Marketing & Digital Media

How to Advertise Online in China Through Baidu, Alibaba, and Tencent Platforms

Posted on by

By Mike Vinkenborg

As of June 2016, China has approximately 710 million internet users, indicating an internet penetration rate of 51.7 percent. This number has been steadily increasing over the past decade, rising from 111 million at the end of 2005 to 457 million in 2010 and 688 million in 2015. This makes China by far the largest online market in the world in terms of users. Furthermore, China’s digital population is expected to almost double within the coming 10 years as the rest of the country comes online. As such, digital advertisement spending is seeing a steep increase. While advertisement spending in other sectors such as print and TV is stabilizing, total digital advertisement spending is expected to grow from US$23.6 billion to US$83.59 billion between 2014 and 2020, with the majority being spent on mobile platforms.

Continue reading…

Upcoming Singles’ Day to Provide Peek into Future of e-Commerce in China

Posted on by

By Mike Vinkenborg

Chinese e-commerce sales are expected to reach new heights on the country’s upcoming Singles’ Day shopping festival, with analysts predicting sales to reach US$20 billion (around RMB 135 billion) on Alibaba’s platforms alone. This figure represents continued growth at remarkable speeds for the landmark online shopping event. Since Alibaba popularized the former small Nanjing University tradition in 2009, revenues grew from almost RMB 1 billion in 2010 to 5.2 billion in 2011, 19.1 billion in 2012, 35.2 billion in 2013, 57.1 billion in 2014, and 91.2 billion in 2015.

Each year Alibaba utilizes Singles’ Day to launch new innovations in the e-commerce scene, and this year it plans to launch, amongst others, a new virtual reality (VR) shopping experience, which the company claims will transform how people shop both online and offline. Ongoing innovation in Chinese e-commerce signals the intense competition among online retailers to capture the lucrative market, as well as offering a preview of possible ways consumers will embrace technology to shop in the future.

Continue reading…

China’s New Advertising Law: Key Considerations and Implications for Online Advertisers

Posted on by

By Winnie Jin, Content Marketing Associate  

Over the past several years, the Chinese government has turned its attention toward greater regulation of advertising, and more recently of online advertising. Following in the footsteps of the amended Advertising Law implemented in 2015, the State Administration of Industry and Commerce’s (SAIC) Interim Measures for the Administration of Internet Advertising came into effect on September 1, 2016. The new regulation clarifies what content is considered “internet advertising,” lays down rules for “publishers” of online advertisements, and outlines investigation measures and penalties for violators. Given the ubiquity of online advertising in China, the regulations will have a widespread impact on the actions of advertisers and platform operators.

Continue reading…

Weathering China’s Cloud Computing Regulations

Posted on by

By Dezan Shira & Associates
Editors: Jake Liddle and Alexander Chipman Koty

cloud computingLast summer, Chinese tech giants Tencent and Alibaba announced investments into cloud computing services worth US$1.57 billion and US$1 billion, respectively. In 2014, cloud computing sales accounted for only five percent of China’s total IT market compared to 11 percent globally, but Bains predicts this number to swell to 20 percent by 2020, reaching US$20 billion in value and representing an annual growth rate of over 40 percent.

Despite the positive outlook for cloud computing, China’s complex and restrictive regulations governing data and internet services make entering the rapidly expanding market a complicated process.

Continue reading…

Accessing China’s Third Party Mobile Payments Market: A Comparison of WeChat and Alipay

Posted on by

By Dezan Shira & Associates
Editor: Jake Liddle

The Chinese Central Bank has announced significant regulatory change to the operation of online payments, widely affecting service providers and their millions of users in China. From July 1, 2016, third party online payment service providers must ensure that all user accounts bear the real name of the account holder. In addition, accounts will be categorized into three types based on security requirements, capped with maximum annual payments. The policy was created with an aim to prevent large deposits of money into third party payment accounts unprotected from bank deposit insurance.

Continue reading…

The Importance of Network Security in China

Posted on by

By Adam Livermore
Partner, Dezan Shira & Associates

A sound network security system is an important component within the operations of any foreign company in China, as it is in any other country. Especially for small and medium-sized companies (SMEs), who often lack the IT resources of larger companies, to protect a business from today’s sophisticated internet threats can be a challenging task. As a network security system usually consists of many parts, investors need to make sure that all components work together in order to minimize maintenance and improve the overall security level.

Continue reading…

Internet Censorship and China’s New Online Publication Law

Posted on by

Internet challenges in ChinaBy Dezan Shira & Associates
Editor: Jake Liddle

China’s new Online Publishing Service Administrative Rules became effective on March 10, 2016. The law, which aims to “regulate the criteria of and promote the healthy development of internet publishing services”, has already curbed the online activity of several Western MNCs – including Apple’s iTunes and Disney’s DisneyLife – but what wider implications do the rules have for internet censorship in China?

The new online publishing rules form part of President Xi Jinping’s broader efforts to utilize China’s so called ‘Great Firewall’ to control the flow of online information. In a meeting held in April, China’s State news agency Xinhua quoted Xi as saying: “China must improve management of cyberspace and work to ensure high-quality content with positive voices creating a healthy, positive culture that is a force for good”. With 25 percent of internet sites currently blocked in China compared to the 14 percent before Xi came into power, it is evident that the country’s new approach is effective.

Continue reading…

Common Internet Challenges in China: An Overview

Posted on by

By Thomas Zhang, IT Director, Dezan Shira & Associates
Editor: Samuel Wrest

Foreign companies operating in China will inevitably face challenges with internet connectivity. Over the past five years, the country’s government has been especially active in its control of the internet, with all Google products, various social media channels, and numerous other websites falling victim to its extensive censorship program. In addition, the Middle Kingdom has one of the worst average internet speeds in Asia, ranking 84th in Akamai’s 2015 State of the internet Report, and monitors access to all non-domestic websites. The impact that this has on foreign firms should not be underestimated. Here, we discuss some of the key challenges that foreign companies face.

Slow international internet speed

For Chinese citizens who access domestic websites and participate in China’s massive e-commerce market, the country’s internet can appear fantastic. Users can purchase a 100Mb optic fiber DSL internet line in their home, or can get 4G mobile network on their phone. This is in stark contrast to 10 years ago, when Chinese citizens could only use 2G mobile network and MMS was largely unaffordable.

That said, for foreign companies who need to access cloud computing networks or non-domestic websites, China’s internet has hardly changed — the speed is slow, connections are unstable and latency is high. Technically speaking, there is a very small network bandwidth between China and overseas countries, and links have a high packet lost rate. This is largely why Akamai, in their 2015 State of the internet Report, ranked China 84th in the world.

Continue reading…

Scroll to top