Survey Reveals 3 Simple Keys to Success in China


This graph provides a revealing look at motivations driving Chinese consumer lust for foreign products. They view foreign products as higher quality, more authentic and less expensive. For marketers wanting to reach China’s vast consumer market, these are the keys to success. Play to these deeply held desires if you wish to win. Source: China Skinny

In Spite of the Bible, Goliath Usually Rules

In most things the big players with the toughest standards drive requirements for entire industries. Examples: Texas is such a large market for textbooks that it often dictates standards for science and history that all other states have to accept. Likewise, because California’s car market is so large, its auto emission regs drive industry standards for all cars. In the digital world, we are seeing the toughest rules coming out of Europe in the form of the General Data Protection Regulation (GDPR). US companies that do business in Europe are subject to its requirements.

At its core GDPR rules dictate that “all EU member states must treat cookies and other technical identifiers as personal data.” They must collect data only with “freely given” consent from the user. That is why we are beginning to see more explicit statements of how a site or app intends to use our personal data – IP addresses are considered personal data.

Another complicating requirement of the GDPR is that consent must be given prior to the cookie dropping. Contrary to standard practice where a cookie drops when a user enters the site or app; EU rules require a cookie permission banner to precede the cookie drop.

Given current Facebook issues, it is likely to any new US regs will be informed by Europe.  Source: DMN


Inflation Rate Steadies Lower

April’s inflation rate of 1.8 puts to rest the spike seen in February. That was explained as the result of sharp price increases in food. The drop from March to April is explained as a result of a “sharp slowdown in food inflation.” There has been no explanation as to why food price spiked in the first place, but now that things have settled down, that issue will be left behind. Source: Trading Economics; National Bureau of Statistics, China

36% Increase in Mobile Ad Spending Highlights IAB Report


Final tallies on mobile ad spend growth are in from the IAB and they are, as has been indicated before, impressive. Most of the category increases are above the thirtieth percentile and for the first year, total digital advertising revenues were higher than broadcast and cable TV combined. Mobile is killing it. The two sub-categories to watch are digital video and digital audio. Both are secondary channels currently, but they will be stealing dollars from the other groups as the years go by.  Source: Ad Tech Daily

Retail Growth Increases Slowed in April 2018

Retail sales in China grew every month. The question is: How much? In April it grew 0.66%, which is the second lowest growth rate in the 13-month period and significantly below the 0.73% 13-month average. That said, April’s growth is very positive and it continues to support the notion that modern Chinese consumers are doing what they have learned to do best; consume.  Source: www.; National Bureau of Statistics of China

Online Sales in China Grow 32.4%


An overall year-over-year increase of 32.4% in online sales of goods and services for the period January through April is noteworthy for those of us promoting sales into China.  It is not merely that the China’s consumer population is many times the size of the US, but it is that they are motivated buyers well beyond anything we see in the West.  Source: China Internet Watch

Looking into the Future

A gathering of Silicon Valley venture capitalists suggests why gazing into a cystal ball is tricky.  Best example: forty percent of those at the gathering are making a reasonable bet on decentralization of data as a coming trend while the same percentage see that “the new space stack will open extraterrestrial commerce.”  Really?  Are we betting on commerce with Marsians or with moon colonies or with space stations?  Other predictions shift between the reasonable and the downright odd.  Robotics go mainstream = reasonable.  The all-seeing eye = odd.  Source: CNBC

Consumer Prices Decline Again

Inflationary pressure has reduced again with a second month of consumer price declines.  This decline represents another return to price norms we had seen for the ten months prior to February’s spike.  This should feed positive feelings into future consumer sentiment numbers as the near-term Chinese economy continues to roll along. Source: www.; National Bureau of Statistics of China

Managing Brand Strategies in a Distrusting World


In a world where media in general is distrusted and privacy issues challenge digital media in particular, brand safety requires that strategies need to be in place as defensive counter weights to the trend.  Geoff Ramsey, eMarketer’s co-founder, has some ideas…

Move to safer practices – a quality verses quantity approach

  • Bring programmatic ad buys in-house
  • Shift buying to premium publishers
  • Use direct buys instead of RTB
  • Use Private exchanges instead of public exchanges
  • Establish white-listed sites and blacklist others
  • Switch from third-party data to first-party data – own your customer
  • Gather personal user data incrementally from direct customers rather than going for the big hit – slow and steady retains trust

Source: eMarketer

Tech Investors See China as Future Leader

In a recent conference of Silicon Valley venture capitalists lots of concern was expressed regarding China’s ascent as a technology leader. The old days of viewing the country as lacking innovation are over.  Instead, the alignment of China’s governmental goals with those of its tech companies presents a formidable force going into the future. Government regulation in the tech sector is viewed as less imposing compared to the US and AI algorithms benefit from much larger data sets.  Result: 72% of those in attendance say China is likely to pass the US in areas such as artificial intelligence and autonomous vehicles within the next 3-5 years.  Source: CNBC