Why 2009 is a watershed year for digital PR in China

I want to share some things I am thinking about doing PR in China. In particular, I want to focus on how the burgeoning digital landscape in China is turning digital PR from a "nice to have" to a critical "must do" element, as part of any broader PR campaign.

What set the tone for 2009
To put this in perspective, in the past many companies in China were focused on core media relations and government relations programs. It was easier then -- just concentrate on the biggest national media, and they were all set. Chinese people now regularly engage in consumer activism, and local governments and media are becoming increasingly important. And now with Chinese consumers embracing digital media, it has caused companies to be more thoughtful about how they conduct PR campaigns in China.
 
One fundamental question to consider is, how is it possible to effectively communicate with the massive populations of people dispersed all across China? Today China has more than 150 cities with a population of more than one million people. The population of two of China's largest metropolitan areas, Shanghai and Beijing, are about 15 million people each. This points to the growing importance of local, not just national, media in China. This is where digital can help too, because it is not confined by geographic bounds.

So the focus of PR strategy in China is naturally evolving to a higher level of sophistication, to take into account the new ways that people consume information. With regard to digital PR campaigns in China until now, I observe that companies in many sectors are now doing some form of digital PR, ranging from simple monitoring, to engaging in conversations, creating original digital content and forming online communities. That's a big change compared to two or three years ago, when few companies were doing any form of digital PR in China. Consumer products companies in particular are embracing digital PR, and it is showing positive marketing impact for their business, whereas there is less adoption so far for business-to-business companies.

2008 was a big year for "brand China" online. China surpassed all other nations with the largest number of netizens in the world -- current estimates are at about 300 million. For the first time in history, the Olympic games were broadcast online, via widely popular Chinese portals Sina and Sohu. Chinese netizens rallied to support and drive donations for Sichuan province earthquake victims. Chinese citizens expressed their opinions about the torch relay protest incident in France. And prominent Chinese political leader Wen Jiabao started a Chinese Facebook page which today garners about 70,000 supporters.

More evolution in 2009
The digital landscape in China is exploding every day with new applications and opportunities for consumers to become a part of social networks, share self-generated content and express their opinions. Chinese consumers are embracing the digital world because they have a chance to connect with like-minded people and express opinions about issues, companies and products they are passionate about.

I had a great conversation this week with Steven Lin (aka flypig) of Youku and am very impressed by how successful Youku has become after starting only about two years ago. I really like what they did with Youku Buzz, a daily English language summary of the hottest videos. Steven, thanks for the Youku Buzz mug (pictured).

And Youku is not alone in targeting the Chinese appetite for video content sharing, with others including Tudou, 6room and Ku6 going after a similar audience. Another example of popular Chinese digital media offering English language is Tencent-owned QQ, the most popular Chinese instant messaging software. QQ at times has about 800 million registered users. The English language version is available for download at I'mQQ.com.
 
In 2009, many companies are expected to jump into the fast-growing social networking service (SNS) market in China. Online game operators are likely to set up social community sites, and internet giants, including Sina, Sohu and Tencent are turning to the SNS business, while BBS continue to be very influential and widely consumed in China. See also this Danwei post about the latest developments in the Chinese blogging scene.

Telecom carriers licensed to operate on the new China 3G network will boost their investment in the SNS segment to strengthen their competitiveness and increase their user base. In addition, mobile phone makers are likely to jump into the SNS sector, following the lead of Nokia, which will set up a mobile advertising community after acquiring Germany-based SNS Plazes. The China SNS trend was a topic of discussion at the Mobile Monday event I attended in Beijing recently. These new entries will add to the already large number of SNS offerings in China, including Twitter clones Fanfou and Jiwai, Facebook clones Kai Xin, Xiao Nei and Hai Nei, LinkedIn clone Wealink, and lifestyle/fashion SNS Meeli and P1.CN.

With regard to the economic situation and how that might impact PR/marketing budgets in China in 2009, I like the way David Wolf of Silicon Hutong said it: a greater portion of marketers' budgets will likely be allocated to digital, but that trend was happening anyway. 2009 will be a flight to value, when marketers look for quantifiable business benefit for their marketing spend, whether it be traditional or digital.

For some recent examples of SNS-related marketing in China, see this littleredbook post about the Starbucks/iPartment and Coke/QQ campaigns.

Digital PR challenges
So assuming we all agree that digital PR is important in China and it's time to engage, let's just do it, let's just launch a campaign. Right? 

For digital PR, because in some ways it is still a nascent area, there are still some fundamental challenges when it comes to deciding who owns it, how it can be measured, and how to do it ethically. Sam Flemming of CIC Data summarizes the key challenges nicely in a recent post. In summary, the key challenges that Sam pointed out, which I also commonly see in many digital PR engagements, are:

  • Who owns digital (PR, marketing, advertising)? 
  • How does digital fit into existing KPIs/metrics?
  • How to do digital campaigns ethically, when astroturfing/flogging is still widespread?

These questions are a backdrop for an even more fundamental challenge that plagues PR and marketing practitioners. At its core, engaging in digital PR is fundamentally different compared to the tactics that have been used for decades. Digital has forced the entire marketing discipline to be more thoughtful, to begin to engage in conversational rather than broadcast-type communications.

Conclusion
So what does all of this mean for PR practitioners in China? While traditional media continues to be important and influential -- and still the area where the great majority of PR budgets are invested -- it is more important than ever to include interesting, relevant and transparent digital elements as part of any broader PR campaign in China. Without doing some form of digital PR, companies are sacrificing a huge marketing opportunity, and more importantly, a chance to engage in meaningful conversations with Chinese people that care about their brand.

Scott Sykes is an independent PR and digital strategy consultant/writer in Beijing.

 

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