet +” initiative and national big data strategy, emerging industries driven by digital technologies such as the Internet, cloud computing and big data have become the new economic pillar industries. The third is to create a digital employment and entrepreneurial dividend. Drive a large number of direct employment, and drive the explosive growth of new consumption models such as online medical care, online education, and food and beverage take-out, and become a veritable new economic growth point.

The reform of the commercial system that began in 2014 has brought about a clear institutional dividend for investment and entrepreneurship. As of September 2017, the total number of enterprises in the country was 29,072,300, with a registered capital of 274.31 trillion yuan, equivalent to 3.4 times the gross domestic product. Considering the difference between registered capital and real capital, it can be said that China is already the world’s largest industrial capital country. Among them, there are 2,067,900 private enterprises with a registered capital of 165.38 trillion yuan, accounting for 89.7% and 60.3% of the total number of enterprises and registered capital respectively. China has become the world’s largest “business kingdom” and has become the world’s largest “entrepreneurial country.”

2. China’s digital economy development trend

The scale of China’s digital economy reached 27.2 trillion yuan, accounting for 32.9% of the gross domestic product (GDP). The number of employed people in China’s digital economy reached 171 million, accounting for 22.1% of the total employment in that year, and has become an important channel for employment.

China’s digital economy mainly consists of two major parts: one is the information and communication industry, including electronic information manufacturing, telecommunications, software and information technology services; the second is the integration of digital economy, that is, the traditional industry through the application of digital technology Productivity and quality improvement. In 2017, the digital development of various industries showed greater inter-industry differences than in previous years, and different industries grew at different speeds. Medical, education, cultural and entertainment continued the high-speed growth momentum of last year. In 2017, the growth rate reached 371.90%, 226.09% and 79.31% respectively. In particular, the medical and education industries, whose three-digit increase reflects the explosive growth of these two industries in the past year.

The penetration of digital technology shows obvious regional radiation characteristics, and the growth rate of the surrounding areas of national and regional central cities is significantly faster than other regions. At the same time, the central and western regions are forming a new growth pole and growth belt for the digital economy. At the same time, the digital divide has been further narrowed, and regional imbalances have been improved to some extent. In 2017, China’s digital Gini coefficient was 0.59, which is still in a relatively unbalanced stage, but it is down from 0.62 in 2016. In terms of regional distribution, the eastern provinces have obvious advantages. The top six provinces and cities in the digital economy are Guangdong, Jiangsu, Shandong, Zhejiang, Shanghai, and Beijing.

In recent years, the strong support of national and local policies, the urgent need for industrial transformation and upgrading, and breakthroughs in key technologies have jointly promoted the rapid development of China’s digital economy. However, China’s digital economy still faces many challenges such as weak digital foundation, insufficient platform support, and prominent security risks.

3. Digital economic policy

The government’s emphasis on the digital economy is increasing. In the “Twelfth Five-Year Plan”, the new generation of information technology will be listed as a national strategic emerging industry, and in the “13th Five-Year Plan”, it is clearly proposed to form a new generation of information technology and other five output value scale of 10 trillion yuan. New pillar.

When Premier Li Keqiang made a government work report at the National People’s Congress in early 15th, he first proposed the “Internet +” action plan. In July, the State Council issued the “Guiding Opinions on Actively Promoting the “Internet +” Action”, and at the end of The World Internet Conference stated that China is implementing the “Internet +” action plan to promote the construction of “Digital China.” The National Development and Reform Commission also issued the “Internet +” Artificial Intelligence Three-Year Action Implementation Plan in May of the 16th.

As China began to look at digital issues from an economic perspective, the digital economy began to heat up. In the 16 years of the World Internet Conference, the G20 Hangzhou Summit, the Central Political Bureau Network Powerful Country Strategic Collective Learning, Network Security and Informationization Work Symposium, etc. On occasion, the digital economy shines. In March of this year, the digital economy was first written into the government work report. When General Secretary Xi Jinping implemented the second collective study of the National Big Data Strategy in the Political Bureau of the Central Committee, he stressed that it should review the situation, carefully plan, advance the layout, strive to take the initiative, implement the national big data strategy, and accelerate the construction of digital China.

