MEDIA TRENDS 2015
2
TINY TV TV becomes a niche channel
TV 3.0 TV channels start to distribute their own content online
VERTICAL DESCENTInternet verticals suffer as content is shared via other means
The TrendsAUTOMATIC AUDIENCE Programmatic moves towards audience buying in online video and mobile
PREMIUM MOBILITY Premium inventory on mobile becomes available
CLOSED COMMERCE eCommerce channels become their own ecosystem
SEARCH-TO-ORDER Search goes beyond keywords
MONETIZE ME Social focuses on monetizing audiences
SOCIAL SINGULARITY Social leads the way in creating single user data
3
Tiny TVTV becomes a niche channel
The flocking of eyeballs online is by no means a new
phenomenon, but the scale of the movement—last year
time spent on online video matched that of time spent
on TV—means that for many advertisers TV can no
longer be viewed as a broadcast channel for all
audiences. TV remains a key channel to reach over 45s,
but is becoming a supplementary media for other
audiences.
Advertisers should focus on buying better
within local markets and creating better
partnerships with one of the 4,000+ TV
channels in China, and harnessing the
power of provincial satellite TV channels
0
10
20
30
40
50
60
70
80
90
100
15-19 20-24 20-29 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+
0
50
100
150
200
250
300
Avg TV Daily Time Spent (Min) Avg Internet Daily Time Spent (Min)2
TV Daily Reach Internet Daily Reach
Reach
%
Daily
Min
sThe role of TV moves from mass to niche as
audiences flock to new media and screens
across markets in China
4
TV 3.0Last year, Hunan TV launched their own digital TV platform,
marking the end of their content being shared on other
platforms online. Previously, shows like the smash hit “爸爸去哪儿” were hosted on online video platforms like iQiyi. As TV
channels put up a fight to win back their audiences, online
video sites are rising to the challenge by creating their own
shows. Locally made content will have to go from strength to
strength as the Chinese government clamps down on foreign
digital content, spelling the end of next-day availability of
American shows.
The opportunity for brands lies in sponsorship and
product placement for locally made shows.
TV channels start to distribute their own content online
TV channels fight the content war by creating their
own online channels
5
Vertical DescentInternet verticals suffer as content is shared via other means
Netizens have become more
sophisticated in terms of how and
where they find content. The
strength of individual website
content and the growth of in-app
social sharing has seen users
abandon the use of portals as a
means to get their information.
Impressions on most verticals—
barring that of automotive and
travel—have dwindled.
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
Website Traffic to Portals
sohu.com [搜狐] sina.com.cn [新浪] qq.com [腾讯]
ifeng.com [凤凰网] 163.com [网易163]
Advertisers need to plan to be everywhere their users are,
not only on content specific sites, or have stronger content
plans ensuring their messages spread further than ever.
Portals have been
suffering a slow
death as netizens
change their
content sharing
habits.
6
Automatic Audience
Programmatic moves towards audience buying in online and mobile video
Centred on a single view of
a person across devices and
sites via DMPs, audience buys
allow brands to finally move
beyond siloed media based
buys. Couple the ability to
target audiences better than
ever with the rise of time spent
on mobile, and programmatic
buys will increasingly shift into
the mobile space.
Currently, only an approximate
5% of programmatic buys are
for mobile inventory, but that
number is expected to shift to
about 20%.
Audience data is fast
becoming the new trading
currency of programmatic
media trading.
Advertisers need to focus
on building their data
smarts to not only ensure
their buys are audience
based, but to build
holistic understanding of
their audiences closing
all the data loops.
Beyond that, inventory on
online videos have also
opened up to programmatic
buying and we can expect
programmatic online video
buying to increase from
15% of all programmatic
buying to about 50%.
Now, more than ever the
need for a Data Management
Platform is crucial.
7
Premium mobility
Advertisers have been pushing for more integrated digital buys,
previously hindered by the lack inventory in mobile. This will change
in the next year as premium inventory is now increasingly
becoming available.
Premium inventory on mobile becomes available
Whilst the challenge of tracking mobile ads will
not disappear in the next 12-18 months, advertisers
can look forward to better means with engaging
with their consumers on mobile and should take
advantage of that.
