Vol.9: An update from Havas Group China on media behavior and consumption during the COVID-19 global pandemic.

1. 1
Havas Group China
September 7th, 2020
EDITION
2020 #9

2. Register now
for
September
24th and 25th

3. 3
In this edition
Key market developments
• Economic outlook
• Consumer behavior developments
• Key category outlooks
• Havas POV
China advertising market
• Advertising market development
• Media consumption update
• Media market news
• Campaigns worth mentioning
• Havas POV

4. 4
Economic outlook
Key market developments

5. China continues to have the most confident consumers in the
world, as multiple economic factors further rebound
5Source: Ipsos
Employment
index
Expectation
index
Investment index
+3.5 vs. last
month
+3.5 vs. last
month
+2.3 vs. last
month
+5.7 vs. Jan 2020 +5.5 vs. Jan 2020 -
Ipsos, Aug research, China

6. Both online and offline retail are showing promising signs of
further business growth
6
# of new stores opened since JuneEC platforms had their largest quarter sales in Q2
• Tmall sold 27% more worth of goods than the
same period last year
• Cross border platform Tmall Global was up 40%.
• JD's sales increased 47.4%
• Pinduoduo climbed 67%, with an extra 81.4
million monthly active users on its platform
since March.
188 173
192 128
In Beijing including 96
eateries/cafes
In Shanghai including
69 eateries/cafes
In Shenzhen including
60 eateries/cafes
In Guangzhou including
84 eateries/cafes
Source: China skinny

7. With more festivals (like Chinese Valentine’s day) turning into
major shopping events
7
Sale increase from Y2019 same
period in Tmall & Taobao, with the
peak a week prior to the festival
Hotel reservation vs. pior
week on Qunar
Cinema patronage recovered
vs. Y2019 same period
Source: China skinny
Besides marketing to couples, brands also focusing on
single people with the rise of China’s single economy
Tmall launched a ‘cheers to
sourness’ campaign
Rio ‘happily drink alone at
home’ campaign
118%
40%
90%

8. China 6G is on the way, making the country even more
competitive in the next decades
8
China has officially launched research and development work for its 6G mobile networks with speed up to
1 Terabyte per second
Source: CBNC
6G will be fully integrated with holograms. You won’t
have to keep looking at your phone; there will be a
3D holographic map projected in front of your eyes.
“6G, together with other technology areas such as
artificial intelligence and quantum computing, will
be at the center of the great power competition
with China in the next decades.”
— Greg Austin, leader of international Institute
for Strategic Studies

9. 9
Consumer behavior
developments
Key market developments

10. Shifting the focus from work to family, more and more people
will spend more time to bond with the important ones
10
Chinese consumer think it is important to
spend time to bond with important ones
Chinese consumer claim they will take
action to bond with important ones
(family, lovers, friends, etc.)
Source: Kantar, 6.24-7.5

11. Meanwhile, consumers started putting more effort on self
improvement while being less sensitive on money
11
Statement
2020 Q2 vs. 2020 Q1
(ranking change)
2020 Q2 vs. 2019
(ranking change)
Learning new things +6 +2
Agility to new changes +3 +3
Diversity: get touch with people who
have different background
+7 +2
Cost saving -2 -6
Have abundant of money - -13
Source: Kantar, 6.24-7.5
Consumers value change (Kantar, research date 2020 6.15-7.5)

12. “Clean plates” policy against food waste: to reshape China’s
tradition of hospitality and Mukbang live streaming industry
12
Aug 11th, President Xi has called on the Chinese people to stop wasting food. It might reshape China’s tradition
of hospitality. Chinese livestream platforms asked to curb shows encouraging food waste.
Reform on menu, offering smaller
plate, encourage to order N-1 amount
Video platforms start to ban
Mukbang live streaming
Source: South China morning post
China inflation rose 2.7% in July,
driven by higher food costs:
China's food prices rose 13.2% in
the year to July, with pork up
87.5%, not helped by floods and
disrupted agricultural production

