Technology | Media | Telecommunications

Saturday, March 10, 2012

Digital Media Usage Growth Trends Upward in China


The internet user population in China is now massive, at 513 million people at the end of 2011, according to the latest market assessment by eMarketer.

Though growth will taper to the single-digit range by 2013 -- the internet won’t reach a majority of the population until 2015 -- China still has the largest online user base in the world.

This growing user population, as well as recent governmental restrictions on broadcast ads, are having an impact on online advertising.

As of January 1, 2012, China’s government made it harder for advertisers to buy their favorite time blocks from broadcasters like CCTV. It also ended commercial breaks during dramas and limited the number of entertainment shows local TV stations can broadcast.

These changes have frustrated TV broadcasters, advertisers and media planners, but digital media owners in China are apparently elated -- they're envisioning more money heading their way, especially from advertising related to growth areas such as microblogging, online video viewing and smartphone usage.

While China doesn't have Facebook access -- it's officially banned in the country -- its absence hasn't curtailed the growing social networking population, which reached nearly 257 million in 2011.

So far, half of internet users have been attracted by local weibo (services like Twitter) and other domestic social networking sites, with the proportion expected to rise to nearly two-thirds by 2014.

eMarketer says that the social network leaders in China are Tencent QZone (with 536 million users), Tencent Weibo (310 million), Sina Weibo (250 million), Renren (137 million) and Kaixin001 (116 million), as reported by social marketing agency "We Are Social."

Douban, Tencent’s Pengyou, 51.com, Tianji and Jiepang are important vertical social sites in China.

As advertisers look to spend more this year on mobile marketing and online video ads, social media across these platforms -- especially weibo sites -- will benefit from the increased marketing efforts.

Advertisers will look for ways to promote brands on Sina Weibo and Tencent Weibo as consumers continue flocking to microblogs, which will pull advertising away from traditional social networking sites like Renren.