As consumers spend more and more
time on mobiles, advertisers and media
vendors are getting on board and
providing better mobile inventory
eCommerce sites have now built up
a loyal and consistent base—all who bypass
other digital assets to go directly
to their sites. eCommerce traffic is far
less reliant on search, only an approximate
22% of traffic to eCommerce sites are
referred to from search vs. 41% of traffic on
Social Network Sites. In fact, eCommerce
sites are becoming a force of their own
in delivering traffic.
Advertisers need to think
about how and where they
place tactical and
promotional messages
if consumers are now
bypassing more traditional
consumer channels
to purchase their goods.
Closed Commerce
eCommerce channels become their own ecosystem
Source: Alexa, CNRS 2014 , http://wenku.baidu.com/link?url=pGfGpkYh3Wo9cKtaPTN7ALsuhxouB2Q4h5vkG_eN2vQvVw3TLRKmB3vYmh-9K4Ux-Yjmg1TZwu71hOZf6lNhgXKnX2bkfKH7UZabXWBgf_u
What has not been said about
the rise of eCommerce in China?
Tao Bao is a top referrer to other
websites, contributing to an average
of 3.9% of traffic referrals to China’s
top 5 websites.
Other eCommerce websites
41.8%The sheer scale of online
shopping means that
eCommerce websites have
become an ecosystem of
their own.
Of Chinese citizens have
shopped online the past year.
9
Search-to-order
Search goes beyond keywords
Search is a key element of any
brand’s always-on strategy.
For the past few years now,
search engines have tried to
move beyond just selling links
and keywords, this year they take
it up a notch.
Advertisers need to embrace the new search,
and build plans to engage with their audiences on
search sites via Brandzone, develop custom content
based on search analysis and ensure their SEO/SEM
strategies become even more personalized.
With new search players
in the market—QiHoo (360)
increased their market share
10% in the past year and New
Sogou makes up 15.1% of
search—the competition in
search will only mean better
options for advertisers. Already
search engines are selling more
innovative formats.
Better yet, advertisers and
search marketers are using
search data to create custom
content on landing pages and
messaging on search pages. All
this means search will take
relevancy to the next level.
10
Monetize meSocial focuses on quality not quantity of users
Social has long since past its infantile stage. Advertisers have
moved beyond just the acquisition of fans and now are focusing on
getting a ROI from the millions of followers they’ve worked so hard to
engage.
Advertisers need to be even smarter
about the way they do social:
• Using data to analyse their fans to
understand which personas are
mostly likely to purchase
• Understanding motivations
and how fans want to interact
with brands
• Ensuring content that drive sales
• Ensuring eCommerce abilities are
up to scratch.
As eCommerce grows and the links
between digital activity and purchase
become closer, brands are looking
to prove that social does indeed
drive business.
With WeChat releasing advertising
on WeChat moments, the link from social
advertising to sales can finally be realized.
Advertisers can finally directly measure
the impact of social advertising on sales .
Social Singularity
11
Social leads the way in creating single user data
In January, WeChat finally
opened up advertising
for WeChat moments
to advertisers.
Advertisers need to think holistically about how they use
WeChat, using it as a means to track consumers across all touch
points and creating messaging targeted to specific consumer
behavior.
Beyond the ability to
advertise to WeChat users
what is more exciting is that
the ubiquity of WeChat
means that advertisers will
have the ability to track
users almost everywhere.
Because users log on to
WeChat across all their
devices this also means that
brands will be able to have
a single users view across
devices.
The prospect is enticing:
being able to link
interactions via scanning QR
codes from events to
in store, to magazines or
even other sites, driving
them to advertising on
WeChat moments, and
finally to the WeChat store.
More than ever advertisers
will have a clear idea of
offline-online interactions.
This data might not come
cheap though, WeChat is
asking for RMB5 million a
day for promoting posts on
the social chat platform. Still
in its infancy, this new
development from
WeChat has the potential to
disrupt how we plan.
OMD Copyright 2015
CONTACT US
Jeanette Phang
[email protected] BUSINESS INTELLIGENCE
Bhasker Jaiswal
[email protected] PARTNER - BUSINESS INTELLIGENCE
Alessandro Pang
[email protected] BUSINESS INTELLIGENCE
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