13. Young consumer’s interest to protect nature is growing
13
60%+ of Chinese
GenZ express their willingness
to protect nature
Willing to pay more for sustainability products (%)
Gen X Gen Y Gen Z
Indonesia
China
Thailand
Australia
Japan
Korea
Source: McKinsey

14. And they show less price sensitive during live streaming,
focusing on the products and KOLs they like
14Source: ecommerceTOChina – China E-commerce live streaming analysis report 2020
Post 80s & 90s are the main
groups in live streaming
Younger live streaming consumers
cares more about the category and KOL

15. Male cosmetic market is growing, more brands are launching
specific products for men
US biggest pharmacy
announced to launch male
cosmetics
Chanel launched its male cosmetic line
in China in Aug
0
0.5
1
1.5
2
2.5
2016 2019E 2020E
Male cosmetic market sales estimation (billion)
Source: Euromonitor, Taobao
Top 3 male cosmetics in Taobao
1. Foundation
2. Concealer
3. Eyeliner
As other cosmetic brands offer male product lines
15

16. 16
Key categories outlook
Key market developments

17. 17
Luxury and Lifestyle

18. Luxury retailers keep things new and fresh by rolling out pop-up
stores aligned with festivals and trending themes
Bottega Veneta’s invisible pop-up store
intrigued and impressed consumers
Dior’s pop-up shop and influencers
celebrate love in time for the Qixi Festival
Burberry delighted shoppers with its unique
Animal Kingdom-themed pop-up and AR tech
Luxury brands are using pop-up stores to launch new concepts and show off their omnichannel capabilities in the
China market, to win over Chinese millennials
Source: WWD 18

19. Chinese shopping malls distribute coupons in creative ways for
Chinese Valentine’s Day
19
Coupon delivery in creative picture Creative layout by combining social hot spots
2020 Chinese
Valentine’s day
seems to be
more
treasurable for
pandemic
outbreak.
Shopping malls
tend to be
bolder to
deliver love
information in
form of
promotion
information
delivery and
social hot spots

20. Qixi-cases show that not all brands are successful in localizing
their Chinese activations
Qixi, the Chinese Valentine’s day, is one of the biggest sales driving
Chinese holidays for luxury brands. Brands are making lots of efforts for
Qixi, with mixed results.
Dolce & Gabbana, a company that was already on thin ice with Chinese
consumers due to prior missteps, debuted what it called an exclusive Qixi
collection, but the products are available globally and have no actual
connection to Qixi beyond the way they were marketed. Exclusive, Qixi-
themed collections are something Chinese consumers expect, and failing
to offer that, especially with misleading marketing, led to immediate
scorn on Chinese social media apps like WeChat and Weibo.
Balenciaga also made a misstep with a campaign for a Qixi-themed bag.
It was widely mocked on Weibo for its bizarre visual style and poor
production quality. Some users negatively compared it to the slick
campaigns the brand runs in Europe, calling the campaign insulting and
misguided.
20Source: glossy. 2020.08.25

21. 21
Travel & Tourism

22. In China domestic travel recovered to almost pre-COVID level
22Source: Ipsos, July 2020; Chinaskinny
100% 98% 100%
2%
Domestic
travel pre-
covid
Domestic
travel Aug
International
travel pre-
covid
International
travel Aug
China travel industry recovery situation China is one of the countries want to travel domestically most,
while least on international travel

23. Private group travel and custom travel have become unexpectedly
leading the recovery of tourism industry
23
In July China announced that cross-province group
travel can resume as of July 30. Since then, data
from Ctrip shows that the number of bookings of
vacation products, such as air tickets, hotels, group
tours and flight-and-hotel packages is rising.
Especially, private group tour and high-end
customized tour have become the bellwether of
recovery.
• More than 70% of people choose group travel.
• The private group tour has risen to 25%,
compared with 9 % in the same period of last
year.
• The demand for high-end tailor-made travel on
Ctrip platform has increased by 125% YOY.
Source: Ctrip The Popularity report: Cross-province group tourism resumes in China

24. Hubei scenic spots issued free ticket policy from Aug 8 to Dec 31
24
• Nearly 4.68 million people booked in A-level scenic
spots in eight days, and 40% of the group tours come
from other provinces.
• The occupancy rate of star hotels in Wuhan is
increasing, in central Wuhan the occupancy rate of star
hotels and resorts hotels reaching 80% to 90% of
the same period last year.
The travel industry in Wuhan is rebounding strong
On one hand, the Free Ticket Policy in Hubei province reflects their appreciation to people across the country.
On the other hand, it boosts demand for travel across Hubei and provides a variety of business driving
impulses for restaurants, hotels, shopping, entertainment, transportation and other relative industries.

