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Navigating China’s Complex Media Landscape
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2013 WHITE PAPER
We tell your story to the world
2Copyright © 2013 PR Newswire LLC. All Rights Reserved.
2013 WHITE PAPER Navigating China’s Complex Media Landscape
Starbucks, adidas and Accenture are just a few of the international companies that have
excelled in China as a result of their dedication, understanding and respect of the Chinese
media landscape. The US-China Business Council’s (USCBC) annual survey, released in
October 2012, provides fresh insight into member companies’ outlook on the future of their
businesses in China.
According to USCBC’s estimates, the China market is worth $250 billion for American
companies, and 94% of the companies responding to the survey said their business purpose
in China is to access the domestic market rather than to develop a platform for exporting.
The report claims that although the global economy is still faltering, 89% of those companies
surveyed were not only profitable, but they are making money at “the highest rate to date in
the seven-year history of the USCBC member survey.” Among them, two-thirds saw double-
digit growth over their 2011 revenue.
Unsurprisingly, then, the proportion of companies that now rank China as a top or top-five
priority has risen to 94%, with 71% stating that China would be a top five priority in the
coming year, and 60% noting that profits from China operations were higher than their other
global operations. The US-China Business Council survey also pointed out that a massive 88%
expected to see greater profits from their China operations as compared to the previous year.
Those that know and understand China clearly recognize the huge potential that is available,
and more importantly, are confident that their businesses will continue to be profitable,
despite the onset of yet another global recession.
Of course, for every successful business, there are many more that have failed. Perhaps
the biggest reason for this failure is the belief that a company can simply come in, set-up
shop and be profitable. A lack of consideration for local market contexts and adaptation of
business models also leads to unsuccessful programs.
2013 WHITE PAPER
Navigating China’s Complex Media Landscape
The potential of doing business in China is undeniable. Recent headlines about slowdowns notwithstanding, its economy continues to enjoy strong growth, with 2013 numbers in the 7% range. The growing middle-class is spending more of their disposable incomes as the economy begins a shift from export-centric to consumer-driven and Chinese businesses continue to expand overseas, competing with their western and fellow Asian counterparts as they search for new business to continue China’s rapid expansion.
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2013 WHITE PAPER Navigating China’s Complex Media Landscape
This white paper provides useful and usable information about the media landscape in
China, the importance of a strong marketing and communications strategy and how best to
use it to your advantage.
The primary takeaway of this paper is simple. Chinese media and influencers will be vital
to your business success in China, and the inability to understand and engage with both
the media and your customers will almost certainly lead to failure. Enormous opportunity
awaits, provided you are willing to put in the time and effort to effectively communicate
and engage with your target audiences.
The media landscape in China can be very confusing and contradictory at times, but it
can also be summarized by its fast transformation. A number of commercial media and
cutting-edge internet platforms have gained presence amidst state-run media that once
controlled all aspects of print and broadcast media. The new media empires have seen
aggressive growth in recent years, despite continued attempts from authorities to keep a
tight grip on the type of content being produced, and have even spurred state-run media to
increase their own efforts to appear more fresh, modern and relevant.
This new hybrid landscape, however, still needs to be carefully navigated. Broadcast,
print and digital media are closely monitored, and editors and journalists alike are under
government pressure to ensure content is suitable for public consumption.
This section breaks down the media landscape in China, looking at the key components
of China’s traditional media, online portals and new media, to help ensure that you are
prepared with the knowledge and tools to expand your marketing and communications
efforts in China.
China’s Media Landscape
Traditional Media
As the world’s third-largest advertising market, traditional media in China continues to
play an important role in a burgeoning media landscape. Traditionally, they have been the
most-trusted sources of information; however as increasing numbers of netizens access
news from a greater variety of outlets, both domestic and foreign, the traditional media
have been met with an increased degree of skepticism from the public, particularly younger,
urban residents who are more likely to get the news by smartphone than by buying a paper.
Still, traditional media feed the online portals, and any marketing and communications
strategy must still include this vital set of media.
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2013 WHITE PAPER Navigating China’s Complex Media Landscape
Newspapers & Magazines
China is the world’s largest print media market, with over 9,000 magazine titles and 2,000
newspapers currently in circulation. Until recently, the newspapers and magazines in China
were still enjoying expansion and prosperity thanks to the rapid economic growth of the
country. However, since the beginning of 2013, for the first
time in the history of Chinese media, a lot of these outlets
have started feeling a clear pinch in terms of both shrinking
readership and advertising dollars, due in large part to the
competition from more lively online, social and mobile media
channels. Total advertising revenue for the overall print media
industry was reported to have dropped by unprecedented 8%
during the first half of this year.
