Making sense of the diversity in media habits between China's tiers

Yet as Synovate’s recent Media Atlas China study shows, there is a big difference in media used by brands in lower tiers when compared with upper tiers, not only due to the differences in channel consumption but also due to the differences in consumption time and content type.

Steven Chang, CEO of ZenithOptimedia China, thinks that studies such as Media Atlas are important because there is very little research done outside of tier-three markets in China. According to him, the choice of media is extremely crucial while planning a campaign across China’s tiers. “For instance in lower tiers like tier five, local TV and newspapers are performing better than in higher tiers. People are spending more time reading newspapers due to lack of choices. Radio is also becoming stronger due to improvement in transmission.”

Chang gives the example of open-air theatres in rural China. “Many villages in China don’t have a proper cinema house and a lot people come to watch movies in open-air theatres. The audience can watch 30 minutes of commercials. This is an ideal medium for brands and they can sponsor these movies as part of community service.”

Linda Lin, managing director of Mindshare Shanghai, thinks that the media choices for campaigns across China’s tiers have become more important with the growing penetration of new media formats, especially outdoor and digital TV.

Lin points out that there are both differences and similarities across the tiers. The similarities include the high penetration of TV and the availability of bus shelters across all tiers. Online continues to grow all through the country while newspapers have had a drop year-on-year. Differences include a drop in TV time and and a growth in online surfing time in tier one cities. The popularity of internet cafés in tier two cities is another big difference from lower tiers.

According to Lin, the similarities between tiers can be utilised to generate a cross-China media mix principle while differences can be used to make a local adjustments. “For example, within the skincare category, tier one and two markets consumers think the brands which advertise on office LCDs are big brands, while tier three and four markets consumers think the brands on CCTV are better.”

One trend that comes to light when analysing the media mix across tiers is the extensive use of traditional media for lower tier cities. According to Chang, brands in lower tier cities do not need to be as innovative as in upper tiers as there is not as much clutter here. He gives an example of client H&M, which has sought to expand in tier three markets in China.

“Obviously we don’t have huge budgets for these markets, so you need smart thinking more than innovative thinking. For the H&M launch, we used landmark sites and good billboards. Traditional media still works well. People are ready to absorb information as there is less clutter. In more developed markets you need to be more innovative.”

In terms of brands that have done an effective job of appealing across the tiers, Chang singles out dairy company Mengniu for its use of national TV coverage, internet advertising, product placement and branded entertainment. “Sometimes it’s not about the medium but how you use it,” he says.

Lin points to Lenovo, which she says has made “big investments in TV and has an OOH focus on lower tier markets.”

So which medium should advertisers invest in if they have to reach consumers outside the top two tiers? Lin thinks that even though it depends on media objectives and materials available, she would recommend TV, lift posters and billboards in main commercial districts. Chang recommends internet in addition to traditional media. “Online campaigns can be accessed from anywhere so it won’t take any additional investment.”

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This article was originally published in the 6 May 2010 issue of Media.