CONNECTING TO CHINA , DIGITAL A - Z OF 2014The ever-changing digital market is always surprising and full of excitements. iClick prepared a digital glossary to let you quickly understand what happened in the China digital market this year. Just a glance, you will know it.

libaba

aidu

The e-commerce giant in China. Together with Baidu and Tencent, the three formed the B-A-T trinity in China reflecting their dominant position in search, e-commerce and social media respectively. Alibaba rose 42% more than the combined profit of Amazon and eBay in Q2 2014, and its IPO is the largest technology listing in the US history, outpaced that of Facebook.

Largest Chinese language search engine that represents over 80% of market share in search and receives more than 5 billion search queries daily.

Ad spending on DSP in China is going to reach 3.3 billion in 2014 (YoY 116%), representing 6.9% of total display ad spend. DSP is quickly evolving and it is seen that Internet giants in China are also developing their own DSPs that connect to their owned media inventories.

CRM data nowadays no longer confines to retail, but embraces that from other channels including social, mobile and e-commerce. Everything is better in digital world as marketers have the ability to track and analyze them further. e RM

SP

View LAPP version

The total e-commerce transaction has reached 2.95 trillion in Q3 2014, YoY growth of 49.8%. Taobao’s Tmall represented over 50% share in total B2C e-commerce sales, followed by JD.com at 19.3%. The e-commerce battlefield in China is also shifting from PC to mobile. Mobile commerce transaction amount is expected to account for 30% in 2014 and all the way up to 56.9% in 2017.

Gaming is one of the fastest growing sectors in China’s digital market. There were 368 million online game users by the Q2 2014. Mobile gaming is gaining ground in China because of the higher penetration of smartphones. Among all mobile game users, 66.6% of them use Android platform while only 30.2% prefer iOS (including iPhone and iPad).

Android continues to dominate the mobile operating system market in China with market share at 82.7%, while Apple is at 14.7%.

It is seen as one of the biggest hurdles for foreign brands in entering China. However, there are a number of countermeasures available today for brands to minimize the risk such as viewable impression index, brand safety features in programmatic buy, bot traffic detection, etc.

-commerce

raud

aming

TML5

HTML5 is the latest version of the industry-standard language for creating Web and is now being used as the key technology for developing engaging mobile and cross-screen ad creative. Wide application of HTML5 is seen in building mobile site, map, video, etc.

OS v.s. Android

D.com

368 million

66.6%

30.2%

118 warehouses in 39 cities

One of the e-commerce giants in the Chinese market. In May 2014, JD launched its direct shopping entrance on its WeChat official account, consumers can link up their JD accounts on WeChat, to enjoy a better and more convenience mobile shopping experience. JD.com currently has 7 fulfillment centers and 118 warehouses across 39 cities in China.

Online search ranked as the second most commonly used online applications by users in China (instant messaging is the first) in both PC and mobile, thus making the share of ad spending in SEM the highest amongst all types of digital marketing tactics.

Mobile advertising is gaining ground in China and expected to reach 27.3 billion in 2014 (YoY 76%). For marketers, instead of allocating a separate budget to mobile alongside other media channels, they are taking a holistic approach to test out the interwork of mobile search, social, video, etc.

O2O is one of the hottest buzzwords in 2014. The emerging trend is now widely adopted by traditional brick-and-mortar businesses including F&B, healthcare and retail. The 3 Internet giants B-A-T have also brought O2O to the mobile space by combining social and e-commerce.

Stands for Light App. Similar to other mobile apps, LAPP also embraces functions like voice, GPS navigation but it requires no installation which makes it become an even more flexible channel for product marketing and promotion.

Native ad was once being seen as the next major online ad type in China, but the lack of standardization has placed some obstacles for brands to implement it.

PMB (Programmatic Media Buying) is growing exponentially in China. Apart from display ad trading, the programmatic approach is now adopted in mobile and video inventories. The spending in mobile PMB is expected to reach 390 million in 2014.

eyword Search

APP

BUYNOW

obile ad

ative ad

2O

MB

A leading Internet and security service provider in China. 360 is often be seen as the key rival of Baidu. It challenges Baidu’s dominance in search by its fast improving ad platform.

One of the biggest 3 players in China’s Internet world. As one of the largest online platforms in China, Tencent provides a wide range of services including instant messaging, online games, information portal, etc., making itself a centralized destination for marketers to engage users.

Online video continues to grab share from television because of the rising media cost of TV ad and also the changing in media consumption pattern in China. At the same time, online video viewing habit is also moving from PC to mobile devices.

ihoo 360

encent

sers

ideo ad

360

Sina Weibo, China's Twitter-like social media site, was listed on Nasdaq in April 2014. There were 167 million monthly active users and 76.6 million daily active users on Weibo as of September 2014, an increase of 36% YoY and 30% YoY respectively.

RTB was first brought to China in 2011 by Google’s DoubleClick. Today major Internet giants including Alibaba, Baidu and Tencent have all established their own ad exchanges to support inventory transaction in real-time. TB

ina

As of June 30, 2014, there are 632 million Internet users and 527 million Mobile Internet users in China.

Source: Baidu, cb.com.cn, China Internet Watch, CNNIC, eguan, InMobi, iResearch, Millward Brown, RTB Asia, Sina Weibo, Statista Currency unit in content: RMB

By the end of August 2014, Youku’s monthly browsing time by users was 775.5 million hours, ranked no.1 among China online video providers.

Baidu’s latest O2O toolkit Zhida (literally means “direct access”) is seen to be competing with Tencent’s WeChat to capture users who are looking for local services like restaurants. The launch of the product officially marks the beginning of the O2O competition within the B-A-T trinity.

ouku

hida

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It has increasing importance because of the ever growing number of mobile internet users and also the hopping behavior of users between mobile and PC. Cross-screen tracking and audience targeting are new in China but they definitely should become the focus of marketers in the future.

Tencent’s flagship mobile messaging product – WeChat, has made itself one of the most powerful apps in China. According to Tencent’s financials, as of September 2014, WeChat has 468 million monthly active users worldwide, closing in on its rival Whatsapp’s 600 million monthly active users.

eChat

Cross -Screen Targeting

775.5 million hours

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