Independent and intellectual thoughts ranging from China, SEO, and other international topics
1 Oct
SEOmoz’s article by shor provides a nicely laid-out way to understand the potential for China’s Internet population, however, it misses the point completely for today’s entrepreneurs (future-wise, learn Chinese and 好好学习!).
As the article stated, recently the number of Chinese online has surpassed the number in the US, making China the country with the most number of people online, yet with only a 20% Internet penetration rate. The missing points that should have been more strongly stressed? Many of those prefer going online for QQ–chatting (which I have been hearing a lot in the metro and wish BART could get to work underground) and mainly on their cell phone. mainly on their cell phone or on their computer playing games.
So the real central point that’s missing? Even though you have millions of people online, they are online for chatting on their cell phone which means few people are actually there to buy online–a larger concern for companies in my opinion that wish to make money in China now. The article has no graphs showing the amount of money made online, just the number of people, which only goes to show the lack of concern many times in the SEO community to look beyond pure traffic.
In any case, if you plan on expanding to China for an online business, prepare for a long-term investment rather than a short-term gain.
Sidenote: The article probably does not fit to the right audience for the post sadly when the first comment mentions that China has a Communist government–a comment that should have been sent back 10 years when it would have at least been semi-accurate. Yes, the party is called the Chinese Communist Party, but like anything one should quickly learn in life, just because someone likes to call themselves something, does not mean it is true.
3 Responses for "SEOmoz’s China Internet Population Article Missing Points"
Valid points Demerzel, thanks for the feedback. Let me address a few of your points
“So the real central point that’s missing? Even though you have millions of people online, they are online for chatting on their cell phone which means few people are actually there to buy online”
From the CNNIC data, only 12% of internet users access the Net from a mobile (because of the lack of a 3G network). Majority of online access point is still the PC.
“a larger concern for companies in my opinion that wish to make money in China now. The article has no graphs showing the amount of money made online, just the number of people, which only goes to show the lack of concern many times in the SEO community to look beyond pure traffic.”
I agree, my objectives at my job are to increase profit & revenue, increase conversion and increase traffic, in that order of importance.
The problem I found while writing this report was there just were not many research companies publishing Chinese online spend data.
I would love if I could get my hands on some recent online spend data - did anyone at SMX Nanjing present fresh data on online spend? Would have loved to be there, but I was in Japan at the time!
Thanks for stopping by shor, you did a great job pulling the data together.
Oops, I probably should have stated mobile/online gaming rather than just gaming then, yes?
The one company I found to be doing some research would be Pearl Research / Redline China, but usually limited to the gaming arena. A March 2008 article does show online gaming spend at $1.66 billion, so there’s a good counterpoint for you as well (although I believe the high spend is only in the online gaming at this point).
I checked my notes, but didn’t find anything that I wrote down on spend numbers, so I don’t think there was, but it is possible I missed it. Nonetheless, people are certainly optimistic still for the future and rightly so.
Oh, and I didn’t mean to say that you personally didn’t focus on revenue; I should have clarified my comment on the SEO community that the comments showed few-to-none remarks about “well, where’s the money to show it’s worthwhile traffic?”
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