Table of Contents
Introduction
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- Definition
- Report structure
- Methodology
Executive Summary
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- The market: conventional media
- The market: digital media
- The consumer
- Penetration of digital media is high
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- Figure 1: Media used in the three months to October 2013
- Digital media dominate but in certain areas conventional media perform well
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- Figure 2: Purposes of using media, October 2013
- Online shopping websites are the key information source when buying a product or service
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- Figure 3: Information sources when buying a product/service, October 2013
- TV remains the widest-reaching media channel
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- Figure 4: Exposure to advertisements, October 2013
- Instant messaging is the most popular way of sharing
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- Figure 5: Information channels used when sharing, October 2013
- Majority willing to pay more for quality personalised service
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- Figure 6: General attitudes towards media, October 2013
- Key trends
- Digital media as a marketing channel have huge potential
- Sharing is no longer an option but more of a necessity
- Moving from free to paid media
- What we think
Market Background – Conventional Media
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- Key points
- Print media: uncertainties ahead
- Newspapers: Stable but slowing down
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- Figure 7: Newspaper copies published in China, 2005-12
- Magazines: Stagnant performance in the past five years
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- Figure 8: Magazine copies published in China, 2005-12
- Conventional broadcast media: premium content sees potential
- TV: Stable growth in TV broadcasting market…
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- Figure 9: Number of connections to both live and pay-TV services, 2005-12
- …but premium content is getting increasingly popular…
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- Figure 10: Pay-TV subscribers in China, 2005-12
- …while facing new challenges from Shanzhai OTT units
- Advertisements in the traditional media still enjoy double-digit increase…
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- Figure 11: TV advertising market size (value), 2004-12
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- Figure 12: General attitudes towards media, October 2013
- …but self-produced and exclusive content from digital media pose a threat
- Market drivers
- Urbanisation creating a new reader base…
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- Figure 13: Disposable income of urban residents and urban population in China, 2000-11
- …but the existing reader base is likely to be dented by online content platforms
- Consumers have more choice than ever amid intensified competition
- Third plenum: the further opening up of the media industry
Market Background – Digital Media
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- Key points
- Internet users reaching 600 million
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- Figure 14: Number of internet users in China, 1998-2013
- Figure 15: Growth rate of internet penetration in rural and urban areas in China, 2009-12
- Mobility: information on the go
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- Figure 16: Number of mobile internet users, 2006-13
- Market drivers
- Information explosion: Winning consumers over becomes increasingly challenging
- Urbanisation: the driver of organic growth
- Online shopping: making sharing a necessity
- Social media: end users become content sources
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- Figure 17: The landscape of content over the internet, 2010
- Multi-screens: the future of integrated services
- Wearable devices: media are truly everywhere
The Consumer – Media Usage
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- Key points
- High penetration of digital media
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- Figure 18: Media used in the three months to October 2013
- Digital media
- Conventional broadcast media
- Print media
- Media usage and gender
- Women are more likely to be disengaged with some media…
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- Figure 19: Non-users of selected media sources, by gender, October 2013
- …but actively involved with others
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- Figure 20: Heavy users of selected media sources, by gender, October 2013
- Media usage and age
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- Figure 21: Heavy users of media sources, by age, October 2013
- Conventional media find it hard to appeal to young consumers…
- …while social media, video streaming and online shopping do appeal
- Some media sources attract equal interest among all age groups
- Income positively correlated to usage of most media channels
- Cross-media marketing and the purpose of using different types of media
- Print media users seeking fashion information are more likely to be heavy TV users
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- Figure 22: Heavy users of TV, by the purpose of using print media, October 2013
- Promotion and advice-seeking consumers likely to be heavy users of magazines
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- Figure 23: Heavy users of magazines, by purpose of using conventional broadcast media, October 2013
The Consumer – Purposes for Using Media
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- Key points
- Purposes for using media
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- Figure 24: Purposes of using media, October 2013
- Digital media dominate…
- …but in certain areas, trust issue is a barrier
- Conventional media perform well in the entertainment sector…
- …but digital media are catching up by introducing their own programmes
- Print media tend to be considered serious and work-related
- Digital media preferred for deals
- Men more likely to seek work and finance information via conventional media
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- Figure 25: Selected purposes for using print media, by gender, October 2013
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- Figure 26: Selected purposes for using conventional broadcast media, by gender, October 2013
- Older consumers obtain fashion, health and promotion information using print media…
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- Figure 27: Selected purposes for using print media, by age, October 2013
- …with similar trends evident in conventional media
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- Figure 28: Selected purposes for using conventional broadcast media, by age, October 2013
- Conventional media better for targeting parents
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- Figure 29: Using conventional broadcast media and print media for obtaining information about latest promotions, by presence of children in the household, October 2013
- Are digital media a cheap alternative?
