Mobile internet usage in China – 2012 key findings
Mobile internet usage has been in the spotlight in 2012 as, litterally, millions of low-tiers Chinese consumers have bypassed PC and laptops to access the internet directly from their phone.
This report, published by GroupM, highlights the most significant changes in China’s consumers’ behavior. For the hasty readers, here are a couple of bullet points to summarize the key findings:
- Mobile internet usage in China’s lower-tiers grows 351% over past three years
- The reach of the Internet has replaced outdoor in lower-tier markets to rank second of all media platforms
- Lower-tier consumers spent an average of 12.59 hours on mobile Internet per week
- Instant-messaging (93%), searching (27%), e-book reading (22%) and Weibo-posting (18%) are the main mobile activities
- More and more lower-tier consumers have skipped PC and laptop to access internet straight with smartphones
- Attention on lower-tier consumers – their needs, their levels of brand awareness, their acceptability of marketing mixes – is crucial for effective strategizing
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“While TV still dominates lower-tiers, its decreasing reach has dipped below that of upper-tiers
TV’s average daily reach among ages 15-to-45 in the lower-tiers has been decreasing steadily since 2007, after hitting a peak of 94% in 2009, to its current level of 81%.
This represents a faster drop than upper-tier markets, as seen from the percentage-point difference between lower- (81%) and upper-tiers (84%) in 2012.
Positioning of CCTV, Provincial-Satellite, versus Local TV Channels Becomes Much Clearer
Consumer perceptions of each channel have changed since 2007, with provincial-satellite TV having a younger, more innovative and attractive image; CCTV being more reliable, professional, authoritative, responsible and information-rich; while local TV remains more conservative than the rest. These perceptions will greatly influence marketing budget allocations among various TV stations.
Development Pattern of Mobile Internet over Past Three Years Different From Upper-Tiers
The reach of the Internet has replaced outdoor in lower-tier markets to rank second of all media platforms. Internet usage among ages 15-to-45 in lower-tier markets is at 59% in 2012, a growth of 18% compared to 2011. Meanwhile, in upper-tier markets, the growth rate is only 3% on a year-on-year basis.
In particular, the rapid development of mobile Internet usage is prominent. In 2012, 32% of people accessed the Internet through mobile devices – an increase of 351% compared to 2009. The most popular mobile devices are smartphones (20%), followed by feature phones (12%), tablets (2%), and netbooks (1%).
Furthermore, the share of smartphone usage quadrupled from 5% in 2011 to 20% this year. In general, lower-tier consumers spent an average of 12.59 hours on mobile Internet per week – an increase of 3.31 hours versus 2011.
Instant-messaging (93%), searching (27%), e-book reading (22%) and Weibo-posting (18%) are the main mobile activities with higher usage evident among ages 15-to-45.
As a comparison with nationwide averages, CNNIC’s 30th Statistical Report on Internet Development issued in July 2012 showed instant-messaging (83%) and searching (67%) as the top mobile activities, followed by news-browsing (58%) and Weibo-posting (43%).
Multi-Screen, Cross-Platform Usage of PC, TV, Mobile Now More Common
26% of lower-tier consumers are three-screen users, and among this group, 27% of them use them (PC, TV, mobile) simultaneously. 64% are dual-screen over lappers, with 70% of them using the PC and watching TV at the same time. Convergence is also occurring in terms of content, with 70% watching TV programs (currently or already broadcast) via the Internet.
Implications for marketers:
Traditional Media Is Stepping Stone; Digital Media Enhances Ad Reliability
It is risky to put all eggs in either basket. Instead, maintaining media investment in traditional TV while constantly committing to digital communications will achieve synergistic results for marketers.
Proactively Use Mobile Internet as Platform for Brand Experiences
The development path of Internet usage in lower-tier markets is markedly different from that of upper-tiers, typically from PC to laptops to mobile phones. More and more lower-tier consumers have skipped the first two platforms to go straight to smartphones, forming a sizable base for marketers to reach them. Therefore, utilising mobile Internet to improve brand experiences will gain an edge over competitors.
Fierce competition in upper-tier markets has made expansion in lower-tiers the deal-breaker for a brand’s success in the next decade. For marketers, constant attention on lower-tier consumers – their needs, their levels of brand awareness, their acceptability of marketing mixes – is crucial for effective strategizing.”