Dentsu Aegis Network Vigorously Exploring Opportunities in Tier-2 and Tier-3 Cities to Perform Strategic Expansion in China’s Digital Marketing Arena

18 Sep 2014

Dentsu Aegis Network successfully held the “Brand Marketing in the Digital Age - 2014 Digital Marketing Forum” in Chengdu today to further expand digital marketing opportunities across China’s tier-2 and tier-3 cities. Dentsu Aegis Network is taking the initiative to target strategic development in tier-2 and tier-3 cities with huge potential, and is exploring digital market development across these cities by creating strategic partnerships with China’s leading media partners. Around 200 representatives from advertisers and agencies attended the forum.

This event “Brand Marketing in the Digital Age” held in Chengdu was co-organized by Dentsu Aegis Network and its strategic partner, Coupled with rapid and sustainable development in China, consumption scale, potential and brand awareness in tier-2 and tier-3 cities continue to increase and consumer media behavior has undergone considerable change. As a result, new communications opportunities are created for brand marketing and especially within digital marketing. The latest report by Dentsu Aegis Network Consumer Connection Study (CCS) — reveals that the 3G network and the smart phone business have enjoyed penetration rates of 21.3% and 48.2% respectively in tier-2 and tier-3 cities, which comes close to the penetration rates of 23.2% and 53.2% seen in tier-1 cities. Both online purchase and mobile purchase in tier-2 and tier-3 cities continue to increase and boast considerable growth potential. As regards the influence of social media, tier-2 and tier-3 cities see little difference when it comes to users’ active participation in social media platforms. In addition, audiences in tier-2 and tier-3 cities are most interested in entertainment content. For advertisers who have noticed these changes in consumer behavior, these cities are the new “gold mines” and offer huge business opportunities. In fact, many well-known advertisers have been increasing their ad placements in these cities, and a growing number of brands have started to channel their investments to different regions so that they can secure sufficient ad placements in tier-1 cities and also search for new growth points in tier-2 and tier-3 cities. 

In view of these important topics, digital marketing elites from Dentsu Aegis Network and discussed how to bridge the gap between brands and consumers through innovative means by examining four key marketing trends — content, e-commerce, mobile and social — at the digital marketing forum. Eve Lo, Principal of Brand Strategy of Isobar China, a brand company of Dentsu Aegis Network, delivered a keynote speech entitled “Consumers’ Features and Trends in the Digital World”. The speech revealed how to gain insight into consumer behaviours more flexibly by conducting digital research combined with traditional brands tracking and evaluation, and how to help brands develop more a forward-looking brand strategy. Ronan Lin, Associate ePR of OMP, highlighted the “Principles and Skills of Social Media” and discussed marketing strategy and outlook on social platforms in the post-digital era. 

Derek Huang, Head of Business Sciences of Carat China, another brand under the Dentsu Aegis Network umbrella,explored how cross-screen investment integration is used to seize cross-border marketing opportunities in the multi-screen era.  In her speech “Contents as King: Perfect Combination of Brands and Contents”, Jane Lin-Baden, CEO of Isobar China, stressed the importance of content to brand marketing. In her opinion, how to explore the minds and conduct of consumers in the digital age and to develop the contents that really reflect the minds and emotions of consumers is a topic deserving of each brand marketer’s consideration. Later, Philip Zhang, Chief Marketing Officer of Letv’s Business Division, started from the perspective of media operators to share thoughts on cross-border marketing strategy and strategic distribution of video media in the multi-screen era. Moreover, Hu Dandan, Senior Director of &C.’s Research and Development Center, explored how to seize new marketing opportunities following the entrance of the e-commerce business into the video era. Following the speeches, the meeting participants conducted an onsite round-table discussion on “The Opportunities and Challenges of Digital Marketing in the Regional Market”. 

KF Lee, Chairwoman of Dentsu Aegis Network China, said that “Dentsu Aegis Network, as a global communications group, it’s a very important link in our strategic distribution to explore the market in tier-2 and tier-3 cities. We’re very glad to co-organize this digital marketing forum with Letv and hope to provide clients in the middle and west areas with truly innovated and integrated brand marketingservice. 

Chengdu was the first stop for this digital market forum. Dentsu Aegis Network will also join hands with other strategic media partners to organize this summit forum in tier-2 and tier-3 cities across different regions and achieve its ambition of expanding the domestic digital marketing field. The next forum will be held in Guangzhou in October 2014. 

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