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- Figure 30: Usage of digital media for selected purposes, by income, October 2013
- Are digital media complementary to or competing with print media?
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- Figure 31: Selected purposes for using digital media, by usage of print media, October 2013
The Consumer – Information Sources
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- Key points
- Information sources when buying a product or service
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- Figure 32: Information sources when buying a product/service, October 2013
- Online shopping websites
- Product rating and reviewing sites are catching up
- Print media are less effective
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- Figure 33: Advertisement revenue of printed national newspapers, US, 2002-10
- Women more likely to be spontaneous
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- Figure 34: Selected information sources used when buying a product or service, by gender, October 2013
- Under-30s favour social media
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- Figure 35: Selected information sources used when buying a product or service, by age, October 2013
- Forums and magazines could be effective channels to promote premium products
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- Figure 36: Selected information sources used when buying a product or service, by income, October 2013
- Parents have greater faith in conventional media
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- Figure 37: Selected information sources used when buying a product or service, by presence of children in the household, October 2013
- Review and rating sites more popular in tier one cities
- Who are using multiple information sources?
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- Figure 38: Repertoire of information sources used when buying a product or service, October 2013
- Female, low earners and less educated consumers use fewer information sources
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- Figure 39: Used one or two information source when buying a product or service, by demographics, October 2013
The Consumer – Exposure to Advertisements
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- Key points
- Exposure to advertisements
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- Figure 40: Exposure to advertisements, October 2013
- Active vs passive information sources
- TV adverts particularly attractive to older consumers and high earners
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- Figure 41: Consumer exposure to TV adverts, by demographics, October 2013
- Internet advertising more appealing to men, high earners and consumers in smaller cities
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- Figure 42: Consumers exposed to internet advertising, by demographics, October 2013
- Adverts on public transport may not reach the highest earners
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- Figure 43: Consumers exposed to adverts in public transportation, by demographics, October 2013
- Adverts in print media attract high earners
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- Figure 44: Consumers exposed to print media, by demographics, October 2013
- Direct mail reaches mid-to-high earners
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- Figure 45: Consumers exposed to direct mailing, by demographics, October 2013
- Who is being exposed to multiple advertising channels?
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- Figure 46: Repertoire of types of adverts exposed to, October 2013
The Consumer – New Media and Sharing
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- Key points
- Information channels used when sharing
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- Figure 47: Information channels used when sharing, October 2013
- Social media and instant messaging are the most important…
- …but dealing with negative word of mouth is getting increasingly challenging
- Product rating sites attract a fair number of consumers…
- …but there is still scope to encourage more users to share their experiences
- Online forums no longer a popular platform for sharing
- Women prefer to share through instant messaging
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- Figure 48: Information channels used when sharing, by gender, October 2013
- SMS and email still popular among older consumers
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- Figure 49: Selected information channels used when sharing, by age, October 2013
- Online forums and rating/review sites attract high earners
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- Figure 50: Selected information channels used when sharing, by income, October 2013
- Horizontal integration of sharing and information gathering
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- Figure 51: Selected information channels used when sharing, by information source used when buying, October 2013
- Consumers tend to use multiple channels to share their experiences
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- Figure 52: Repertoire of methods of sharing, October 2013
The Consumer – Attitudes towards Media
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- Key points
- General attitudes towards media
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- Figure 53: General attitudes towards media, October 2013
- Digital media have been widely accepted…
- …with the majority willing to pay for quality, personalised service
- Information overload makes choice difficult
- Sharing on social media becomes a necessity…
- …but many are worried about the disappearance of face-to-face communication
- High earners find the availability of the different media saves time but choice is difficult
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- Figure 54: Agreement with the statement “It is hard to select the best media for the information I want”, by income, October 2013
The Consumer – Segmentation
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- Key points
- Four segments identified
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- Figure 55: Cluster analysis, October 2013
- Pro-digital
- Who are they?
