Fri, 08/13/2010 - 15:43
GUEST COLUMN: Challenges of targeted advertising in China's media
by Peter Bomer
- Peter Bomer
Five years ago I was lucky enough to be in charge of building the Johnnie Walker brand among middle to upper income consumers in China.
Like many premium and luxury international brands entering the market here, Johnnie Walker was quickly confronted by difficulties which challenged our well-established advertising-driven approach to brand building.
Perhaps the greatest of these was the shortage of targeted media aimed at the rapidly expanding middle to upper classes. By 2005 there were an estimated 87 million urban middle class Chinese yet the majority of traditional media were (and still are) aimed squarely at the mass-market. There were a few 'top-end' media - mainly magazines - but they often lacked the sophistication, audience understanding and quality of content required to really attract and retain a serious and committed audience.
Remarkably, as the number of middle to upper income consumers continues to grow towards an estimated 300 million-plus by 2015 the range of targeted media capable of gaining their attention has expanded relatively little.
Add to all this the high cost of Chinese media and the daunting size of the country and it's easy to see why few premium or luxury brands have established clear leadership in their respective categories.
Clearly these problems aren't easy or quick to resolve, but there are two emerging trends that offer possible solutions.
Firstly, digital media is probably the most effective medium for the premium or luxury brand in China both in terms of reaching the desired target and as a practical means of coping with national expansion.
However, in my experience most international luxury brands still rely on well-established traditional media and well-understood marketing models to reach their consumers. They are on steep learning curves when it comes to digital media.
The second major trend in China is branded content, applied across multiple media. A typical campaign might involve the placement of a product such as a car in a key scene of a carefully selected TV drama. The film footage might then be spun across the web through social networking sites and forums, with radio 'phone-ins' to discuss consumer's reactions with a variety of magazine articles, traditional print or outdoor advertising to continue and develop the 'buzz'.
There are few rules here and the possibilities are exciting if you have cross-media access and influence. It also recognizes the potential impact of developing a 'dialogue' with consumers through a number of stages over time. Just as importantly, this approach is re-focusing attention within state-owned media broadcasters on the importance and value of investing in content.
Given the high cost of traditional media, advertisers have started using the above two methods as workarounds to government media groups.
Premium and luxury brands have led the way in this because they have had to deal the untargeted nature and poor quality of traditional media audiences. This makes traditional media extremely unsuitable as premium-advertising mediums.
But there is an unresolved problem in this approach.
The above workarounds widens the distance between brand advertisers and the government media groups who own and broadcast traditional media.
This might not matter if these and other new approaches were capable of fully satisfying the needs of premium and luxury advertisers, but unfortunately they are not. Traditional media will always be necessary and even the most sophisticated branded content campaign works best if it can be carried through a variety of media, old and new.
So, how will premium and luxury brands be able to influence greater sophistication and choice in traditional broadcast media? Three suggestions:
First: selective focus. Brands should select those parts of traditional media that are most suitable for their consumers and most easy to influence. A great example in China is radio. Around the world, premium radio aimed at sophisticated and intelligent listeners is a very successful format. Unfortunately, the radio industry in China is currently wedded to the idea that only chart show formats or drive-time shows can succeed. Yet, in my experience there is considerable latent demand for quality 'grown-up' radio in China too, especially among the middle to upper classes. My own business, Soul Fire tapped into this niche to build a large and loyal base of upscale Chinese listeners over the past four years.
The relative under-development, far lower level of regulation, low cost and hunger for new clients in radio offer great opportunities for premium and luxury brands to shape content and audiences in line with their needs.
Second: smart partnering. Premium and luxury brands should identify partners with the ability to influence change and work with them to make it happen. In China, this can involve starting small. The large media agencies can be as conservative in their thinking as the broadcast media groups and may not be motivated to 'open-up' opportunities in traditional media. These days however, there are a number of entrepreneurial outfits who have had a good measure of success in broadcasting quality content which works.
Lastly perseverance is needed. Changing established ways of thinking and acting in China takes time, patience and stamina. Yet China is unique in that almost anything can be done with the right combination of flexibility, relationship building, creative ideas and determination.
Peter Bomer is the founder and CEO of Soulfire Media which makes and broadcasts lifestyle programs targeting successful middle-class Chinese. Soulfire broadcasts on Chinese state radio and TV channels in four major cities, as well as on the internet. Previously, Bomer was Diageo's marketing director in China and Asia regional marketing director for Johnnie Walker Whisky. Bomer talks about the problems of reaching a target, high quality audience in China for premium advertisers and how integrating traditional and new media offers a solution.
Interfax does not necessarily share the views expressed in this article.
