Download Mobile Marketing in China

Mobile Marketing
in China
2013
Foreword
The mobile age is upon us. Consumers aren’t just going online; they are online on the go –
using their smartphones more than ever. This is particularly true in China, where smartphone
penetration is burgeoning, both in cities and regional areas.
For marketers, the dawn of the mobile age represents
huge opportunities. As consumer behaviour undergoes a
significant revolution, marketers can likewise revolutionise
the way they engage audiences to drive more sales, boost
engagement and loyalty, and generate invaluable buzz.
Yet mobile marketing also comes with its challenges.
At the base level lies the definition of mobile marketing.
Is it a distinct marketing channel, or an amalgamation
of other channels? Or, is it simply a device to facilitate
channel execution? How does mobile fit within the
broader marketing mix?
As more people use their smartphones to
redeem vouchers or compare prices while
in-store, for example, the mobile channel
is becoming the ‘glue’ sticking the online
and offline worlds together.
Mobile has proven itself as the dominant channel in
marketing, complementing and supporting many other
channels in the multichannel mix. Now, marketers need
the ability to integrate technology-rich channels with more
traditional channels to ensure the customer experience
is seamless whether they are in-store or online, on their
Android phone, or interacting via any of the many other
channels in the mix.
China has gone mobile
Right across China, people are embracing the mobile era.
According to a recent Fiscal Times article1, there are 330
million smartphones in use in China right now. This exceeds
the total number of mobile phones active in the US; and
Experian predicts the number of smartphones in China to
grow to 500 million by the end of 2013.
Aligned to this phenomenal growth in smartphones is the
growth in mobile apps and services. The same article states
that Tencent’s WeChat – the dominant social media network
– now has almost 300 million users; and e-tailers Baidu.com
and Taobao have recently upgraded their offerings to make
them more mobile-friendly and thus capitalise on the wave
of smartphones hitting the market.
The majority of consumers in China – both in the city and
regional areas – now use their mobiles to access to the
internet. For marketers, this provides easy reach to masses
of potential customers. But what tactics work now? And what
will work in the future?
The maturing of mobile creates a more complex marketing
environment, in which overwhelming amounts of consumer
data can be gathered and analysed. Like never before,
marketers need to have the tech-acumen to really understand
how all the channels converge, and how each channel can
be optimised for where they converge.
In China, which has the highest smartphone penetration in
the world, there is absolutely no doubt that the future
is mobile.
1 “ China’s Smartphone Boom Has Huge Global Impact”, Last edited 16 January 2013,
http://www.thefiscaltimes.com/Articles/2013/01/16/Chinas-Smartphone-Boom-Has-Huge-Global-Implications.aspx#page1
1
Mobile Marketing in China
Foreword
Predictions for the future of mobile
Despite the clear prevalence of mobile devices in people’s
lives, mobile marketing and m-commerce are yet to reach
their peak in China. While it has already leapt to the top of the
digital channels, marketers need to take their understanding
and application of mobile marketing strategies to a new level.
As more consumers purchase smartphones – and existing
users become even more willing to engage in dialogue with
brands via their mobiles – marketers need to work harder to
build relationships via mobile channels; use analytics and
targeting to better engage; and apply best practices to avoid
being perceived as spammers.
With fewer people in China using laptops and desktops to
access the web, it won’t be long before smartphones ‘drive
brand awareness, pre-purchase research, price comparison,
payments for both online and in-person transactions, and
social media distribution of popular content.’2
The smartphone will become a digital
replacement for almost everything that
we carry in our pockets and wallets – cash,
credit and debit cards, passes,receipts,
vouchers, tickets and loyalty cards.
Security features will become increasingly important as
more personal data is stored in the cloud. At the same time,
marketers will need clear strategies around data collection,
management, including data cleaning and optimisation,
recognising that the proliferation of data will be both an
opportunity and a challenge.
At the user level, the consumer will dictate where, when and
by whom they can be ‘seen’. Allied to this, their preferences
will become more sophisticated – with the ability to specify
the products and services that they receive information
about, and the way in which they are communicated.
Many marketers in China are adept at giving consumers
what they want on their mobiles. There are some great
examples of SMS campaigns that feature targeted, often
time-sensitive promotions that convey the notion of
exclusivity that consumers love.
For example, Taobao launched an online ‘shopfest’ to
celebrate China’s Double Eleven on November 11th 2012.