Digital Economy and Digital Marketing

1. Digital marketing market scale

In 2017, the overall size of the digital marketing network advertising market reached 301 billion, a year-on-year increase of 19.5%. Although the overall growth rate has slowed down, the growth momentum is still strong. In the traditional media, the market share of newspapers and magazines has fallen by more than 20%, TV ads by 7.6%, and outdoor media by 11.7%. With the continuous penetration of Internet by Internet users, the market share of traditional media will further in the next few years. There has been a decline, and the online advertising market space still has a large growth potential. Among them, the overall scale of mobile online advertising reached 247.094 billion, accounting for 82% of the total scale, an increase of 83.9% compared with 2016, and continued to maintain rapid growth. Mobile Internet advertising has become an emerging growth driver of the Internet advertising market.

2. Market environment

With the transformation and upgrading of the Chinese economy, consumers are becoming conscious, active and powerful. After the product-based 1.0 era and the consumer-based 2.0 era, we will enter the 3.0 era of humanity. In the future, communities based on strong social relationships and weak relationships may form new units in market segments. Instead, the consumer’s original identity disappears and is reinstated into individuals with personality and diversity, value and emotion, and they are potential collaborators. Further, they are not only consumers of branded content, but also creators of branded content. For advertisers, the marketing concept has also gradually changed its position from “servants and servants” to “friends.”

3. Digital marketing development trend

In 2017, even the platform with a large number of users and accurate crowd portraits is paying more and more attention to content. Weibo recently announced that it will spend 3 billion yuan to support MCN organizations that produce high-quality content in the content e-commerce, high-quality short video and general entertainment. While integrating with Baidu’s AI technology, user data, marketing platform and media resources, iQiyi announced that its investment in content in 2018 will exceed 10 billion yuan.

These facts show that the platform giant has also realized that the channel itself and the ability to reach a large number of users is no longer the advantage of future traffic battles. The key to obtaining traffic is content. This is the same for brands, platforms, media or KOL.

In 2017, the entire IP content is still hot. Net comprehensive and online drama will become the focus stage of content marketing. The data shows that 41% of advertisers said that they will invest in online marketing in terms of content marketing, and 41% will invest in online dramas compared to last year. There has been significant growth. The data shows that compared to 2016, mobile video advertising in 2017 increased by 67% year-on-year. Short videos have incomparable expressive powers such as text pictures in terms of expressions. They conform to the public’s mobile viewing habits in terms of duration and rhythm, and have a large user base. Live broadcasts continue to attract the attention of advertisers because of its “low cost and high return” characteristics.

KOL participation is still a key point in marketing. Since the media has not been reduced, the net red economy will continue to exert its strength. These KOLs that have the right to speak in the online world are still powerful forces that influence consumers. However, when choosing KOL, advertisers also began to pay less attention to fans and traffic-rich pan-entertainment KOL, but will pay more attention to KOL, which is not so large but has considerable voice in the segmentation field. Turn.

In the new year marketing budget allocation, 87% of advertisers will further increase the mobile marketing budget next year. Correspondingly, it reduces the expenditure on the PC side, and even some advertisers give up marketing on the PC side. In digital marketing, social platforms and video sites are the key channels of distribution.

4. Digital marketing technology development

With the maturity of AI technology and the efficiency of the platform reaching consumers, the core competition of digital marketing will return to the origin of this industry. “Who’s insight is more accurate, who’s more content, and whose content is faster. It will be the key to marketing competition. This also coincides with the trend we see from the platform side above.

In 2017, the world ruled by Moore’s Law will unlock more technology. Self-taught AlphaGo Zero just defeated the latent chess Ke Jie, and the Boston Dynamic Robot successfully completed a beautiful backflip. This may indicate that artificial intelligence can not only defeat human beings intellectually, but also do not hesitate in physical strength. Advances in technology and the evolution of consumer trends will also bring new opportunities to digital marketing.