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- Figure 56: Pro-digital segment, by demographics, October 2013
- What do they think?
- Which media channels do they use?
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- Figure 57: Media used in last 3 months, by target groups, October 2013
- Rating websites and social media more likely to be used by Pro-digital consumers
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- Figure 58: Selected information sources used when buying a product or service, by target groups, October 2013
- TV, internet and outdoor billboards more effective at targeting Pro-digital consumers
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- Figure 59: Exposure to selected types of adverts, by target groups, October 2013
- Marketing implications
- Disengaged
- Who are they?
- What do they think?
- Which media channels do they use?
- Marketing implications
- Freebie chasers
- Who are they?
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- Figure 60: Freebie chaser segment, by demographics, October 2013
- What do they think?
- Which media channels do they use?
- Marketing implications
- Premium content lovers
- Who are they?
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- Figure 61: Premium content lover segment, by demographics, October 2013
- What do they think?
- Which media channels do they use?
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- Figure 62: Exposure to outdoor billboard/posters, by target groups, October 2013
- Marketing implications
Key Issue – Digital vs. Conventional Media
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- Key points
- Digital media as a marketing channel have huge potential
- Digital media are a dominating force in the information landscape…
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- Figure 63: Information source when buying a product/service, October 2013
- …but trail conventional media in terms of advert exposure
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- Figure 64: Exposure to advertisements, October 2013
- Challenges faced by digital media
- Are digital media seen as less trustworthy?
- How to improve the trustworthiness of digital media
- Transferring trustworthiness from conventional media
- Utilising cross-channel platforms
- Launching O2O campaigns
- Putting official websites or social media accounts to better use
- Targeting high earners using digital media
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- Figure 65: Purpose of using media – Digital media, by income, October 2013
- What does it mean?
Key Issue – Making Sharing Part of the Campaign
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- Key points
- Sharing is no longer an option but more of a necessity
- Weibo and other social media sites becoming increasingly important
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- Figure 66: Information channels used when sharing, October 2013
- Integrating sharing and information gathering – a horizontal integration approach
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- Figure 67: Selected information channels used when sharing, by information source when buying, October 2013
- What does it mean?
Key Issue – Moving from Free to Paid Media: The Way Forward
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- Key points
- Willingness to pay for premium content is high…
- …and high earners still find it hard to select the best media
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- Figure 68: Agreement with the statement “It is hard to select the best media for the information I want”,
- Who is more likely to pay for premium content?
- Targeting the Pro-digital segment
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- Figure 69: Pro-digital segment, by demographics, October 2013
- Targeting Premium content lovers
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- Figure 70: Premium content lover segment, by demographics, October 2013
- Potential challenges when introducing premium content
- Lack of premium content for leisure and work/study purposes
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- Figure 71: Purpose for using media – Digital media, by income, October 2013
- Are digital media complementary to or competing with print media?
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- Figure 72: Selected purposes for using digital media, by usage of print media, October 2013
- What does it mean?