The majority of the merchants used SMS to offer discounts
on their virtual stores, especially to customers who have
purchased before. This resulted in a historical record high
of RMB 19.1 billion in sales transaction on that day.3
As mobile devices become more integrated with people’s
homes, cars and offices, marketing activities will accelerate
and an increasing proportion of marketing budgets will be
spent on mobile communications. Experian expects that by
2015, turnover of the mobile marketing market in China could
exceed RMB 20 billion and within five years or less, mobile
will overtake all other digital channels as the most effective
way to reach and engage with consumers.
Given all of this, marketers have little choice but to
incorporate mobile into their cross-channel marketing
strategies. But they can pay heed to the experiences of their
peers in doing so. This whitepaper provides insights and
commentary on research conducted by Experian Marketing
Services in China, into how marketers are currently using
mobile marketing as part of their broader strategy.
2 “ China’s Smartphone Boom Has Huge Global Impact”, Last edited 16 January 2013,
http://www.thefiscaltimes.com/Articles/2013/01/16/Chinas-Smartphone-Boom-Has-Huge-Global-Implications.aspx#page1
3 “ Tmall and Taobao See $3 Billion in Sales During China’s 24-Hour Online Shopfest”, Last edited 12 November, 2012,
http://www.techinasia.com/china-ecommerce-sales-day-2012-tmall-taobao/
2
Mobile Marketing in China
Executive
Summary
Marketing is undergoing a significant paradigm shift. Consumers are calling the shots more
than ever before – with the world at their fingertips, or in their pockets, they are driving a new
dialogue with brands. As mobile cements itself as a marketing channel with serious clout,
marketers need to understand how this channel fits within their broader cross-channel strategy.
To gain a greater understanding of mobile marketing
in China, Experian Marketing Services surveyed 321
marketers from a wide range of industries, including retail,
financial services, telecommunications/utilities and travel/
leisure. These B2B and B2C marketers are immersed in
the ongoing quest to engage more effectively with their
customers – which, in order to keep pace with industry
competition and stay ahead of the curve, must now
incorporate mobile.
Compared to Hong Kong, where roughly two-thirds (65%)
of marketers have successfully tested mobile channels, the
research shows that only 36% of marketers in China have
tested mobile. Furthermore, only 16% have incorporated
mobile as a regular marketing channel. This is a surprising
result, and could be that western brands are adopting
different tactics than local brands.
Yet the future of mobile is bright in China. The vast majority
of marketers (92%) agree or strongly agree that mobile is
going to be one of the most popular ways for customers
to engage with brands. Likewise, 84% anticipate that sales
made through mobile devices will increase or significantly
increase in the next year.
The 2012 Experian Marketing Services Mobile
Marketing research sought insights into the current
usage of and attitudes towards mobile marketing, the
barriers and challenges marketers face, and the plans
for the coming years.
With the spotlight clearly shining on the mobile space,
it becomes interesting to assess which mobile tactics
marketers plan to implement to achieve these forecast sales.
On the radar for the next 12 months are email marketing
campaigns optimised for mobile and location-based mobile
services. Fifty per cent of marketers plan to use email
campaigns in the coming year, and 44% have location-based
mobile services in their sights.
Overall, the research findings reveal that
China is on par with countries like Australia
and Singapore when it comes to mobile
marketing adoption – with less than half
of marketers yet to implement a mobile
marketing campaign.
Figure 1: Marketing channels ranked by perceived importance compared to twelve months ago
80%
More important
70%
Equally important
60%
Less important
50%
40%
30%
20%
10%
0%
Direct
mail
3
Social
media
Mobile Marketing in China
Email
Face-to-face
SMS
MMS
Website
Phone
Traditional
advertising
(radio,
TV, print)
Online
advertising
Executive
Summary
Current favourite tactics – SMS and MMS – reflect the
power and immediacy of mobile to grab a consumer’s
attention and drive them in-store or online to make a
purchase. China boasts the largest e-commerce market in
the world, and SMS and MMS are the principle drivers of the
market. Experian predicts that these two mobile tactics will
continue to dominate for the next few years, and points to
examples of banks and retailers (explored in further sections)
who are already leveraging these tactics to great effect.
Despite the rapid growth in mobile, traditional channels
such as direct mail are still considered important tools to
communicate with customers. In fact, across the board, all
marketing channels – new and old – are seen as becoming
more important.
This points to why marketers are finding the whole
concept of multichannel marketing more difficult to
manage. They are faced with the twin challenges of
ensuring that mobile activity is integrated effectively
with more traditional channels and that data from
multiple sources is meaningfully combined.
