Posted in web business

SXSW2008: The Real Dragon: Understanding the Web and Digital Media in China

We’ve seen the media reports about China’s red hot Web and mobile industries, but it’s time to discover the truth. This session will dive behind what you see in the media today to give you a better understanding of how the Chinese Web and digital media industries work. What key social, economic and technology drivers exist? What differences can we expect as China’s mobile and Web companies grow? How does consumer behavior adjust as the Web becomes more prevalent for more people? How does one adequately engage this market? This session will explore these questions and more, highlighted by case studies and best practices from some of the most regarded consumer brands. With the more 244 million people expected online by the end of 2008, now is the time to get a clear picture of this dynamic, evolving industry.

Tatsuki Tomita   Sr VP of Consumer Prod,   Opera Software
Sage Brennan   Dir of Research,   Pacific Sun Investment Management
Michael Fisk   VP of Worldwide Digital Mktg Strategy,   Sony Pictures
Jason Yim   Pres and Creative Dir,   Trigger


– Expected to become the largest market of internet users this year. 
– Penetration only at 50%
– 200 million internet users – and most numbers are off

600 million mobile users
largest mobile market, 50% of the gsm users in the world are in china

CPM – cost per month still

still very early stage business wise, but china market users are very savvy

online games are huge sector

chinese wow is localized –

kids have alot of pressure from 6 adults per child, harder for them to have alone time, all only kids

QQ is owned by tencent 350 million reg users

growing at a fast rate because numbers are still so low

online games is first spot, then QQ, then casual games, then bidu for pirated mp3

cina hosts the official sony pictures page, using 1995 models, but changing fast

70% under 30 online (opposite of us)

bad tv, noone really watches it so they use the web for their media

cj7 – alien property

download times are bad so you have to think about that for your content

big game companies got big because the big game co’s bought out all the internet cafes

30 yen a month for game subscription models

models are different – they play for 48 hour stretches, not an hour or two

becoming more item based lately – buying spells, etc

penetration rate is still very much in cafes and it is a social experience, not just online, but in groups
cafes are more than just access

there are no credit cards in china – have to actually have to use cash at a brick and mortar

ctrip – big travel site
“ecomm” – you  make the transaction online then a guy on a mini bike shows up to finalize the transaction

non-trusting unless they can see the money

this is why there has been a problem with ads online – hard to see value

it is changing, but slowly

tudou – potato (coach) low quality streaming, low ugc, monetization is pre-roll ads that just started 6 mos go
21 million views a day

300-400 ads a day is avg for a US person, it’s 30-40 in china – not in Shanghai

treat each province as a different country – very different patterns in each province

noone’s worked for anyone, so they dont know how to be a boss and they dont know how to be an employee

management and quality control problems initially in outsourcing
can’t fix it logistically
leadership needs to be in the chinese office, creative as well.
time differences mess that up

have to break down the creative so much, better to have someone over there who gets the cultural ways of communicating culturally

there are limits of how much you can change form US to RMBs at a time, cash

– you cant do it with tech alone
– cut out iterations between countries
– studio autonomy and equality
– leadership cannot be centralized
– define and share ownership

emotional investment isn’t there unless you give them ownership of the project

cash based society, can’t do stock options

etiquette on phones is very different, no phones on silent, talk during meetings not rude

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I am a data & results driven Digital Media Influencer with over 15 years of experience in engagement, family marketing, scaling infrastructure and audience culture across a product’s lifetime from pre-launch to millions of users. Strategic Vision & Business Development: • Articulated corporate integrated digital marketing strategies for 10 children’s entertainment properties across multiple digital channels • Authored a comprehensive business plan for scalable online community infrastructure for internal and external partners and successfully participated in a thorough VC due diligence process • Increased sales revenue by 20% while managing 6 million dollars of annual revenue in existing business services. Production & Project Management: • Developed multiple 2D & 3D multi-player virtual worlds, online games & apps based on repurposed/original assets • Produced 12 animated 2-minute shorts for broadcast on television & developed animation production department workflows • Launched multiple major website redesigns to include more fan interaction • Led workflow & process optimization teams to improve operational effectiveness/productivity. Audience Engagement & Research: • Developed domestic and international audience research programs both on & offline for both parent and children audiences • Grew multiple audiences from pre-launch to tens of millions by using organic, as well as established marketing tactics. Team Management & Relationship Building: • Designed team management & organizational structures for multiple Web Content and Web Marketing departments including international remote teams of staff in North & South America, Europe and Asia. • Managed teams in multiple disciplines, including customer service, social media engagement, production, moderation, marketing, design, tech and content development. • Extensive client, vendor and partner management experience in television, licensing, digital, e-commerce & customer service industries

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