Appendix – Media Used in Last 3 Months
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- Figure 73: Media used in last 3 months, October 2013
- Figure 74: Media used in last 3 months, by most popular purpose of using media – Print, October 2013
- Figure 75: Media used in last 3 months, by next most popular purpose of using media – Print, October 2013
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- Figure 76: Media used in last 3 months, by most popular purpose of using media – Conventional mass media, October 2013
- Figure 77: Media used in last 3 months, by next most popular purpose of using media – Conventional mass media, October 2013
- Figure 78: Media used in last 3 months, by agreement with the statement ‘The availability of different media saves time in finding information I need’, October 2013
- Figure 79: Media used in last 3 months, by agreement with the statement ‘It is hard to select the best media for the information I want’, October 2013
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- Figure 80: Media used in last 3 months, by agreement with the statement ‘My life is overloaded with too much unnecessary information from various media’, October 2013
- Figure 81: Media used in last 3 months, by agreement with the statement ‘It is fundamental to share my life experiences/opinions on social networks’, October 2013
- Figure 82: Media used in last 3 months, by agreement with the statement ‘I’m concerned that face-to-face communication will be replaced by digital interaction ’, October 2013
- Figure 83: Media used in last 3 months, by agreement with the statement ‘Word of mouth/recommendations from consumers are more reliable than product’, October 2013
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- Figure 84: Media used in last 3 months, by agreement with the statement ‘I am worried that online product reviews/comments are manipulated’, October 2013
- Figure 85: Media used in last 3 months, by agreement with the statement ‘Information in traditional media is more reliable than in digital media’, October 2013
- Figure 86: Media used in last 3 months, by agreement with the statement ‘Digital media are more convenient than traditional media when searching for product information’, October 2013
- Figure 87: Media used in last 3 months, by agreement with the statement ‘Advertisements in traditional media are more trustworthy than those in digital media’, October 2013
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- Figure 88: Media used in last 3 months, by agreement with the statement ‘It is worth paying more for digital services providing the most updated information’, October 2013
- Figure 89: Media used in last 3 months, by agreement with the statement ‘It is worth paying more for digital services that are customised for my needs’, October 2013
- Figure 90: Media used in last 3 months, by agreement with the statement ‘It is worth paying more for higher-quality digital services’, October 2013
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Appendix – Purpose of Using Media
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- Figure 91: Purpose of using media – Print, October 2013
- Figure 92: Purpose of using media – Conventional mass media, October 2013
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- Figure 93: Purpose of using media – Digital media, October 2013
- Figure 94: Most popular purpose of using media – Digital media, by demographics, October 2013
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- Figure 95: Next most popular purpose of using media – Digital media, by demographics, October 2013
- Figure 96: Purpose of using media, by most popular media used in last 3 months – Newspaper, October 2013
- Figure 97: Purpose of using media, by next most popular media used in last 3 months – Newspaper, October 2013
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- Figure 98: Purpose of using media, by most popular media used in last 3 months – Magazines, October 2013
- Figure 99: Purpose of using media, by next most popular media used in last 3 months – Magazines, October 2013
- Figure 100: Purpose of using media, by media used in last 3 months – TV, October 2013
- Figure 101: Purpose of using media, by most popular media used in last 3 months – Radio, October 2013
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- Figure 102: Purpose of using media, by next most popular media used in last 3 months – Radio, October 2013
- Figure 103: Purpose of using media, by media used in last 3 months – Portal websites, October 2013
- Figure 104: Purpose of using media, by most popular media used in last 3 months – Online forums/BBS, October 2013
- Figure 105: Purpose of using media, by next most popular media used in last 3 months – Online forums/BBS, October 2013
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- Figure 106: Purpose of using media, by media used in last 3 months – Social networks, October 2013
- Figure 107: Purpose of using media, by most popular media used in last 3 months – Product/service rating websites, October 2013
- Figure 108: Purpose of using media, by next most popular media used in last 3 months – Product/service rating websites, October 2013
- Figure 109: Purpose of using media, by media used in last 3 months – Search engine, October 2013
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- Figure 110: Purpose of using media, by media used in last 3 months – Online video websites, October 2013
- Figure 111: Purpose of using media, by media used in last 3 months – Online shopping websites, October 2013
