Succeed in China with these tips from NativeX

Tiffany: Let me do a quick introduction of myself and our company. My name is Tiffany Ou, I'm the Sales Director of NativeX. We're a one-stop mobile solution provider, a Mobvista Company. So in a nutshell, my job is to help your mobile businesses successful. We do user acquisition, retention, and penetrate to overseas market, especially China market. So before I start, I want to ask a quick question. How many of you have been to China?

Quite a lot. How many of you are currently running campaigns in China?

Several. How many of you are interested in investing in China?

Quite a lot.

So we have the booth outside. And once I was talking about China Top Media, a lot of clients reached out to me and asked me, "What is China Top Media?" So NativeX actually created the verbiage of China Top Media to replicate the enormous reach of audience and also advanced technology and targeting capability. So, China Top Media is the platform of a product of the combination of paid social, content, influencer program that you can utilize to penetrate to the Chinese audience.

And everyone sitting here, we're doing UA, we're doing marketing acquisition, we understand the value of acquiring the right user, at most efficient cost, globally, but why China?

Not only China has 1.3 billion of population, but also looking at the data, 96.3% of user are accessing the internet through mobile device in comparison to global number which is only 56%. So China's number almost beat the global number by 90%, which is quite high.

So I have to focus on gaming a little bit, sorry to all the clients of my utility app travel and payment. The reason why I want to focus on gaming a little bit is because gaming is much more universal. Gamers in China or anywhere else in the world they don't have to understand the language. They don't have to understand the culture, as long as they enjoy the storyline and the game they can have a lot of fun.

And from 2011 to 2019, the overall market scale increased from 64 million to 17 billion in RMB, which is really substantial. And more than 50% of the global gaming revenue are coming from APAC. Particular China contributed 25% to the global number. So no matter your gaming company or not in gaming company, I have to ask you, why not China?

So before I'm going to little deeper into each of the platform, I want to give you a quick overview of the mobile market, what the landscape looks like.

So the China market is highly dominated by BAT and ByteDance, if some of you don't know what is BAT, BAT refer to Baidu, Alibaba and Tencent, and also ByteDance. Among those four media giants, they take over 77% of the market share in terms of mobile usage. To give you some perspective, Facebook has only 36% of the mobile usage in the States, in late July 2018, of course, it dropped from earlier the year from 76%.

Little bit into details of each of the platform, Tencent. So Tencent is one of the largest media platform or media company in the world. And in 2017, it actually passed Wells Fargo, became the 10th largest company in the world.

There are several apps owned by Tencent, QQ under which is more like ICQ, what we had probably 10, 15 years ago. And also the QQ News, QQ Video, and QQ Browser, also the Tencent App Store, which is largest App Store in China.

And of course, WeChat. If you have not heard about WeChat, WeChat is voted as the most powerful app globally by Forbes, is the combination of Instant Messenger, Venmo, Yelp, and Outlook.

So when I was in China, I challenged myself to survive in Guangzhou our headquarter for five days without even one Chinese dollar with me and I succeeded.

You can pretty much use WeChat to do anything. I use WeChat to pay taxi driver, street vendor, 7-Eleven, Department Store, and restaurants. So I guess my next challenge will be surviving in China without WeChat for five days.

And the next one is ByteDance. ByteDance is voted as the most valuable startup by Verge, valued at 75 billion. And if you have not heard of ByteDance, you probably have heard of TikTok, also musically. So ByteDance is the owner of all those apps globally, and monthly unique is close to 2.5 billion users.

Excuse me. And the next one is Weibo. Weibo is the Chinese trader, the largest online community in China, worth mentioning is the subscriber is 600 million. To give you some perspective, again, Twitter has only 261 million subscriber. So Weibo definitely have the largest reach in terms of online community.

Last but not least, Baidu. Baidu is the Chinese Google. So Google is not available in the China market at this moment for different reasons. So Google is the number one search engine in China. It takes over majority of the market share, and along with other products, like Google tier tool more like Pinterest in a way, and also the browser.