4
Mobile Marketing in China
While the research shows that marketers are becoming
increasingly savvy about how they collect data, there is
still work to be done in this area. China’s massive population
and high take-up of smartphones means marketers need
ways to sift through vast amounts of data to identify
consumer insights and behaviours that will add value
to future campaigns.
As the success stories show, mobile marketing can deliver
positive returns when used correctly. With marketers in China
set to extend their mobile marketing into new channels –
and thus take steps towards creating a 360 degree view of
consumers – the future is certain to show more robust and
effective campaigns being implemented.
Research Results
In with the old and in with the
new: an increasingly complex
marketing environment
Mobile marketing is a fast evolving channel in an already complicated and cluttered marketing
environment. In fact, it’s growing so fast that it presents the biggest change in marketing.
The good news is that mobile presents incredible
opportunities for businesses large and small to engage
more effectively with consumers. The challenge is that
it presents another channel that marketers need to
incorporate into the mix – without necessarily expanding
their overall budgets.
These research findings are interesting. According to
Experian’s observations of the market, SMS is the king of
communications in China. SMS is all about delivering short,
simple calls to action that drive foot traffic and e-commerce,
and its immediacy and effectiveness at reaching large groups
of people override the cost factor.
One might expect that, as new and exciting marketing
channels enter the mix, old ways of connecting with
customers would become defunct in a case of ‘out
with the old, in with the new.’
Local brands understand the power of SMS, and use it to
great advantage. Yet many western brands are hesitant to
use the tactic – despite it being the most powerful way to
communicate with Chinese consumers.
However, the Experian research shows
that almost all marketing mediums are
seen as equally or more important than
they were last year.
With email, on the other hand, the trend is flipped. It is used
more heavily by western brands based in China, who are
familiar with its power and reach as a communications tool.
However, these western brands are now starting to take the
lead from local brands and are using SMS campaigns. When
it comes to either tactic, marketers need to personalise,
incentivise and target their communications to effectively
engage consumers.
Naturally, digital channels are increasing in importance,
with more than half (58%) of respondents indicating that
SMS is more important than it was 12 months ago and
49% indicating that email is more important.
Figure 2: C
hannels ranked in order of importance for organisations as a method for communicating with customers,
with 1 being the most important and 10 the least important.
Channel
5
1
2
3
4
5
6
7
8
9
10
Direct mail
41.5%
13.0%
11.1%
9.5%
7.0%
5.4%
3.5%
3.5%
1.6%
4.1%
Social media
3.5%
5.8%
5.1%
7.1%
12.2%
13.5%
14.7%
14.4%
11.5%
12.2%
Email
6.8%
14.6%
12.6%
18.4%
14.2%
8.4%
8.1%
7.8%
6.8%
2.3%
Face-to-face
4.2%
7.7%
9.9%
11.2%
15.1%
9.3%
12.8%
14.4%
9.6%
5.8%
SMS
29.0%
21.5%
10.4%
8.8%
6.3%
6.6%
3.5%
4.7%
3.5%
5.7%
MMS
1.0%
3.8%
8.6%
8.0%
8.9%
15.7%
9.9%
14.4%
20.1%
9.6%
Website
2.0%
2.0%
2.0%
2.3%
5.2%
9.5%
13.7%
11.4%
21.2%
30.7%
Phone
8.3%
10.5%
14.3%
15.3%
11.1%
9.6%
13.7%
9.6%
3.5%
4.1%
Traditional advertising (radio, TV and print)
4.1%
15.2%
17.7%
11.7%
11.1%
9.5%
7.3%
8.5%
10.1%
4.7%
Online advertising
1.6%
7.4%
9.7%
8.4%
8.7%
12.3%
12.3%
10.3%
11.00%
18.4%
Mobile Marketing in China
In with the old and in with the
new: an increasingly complex
marketing environment
As well as these digital channels, many traditional
channels are also becoming more important to marketers.
Compared to 12 months ago, 67% of marketers believe that
direct mail is more important; 58% say that phone contact
is more important; and 44% think traditional advertising is
more important.
The most popular marketing channels
When asked to rate the top three most important marketing
channels, direct mail emerges as the most popular. Sixtysix per cent of marketers include direct mail in the mix –
indicating that this tried and tested method of engaging with
customers is not going to disappear any time soon. There is
a prestige element to direct mail that luxury brands and real
estate agencies certainly align themselves with – investing in
a quality piece of direct mail is seen as being noteworthy and
value-adding in these highly competitive markets.
Unsurprisingly, SMS comes in second, rated
by 61% of marketers as a top-three channel,
and email is favoured by 34% of marketers.