While state-run newspapers tend to be older and more
traditional, newer commercial newspapers showcase greater
freedom, despite being subject to the same levels of censorship
and being owned by consortiums led by state-run companies.
Almost all revenue, though, is generated by circulation and
advertisements, irrespective of the publication’s ownership.
When looking to generate exposure, it is necessary that both
types of newspapers are
targeted. While commercial
newspapers are enjoying
growing readership and
building a reputation for
more investigative and
sensational journalism,
state-run newspapers still
wield influence, especially
on more sensitive and
political subjects. This
influence, however, is
certainly waning in business
circles, as trade publications
and online sources see
increased authority.
Of course, China’s long
list of newspapers and
magazines are not unknown to the Internet. Many have online versions that are directly
competing for readers against the more well-known online news portals. Some offer
subscription content and a much wider range of content, as they are not limited by the length
of the traditional publication. Newspapers and magazines are also becoming more actively
involved in social media and mobile entertainment platforms as they look for new ways to
expand their readership.
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2013 WHITE PAPER Navigating China’s Complex Media Landscape
Television
The importance of television to the Chinese cannot be underestimated. With a penetration
rate of 97%, television is the core method of news consumption for many of China’s 1.3
billion citizens. Television advertisers, clearly aware of this fact, account for 76% of all
advertising revenues in China.
With 374 television channels, it may seem odd that the only national network is the
state-run China Central Television (CCTV). With 20 channels under the CCTV brand, it also
includes the globally-exported CCTV News. Many local and regional TV stations, however,
can be picked up throughout the country, depending on
the satellite and cable services that are available in a given
region.
Major TV stations, other than those controlled by CCTV,
include Hunan TV, Phoenix TV, Dragon TV and Travel TV.
Strict censorship guidelines continue to pose an issue in
China’s television space. While older generations remain
loyal to their favorite medium, teenagers and well-educated
adults are seeing limitations in the type of broadcasting
available; becoming increasingly skeptical of the controlled
messages to which they are being exposed. These younger
demographic groups are shifting to online sources that have
much greater freedom to entertain.
The only national network is the state-run China
Central Television (CCTV). With 20 channels under the
CCTV brand, it also includes the globally-exported
CCTV News.
News Agencies
Online Media
There are only two news agencies in China: Xinhua News Agency and China News Agency.
The latter has a much smaller influence on all fronts, while Xinhua is the government’s
primary collector and distributor of information in China- and the most authoritative source
on Chinese government affairs.
As the largest wire service in the world, Xinhua provides daily, 24-hour news information
to the world in Chinese and English. It is also responsible for creating many of the media
controls regarding censorship in China.
Online media is regarded as one of the major information sources in China today. SINA,
SOHU, NetEase and Tencent (QQ.com), the four largest commercial news websites in China,
are considered the four main web portals and the primary news source for many younger
and more educated people. Today, China has over 564 million active Internet users and a
broadband penetration rate of 98%.
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Of note, however, are government regulations that restrict websites from producing their
own news. As a result, most are simply aggregators of content, primarily from newspapers
and magazines. Usually, online news sites must acquire news from reputable print media
sources, providing the online versions of print publications, with already strong networks,
even greater leverage. For example, if your news is picked up by a certain media point and
that media point has a strong content sharing network, it will be displayed on many other
websites and be highly visible in search engines. This is an essential component of the online
news environment in China and why PR professionals prefer to build relationships with
these types of media, or use services that already have these established relationships.
Unsurprisingly, the Internet is also closely censored. Many international sites are blocked
by the infamous “Great Firewall of China,” including news sites such as the BBC. At times,
Chinese websites are sometimes blocked during times of increased sensitivity, especially
those built around blogs and public forums that allow people to freely express their
opinions. Specific materials deemed a threat to political stability, such as controversial
photos, search terms and particular iPhone apps, are also banned.
Major General News Portals
Top 5 Government News Portals Other Well-known News Portals
SINA, SOHU, Netease and Tencent (QQ.com) are the largest commercial news websites in
China, and they act as the primary news source for many younger and more educated people
in China.
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Search Engines
Just as in the U.S., search engines are playing an increasingly important role in how news is
found and read. With the mounting popularity of online news and entertainment, search
engines will continue to gain importance, and are therefore essential components of any
strategy in China. After all, with internet users surpassing 564 million, there are a lot of
people searching for content, so a strong SEO strategy will provide a big advantage for
international companies looking for visibility in China. Press releases and news articles,
multimedia content, and Chinese social media platforms are the best tools for improving
search engine visibility.