25. 25
Food & Beverage

26. Consumers show an appetite for meal replacement
Amid rapid economic development and increased awareness of
healthy eating, the meal replacement market has grown at an annual
rate of more than 30% in recent years. The market is expected to hit
¥120 billion ($17.5 billion) in China by 2022.
22% of consumers spend more than ¥1,000 ($146) a year on food
replacements - more than 60% of them take meal replacements at
least once a week, and some 20% do so once a day. Global brands have
taken the lion's share of the Chinese market.
About 50% of consumers in China bought "healthy eating products"
over the past year, with those born in the 1990s showing increased
awareness of this market. Consumers' increased health awareness,
along with a range of demands, including weight loss, muscle
enhancement, eating healthily and looking young, have fast-tracked
this market.
26Source: Chinadaily 2020.08.31

27. “Meal boxes for women” are introduced as part of anti-food
waste campaign
27
China’s anti food waste campaign launched last month and is
still in full swing and noticeable on social media where new
initiatives to curb the problem of food loss are discussed every
single day.
The special lunch boxes for women were introduced with 50g
less rice after female customers had too much leftover.
On social media, the initiative was heavily criticized. Some
netizens argued that it’s gender discrimination and that it
would be more appropriate to offer big and small
specifications.
Source: Weibo. 2020.08.25

28. 28
Automotive

29. Monthly car sales above 2019 numbers for the 4th consecutive
month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2,809 1,718 2,656 2,319 2,288 2,274 1,889 2,103 2,394 2,380 2,548 2,661
2019 2,367 1,482 2,520 1,980 1,848 2,056 1,808 1,958 2,271 2,284 2,457 2,658
2020 1,927 310 1,430 2,070 2,194 2,300 2,112
0
500
1,000
1,500
2,000
2,500
3,000
Monthly car sales in China
29
• July sales have reached a 3-year high, while MoM sales dropped by 8%
• PV YoY sales also kept growing trend, SUV sales (14%) and minibus sales (8.5%) are still the main drive for the
increasement, only MPV declined slightly in YoY sales.
• In July NEV sales grew (+19.3% vs. last year), while the cumulated sales numbers have plummeted and are sales in
32.8% below the same period in 2019.
Source: China Association of Automobile Manufacturers (CAAM),China Passenger Car Association (CPCA)
Unit: Thousand

30. Pinduoduo using Tesla for a marketing stunt
30
• On Aug 18th, a Tesla buyer finally got his Model 3 after
Tesla refused to deliver the car to him. Tesla’s fight is
aiming at Pinduoduo, whose group buy and platform
subsidy has offered consumers a much better price than
Tesla official stores.
• PDD launched a promotion for Model 3 as a 3rd party
seller without Tesla’s authorization, which highly
damaged Tesla’s marketing mode and brand image, as
PDD is famous for cheap products.
• The main purpose of PDD is not gaining profits, but
gaining traffic, attention and high-end consumer by
taking advantage of Tesla brand.
• Tesla was forced to sell cars in lower price and as a result
may lose their strong control over price and distribution
channels.
Source: Gasgoo
PDD offer subsidy up to 40,000 for
Model 3
Tesla official statement of no
cooperation with PDD

31. 31
• On August 17, AWS and Toyota announced that
Amazon's cloud computing department will help Toyota
build a platform to help the company management and
analyze data which collected from their global fleet.
• Toyota said its Mobility Services Platform will enable the
company to process and analyze data and use this data
to develop vehicle services, such as car-sharing,
insurance services based on driver habits, and vehicle
maintenance notification service, etc.
• In the automotive field, AWS has also previously reached
cooperations with auto suppliers such as Aptiv,
Panasonic and Nvidia, travel service providers such as
Uber and Avis, as well as Embark, China’s TuSimple and
other autonomous driving companies.
AWS will help Toyota to build cloud data services
Source: Gasgoo