With each of those platforms, they all offer different and advanced targeting capability, including demo targeting, interest targeting, also look like audience. And the best part is for all of us American advertisers, not only we can acquire users through those platforms, but also we can learn audience behavior data, which is really the key. We can purchase acquisition, we can purchase user through different channel, but really what kind of data that we can get? Do you know, what are the real user to convert and spend time on your app? And how much they're willing to pay for the app?

And of course, with all those potentials, and great opportunities, it always comes in with challenges. And the first challenge I've heard a lot of people here coming to the conference, is I have heard about, you know, the Chinese government is being really control. What I do? So one of the barrier is for any overseas advertisers, you have to comply with local legal documents in order to open account with those platforms. And even to advertise in China, you have to go through a lengthy process in order for you to have the ISBN number, the Chinese copyright document for the Chinese user to see your ads.

And also, China has a very unique internet model, aside from the whole market is being dominated by the BAT the media giants. And also, the whole environment is very different. For example, do you know in China, most users won't download an app when they're not connected to WiFi?

Because they're paying by the data not by a fixed monthly fee, like what we do, and compared to the monthly income, the fee is quite high. So all those learnings, all those strategies, you really need someone with local understanding to help you to build audience.

And China is a big country with 1.3 billion people. And of course, the audience is very fragmented. For example, do you know China does not have Google Play, but we actually have 450 Android store? And local audience is very fragmented. The income level for tier one and tier two cities can be five to seven times more than tier three and tier four cities.

Of course, you want to reach the right audience who has the willingness and the ability to make any app purchase so that you can make great profit overall. And of course, I'm not trying to scare you with all the challenges. I'm here to help you to overcome all those challenges.

So how can we help? NativeX, our headquarter is in Guangzhou, China, we have local media planner, media buyer to help you to facilitate all the document approval, we're going to be hand holding you to make sure all the documents are getting approval, compliant with the legal process, and also build local media plan, making recommendations on local audience and targeting and also campaign management organization.

And the best part is in-depth of analytics. I work with a lot of clients from pretty much all over the world, and they all want to penetrate to the China market through China Top Media platform because the traffic quality is really great.

For a lot of those campaigns that we're running, we're able to increase the ROI by 30% in 2 weeks, aside from getting all the good traffic, good users, they're more interested to learn about the user behavior, right? So we provide weekly, monthly, quarterly analytics based on campaign performance, creative performance, and also competitor analytics.

So, Chinese market users are not used to a subscription. They're rather seeing 10 seconds 20 seconds of ads than paying $5 USD for a monthly fee. And it's our job to help you to price it right. We understand, you know, when we target a tier one city, how much they're willing to pay, and how many users you're able to acquire with the most efficient cost.

So that's it about a very brief introduction of China Top Media and what NativeX can help you. We have our booth right there. If you have any questions you can come to ask any one of us or even asking for bathroom directions. We're happy to help.

Any questions?

Yes.

Man: Can you address IP challenges in China?

Tiffany: IP challenges, yes. So IP challenges is part of the account approval. So each one of the game if you want to advertise in China, for example, Warner Brothers, Harry Potter, the local government require you to provide the IP document to show you're actually the owner of the copyright before you can run anything.

So IP right is always something that, you know, overseas advertiser is concerned about, but Chinese is taking that issue very seriously, which is why we're here to help you to get through those process and getting all those local documents approved.

Man: [inaudible 00:14:09].

Tiffany: Can you elaborate?

Man: [inaudible 00:14:16].

Tiffany: In that case, I think IP protection happens globally, right? For Tencent in particularly, we use net and game to run the acquisition on their platform, they do make sure that it's not competing with any other advertisers running at the same time.

So that's the protection that are taking, but there's no really guarantee that you have a game that someone isn't going to replicate exactly the same game in China. I'm sure there's no one else in this world can guarantee that.

Does it answer your question?

Man: Yeah.

Tiffany: Thank you.

Woman: Okay, thanks. And since you've run out of time, thank you very much.