Clearly, it’s a case of ‘in with the old and in
with the new.’
Is this mix of old and new a challenge for marketers,
or an opportunity? Changing consumer behaviours
present great opportunities for marketers to connect
online and offline activities – or the ‘old’ and the ‘new’
ways of communicating with consumers.
Consumers are also increasingly using mobile phones
to seek out store locations and perform comparison
shopping. Clever companies draw on this trend and use
mobile marketing as a way to drive customers in-store
or online for increased sales. Some of China’s biggest
brands and retailers are using mobile marketing and
m-commerce to achieve stunning results and are really
changing the retail landscape.
Supermarket cosmetics brand, L’Oreal has managed to
secure a greater share of the market in 2012. This has been
achieved by leveraging m-commerce tactics and offering
price flexibility that encourage shoppers to price compare
in-store on their mobile. As a result, the brand has increased
both online and offline sales.
Clearly, the blend of mobile and traditional channels can
be a powerful combination for determined marketers. Yet, in
an increasingly complex marketing environment, consumers
are empowered like never before and are calling the shots
in terms of how and when they engage with brands. With
this in mind, the mobile channel presents a great opportunity
for marketers to boost the effectiveness of their broader
campaigns – while bearing in mind that mobile alone is
not the panacea for communicating with customers.
Figure 3: How far has your company progressed in terms of mobile marketing?
This is not part of our marketing plan (7%)
Discussing the idea internally, but no action
has been taken (26%)
Have a strategy or are forming a strategy
but no implementation has taken place (31%)
Have implemented one mobile or SMS campaign
to test success (20%)
Have implemented a successful campaign(s)
and have incorporated mobile as a regular
marketing channel (16%)
6
Mobile Marketing in China
Welcome to the mobile era:
marketers are clearly confident
about mobile marketing’s future
In the major cities and across the vast countryside, the Chinese population has embraced the
mobile era. For many, the mobile web is the only web; and apps are potentially opening the door
to even more engagement.
Marketers acknowledge this changing consumer behaviour
and plan to leverage the mobile channel subsequently. The
Experian Marketing Services research shows that nine out
of ten marketers realise the increasing importance of mobile
marketing. Thirty six per cent of marketers strongly agree
and 56% agree that mobile will be one of the most important
ways for a brand to engage with their customers in the next
two to three years.
Yet, the findings show less than half of marketers in China
are putting mobile marketing campaigns to use. Only 16%
have incorporated mobile as a regular marketing channel;
while 21% have implemented one campaign to test the
waters. A further 31% have developed a strategy but have
not yet implemented it. This shows that there is still some
way to go for marketers in China. The minority is yet to
embrace mobile, one quarter discussing the idea internally
and there are only 7% indicating that mobile is not part of
their marketing plan.
For those that have started using mobile tactics as part of
their broader marketing strategy, the investment is clearly
paying off.
The research shows that 34% of marketers
who do use mobile currently receive 11-25%
of their sales via mobile devices, and 27%
receive between 26-50% of their sales via
this channel.
These results are interesting, particularly when compared
to Hong Kong. In Hong Kong, 65% of marketers have
implemented one or more mobile campaigns (compared
to just 37% in China), and yet have similar results when it
comes to mobile sales. If marketers in China are much less
likely to use mobile marketing, then why are their sales
from mobile devices just as high as Hong Kong? It may be
that Chinese consumers are much more comfortable with
e-commerce than Hong Kong consumers, who prefer to head
in-store to get the best deal. It may also be explained by the
fact that Chinese consumers are more likely to browse the
web on their mobile than their laptops, so m-commerce
has more impact than e-commerce.
7
Mobile Marketing in China
Looking ahead, eight out of ten marketers believe that their
company’s sales made through mobile devices will grow
in the next year, with 21% expecting sales via mobile to
significantly increase and 63% expecting they will increase.
Longer term, 59% expect to see a significant increase over
the next five years.
Given this expectation that mobile devices will become
an extension of the in-store cash register, marketers are
allocating more of their budgets to the mobile channel.
More than half (54%) are investing significantly more in
mobile channels than they were 12 months ago.
The good news for those who are yet to
implement a mobile strategy is that almost
nine out of ten marketers agree that mobile
marketing works.
The Experian Marketing Services research shows that,
of those who have implemented a mobile marketing
strategy, 24% rated their most recent mobile campaign
as very effective and a further 61% rated it as effective.
These very strong results clearly point to the effectiveness
of the channel in reaching and engaging with consumers.
