Power under the fingertips: marketing of social media

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Chinese consumers such as Ms. Zhang (Amyzhang), a 26-year-old Shanghai Girl, are changing the future of the company's marketing strategy. Zhang found himself increasingly dependent on the feedback on the web to control his own spending decisions, including what brands to buy, where to buy, and even where to eat and what they ordered. She said: "A few years ago I chose the restaurant mainly to listen to the recommendations of good friends, so I got very limited information." Now if you need to reserve a restaurant for a friend's dinner or a date, I'll go to the Web site to see what other people think, and I can almost find a comment on all the hotels in Shanghai on the Internet. ”

As in other countries, one of the hottest areas of Internet growth is "social media", the interactive, community-oriented network platform. Internet users ("netizens") can use this platform to build contacts, talk about hobbies, and exchange information and content. In the United States, there are sites like Facebook, YouTube and Twitter, but more than 300 million Chinese netizens prefer local sites, including millions of blogs, online video-sharing websites, Youku, social giants QQ and countless online forums.

Social media sites are booming in China. A recent study by Netpop, a research agency, found that 92% (nearly 224 million) of mainland Chinese netizens used some form of social media, only 72% (about 105 million) in the United States. Michael Naizly, an assistant professor at the Chian Business School at the Singapore University of Management, said that China not only has the world's largest Internet user base, but that Chinese netizens are very active in the manufacture and consumption of online content. Indeed, not only do they watch video shows, read content or download pictures online, they are also active contributors, such as blogging, speaking in forums, uploading mobile images and sharing content. For example, 76% of those surveyed said they would forward interesting content to other users.

It is clear that social media is not just a form of Chinese entertainment; they also exert an influence on consumers ' buying decisions. Especially when the traditional channels of communication become more and more unattractive. According to the 24th Internet Development Statistics report published by the China Internet Network Information Center (CNNIC), 48% of respondents said they believed more about online access to information than television.

As more and more Chinese consumers begin to refer to other people's opinions before making a purchase decision, the social media channel will play a more important role in the success of the product. In a culture of popular Word-of-mouth, Chinese consumers are using a variety of channels to understand products. Netpop found that user-generated content, including consumer reviews, forum discussions and blog content, affected 58% of respondents ' purchase decisions, compared with 19% in the United States. In 71 surveys conducted in 2009, CIC, another research firm, found that more than half of China's respondents said social media channels had the most impact on buying decisions in the categories of mobile phones, consumer electronics, cosmetics and baby care products.

Kaiser Guo, director of digital strategy at Ogilvy Advertising China (Ogilvychina), said that "many of the exchanges on the Chinese internet about brands are actually carried out through bulletin boards (BBS), and BBS is people can post on any topic, and a web platform that responds to comments on posts. "Tianya Network (Tianya), which provides online BBS services, has hundreds of different discussion editions that allow users to discuss any topic in the community, from major social issues to skincare experiences.

This is where the attraction of these sites is. CIC's survey of 640 Chinese netizens found that 90% of Chinese consumers would pay attention to online reviews even without a purchase plan. Many people like to follow their favorite brands in the online community and share their views with others in the internet community, while nearly half of respondents agree that reading positive online information may change or lessen their negative perceptions of a brand. 56% of respondents believe that the Internet's Word-of-mouth is an effective way to know a brand.

Power under the Fingertips

Social media actually give power to consumers, and their online conversations have an important impact on a company's brand equity, both in the positive and negative ways.

But if bad news happens, it can be dangerous. Naizly warns: "It is easy for Chinese netizens to form a kind of excitement on the Internet." Bad news [about the company] will spread quickly within a short period of time, and if it is mixed with nationalism, netizens ' comments can be very negative. ”

Jonah Berg, an assistant professor at the Wharton School of Business, Jonahberger that social media are more difficult to control than traditional forms of media such as newspapers and television. "If consumer discussions are in the form of a bad brand, allowing consumers to shape their brand image could be dangerous," he says. ”

Starbucks has experienced the wrath of Chinese netizens. In 2007, the then CCTV news anchor, Rui, said in her blog that it was against Starbucks opening stores in Beijing's historic Forbidden City. His blog, "The reason Starbucks must not enter the Forbidden City", said in the article, "This is not globalisation but the erosion of Chinese culture." "This post was clicked 500,000 times within two days, angry netizens expressed support for the city, and the fierce criticism was quickly reproduced by the traditional and online news media, and Starbucks was forced to withdraw from the cultural relic of the Forbidden City, but the incident has stirred resentment and suspicion among millions of of Chinese consumers.

To understand what consumers are talking about, companies can use programs to "sneak" into Chinese websites and search blogs, online BBS and social networks to find out what people think of their products. Through this technology, companies can monitor word-of-mouth and take measures to prevent a public relations crisis on the Internet. Early this year, for example, the Austrian-American advertising company launched a new tool called "OBuzz", which, in the language of the company, "observes pure consumer sentiment".

At the same time, more and more companies regard social media as a new opportunity to attract viewers. Last year, Apple launched a marketing campaign on Renren, formerly known as "School Net", a social networking site for college students. The brand's homepage, "Apple University", mainly provides information about Apple products, including a video demo from PC to Mac, and a monthly gift to members. Apple also encourages members to take pictures with their ipods and then put them in the online community as their ipod star.

