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Welcome to the 102nd issue of R3PORT, a weekly update on the most important information of the marketing industry in China. This week we cover off three areas:
 


CCTV GENERATED RMB1.5b THROUGH WORLD CUP ADVERTISING


GOOGLE CHINA'S SHOPPING SEARCHES COULD THREATEN ONLINE RETAILERS


TENCENT STARTED ITS GROUP-BUYING WEBSITE


THIS WEEK ON THE ASIAN NEWS DESK


1. CCTV GENERATED RMB1.5b THROUGH WORLD CUP ADVERTISING

It's reported that during the 2010 World Cup, CCTV total advertising revenue was estimated to reach RMB1.5b throughout the event.

Starting April, CCTV kicked off World Cup bidding to sell its event advertising packages. Spots during half-time interval, pre-match and additional time were packed and recommended to clients as integrated resource. It's surprising that the price for the 15 second advertising of final penalty goal period is RMB1.8m, which is equal to RMB120, 000 per second. This indicates that the World Cup advertising price has exceeded the Olympic Games and the CCTV Spring Festival Gala.

Research by Sunny Chen, R3 Beijing; Know more here


2. GOOGLE CHINA'S SHOPPING SEARCHES COULD THREATEN ONLINE RETAILERS

Google's China unit is rolling out a new design for its search results page that makes searches more sensitive to consumer enquiries. The changes to Google's search system will base on the type of content that is searched for; a search for consumer goods might get a shopping icon with recommended items, or discussions from various e-commerce websites such as Amazon.com Inc. and Taobao.com.

This is the very first time that Google has embedded a shopping service in its general search results. Google China operates an information platform, but does not run its own e-commerce site such as Baidu's business-to-consumer and consumer-to-consumer platform Youa.baidu.com, which was launched last year.

Online transactions could account for up to 5% of total retail spending in China this year, and that figure is set to grow over the next five years. Should the new shopping services provided by search engines prove successful, then traditional e-retailers such as Taobao.com will start to feel the pressure.
A spokesman for Badiu said that the company had not noticed the changes to Google's search engine.

Research by
Karen Xu,R3 Beijing; Know more here


3. TENCENT STARTED ITS GROUP-BUYING WEBSITE

Tencent started a second level domain "tuan.qq.com" on July 14th, named "QQ Group-buying". The initial station list includes 18 cities. Only Shenzhen station is operating at the stage.

QQ Group-buying has the same business model with all the other Group-buying websites - using low prices to attract consumers to combine their shopping needs.

400 Group-buying websites appeared in the last 4 months and they were thought to be clones of GroupOn, the first group-buying website in America. According to the report released by researchers from www.58.com, these Group-buying websites had lots of problems, and 80% netizens doubted them. Group-buying market is now facing the first big issue period, 40% companies are having difficult time  surviving. And QQ Group-buying is believed to have a big chance of winning the GroupOn war rely on its huge user base.

Research by Bella Teng,R3 Beijing; Know more here


4. THIS WEEK ON THE ASIAN NEWS DESK

R3 is privileged to be a part of The Advertising Show, the world's only globally distributed weekly program focusing on advertising, media, marketing, sales and customer relations.

Click here to hear the AsiaPac Report,The Asian News Desk, in which R3 China Consultant Emma talks about the Baidu HOHO,Youku,Tencent cooperation in video search and Controversial pitch in India.

Click here to subscribe to The Advertising Show.



   
  R3 is a marketing consultancy based in Beijing and Singapore, helping marketers improve their efficiency and effectiveness.  Clients include Coca-Cola, Johnson & Johnson, adidas, Yili, VISA and Singapore Airlines
For more information, go to www.rthree.com.


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