NASDAQ-listed Baidu continues to dominate the search engine market in China and is
making efforts to maintain that grip. In February 2013, it launched its English language
page for developers, with an aim to help non-Chinese readers create apps for the domestic
market.
According to statistics from iResearch, Baidu continues to keep its grip on about 80% of the
search engine market share, with Google hanging just shy of 16%.
The China Internet Network Information Center reported that Baidu is the first port-of-call
for over 95% of searches, although Google ranked the most popular second choice, so
targeting both Baidu and Google is undoubtedly a good strategy for getting found in
Chinese search engines.
However, the mobile internet search engine market has threatened the internet giant’s
dominance, with Tencent’s QQ mobile browser and UC browser leading in China’s mobile
browser race, with Baidu lagging far behind, according to Analysis International data.
But Baidu has no intentions of being left in the dust, as evinced by the company’s July bid to
buy out 91 Wireless Websoft, a smartphone apps distributor, for US$1.9 billion. If successful,
the massive merger could lure more developers to Baidu’s platform.
Meanwhile, rumors are flying that Qihoo 360 will acquire SOHU’s Sogou search engine,
effectively combining the country’s second- and third-largest search engines into one and
posing a greater threat to Baidu’s dominance.
With Google access still limited on the mainland, the outlook for their share of the search
engine traffic might not be so great as local, well-known competitors tailor their products in
the race to gain a market foothold.
New Media
China is home to an abundance of online content, with a host of domestic and international
companies competing across numerous channels and many of the online giants are also
publicly-traded. Shares for the likes of SOHU, SINA, Youku Tudou and Renren listed on either
NASDAQ or the NYSE. Getting found in this increasingly crowded landscape can certainly
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be challenging, but for those companies that are willing to spend a little time to provide
engaging information in Chinese, the rewards can be endless. The Chinese are far more
welcoming of those companies that are seen to be making an effort. While mistakes can be
forgiven, ignorance is a much greater challenge to overcome. New media platforms offer an
ideal place to build relationships, tell your story and engage with stakeholders.
Of course, social media hasn’t replaced traditional news media yet, and given that these
outlets still hold great influence over China’s media industry, there needs to be a fine balance
between the new and the old. A fully integrated marketing and communications campaign
is, without doubt, the fastest way to success.
For those relying on YouTube, Facebook, Twitter and the like, the Great Firewall of China
ensures that these efforts are lost on the majority of Chinese. Western social media, blogs
and social networking sites are generally blocked, and it’s therefore essential to get involved
in the local Chinese equivalents of these platforms in order to reach the desired target
audience. This chart shows the local Chinese equivalents of popular western platforms.
Soruce: CIC
Western social media, blogs and social networking sites are generally blocked. This chart shows the local
Chinese equivalents of popular western platforms.
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Social Media
Social media now plays an undeniable role in connecting people and developing and
maintaining a relationship with the media. Many services can be used as a platform for PR
professionals to interact with journalists, other professionals and the general public.
A McKinsey survey found that 95% of China’s Internet
users in Tier 1, Tier 2 and Tier 3 cities are active social
network users. And that number will continue to
increase. The volume of social sharing in China went up
by 60% in 2012.
The top 10 social networking sites in China are Qzone,
Tencent Weibo, SINA Weibo, Wechat, Pengyou, 51.com,
Renren, Douban, Kaixin001 and Jiayuan. China’s 88%
overall social media usage rate is much larger than the
67% who use social media in the USA.
The dominant social media sites in China are the
“Weibo” (Twitter-style micro-blogging) sites, which
enable 140-character long tweets to be posted, and
can include photos and multimedia content. However,
where in the US Twitter essentially monopolizes
the micro-blogging environment, China is home to
numerous micro-blogging platforms that compete with
each other to become more influential and attract the
highest number of users.
Since late 2012, WeChat, the emerging mobile social
app from Tencent Group, has been stealing some
of Weibo’s thunder with its quickly-increasing user
numbers around the globe. WeChat had 300 million
users by the first quarter of 2013, which is close on the
heels of Weibo, which has over 400 million registered
users.