But even previously obscure brands have tasted sweetness from social networking sites. "Missniuniu" is an online magazine for young women, and the founders built their own brands from scratch. With no budget for expensive ads on television and newspapers, the magazine uses free social media tools to attract attention. As a result, the magazine attracted 135,000 visits and more than 6,000 users in China's social networking site within six weeks.

Two-way conversation

But as BA360, founder of marketing agency Lande Han, points out, not only are small companies, but more companies should build their own social media marketing strategies. "In this increasingly social society, when brands can spend less money and consumers have a two-way relationship, why should they continue to spend a great deal of time investing in traditional media for unilateral communication?"

As more companies adopt Internet marketing strategies, the competition for brands to attract the attention of netizens is becoming more intense, and they are looking for more online propaganda, such as video programs that play embedded ads on social networking sites. The Sufi Diary is a 40-episode internet drama that gives companies the opportunity to implant ads and the way they attract young consumers. The episode was made by Sony Film (Sonypictures) and the Chinese Film Group (Chinafilmgroup), a 18-Year-old girl named Sophie, who moved to Shanghai to start her new life. In this online TV series, the audience can enter Sophie's blog, to vote online to determine how the plot develops. The Sufi diary, which is broadcast free in China's popular video sites such as Sina and Youku, has attracted more than 15 million viewers in its first three months of play. The main sponsors of the first quarter include 51jobs.com and Clinique (Clinique). The products and services of these companies are naturally displayed in the life of the protagonists.

In addition to increasing brand awareness, some companies use online communities to retain existing customers. BMW, the German carmaker, did not choose to advertise on large social networking sites, instead, a few years ago it launched a BMW Internet community for the global audience, including more than 150,000 Chinese BMW users who could create their own files, upload photos and videos in the community, Discuss driving experiences and share feedback on the latest models.

Despite the potential of social media, how can companies develop effective online strategies to approach and attract consumers? Prof Berg of the Wharton School thinks that the use of social media for marketing must change the mindset of the business. "The previous approach was to focus on consumer advocacy, which encouraged dialogue and encouraged consumers to provide feedback to the brand," he said. And these social media promote communication between consumers, and companies can learn more about how consumers react to their products. These tools are very effective, but they must also be managed carefully. ”

Management requires companies to have a deep understanding of their target audiences, such as their preferences and tendencies. Onecircle founder Robert (Roberthsiung) believes that social networking sites can provide a more segmented target group for brands. "You have to think about what kind of people you want to get close to and then choose the right platform to communicate with them." Many Chinese social networking sites are now targeting segments with their own characteristics. "Onecircle is a newly created social networking site designed to attract the elite of the world's ethnic Chinese.

In addition, Professor Naizly of the Singapore Management University said the company must understand the tastes of the local market and adjust its online strategy to suit local conditions. "You can't just copy your strategy in Europe or the United States. Anyone entering the Chinese market must be proficient in the local situation, or listen to local people's advice, to make their strategy in line with China's national conditions. ”

Experts also suggest that the company must be prepared to listen to audiences with an open mind. Monitoring the communication content of netizens is only the first step. To take advantage of social media, you must join the online conversation and connect with consumers, whether through the BMW BBS community or the Sophie Diary, and so on with the audience feedback updates. At the same time, social media strategies are best integrated with the company's overall marketing strategy. "Companies should not just buy ads on MySpace, they should take interactive elements [social media] as part of their marketing plans," Donna Hoffman, a professor at the Sloan Research Center at the University of California, said in a recent report published in the McKinsey Quarterly Donnal.hoffman. ”

Industry insiders believe that the most successful social media campaigns should be able to provide consumers with real value, and to be well executed-a factor that is critical, as false social media campaigns are quickly exposed by picky netizens. In 2008, Lenovo, the home computer maker, played a video on a video-sharing website in China about a man following the story of Redlaptopgirl. The Internet marketing aims to promote Lenovo's IdeaPad notebook computer, the ratings also temporarily increased rapidly. But when Chinese netizens discovered that the whole story was fictitious, the negative feelings about Lenovo's brand immediately pervaded the social network.

Finally, Benjamin Jes, founder of consulting firm Pluseightstar, encourages companies to see online channels as a form of interaction with consumers that generates more innovation opportunities. "Brand makers need to realize that consumers are not just your goals, but your stakeholders," he said. Activities that interact with consumers should not be limited to capturing their eyeballs and allowing them to watch a movie, which disappears after the event and has no effect on the internal workings of the company. Companies should more encourage consumers to participate in product innovation, and the development of the brand itself has a role. ”

Will the social media boom soon recede? Experts say no, citing low penetration and high growth rates in China's broadband technology. According to a 2009 report by JPMorgan, the "Internet Boom" (nothingbutnet), China's 25% per cent internet penetration shows that online social media is just beginning in China. The report also predicts that social networks will start to boom with the development of mobile technology such as 3G.

When discussing the future of social media marketing in China, Naitez that China's Internet is a great opportunity and encourages companies to focus on new trends and inventions in the internet industry. "Online gaming, implantable advertising and online sponsorship will be powerful tools for marketing," he said. There is no shortage of consumers, and there is no shortage of technology, you just have to find ways to use these channels wisely. ”

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