With so many marketers at a tipping point – ready
and willing to embrace mobile but yet to implement a
strategy – it is clear that China is on the cusp of a mobile
marketing revolution. The 330 million smartphones are
there, the consumers are ready… all it takes now is action
by marketers to start implementing mobile tactics.
In this calm before the mobile storm, the question is, are
marketers investing in the right places, implementing the
right mobile tactics, and ensuring that mobile supports and
complements other marketing strategies?
Testing the waters:
a range of mobile marketing
tactics are in play
We’re seeing significant testing and execution of a number of different mobile marketing tactics,
but the research shows that gaps still exist. Over the next 12 months, marketers plan to fill these
gaps with more varied mobile tactics.
Marketers are clearly keen to experiment with different
mobile tactics in China – undeterred by the ever-evolving
and growing number of mobile tools available. The full range
of tactics are in play, in differing degrees: mobile-optimised
websites, m-Commerce, QR codes, location-based mobile
services, SMS and MMS campaigns, mobile-optimised
email, custom apps, in-app ads and mobile barcodes.
Yet some are far more popular than others. The most
common tactics in use are SMS campaigns (with 71%
of marketers using this tactic), m-commerce (64%) and
mobile-optimised websites (60%).
As earlier sections of this whitepaper noted, SMS is king
in China. Consumers willingly receive marketing SMS and
accept them as a part of daily life. These often offer-rich
messages are particularly popular in industries such as
telecommunications, where the local telecommunication
providers fight hard for customer loyalty. In the SMS space,
the telecommunication providers do a lot of marketing
to their existing customer base with special offers
in a bid to retain them; and they often partner with retail
brands to capture new customers and drive loyalty with
existing customers.
It comes as little surprise that the mobile phone number
is the predominant piece of consumer data that is collected
in China, far surpassing email addresses. Marketers know
that the likelihood that an email will go straight to the junk
folder is very high, yet an SMS or MMS is likely to be seen
by the consumer.
Some banks in China are using MMS to send regular
newsletters embedded with rich media, coupons and
vouchers to customers. For example, the credit card
centre of CITIC Bank and Bank of China regularly send
MMS-based day-to-day financial tips and merchant partner
coupons to selected premium clients. This is done to drive
loyalty amongst the customer base. China Merchant Bank
has integrated its account changes and billing information
into WeChat, the latest mobile application to enhance
interaction with customers.
Around the world, 98% of MMS and SMS
are opened within 10 minutes of being
sent and provide marketers with a greater
degree of reliability when compared to
channels like email4.
Experian is seeing that cross-channel marketing via mobile
– with real-time triggers based on consumer activity – is
very effective. Mobile is the only channel that maps directly
to a unique user, following them everywhere, at all times.
Based on context and location, an SMS can be used to
engage the consumer and support their needs. For example,
marketers can exploit the interruptive nature of SMS to grab
the consumer’s attention and create real value. Consumers
respond positively to brands who communicate the right
messages via the right channels at the right time.
This geo-targeting is most effective in China’s tier one cities,
where there is great opportunity to drive local consumers
in-store to purchase. In smaller cities and remote areas, geotargeting is still relevant yet in a different way – e-commerce
vendors can identify those consumers that live outside the
tier one cities and drive them to their online stores.
4 “ Why SMS Marketing is Still Relevant in 2012”, Last edited 12 June 2012,
http://blog.textanywhere.net/post/2012/06/12/Why-SMS-Marketing-Is-Still-Relevant-In-2012.aspx
8
Mobile Marketing in China
Testing the waters:
a range of mobile marketing
tactics are in play
Figure 4: W
hat mobile marketing tactics does your organisation currently use?
Tactics
Rounded Percentage
Rank
SMS campaigns (campaigns utilising mobile text messages)
71%
1
m-Commerce (sales transactions conducted through mobile devices)
65%
2
Mobile-optimised website (tailored version or section of your site specifically enriched for mobile browsers)
60%
3
QR codes (Barcodes specifically designed for mobile readers allowing consumers to directly access online content or offers)
51%
4
In-app ads (advertising within mobile phone applications)
44%
5
MMS campaigns (campaigns utilising mobile multimedia messages)
42%
6
Email marketing optimised for mobile (emails optimised for mobile viewing/browsers)
35%
7
Custom apps (custom created mobile phone applications)
32%
8
Location-based mobile services (mobile content based on the location of the customer)
30%
9
Mobile tickets or barcodes (Barcodes or offers tailored for customers and provided via mobile devices)
23%
10
Do not currently use any of these tactics
1%
11
The effects of the mobile marketing tactics listed above
are clearly positive. Of those that use SMS, 27% rate it
as very effective; for m-commerce, 58% rate it as very
effective; and for mobile-optimised websites, 61% rate it
as very effective. Across all of the tactics currently in use,
only a very small percentage of marketers rated the tactics
they use as ineffective.