An average online user in China spends at least 46
minutes on social networking sites every day. Only 38%
of Chinese netizens reveal their real names on social
networking sites. On average, each of China’s social
media users follows at least 8 brands. 43% of Chinese
netizens are interested in products shared by friends
on social networking sites, and 38% of Chinese netizens
make shopping decisions based on recommendations
on their social networks, according to Go-Globe.com.Source:Go-Globe.com
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From Nielsen: Chinese netizens use social media for many reasons, including connecting
socially, entertainment, news and services. Different platforms have different focuses except
for micro-blogs, which now serve all four types of needs. SNS is mainly used for socializing and
fun.
Mobile
There is also a strong trend towards mobile media. According to data released by China’s
Ministry of Industry and Information Technology, by the end of 2012, the number of Chinese
netizens had reached 564 million, and the number of people who access the internet
through mobile phones hit 420 million, which was 64.4 million more than that number at
the end of 2011.
Mobile users account for 74.5% of the total netizen population, and for the first time, the
number of people using mobile phones to access the internet has surpassed the number of
people accessing the internet using PCs. PC users account for 70.6% of netizens.
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Data from DCCI: From DCCI’s 2012 mobile internet application report, we can see that now
86.1% of mobile internet users ranked “View News” as their first reason for browsing, 10%
higher than that of IM.
In 2013, news apps were seen as the most prominent source of
news for mobile users. As an aggregator of news from newspapers,
websites and other media, news app distribution platforms have
seen their influence increase recently. Most important, users can
choose and customize their subscriptions for their favorite news.
According to EndoDesk, SOHU News client-side is the most
frequently downloaded in China, with a download share of 31.8%,
followed by NetEase News and Tencent News, with 18.0% and 10.2% of the market share
respectively by the end of April 2013.
63%
22.70%
22.00%
76.10%
86.10%
Others
LBS App
eCommerce
Online Video/TV
Mobile Online Shopping/E-wallet
Online Music
Mobile Bank/Financial Service
Play Online Mobile Game
Play Online Mobile Game
SNS
Download Pic/Music/Game
Online App
GPRS
View/Write Microblog
Read Fiction
Download App/Software/Material
Search Info
Info Inquiry
IM
View News
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Multimedia
In 2012, the market scale for online video reached 9.25 billion RMB in China, and brought
6.72 billion RMB in advertising revenue. The average Chinese user spends four hours a week
watching online video content, such as movies, TV, and
live sports—double the time spent by US users. A new
McKinsey research report shows there will be more
than 700 million people in China watching online video
content in the next four years.
The chance to be played on mobile devices and online
TV has now become the major battlefield for video
content-producing companies. With decreasing
production costs and increasing advertising revenue,
the video content-producing industry has a bright
future, according to iResearch.
With non-Chinese video sites such as YouTube blocked in China, posting multimedia content
there with hopes to reach Chinese netizens from the mainland would be for naught. China,
however, has an array of video-sharing sites equivalent to YouTube. Given the increasing
popularity of social media content, it’s valuable and essential for SEO success to have video
content present on the major multimedia sites in China. It also ensures that other Chinese
platforms can play videos directly.
China News Apps Market Share by Downloads Source: EndoDesk
SOHU News
SINAGO
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Successful Media Relations & Communications in China
General Do’s and Don’t’s
Do write your messaging in Chinese whenever possible; English is not common at all.
Do respect China and Chinese consumers and watch them respect you back.
Do think viral – interactive, multimedia content works best.
Do use an integrated strategy and be active across platforms.
Do engage with your stakeholders; put in the leg work and reap the benefits.
Do carefully define your target audience and carefully select the right media to reach
them.
Do write your messages in an easy to understand format.
Do remember that China is a large, diverse country, where trends and cultures can vary
from region to region.
Do take the time to learn the traditional and online media that are important to your
business.
Don’t offer English only content and then wonder why it failed to gain traction.
Don’t criticize aspects of China that differ from the West.
Don’t presume text only content will get you the same level of results.
Don’t rely on just one type of media to get your message out there.
Don’t think one message will win over people - even the top brands need to work at it.
Don’t underestimate the need to target the smaller, niche media points.
Don’t use jargon unless you want to alienate a large percentage of the population.
Don’t presume one size fits all – you may need to alter messages and strategies in
different cities and regions.
Don’t think you can rely on Western media - traditional or online – to reach Chinese
audiences.
Top Tips for Writing Press Releases
Keep your headlines short – under 20 characters is best, as many sites have limitations
regarding what they’ll accept.
Understand your target audience and write copy that will be interesting and relevant.
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Try to include a local contact person. The journalist will be far more likely to follow up.
Keywords are important, so think about how English content is translated; use native
speakers or translators that can be trusted.
