Daily Digital Pulse of China

China Digital

The Mobile Internet in 2014

The mobile Internet has brought about many changes – some predicted, some unexpected. However, in the era of big data, it is now easier than ever to forecast the future of the global digital landscape. So, how will China’s mobile Internet market look in 2014? Firstly, with the number of regular domestic mobile Internet users now at 500 million, and smartphone prices scheduled to decrease due to an increase in domestic suppliers, coupled with the spread of high-speed networks across China’s lower-tier cities, we should see the number of mobile netziens climb to 800 million by the end of 2014. Secondly, when it comes to high-speed networks, we can expect the number of 3G and 4G users in China to reach 500 million and 10 million respectively next year – a result of the ever-increasing domestic demand for faster network speeds. With the take-up of faster broadband speeds in the workplace, Chinese consumers are no longer satisfied with having to wait 30 minutes to download a mobile app. Thirdly, 2014 will see the emergence of “human intelligent mobile terminals”- in other words, more mobile Internet-based devices to enhance users’ day to day lives. Smart watches, smartphones with ever-larger screens that can be synched with a car’s GPS system – but to name a few.

Source: Bit Forum Anonymous

China Digital

Online Advertising - The Sky's The Limit

Online brand advertising in China is now worth ¥6.82 billion – an increase of 6% on Q1 2013. The demand for online advertising is rising across a variety of industries. Food and drink, apparel, cosmetics – all three have increased their online advertising presence by 20% since Q2 2012. Because the demand for Internet marketing services is derived from the demand for Internet advertising, companies offering these services are continuing to prosper. The amount they spend on brand optimisation in Q2 2013 grew by 25% compared with the same quarter last year. What could be the reasons for this? Why are brands so enthusiastic about online advertising? The answer? – Impact. Although the Samsung, Volkswagen and Coca-Cola logos become a part of the Pudong skyline after sunset, this is more of a status symbol than an advertising strategy. Each brand knows that it can reach every Chinese consumer with an Internet connection by uploading video content to search engines, SNS and e-commerce sites, than it can with the same content projected onto a skyscraper in Shanghai. The more consumers the brand reaches, the greater its impact.

Source: iResearch

China Digital

Has PC Internet Use Peaked?

The number of Internet connections in Chinese homes now stands at 470 million – an increase of only 3% on the previous quarter. The average daily home Internet browsing time also grew by the same, meagre amount. However, the time users spent checking their emails or on social media sites saw a much larger increase – 10% for both correspondence and SNS. How are we to explain this disparity? Although many digi-gurus are forecasting the death of home Internet use, that is to say using a PC or laptop to go online at home, it seems that China’s digital landscape is evolving. In the medium term, it’s likely that PCs won’t be the only device consumers have available to them, as was the case before the advent of smartphones and tablets, that doesn’t mean they are in danger of extinction. Surely, given that consumers prefer to browse different sites in different ways, larger versus smaller screens, mouses versus trackpads, the more devices the better? However, it is also likely that as PCs are replaced by smaller devices as the primary means of fulfilling a user’s online needs, they will reduced to a data storage device without Internet browsers. In other words, users will store their apps, photos and videos on PCs, but will access online content, app stores, photo/video sharing sites using mobile devices.

Source: iResearch