Algorithm-based automated marketing has become a common tool for advertising and marketing from a tall, hot word. In addition to consolidating its dominance in the Internet and mobile phones, automated advertising and marketing will also include traditional advertising channels, including TV and outdoor advertising. In the future, automated marketing will continue to improve marketing accuracy through more data and better algorithms. On the other hand, image recognition, speech recognition and natural language processing (NLP) technology will be used to enrich video, picture and voice. The media also has a lot of room for improvement in the intelligent interactive experience.

In 2017, the new trend of immersive marketing initiated by AR and VR continues to shine. Last year, Apple and Android launched the ARKit and ARCore application software, which provided a convenient platform for mobile AR development. According to ARtillry, by 2020, the market for AR-related software and services on the Apple platform will reach $9 billion, while the AR-related revenue in the Android ecosystem will reach $3.6 billion. In 2018, I believe that the major shopping websites in China will work hard on VR/AR virtual shopping.

In the future, the digital marketing war is gradually unveiled. In the face of the ever-changing Internet environment, advertisers, media, and agents will inevitably apply new technologies to create new scenes to attract users’ attention and rob users of time. In the new round of digital marketing wars, technology will be the foundation of everything, and creativity and content are still the core of marketing.

5. Digital marketing capital operation

The scale of Internet investment and financing reached 48.38 billion US dollars, and the number of financing reached 1362. The top five fields of e-commerce, search engine, internet finance, culture and entertainment and sports, and travel are ranked in the top five. Among them, the investment scale of cultural entertainment and sports and travel tourism has been greatly improved compared with 2016.

From the perspective of digital marketing technology, with the increasing use of the Internet, the Internet of Things and related technologies, we can find that many complex and cross-domain entrepreneurial projects have been born on this basis. For example, in the sharing economy, this field combines Internet technology, traditional manufacturing, finance, and payment. The birth of new technology has also allowed the capital in the market to rise and try to take the lead. The most obvious aspect of this aspect is the exploration of VR/AR technology. In the era of the Internet era from the IT era to the DT era, big data applications are becoming more and more abundant. The most direct application is through the penetration of data into the decisions of all walks of life.

Enterprise survival relies on its core competitiveness and is constantly providing valuable products and services to the society. In China, digital marketing is no longer a new concept, but also more cautious and rational. For marketing companies that lack core competencies, the capital winter may have arrived. From the perspective of the capital market, the number of intent-issuing companies has fallen sharply, the financing termination rate has doubled, and corporate financing capacity has dropped significantly. Since 2016, benefiting from the loose threshold of the New Third Board, digital marketing companies have quickly landed, and the cumulative number of listings has reached 113, and the scarcity of the capital market is no longer.

The entire capital market is more rational for digital marketing companies, and is more enthusiastic about content such as culture, entertainment and sports, as well as big data, AI, VR/AR technology, etc. I believe that these cultural and entertainment content and numbers in the future Technology will also form a close link with digital marketing, driving the rapid development of the entire digital marketing industry.

Contact behavior of digital media users

The number of mobile Internet users in China has reached 970 million. The structure of netizens has gradually tended to be the same as that of China’s population. The proportion of high-age and high-income groups has increased significantly. At the same time, the growth rate of netizens is declining, and the era of mobile Internet will also bid farewell to the era of demographic dividends. How to seize structural opportunities in the era of stock users has become a new topic.

With the comprehensive coverage of mobile internet, the rapid development of network technology and the promotion of carrier-oriented traffic packets. The mobile video industry is rapidly emerging, and future video will become the most important form of content presentation. In the field of mobile video, integrated video has become a veritable “traffic black hole”, and the use of Internet users has surpassed the ranking of social applications. The high-quality traffic continues to be concentrated on the integrated video platform of the head. Each platform has strengthened the input of self-made content. The production level of high-quality online dramas has been continuously improved, and the content quality is no less than that of traditional TV dramas. Some of them are based on mature IPs. It has become a “phenomenon level” work, and its marketing value formed by the influence of the mainstream public cannot be ignored. In addition, the paying services of members of various video websites also showed an explosive situation. The revenue of some head platforms accounted for 30% of the total revenue.