32. 32
Havas POV
Key market developments

33. 33
Brands fighting for their share in a rebounding China.
Investing in EC, festivals and activation growth or branding?
• As multiple economic factors further rebound, Chinese consumers are back on spending. Next to
online also offline retail shows promising signs of business growth.
• Even categories beyond necessities have seen clear upsurges in the last few months: self
improvement, family leisure, domestic traveling, luxury products, male cosmetics and Chinese
Valentine’s day presents, to name a few.
• This also attracts competition, with more intensity. Speaking of Chinese Valentine’s day, the
campaigns started about one week earlier this year with an unprecedented amount of Chinese
specific designed products. With good results, even leading to some market growth. Alibaba’s Tmall
and Taobao saw pre-sales of Qixi gifts peak a week prior to the festival date, an increase of 118%
from 2019. But as well huge investments for the brands. There won’t be winners only.
• Hunger for sales recoup and the potential to especially recoup on the Chinese market, urges the
discussion on how you can rely longer term on predominantly sales activations. We all know the
cost of many activations and EC festivals are further inflating, due to continuously rising digital
media cost, in all sorts, KOL’s included.

34. 34
Brands fighting for their share in a
rebounding China. Investing in EC,
festival and activation growth or branding?
• It is certainly true that brands, in most of the categories, make
the highest profitability on loyal consumers, consumers who
buy non-discounted products beyond sales activations.
• What happens to overall brand profitability when you get fully
dependent on EC festivals, activations, EC life-streaming and
discounts?
• Back to Valentine’s day, there are a handful of brands that have
been able to use their activations for brand building as well like
Chanel, Hermes and Prada, but many lack a consistent brand
support and message. However it shows that the Chinese
market as well offers this opportunity, to build a brand pull
effect in a more diverse and new way (branded content, gifting,
festivals, special editions) along long term brand campaigns,
but only when consistency and a clear brand message is
supported.

35. 35
Advertising market
development
China advertising market

36. Monthly spending continues to rise inline with the overall market
recovery, while the overall ad spend remains below 2019
Month by month comparison
51,458
47,435
39,389
10,000
20,000
30,000
40,000
50,000
60,000
2018 Jun 2019 Jun 2020 Jun
-17%
YTD vs YTD comparison
308,901
279,448
207,446
100,000
200,000
300,000
400,000
500,000
YTD 2018 YTD 2019 YTD 2020
-26%
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020
Note: excluding media spending on social and search; discounts are estimated based on Havas methodology
36
• In Jun 2020, the total actual* Ad market in China achieved RMB 39 billion; compared with last Jun, the total category spending decreased by 17%.
• YTD Jun 2020, the total actual* Ad market in China achieved RMB 207 billion; compared to last year this equals a decline of 26%
0
10,000
20,000
30,000
40,000
50,000
60,000
1 2 3 4 5 6
2020 2019 2018
Monthly spending

37. In H1 most sectors did not catch up with their big decreases
during the first few months of 2020
-10.3%
-11.0%
-13.6%
37.7%
-7.4%
-11.7%
-5.7%
-25.8%
-40.6%
-41.7%
-7.9%
-37.7%
0.0%
-11.9%
-40.4%
- 15,000 30,000 45,000 60,000
FOODSTUFF & BEVERAGES
PHARMACEUTICALS
BUSINESS & SERVICES
IT PRODUCT & SERVICE
HOME ELECTRICAL APPLIANCES
ALCOHOL
PERSONAL ITEMS
COSMETICS & TOILETRIES
LEISURE
HOUSEHOLD
POST & COMMUNICATION
TRANSPORTATION,LOGISTIC & AUTO
FINANCE INDUSTRY
REAL ESTATE & CONSTRUCTION
CLOTHING
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020
Note: excluding media spending on social and search; discounts are estimated based on Havas methodology
37
• Although the advertising budget is
gradually recovering, most companies
are still guarding budgets.
• IT Products & Service industry is the
only one to increase advertising
investment.
• Financial sector show stable
investment levels compared to 2019
2020 H1 Media spending & YOY growth rate
by category versus 2019