- Figure 112: Purpose of using media, by media used in last 3 months – Personal mailbox, excluding business/company mailbox, October 2013
- Figure 113: Purpose of using media, by most popular media used in last 3 months – SMS/MMS subscriptions, October 2013
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- Figure 114: Purpose of using media, by next most popular media used in last 3 months – SMS/MMS subscriptions, October 2013
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Appendix – Information Source When Buying a Product/Service
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- Figure 115: Information source when buying a product/service, October 2013
- Figure 116: Information source when buying a product/service, by agreement with the statement ‘The availability of different media saves time in finding information I need’, October 2013
- Figure 117: Information source when buying a product/service, by agreement with the statement ‘It is hard to select the best media for the information I want’, October 2013
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- Figure 118: Information source when buying a product/service, by agreement with the statement ‘My life is overloaded with too much unnecessary information from various media’, October 2013
- Figure 119: Information source when buying a product/service, by agreement with the statement ‘It is fundamental to share my life experiences/opinions on social networks’, October 2013
- Figure 120: Information source when buying a product/service, by agreement with the statement ‘I’m concerned that face-to-face communication will be replaced by digital interaction’, October 2013
- Figure 121: Information source when buying a product/service, by agreement with the statement ‘Word of mouth/recommendations from consumers are more reliable than product’, October 2013
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- Figure 122: Information source when buying a product/service, by agreement with the statement ‘I am worried that online product reviews/comments are manipulated’, October 2013
- Figure 123: Information source when buying a product/service, by agreement with the statement ‘Information in traditional media is more reliable than in digital media’, October 2013
- Figure 124: Information source when buying a product/service, by agreement with the statement ‘Digital media are more convenient than traditional media when searching for product information’, October 2013
- Figure 125: Information source when buying a product/service, by agreement with the statement ‘Advertisements in traditional media are more trustworthy than those in digital media’, October 2013
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- Figure 126: Information source when buying a product/service, by agreement with the statement ‘It is worth paying more for digital services providing the most updated information’, October 2013
- Figure 127: Information source when buying a product/service, by agreement with the statement ‘It is worth paying more for digital services that are customised for my needs’, October 2013
- Figure 128: Information source when buying a product/service, by agreement with the statement ‘It is worth paying more for higher-quality digital services’, October 2013
- Repertoire analysis
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- Figure 129: Repertoire of information source when buying a product/service, October 2013
- Figure 130: Repertoire of information source when buying a product/service, by demographics, October 2013
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Appendix – Exposure to Ads
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- Figure 131: Exposure to ads, October 2013
- Figure 132: Most popular exposure to ads, by demographics, October 2013
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- Figure 133: Next most popular exposure to ads, by demographics, October 2013
- Figure 134: Other exposure to ads, by demographics, October 2013
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- Figure 135: Exposure to ads, by agreement with the statement ‘The availability of different media saves time in finding information I need’, October 2013
- Figure 136: Exposure to ads, by agreement with the statement ‘It is hard to select the best media for the information I want’, October 2013
- Figure 137: Exposure to ads, by agreement with the statement ‘My life is overloaded with too much unnecessary information from various media’, October 2013
- Figure 138: Exposure to ads, by agreement with the statement ‘It is fundamental to share my life experiences/opinions on social networks’, October 2013
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- Figure 139: Exposure to ads, by agreement with the statement ‘I’m concerned that face-to-face communication will be replaced by digital interaction’, October 2013
- Figure 140: Exposure to ads, by agreement with the statement ‘Word of mouth/recommendations from consumers are more reliable than product’, October 2013
- Figure 141: Exposure to ads, by agreement with the statement ‘I am worried that online product reviews/comments are manipulated’, October 2013
- Figure 142: Exposure to ads, by agreement with the statement ‘Information in traditional media is more reliable than in digital media’, October 2013
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- Figure 143: Exposure to ads, by agreement with the statement ‘Digital media are more convenient than traditional media when searching for product information’, October 2013
