Effectively Harnessing Chinese Video Platforms For Marketing Success

If you still consider online video advertising merely as a complement to TV advertising in China, then you are wrong. My latest report “Marketers Embrace The Power Of Digital Video In China” tells you why.

In this report, based on the analysis of Chinese online consumers’ video consumption behavior and marketers’ spending intention, we conclude that online video is becoming mainstream to both Chinese consumers and marketers.

  • Consumers embrace online video and ad-supported entertainment. Forrester’s Technographics® data shows that 95% of metro Chinese online adults watch videos on a computer at least monthly, compared with 49% in the US. Also, 72% of metro Chinese online adults prefer advertising-supported free content over pay-per-view content.
  • Marketers are shifting ad budget from TV to online video in China. Unlike in the US and Europe where online video is taking budget from print or direct mail, marketers in China begin to shift ad budget from TV to online video.

The report also pinpoints two key issues that marketers encounter in video marketing in China:

  • Price inflation due to limited ad inventory. The demand for professionally produced digital video content is outstripping supply and prices are reaching new heights. On the other hand, video platforms prolonged pre-roll ad length to create more inventory and cause a new problem of ad clutter.
  • Complex and fast-changing video platform landscape. Two recent mergers – Youku-Tudou and Baidu-iQiyi-PPS – reshaped the landscape greatly and brought both challenges and opportunities to marketers.

To help marketers better solve problems and grasp opportunities, we evaluate the strengths of the different video platforms available and recommend three key video marketing strategies that marketers should apply in China.

Hope you enjoy the report. If you have any thoughts or questions, please leave a comment or contact me at xwang@forrester.com.