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This is truly baffling to me – India and China beating out US and Europe in social marketing? At least that is what a recent survey by Regus suggests.
According to the survey India and China saw the greatest gains in customer acquisition from social networks among all countries studied, increasing from 44% in 2010 to 65% in 2011.
It goes on to say that India and China are not only using social media marketing to acquire new customers but also to bring new revenue. With social marketing spend approaching $6 billion in 2011, a 71.6% increase over 2010, that’s a lot of money.
It is baffling to me because social marketing is highly advanced and it works with savvy internet users. Based on my research the US and European users fit that description better than Indian or Chinese users at this point. When you apply it in mass the odds favor US and Europe far more greatly.
The survey does say “greatest gains in customer acquisition” using social. However it does not give any numbers. For all you know, India and China could have increase from 100 to 165 – hey that is 65% growth (this is an example). Where as US and Europe are operating from much much larger user bases.
The survey had one other interesting finding: Social networks made the biggest impact for companies that are operating in developed markets. A significantly higher percentage of companies that used social networks for customer acquisition in developed markets, including the US, the UK, Japan and Canada, saw a revenue increase over the previous year vs. those companies that did not use social networks to acquire new business in developed markets.
Channels: china, india, social marketing
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35% of US might 10 times more than 52% of India or 44% of china. We need in $ terms.
Comment by RDR2004 — June 24, 2011 @ 3:20 PM
There's nohing to be baffled about! Not only is the fastest adoption of new media in the history of any media been a feature of asian markets for some years now, while the west likes to believe it is masters of the world's marketing initiatives, and certainly has some sophisticated approaches, when it comes to trialling new ideas, the west is now consistently lagging countries like China and India.
Expect to witness more leadership from the east over the next few decades!
Comment by Andy — June 27, 2011 @ 2:27 AM
The reason you're baffled is that your research is incorrect. Having lived in Taiwan for many years, it is not at all baffling to me.
Comment by subduedjoy — June 27, 2011 @ 10:01 AM
Internet users in Asia are the growing middle class. They have more disposable income than your average middle class individual in the US and Europe. Just look at the luxury goods market. I think we have more Louis Vuitton shop per capita here in Hong Kong than anywhere else in the world, mosly catering to Mainland Chinese tourist.
One lawyer I met who recently relocated to Hong Kong from the UK commented on how everybody here seem to have an iPhone, compared to London.
Stop being baffled and fly out to this side of the world and see for yourself. Internet savvy doesn’t equal to the amount of time a person has used the Internet. There are other factors.
Comment by Linda — June 27, 2011 @ 9:53 PM
This whole article is based on a misreading of the data table on several levels… and the data itself looks iffy. It shows the percentage of companies seeing a revenue increase last year – i.e. a number that correlates mainly to GDP growth. It then divides those companies into those using social networks, and those that don't. Most show a slightly higher number for those using social networks. But this is showing correlation, not causation. Faster growing companies are likely to be more sophisticated on multiple dimensions, on average. And best of all… Chinese companies are the exception. The NON-USERS of social networks grew faster than the users! (or at least, more of them grew).
Comment by Roger — July 5, 2011 @ 11:25 AM
I am not at all baffled! Lets face it, Indians and Chinese are more social than their counterparts who live here in the West (probably due the cultural effects of the west). So a social network usage could perhaps even include telling about a "deal" over ones mobile phone. It may not be twitter, facebook and others particularly. So its good that marketers are tapping into this! Not sure why the author is even comparing. Its not a zero sum game you see!
The tools are there and its for marketers to recognize them and use them to their advantage in any give population. lets not make this into another of those things which scares the average westerner! (Guess I am referring to comments made by Rick Perry over the last weekend)
Comment by Chambuman — August 18, 2011 @ 11:34 AM