Navigating Chinaâ€™s Complex Media Landscape

Navigating China’s Complex Media Landscape

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2013 WHITE PAPER


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.




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.




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.




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%.




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.




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

http://news.xinhuanet.com/english/business/2013-07/17/c_132549664.htm




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.




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




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.




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

Email

GPRS

View/Write Microblog

Read Fiction

Download App/Software/Material

Search Info

Info Inquiry

IM

View News




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




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.




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.




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.




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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Navigating Chinaâ€™s Complex Media Landscape