In the coming year, marketers plan to start leveraging
more and more tactics. The top three tactics likely to be
implemented by marketers in China in the next 12 months
include custom apps (52%), mobile tickets/barcodes (51%)
and email campaigns optimised for mobile (50%).
The focus on in-app ads is a nod to the growing prevalence
of tablets – particularly the Samsung Galaxy – in China.
Advertising has never really worked on mobile phone
devices, given the lack of on-screen real estate and the fact
that a single ad can adversely affect the user experience. On
tablets, however, there is more space for in-app ads to slide
into the picture without being too disruptive to the user.
Tablets give advertisers more real estate to
play with, and a great opportunity to connect
directly with individual consumers.
5 “ Tim Cook: China will be Apple’s top market”, Last edited 11 January 2013,
http://money.cnn.com/2013/01/11/technology/china-tim-cook-apple/index.html
9
Mobile Marketing in China
Vouchers, coupons, barcodes and mobile tickets provide
a real opportunity for marketers to engage with customers
who are seeking better deals in store, and with the new
passbook functionality incorporated into smartphones such
as the iPhone 5, this form of mobile marketing is expected
to dramatically expand. This is further supported by Apple
CEO Tim Cook’s prediction that China will be the company’s
largest market in the next few years.5
With the growing mobile penetration and the high usage
of social network sites, Experian predicts that engaging with
consumers via social media on mobile devices will increase
in the coming years. One example of this is Weibo, which is
used by 22% of the population and has twice as many users
as Twitter.
However, Experian cautions that consumers aren’t always
positively receptive to being engaged on social networking
sites. Similarly to other countries, consumers see social
networking as a place to create and hold authentic
relationships, a place where they call the shots, and they
start the conversation (if at all) with brands. In this ‘chatbased’ environment, it is very difficult for brands to make
the first move without offending consumers.
Testing the waters:
a range of mobile marketing
tactics are in play
To leverage social media channels on mobile devices,
marketers in China may look to a permission-based
approach, where consumers ‘opt-in’ and openly invite
a brand to communicate with them. This path is proving
to be one of the most effective ways to build relationships
on social media channels.
One tactic that falls outside the ‘top three’ yet warrants
attention is QR codes. In China, at least half (51%) of
marketers who have embraced mobile are using this tactic.
This is in response to consumer demand – Experian is seeing
that consumers want more deals with barcodes. Yet how
mature are the QR code strategies in play? Most brands in
China are only using a very simplistic form of QR codes to
send information, not deals – so the effort that it takes for the
consumer to use a QR code doesn’t pay off.
Driving the bottom line
Promisingly, the majority of marketers recognise the power of
mobile marketing to drive sales both online and offline, with
67% reporting that this dual effect is their primary objective
for using mobile strategies. Only 20% state their primary
objective is to drive only online sales, and 11% to drive only
offline sales.
6 “ The Mobile Movement Study”, Last viewed 31 January 2013,
http://www.thinkwithgoogle.com/insights/library/studies/the-mobile-movement/
10
Mobile Marketing in China
These results are on par with global trends when it comes to
using mobile devices. Around the world, 67% of consumers
research a product on their smartphone before buying
in-store; 23% research on a smartphone, head in-store
to check out the product and then purchase online; 16%
research on smartphone, visit the store and then purchase
on smartphone; while 9% visit the store first, then purchase
on a smartphone6. It’s a very mixed bag, incorporating many
channels – and the purchase process clearly relies on the
smartphone at various stages.
Given the research results, we can expect
an explosion of mobile tactics to enter the
marketplace in the next 12 months.
Yet marketers need to be wary of introducing mobile for the
sake of it, or of adopting a ‘scattergun’ approach whereby
the tactics and tools they use are not integrated with
other channels. It is critical to determine if mobile is the
right channel – both for the business and the customer –
before working out which mobile tactics will best deliver
individualised and tailored mobile experiences that support
both online and offline sales.
Major barriers:
many marketers lack multichannel strategy,
deep expertise and senior support
There is no shortage of mobile service companies and advertising agencies in China. Yet, as
with the adoption of any new channel, organisations face their own internal barriers to adoption.
