16.01.09
Despite the economic and financial downturn, China’s advertising market will continue to grow at an amazing rate. This moves the market more into the focus of German advertising agencies.
Every three days, Shanghai taxies return to their service center. Then the interior is cleaned and the white covers – which are well known in Asia – are exchanged. At the same time, unnoticed by the cleaning forces and the drivers, the advertising clips of the Touchmedia screens are updated via WiFi.
This LCD touch screen is mounted inside or attached to the headrest of the driver and passenger seat. While driving, media content is streamed to the passengers with the most diverse advertising messages. Customers include companies such as H&M, Häagen Dazs, Virgin, Pepsi and Concert-Ticket-Retailer.
The system has been widely received and proven successful. Gary Rieschel, who has Touchmedia in his venture Capital portfolio, reports that the re-reservation rate of the advertisements is 70%. A prime example was a campaign for a Christine Aguilera concert where approximately 70% of all tickets sold via phone number which was only advertised in this medium.
The Chinese advertising market is complex. It is strictly regulated and difficult to enter by foreign companies – especially in the field of radio, print and TV advertising. Only outside advertisement and online advertisement are freely accessible. With this market size and its growth this market is however still interesting. In Beijing, for example, there are approx. 66,000 taxies.
The fact that the market has had a significant attractiveness is shown by the presence of international agencies, like BBDO, Publics or Ogilvy. The German Marcom China even plans a communication exhibition in China for 2009. It will take place from 26th to 28th October 2009 in Beijing (Peking).
“China becomes more interesting for agencies. We hear that very often during our talks with clients.” says Dirk Mussenbrock, Managing Partner with Mussenbrock & Wang in Hamburg. His consulting firm supports small and medium-size enterprises before, during, and after their entrance into the Chinese market.
Particularly the online market is extremely lucrative as approximately 63 million Chinese users are buying online. This trend is strongly growing and it is worth noting that China has the most Internet users – ahead of the USA. The number of user has grown by 47% in 2008.
The market of mobile communication is just as attractive. China has approximately. 590 million mobile phone call numbers. Interestingly 117 million of these users are using their mobile phone for online services.
“We think that agencies could position themselves better if they would position themselves in Asia. Germany is the world export champion, but unfortunately most agencies cannot accompany the export activity of their customers. For the best international support of marketing activities, a good knowledge of the advertising market of China is essential. This knowledge only exists at very few agencies!” says Dirk Mussenbrock.
It is undeniable that the entire advertising industry in China is highly dynamic; however a significant level of marketing experience from foreign countries is required. It is proven that German agencies have this knowledge. Dirk Mussenbrock comments in addition “Every manager who operates his business must have China on his roadmap. That is valid also for the advertising industry”.
Mussenbrock & Wang GmbH is a consulting and a service enterprise with focus on China. The enterprise advises small and medium-size enterprises while entering the Chinese market as well as with the following activities.
Supplementing numerous services connected with the market entrance is offered. In addition also offers an
„Office-in-Office“ solution.
With offices in Hamburg/Germany and Dalian/China the personal contact is ensured to the clients in Germany - as well as to the networks and resources in China.
Partners are Dirk Mussenbrock from Hamburg, as well as Wang Lei, who is responsible for the office in Dalian. The enterprise is a company with limited liability – based and registered in Germany.
Picture_1.jpg: Dirk Mussenbrock and Wang Lei
Picture_2.jpg: Shanghai Taxi with installed Touchscreen
Picture_3.jpg: Touchscreen in use