What makes Chinese consumers tick? That’s the question Chris Reitermann, CEO of Ogilvy China, has been puzzling over for the last two decades. Reitermann began his career at advertising giant Ogilvy & Mather in the 1990s, moving to Beijing in 2000 to set up the digital agency OgilvyInteractive. Since then, he has risen to head up the company’s entire operations in China. In this interview, he discusses the dramatic changes that have taken place in Chinese advertising during his time here, why China has much to learn from India on running a great campaign, and what the industry may look like by 2027.
Chinese tech giant Tencent surpassed Facebook in market value this November, and is the first Asian company worth more than $500 million. Unlike Facebook, which earns 97% of its revenue from advertising, online advertising only represents 16.9% of Tencent’s revenue, according to the company’s Q3 2017 report–lagging behind domestic competitors like Alibaba in terms of ads gain. Determined now to gain a larger slice of the digital advertising market, Tencent focuses on improving targeting and algorithms to intensify ads on its ubiquitous platform WeChat while not undermining the user experience, as well as leveraging opportunities in the company’s other products and services, including mobile games.
China strives to be a consumer-based economy, so it isn’t surprising that advertising spending has risen by leaps and bounds over the past few years, especially as people become more affluent and are expecting tailored ads. However, the ad spend is also changing to reflect the times. Mobile spending has risen ten-folds in the past three years, while print spending is slowly dropping off. Outdoor ads see consistent growth, while online advertising in 2015 was not as popular as it was in 2014. More changes are sure to come along as the digital disruption continues.
An increasing number of brands are finding it lucrative to woo the growing legions of Chinese tourists—both outside China and within.
This week, all eyes were on the 2014 China GDP figure, which at 7.4% was lower than the target of 7.5%; Tencent created a mini ad frenzy on WeChat; and LeTV’s electric car plans inched a step closer to fruition.
Facebook’s social experiment has angered many. But the social network may have learnt a thing or two about better customer segmentation and targeting. Facebook’s social experiment, where about 700,000 users’ news feeds were secretly controlled to prioritize “sad” or “happy” status updates, is viewed by many as an unethical—and potentially illegal—manipulation. While Sheryl Sandberg, the […]
A look at the China data that you should care about. From China’s burgeoning commodity exports to the changing profile of migrant workers. Also, a look at the apps that are gaining traction in this vibrant tech market and some good news there for caffeine addicts. Now, let’s reach out for that latte! (All the data pertains to the […]
Chris Stibbs, the new CEO of The Economist, on staying competitive in the fast-changing world of publishing, native advertising, new sources of competition and more. Few publications have the kind of loyal readership that The Economist enjoys. Despite being more than 170 years old (it was first published in 1843), the magazine has continued […]
Can the traditional TV broadcaster successfully play ball in China’s digital content market? Looking around on the metro in any of China’s big cities, it seems every single person is completely immersed in their cell phone screen, tapping for news reports, scrolling through online forums, playing games, catching up on soaps. From kids to grandparents, […]
What will define China’s advertising in the digital age? The scene begins with a guttural male yell and the rich thump of a large drum, the camera panning across the Chinese mountainside surrounding the Great Wall at sunrise. All at once a vibrant red flag waves, and little by little the viewer glimpses acrobatic […]