Localize your content whenever possible, tailoring content so that it stands out and
shows effort.
Top Tips for Building Media Relations
Top Tips for Getting Noticed Online
Personal relationships are key; work at building a network (“guanxi”).
Be proactive and research information about media points that are of interest –
journalists will appreciate you far more if you know something about them and it will
also protect you against those with bad reputations.
Be active in your communications, answer questions and don’t be afraid to follow- up via
telephone.
Use social media platforms to build lasting relationships – these are growing in influence
and also offer great ways to build relationships with other key influencers.
Media events and face-to-face meetings are still important tools for building trusting
relationships and shouldn’t be ignored.
If serious about the Chinese market, optimize your website in Mandarin Chinese.
Search remains a key tool for both consumers and journalists, so ensure content is
SEO-friendly, remembering Baidu.com dominates the search engine market and has its
own unique search rules – don’t presume Google search rules work as well for Baidu.
Traditional media currently remain the most important and influential, and major portals
also aggregate their content, so they continue to offer the best ROI - don’t ignore them.
Utilize images and video to your advantage. You’re much more likely to get noticed and
shared if you do.
The major blogs and social media platforms carry a lot of weight with search engines,
and such content can be easily searched, so make sure you are on them.
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Success Stories at a Glance
We’ve addressed much of what a company must understand about the media landscape
in China, as well as offered best practice advice to develop a strong foundation for
communication success. The next section showcases some examples of companies that
have utilized these suggestions and have succeeded, as a result. The companies highlighted
took the time to ensure they utilized the best network available for their PR initiatives and
reaped the benefits of their efforts.
Wal-Mart (Traditional Media)
While likely to be of great interest to the Chinese media, when Wal-Mart announced
their new China CEO, they were proactive in preparing journalists with the right facts and
information about the announcement by disseminating a timely press release to all major
media points across China. Additionally, Wal-Mart posted the announcement to key weibo
feeds, resulting in significant earned media; securing coverage in both traditional and new
media including the Southern Metropolitan Daily.
Accenture (Social Media)
Accenture has enjoyed success in China by engaging audiences through social media and
incorporating multimedia content into their messages. When a press release about a new
business development program was posted to SINA Weibo, aside from the excellent organic
search results, it was forwarded on SINA Weibo over 500 times and received many positive
comments from the weibo community.
adidas (Multimedia)
Adidas has achieved regular communication
success in China, predominantly through
use of multimedia. adidas rarely issues a
press release without an engaging photo or
video to generate interest and gain traction.
By sending out multimedia news releases,
adidas is able to reach all the media types
mentioned in this white paper, while also
greatly improving their natural search results.
Multimedia content is also far more likely to
be shared amongst online communities and
this is a great way to increase awareness and
garner even more interest.
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Conclusion
The media landscape in China is quite complex and constantly evolving, as technologies and
policies continue to change. The last year in particular has seen some seismic shifts. Online
and mobile media have passed the tipping point and gained dominance over traditional
print, which has seen revenues and circulation start to decline, even in the face of a still-
growing economy. Television continues to be important, but the kind of impact that can be
achieved through that medium is changing as the viewing audience fragments and shifts
more and more online. News sites and micro bloggers continue to grow in importance, and
the viral nature of social media gives enterprises unprecedented opportunities to make their
mark within the Chinese media space.
Given the endless innovation and increasing rate of change in China, it has never been more
important for companies to keep abreast of the latest developments on the Chinese media
scene and leverage the network of a locally-based agency or service provider to maximize
their PR potential.
Over the last ten years PR Newswire has committed itself to building up a comprehensive
network of professional media and key influentials across China, helping companies from
around the world to communicate and engage with those who matter most. Now with
offices in key locations throughout China, PR Newswire is expertly positioned to offer the
best in-country support possible, and remains the only major newswire service to have full
operations in China that includes 24-hour editorial teams.
Through our proprietary distribution platform, PR Newswire helps deliver your messages to
China’s print and broadcast newsrooms, journalists, bloggers, financial portals, social media
networks, web sites, content syndicators and search engines in a full SEO-friendly XHTML
format. This network includes 16,000+ journalists from 8,000 media outlets and 600,000+
social media followers and mobile apps subscribers.
PR Newswire’s extensive portfolio of localized services include distribution, monitoring and
engagement tools to ensure successful targeting and ROI, including full text distributions,
Multimedia News Releases, Online Media Monitoring Services, Chinese ProfNet, China
SocialPost™ and Print Media Clipping Services.
About PR Newswire in China
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