According to the research, the three biggest barriers to
mobile marketing are a lack of a multichannel marketing
strategy (51%), a lack of in-house expertise or resources
to implement tactics (cited by 49% of respondents), and
a lack of senior support (34%).
These barriers are closely followed by ROI, which 31%
of marketers believe is holding them back. The whole
question of attribution and ROI has become incredibly
complex in the multichannel marketing world, and there
is a lack of clarity around ROI in the marketing arena as
a whole. It is becoming too difficult to attribute just one
part of a conversation with a customer to a sale. Instead
of taking a channel attribution approach to ROI, marketers
have to look at it from the campaign level and measure
how effective a campaign was in improving sales.
In terms of main barrier cited by marketers – a lack of a
multichannel marketing strategy – many organisations
lack the in-depth understanding of how to integrate mobile
campaigns with other channels, or of how to strategically
model a comprehensive multichannel campaign.
Faced with an incredibly complex and fragmented marketing
environment – which incorporates all manner of channels,
online and offline – marketers need proven ways to collect
and analyse the data from these disparate channels. Beyond
this analysis, they need to ensure that the channels are
operating in synergy and, most importantly, connect with
consumers in ways that work.
This ties in with the second barrier – a lack of in-house
expertise – and a general skills shortage in the China
market. While there are people in the industry with plenty
of experience, there is not enough to meet demand,
particularly in key areas of segmentation and targeted
analytics. This helps to explain why a ‘bulk send’ mentality
still prevails with SMS, rather than targeted messages to
particular consumer groups.
11
Mobile Marketing in China
When it comes to senior support for mobile marketing,
despite 34% citing that a lack of support is a barrier, it
appears that many senior teams are aware of the value that
mobile offers. According to the research, 19% of marketers
think their senior teams have advanced understanding of
the value of mobile marketing, and 56% think they have
intermediate understanding.
Senior managers understand that consumers and brands
are increasingly interacting through mobile; and they
acknowledge the incontrovertible truth that if this is not
being done now, it will be in the future. Yet they demonstrate
a somewhat one-dimensional understanding, and are yet to
fully comprehend how to realise true value through specific
mobile marketing implementation. This creates a barrier
and makes them more reluctant to commit more marketing
budget to mobile.
On a positive note, nine out of ten marketers in China believe
that mobile is the way forward for engaging with consumers.
Clearly, the barriers cited above are not enough to stop
marketers from embracing the mobile channel. However,
once a mobile marketing strategy is in place, a number of
challenges do arise.
Major challenges:
lack of insight into how best
to integrate with other channels
Once marketers overcome the barriers to mobile adoption and get to work in implementing
a strategy, they must do so by integrating mobile with all other offline and online channels.
Easier said than done.
The good news is that Chinese marketers are confident about
collecting meaningful data from mobile campaigns. Almost
all marketers (92%) collect mobile data as part of their wider
customer data strategy and obtain permission separately
from other channels, allowing consumers to choose whether
or not they receive mobile marketing messages.
With all this data at their fingertips, marketers are
in a great position to develop and execute successful
mobile campaigns.
However, multichannel coordination – ensuring that
campaign themes and messages are integrated and
consistent across all channels – remains a major challenge,
with 34% citing this as the biggest difficulty of the past 12
months. Seventeen per cent believe that ensuring that the
right messages reach the right audiences through effective
targeting profiles is the major challenge, and 13% state that
combining the data captured through online and offline
sources is the major challenge.
Clearly, the whole question of multichannel marketing
is a burning issue – extending beyond the mobile realm.
These marketers are concerned with how to use data
across channels to inform strategies, and how to
implement campaigns across channels to achieve
stated business objectives.
What with so many channels in the mix, it is becoming
more difficult for marketers to obtain a clear picture of their
customers. A 360 degree view is needed to measure the
success of all customer touch points and align individual
channels for across-the-board gains. This provides a full
snapshot of what a single customer looks like and a history
of the interactions and transactions with the brand.
Yet it can be difficult to achieve, particularly given that many
companies collect consumer data from channels in very
fragmented ways. Mobile phone numbers, email addresses
and social IDs are often recorded as disparate items in the
database, with consumers having separate entries for each
item. Brands have to retrospectively ‘mine data’, matching
and cleansing it.
12
Mobile Marketing in China
Lacking a 360 degree view, marketers run the risk of
implementing a fragmented strategy – over-communicating,
under-communicating, or sending the wrong message at
the wrong time. However, Experian is witnessing a profound
paradigm shift within the industry, as the more forwardthinking organisations reframe the debate in terms of the
‘current customer view’.