- Figure 144: Exposure to ads, by agreement with the statement ‘Advertisements in traditional media are more trustworthy than those in digital media’, October 2013
- Figure 145: Exposure to ads, by agreement with the statement ‘It is worth paying more for digital services providing the most updated information’, October 2013
- Figure 146: Exposure to ads, by agreement with the statement ‘It is worth paying more for digital services that are customised for my needs’, October 2013
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- Figure 147: Exposure to ads, by agreement with the statement ‘It is worth paying more for higher-quality digital services’, October 2013
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Appendix – Information Channels Used When Sharing
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- Figure 148: Information channels used when sharing, October 2013
- Figure 149: Most popular information channels used when sharing, by demographics, October 2013
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- Figure 150: Next most popular information channels used when sharing, by demographics, October 2013
- Figure 151: Information channels used when sharing, by most popular information source when buying a product/service, October 2013
- Figure 152: Information channels used when sharing, by next most popular information source when buying a product/service, October 2013
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- Figure 153: Information channels used when sharing, by most popular exposure to ads, October 2013
- Figure 154: Information channels used when sharing, by next most popular exposure to ads, October 2013
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Appendix – General Attitudes towards Media
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- Figure 155: General attitude towards media, October 2013
- Figure 156: General attitude towards media, October 2013 (continued)
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- Figure 157: Agreement with the statement ‘The availability of different media saves time in finding information I need’, by demographics, October 2013
- Figure 158: Agreement with the statement ‘It is hard to select the best media for the information I want’, by demographics, October 2013
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- Figure 159: Agreement with the statement ‘My life is overloaded with too much unnecessary information from various media’, by demographics, October 2013
- Figure 160: Agreement with the statement ‘It is fundamental to share my life experiences/opinions on social networks’, by demographics, October 2013
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- Figure 161: Agreement with the statement ‘I’m concerned that face-to-face communication will be replaced by digital interaction’, by demographics, October 2013
- Figure 162: Agreement with the statement ‘Word of mouth/recommendations from consumers are more reliable than product’, by demographics, October 2013
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- Figure 163: Agreement with the statement ‘I am worried that online product reviews/comments are manipulated’, by demographics, October 2013
- Figure 164: Agreement with the statement ‘Information in traditional media is more reliable than in digital media’, by demographics, October 2013
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- Figure 165: Agreement with the statement ‘Digital media are more convenient than traditional media when searching for product information’, by demographics, October 2013
- Figure 166: Agreement with the statement ‘Advertisements in traditional media are more trustworthy than those in digital media’, by demographics, October 2013
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- Figure 167: Agreement with the statement ‘It is worth paying more for digital services providing the most updated information’, by demographics, October 2013
- Figure 168: Agreement with the statement ‘It is worth paying more for digital services that are customised for my needs’, by demographics, October 2013
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- Figure 169: Agreement with the statement ‘It is worth paying more for higher-quality digital services’, by demographics, October 2013
- Figure 170: General attitudes towards media, by most popular information source when buying a product/service, October 2013
- Figure 171: General attitudes towards media, by next most popular information source when buying a product/service, October 2013
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- Figure 172: General attitudes towards media, by most popular exposure to ads, October 2013
- Figure 173: General attitude towards media, by next most popular exposure to ads, October 2013
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Appendix – Cluster Analysis
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- Figure 174: Target groups, October 2013
- Figure 175: Target groups, by demographics, October 2013
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- Figure 176: Media used in last 3 months, by target groups, October 2013
- Figure 177: Information source when buying a product/service, by target groups, October 2013
- Figure 178: Exposure to ads, by target groups, October 2013
- Figure 179: General attitudes towards media, by target groups, October 2013
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