Content Marketing – Key Observation of China Media Scene 202

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Key takeaways are as below:

• Traditional content industry exploits traffic in ecosystem : The pandemic led to content production, distribution and commercialization suspension during the first half of this year, while the situation improved in the second half, the industry is actively exploiting traffic in ecosystem and exploring digital transformation.

• Online entertainment media gained growth dividends : The home-stay lifestyle has led to growth of user activity, usage time and revenue in the realm of online entertainment; while the short video and audio media are exploring the growth in different markets.

• Premium content has driven business model pivot to hybrid model : Qualified original content is the key in competition and reshaping business model, consumers are willing to subscribe and accept advertising as well, so “paid subscription + advertising  + marketing” hybrid model is formed.

• Various Content push in-depth cooperation with content marketing and across IP circles : Diversified content from movie, drama and variety shows, streaming and short videos, audio, gaming and E-sports make marketing combined with marketing deeper and expand from core fans to people of pan-entertainment groups basing on IP and across sub-culture circles.

01

The pandemic hit content production severely and delayed launching and distribution

In the first half of 2020, the number of episodes continued to decline by 28% year-on-year, and many TV/OTV dramas and variety shows were released later than planned. In addition, with policy regulation and the industry becoming more rational, the downward trend in production will continue. Theatres, which had been closed for six months, only reopened conditionally on July 20th, with many films pulled off or delayed, and an estimated annual loss of $30 billion would be inevitable.

02

Traditional content is gaining traffic in ecosystem, and online entertainment media are reaping growth dividends

Affected by the pandemic, cinemas and were unable to resume in the first half of the year and the release date of the TV series was disturbed. Some domestic and foreign films have made their debut online, while iQiyi, Youku and Tencent, and various major Internet companies, such as Momo and BiliBili, have started original productions such as movies, TV dramas, variety shows and documentaries to preempt online distribution rights, this may have a lasting impact on the distribution and production of traditional content in the future.

By pressing the pause button for offline entertainment, OTV, short video, live streaming, gaming, and online reading have reaped a wave of growth and become a tool for maintaining audience relationships and monetizing businesses. In the second quarter of the resumption of production and school, as though the MAU growth has flatted, platforms retained a considerable number of users and habits.

Short video and live streaming are becoming the must-have functions on all platforms. Short video is reshaping news format and communicating channels, and with social media to become the main way for users to obtain information. “Short video + KOL” dynamic cooperation, for brands to provide more fragmented and personalized marketing content, becomes an important advertising channel, as well, it squeezes long online video platforms’ advertising revenue.

“Live + ” helps brands, governments, and news organizations deliver information directly and quickly, and helps maintain user relationships in the entertainment, sporting and travel related industries, and live streaming could compress the path from brand awareness in content to making purchase.

03

Premium content has driven business model pivot to hybrid, long OTV and short videos are invading into each other, audio media are taking over high tier cities

The pandemic is under stable control in the second quarter, cinemas reopened, new TV series and variety shows were launched, and people’s suppressed entertainment activities were rekindled. “800” , “Tenet” and other premium films pulled the box office growth with limitations; three leading OTV platforms iQiyi, Tencent, Youku continue to develop drama IP, mango TV and Bilibili are also increasingly setting up their own variety IP to differentiate competition and have sparked a hot social network search and discussion.

Under the upsurge of content consumption, brands’ marketing budget investment has not matched the growth. On the one hand, as the content consumption market gradually matures, consumers form the habit of paying for high-quality content, the platform vigorously promotes the VIP membership and paid subscriptions, even for a certain show, there is VVIP hierarchical payment. On the other hand, brands need for traditional pre-roll ads and banner ads has been outweighed by the instability of the production cycle and content control, as well as the urgent for performance marketing. As a result, brands are turning to cooperation with content, celebrities and KOLs for in-depth implantation and collaboration.

Overall, the main online video platforms have formed a “paid subscription membership model + brand display advertising + brand deep cooperative content marketing” hybrid model. Platforms with premium copyrighted and original content are skewed towards member subscription models and optimized for in depth content marketing; platforms with eco-systematic advantages will balance the weight of all three and drive overall revenue growth.

Videos no matter long or short are aiming taking over audiences’ attention, time and mind. The competitive advantages are different, but the border between the two is getting blur now. The continuity of the long-video drama was interrupted, with clips appearing on the platform’s highlights and Weibo trending topics to capture attention from potential audiences. Meanwhile, short videos are creating high-quality content, including vertical mini-dramas and mini-variety, combining other short videos such as Vlog to form a unique fragmented but immersive content consumption experience.

In contrast to the declining status of traditional radio stations, digital audio, born in the Internet era, is growing both as a market and as a user with the diversity and quality of premium content. The Internet audio market has entered a period of deep development, and the revival and innovation of the ear economy are just in time.

Traditional broadcasting migrate to online as users gradually accustomed to the use of digital audio media, the quality of the original content and the value of the listening scenarios with commercial potential began to drive market growth. The audio market reached 17.6 billion RMB in 2019 and will maintain a 55% growth rate in 2020, with a fast-growing user base approaching 500 million.

It is worth noting that audio media, represented by podcasts, has come back to the high-tier cities to fill the young and middle-aged, urban educated users’ time as others platforms continue to seek new growth in the senior people, young kids, low-tier market, want to fill.

04

Diversified content across multi-media push content marketing upgrading and focusing on IP

Content marketing has non-standard characteristics, it is difficult to scale through algorithms. On the other hand, as the growth of users all type of content, and as the competition in the content market shifts profoundly to duration, content marketing will become more about deep collaboration with content and the people who are involved with it rather than traffic only. Customization of content platform and tailor-made branding content become main meanings beyond traffic purchase in order to help brands step into consumers' minds and decision making process.

The core of content marketing is marketing, so to creating exclusive branding content and path. In the process of content marketing, brand needs to evaluate marketing demands, select the right content form, consider media and content selection, and finally balance the significance of brand appearance in content. Content, media, and form are the main influencing factors of content marketing strategy. The review and evaluation after the implementation of the plan should focus on three aspects: The quantity and influence of the content layer, and the brand influence of the content layer, and the direct efficiency brought by the performance layer.

IP has strong content capacity, not only can achieve multiple content forms and business models, but also has the potential to expand the commercial and marketing value of multidimensional. IP and brand cooperation is to build bond and impact together, and further development is to make brand itself an IP.

In 2020, cross-circle IP cooperation has become the sparkle way for advertisers in content marketing, and IP marketing means that brands and IP deepen value binding, the unity of cultural value and commercial value; and brands could leverage the value of IP itself in multi-dimensional space extension. In addition, from IP cooperation to self-built IP, the aim is to reduce communication costs, strengthen the brand and consumer connectivity, and brand establishing.

Data Source: NRTA, Maoyan Profe ssional Version, GMK 2020 H1 Video Platforms Review and Forward, QuestMobile, iQiyi, Tencent,Youku Weibo, Douban etc., Analysis, PodFest China, iResearch