The short video industry is showing a blowout, from content to a single category of pan-entertainment to vertical category content. Short video users have successfully occupied the majority of young and middle-aged groups, and the impact on these users is particularly significant. For the live broadcast, in addition to the traditional content presentation forms such as games, entertainment, sports, etc., more is a new cross-scene ecological carrier, and become a tool embedded in the development of other industries, applied to various types. industry.

The overall development of online content is improving, but there are also hidden concerns. Under the general situation of continuous tightening of supervision, non-compliant and low-qualified network content is difficult to survive. In the future, in order to seek sustainable development, the content of NetEase will surely follow the trend and regulate its own behavior. The entire industry market should have more positive positive energy content.

Due to the changes in the channels and methods of users’ access to information promoted by new technologies, the size of the news information platform users has also taken off. Although the coverage of social users is still ranked first, the overall user size has become saturated. However, with the introduction of small programs, users can more easily establish connections with enterprises, and the platform is more stable. In the field of mobile shopping, the scale structure of the entire market continues to grow steadily, and rural e-commerce, second-hand e-commerce, cross-border e-commerce and other segments will be an emerging opportunity for the entire industry.

Overview of digital media user contact behavior

Overall situation of digital media users

1. The scale of netizens continues to grow, but the growth rate slows down and the demographic dividend gradually disappears.

As of December 2017, the number of China Mobile Internet users reached 970 million, an increase of 7.7%. According to China’s total of 1.39 billion, the user coverage rate reached 70%, and the coverage of the core consumer groups of young and middle-aged (24-41 years old) was basically achieved. It is estimated that in 2019, the growth rate of Chinese netizens will be less than 2% for the first time, and the Internet demographic dividend will gradually disappear.

The scale of China Mobile Internet users in 2016-2019(Unit: 100 million people)

2. The era of mobile Internet has completely arrived, covering 97.5% of the network population

The proportion of netizens using mobile phones to access the Internet has increased from 95.1% in 2016 to 97.5%, an increase of 2.4 percentage points, and the proportion of mobile Internet users has reached a new high. The proportion of Internet access using desktop computers, laptops and tablets was 53.0%, 35.8% and 27.1%, respectively, which was lower than that at the end of 2016. The proportion of Internet users using smart TV Internet access was 28.2%, up 3.2 percentage points from the end of 2016. The mobile Internet has basically achieved full coverage of netizens, and the scale of PC device users has shrunk further. Therefore, this book will focus on the analysis and demonstration of user attributes and behaviors of mobile netizens.

Network device use

3. The Internet gradually penetrates into older users

The young and middle-aged users aged 20-39 are the main components of Chinese netizens. As of December 2017, the number of netizens aged 20-39 reached 53.5%. From the perspective of the overall structure of users, the age of 60 and the number of Internet users increased by 1.2%, and the Internet gradually penetrated into the elderly.

Digital media user size and total duration of use

Social applications continued to rank first in terms of user size, and mobile Internet users reached 99.6%, continuing to be the network’s first traffic portal. In recent years, under the background of the national economic transformation and upgrading, the big entertainment industry has entered a period of rapid development. Mobile video (vertical video, short video, mobile live, etc.) users increased by 11.6%, and mobile music users increased by 24.2%. The growth of mobile reading users has slowed down, mainly due to the development of mobile Internet infrastructure and the promotion of targeted traffic packages by various platforms and operators. Users are more interested in content carriers such as video and audio.

The mobile Internet continues to accelerate the transformation of traditional Internet news, financial services, education and other areas of the Internet, and the number of users in these areas continues to grow at double-digit rates. In the era of mobile internet, in the head media, life service applications are the only areas in which the decline has occurred. The main reason is the change in user behavior habits in the era of mobile internet, which has led to the application of classified information to be replaced by diversified vertical classification applications.

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