Instead of collecting every piece of information about a
customer and building a single, physical data repository,
a ‘current customer view’ leaves data assets in the source
systems and then uses technology to gather real-time
information about that customer. This information is then
used to inform a marketing decision and execute a campaign
that is highly targeted and relevant to that individual.
Overall, whether you have a current customer
view or a real-time customer view, knowing
who the consumer is and what they want will
effectively inform marketing plans.
Where does mobile marketing fit into this multichannel
mix? As all the research shows, it fits in many ways – and is
almost a multichannel realm in its own right, with so many
other channels converging on it. To overcome the challenges,
marketers need the tools and know-how to both implement
mobile marketing strategies and align these strategies with
all other channels.
Summary
Consumers in China are demanding more from their mobiles. This gives marketers an incredibly
rich playground in which to launch new campaigns and ongoing engagement strategies. It
presents an opportunity to start a new dialogue, open the door to more sales, and build loyalty.
With Chinese consumers embracing the mobile era,
marketers have a great opportunity to innovate and explore
new ways to engage. Many marketers are already acting
upon this trend, acknowledging that the consumer now calls
the shots and uses their phone as search engine, GPS and
more – choosing what tools they want to use, and when.
However, some marketers are still struggling in the face of an
increasingly cluttered and complex marketing environment
in which new and old tools compete for customers’ attention.
How to integrate mobile with established channels remains
a burning issue – particularly because the mobile space is
harder to define and grasp, and marketers lack the analytical
skills and resources to get mobile off the ground.
Marketers need insights and knowledge about how to
successfully implement multichannel campaigns, and how
to identify which channels are most effective in reaching and
engaging with particular individuals. Fortunately, this whole
notion of engaging with individuals is what mobile marketing
is all about.
13
Mobile Marketing in China
Whether it is a luxury brand seeking more effective ways to
reach discerning buyers and drive them in-store to secure a
sale, or a behemoth e-tailer like Taobao seeking to improve
and enhance the mobile shopping experience, virtually
every business in China can leverage the mobile channel for
business gain. And they can really start to utilise and analyse
the data they have available to deliver highly individualised
and tailored experiences that secure even better results.
Today, it’s about starting – and maintaining – a meaningful
dialogue with consumers. It’s about ‘pull’ marketing, where
marketers use rich data and insights to provide individual
consumers with tailored experience based on their unique
needs. Given the everyday consumer’s attachment to his
or her mobile device, the mobile space is the ideal arena
in which this can occur.
Top tips for making the
most of your mobile journey
1
State your goals
4
Target best practice
Take a top-down approach starting with your
business goals and what you want to achieve across
all channels. Clearly define your objectives and get
a clear picture of how mobile fits within this crosschannel strategy.
While large scale distribution may have its place
in reaching a huge customer base, being able to
target effectively is more important. Know who your
consumers are, and where they are, and target them
accordingly. Continue to analyse this information to
see if your mobile strategy is working.
2
Think multichannel
Smartphones are changing the consumer landscape.
The number of IDs that converge on a smartphone give
marketers new opportunities to optimise all channels
for where they converge.
3
Devise a data strategy
Data – and its supporting strategy – is still untidy.
You need to clean up your data and build a strong
strategy for the collection and storage of mobile
phone numbers, email addresses and other
consumer insights.
14
Mobile Marketing in China
5
Make m-Commerce easier
Many brands are having successes with m-commerce.
You can make it easy for consumers to buy on a mobile
device by streamlining the check-out process and
reducing the number of clicks to purchase.
Research
Methodology
Experian Marketing Services commissioned independent
research amongst 321 marketing professionals in B2B and
B2C environments from a wide range of industries, including
retail, financial services, telecommunications across China.
The findings were used to develop this industry whitepaper
on mobile marketing in China.
Yi Bai Li Information Technology
(Beijing) Co. Ltd.
Yi Bai Li Information Technology
(Shanghai) Co. Ltd.
12th Floor, Tower C,
Oriental Media Center
4 Guanghua Rd
Chaoyang District
Beijing 100026, P.R.C.
Unit 702 GuiXin Plaza
No.29 Middle Jian Guo Road
Huang Pu District
Shanghai 200025, P.R.C.
T (86) 10 6649 5188
F (86) 10 8557 0818
[email protected]
www.experian.com.cn
T (86) 21 6133 1788
Experian Hong Kong Limited
Room 3905-08, 39th Floor
ACE Tower, Windsor House
311 Gloucester Road
Causeway Bay
Hong Kong
T (852) 2839 5388
F (852) 2877 7803
© Copyright Experian