Social networks enters the China mainstream

But this is only the beginning, according to a new study from OgilvyOne China.

"Social media has so far been something of interest, something to experiment with," says Edward Bell, group planning director, Ogilvy & Mather Group Shanghai.

"But what we now see is that SNS users are the kind of alpha consumers that marketers need to connect to. The report underscores the financial opportunity of SNS marketing. It is no longer just about influence; it is also a lever for drawing revenue."

The OgilvyOne Connected study reports that 84 per cent of those polled said they used an SNS on the previous day. While those kind of statistics are impressive on their own, the bigger story is that SNS use is frequently translating to action. Out of those consumers who are using social media sites, 71 per cent said they frequently watch online ads on video sites such as youku.com.

More than ever, Bell argues, the onus is on brands to take social media as a mainstream media platform and to include SNS as an integral part of their marketing plans, especially in China.

"China netizens are more expressive compared to Western countries," adds Meg Chen general manager of Zed Digital China. "SNS are one of the major media they use to communicate with friends and share their opinions, it is also a new way for them to search for information."

Chen says it is important for agencies and clients to use this new platform to create dialogue with consumers, get them to engage with their brand and build long-term relationships.

But are SNS in China the right place for all brands? Ali Kazmi, digital media director at PHD China, suggests brands ensure they have a story worth sharing. "Marketers need to look at their brand DNA and ask themselves, what's human about their brand, does it have a personality, does it have depth, will it give reasons for someone to want to talk to it?"

And, given the highly personal nature of SMS, there is the danger that a large influx of brands will turn away the very consumers they are hoping to connect with. "My only fear is that with so many brands jumping onto the SNS bandwagon, consumers will drop SNS for something else," adds Kazmi.

"Some people believe email marketing is dead because of how it's been abused by marketers. We now need to start thinking about the next big thing before SNS becomes spam."

However, rather than being turned off, Bell points out that some Chinese SNS users are proactively seeking relationships with brands. Of those surveyed by OgilvyOne, 43 per cent say they have ‘friended' a brand, while only 24 per cent say they would not like to interact with their favourite brand online. "In many ways, SNS users are ideal for marketers as they are very often actively looking for brand experiences," Bell says.

Brands, therefore, need to make sure they are creating the right kind of message for their
audience. "The key thing for SNS is that brands should give their consumers something to converse about, something that fits in their consumers' cultural and social context," says Chen. "For young people in particular, they want to be active and contribute, so brands also need to open up the content and let them improvise on it."

But, as with all consumer-led media, there is a downside to consider. According to Nielsen's recent Asia-Pacific social media report, compared to the rest of the region, Chinese internet consumers are the most likely users to post negative online product reviews. For those brands that get the SNS relationship wrong, the results could be painful.

"This is an age of authenticity and the internet has removed the shady zone that some brands found convenient," says Bell. "Brand value systems are becoming more and more important."

This article was originally published in the 15 July 2010 issue of Media.