Harbin Beer Signs London-Based Firm Telemetry For Online Video Advertising#
With the Chinese government's ban on television advertisements during drama programs taking effect this month, one of the major trends we're keeping an eye on is brands shifting resources from TV to the digital space. (A move that's gained momentum in China over the past couple of years regardless of Beijing regulations.) The transition from print to television to online to mobile in China has been one of the fastest in the world, and advertisers have been quick to follow suit, rushing to keep pace with consumer preferences. This week, perhaps in an attempt to stay ahead of domestic competitors like Tsingtao and Snow, the 112-year-old, Anheuser-Busch-owned Harbin Brewery -- China's oldest and fourth largest brewery -- signed the London-based company Telemetry to serve and audit its online video advertising in China.
According to iResearch, the ban on television advertising during dramas will only speed up an unmistakable trend in China's advertising market, which has seen the online video advertising market report 200 percent year-on-year growth. With these regulations now in effect, we can expect to see a rush among consumer-facing brands, particularly those courting the country's middle class, to increase their online and mobile marketing and advertising efforts.
As Anthony Rushton, co-founder and CEO of Telemetry, said last week, “We have identified inefficiencies of circa 35 percent in most growth markets and fully expect to detect a similar pattern in China. If the online video ad market is to grow according to expectations, the transparent, independent analysis and verification of campaigns will have to take precedent.”
Although Harbin Beer is far from a luxury item, we shouldn't be surprised to see brands ranging from the mass-market to the high end going increasingly global. Some of the most successful foreign brands currently operating in China -- especially those in the automotive field -- have beefed up their digital budgets in recent years, with the likes of BMW and Audi among the most successful at leveraging the digital marketing space to boost sales.
Done correctly, shifting from television to digital, particularly for brands that would otherwise prioritize ad time during television dramas (cosmetics, automotive, apparel), is a smart way to reach key middle-class demographics. As such, Beijing's ban on television advertising during these programs could be a blessing in disguise.