38. Digital media remains the main battlefield, more and more
the primary media choice for most advertisers
2019 YTD Ad Spend Market Media Mix
Digital, 41.4%
TV, 29.3%
Outdoor,
23.2%
Cinema, 2.9%
Radio, 2.0% Newspaper,
0.7%
Magazine,
0.5%
38
• YTD Jun 2020, 68% of overall media investment are going to Digital and TV, which is similar to the same period last year.
• OOH share has risen compared to last year, all other media continue with very low share of investment
Source: ADP (TV, Radio, Newspaper, Magazine, Cinema), CODC (OOH), Iresearch (Digital – PC & Mobile) 2018-2020
Note: excluding media spending on social and search; discounts are estimated based on Havas methodology
2020 YTD Ad Spend Market Media Mix
Digital, 41.4%
TV, 27.5%
Outdoor,
27.9%
Cinema, 0.7%
Radio, 1.6% Newspaper,
0.5%
Magazine,
0.4%

39. 39
Media consumption
China advertising market

40. TV rating show stable performance during summer months
5.9 6.4 5.5 5.4 5.4 5.3 5.5
6.9
9.5
7.2
6 5.7 5.4 5.4
0
5
10
Jan Feb Mar Apr May Jun Jul
2019 2020 Tier 2
40Source: Infosys, Target:P18-45, Period:2020/01/01 – 2020/7/31, Timeslot: All Day Tier1 including（BJ、SH、GZ、 SZ）,Tier2 including almost Provincial capital
6.2 6.8
5.2 5 5 5.1 5.3
7.2
10.2
7.2 6.5
5.4 5.1 5.3
0
5
10
Jan Feb Mar Apr May Jun Jul
2019 2020
Tier 1
4.9 5.8 4.9 4.7 4.6 4.5 4.8
6.5
9.2
6.5
5 5.1 4.9 4.9
0
5
10
Jan Feb Mar Apr May Jun Jul
2019 2020
Others

41. TV dramas in HN STV achieved extraordinary performance
41
Hunan STV dramas won the first and second place in July.
Source: Infosys, Target:P18-45, Period: 2020/07/01-2020/07/31, Timeslot: All Day Market: 57 Markets
Drama
Variety
In summer vacations, fierce competitions of variety show encountered in HN STV, Dragon STV and ZJ STV.
Zhejiang STV
局中人
Ave Rtg 1.22
Zhejiang STV
爱之初
Ave Rtg 1.17
Hunan STV
蜗牛与黄鹂鸟
Ave Rtg 1.85
Hunan STV
二十不惑
Ave Rtg 2.0
Dragon STV-
挑战极限
Ave Rtg 2.15
Zhejiang STV-
奔跑吧
Ave Rtg 2.88
Hunan STV
哪吒降妖记
Ave Rtg 1.19
Hunan STV-
笑起来真好看
Ave Rtg 1.97
Zhejiang STV-
青春环游记
Ave Rtg 1.55
Hunan STV-
元气满满的哥哥
Ave Rtg 1.0
“LIGHT ON”

42. Compared to H1 2020 Travel & Navi apps have seen a steady
growth while Education app usage dropped during summer holidays
42
Source: iResearch, period: 2020.01-2020.07
22
24
79
182
290
391
426
425
766
1255
Health & medicare
Food delivery & Recipes
Education
Travel & Navi
Gaming services
General news
Financial service
EC
Video services
Social networking
2020 July DAU
2020 Jul
2020 H1
Unit: Mil
2010 H1 VS. 2020 July
growth rate
0 %
+1%
+4%
+2%
+2%
-1%
+6%
-9%
+3%
+3%

43. Social media app usage remains on a stable and very high level
43
896
344
182
13 16
916
323
213
15 14
922
319
202
15 14
922
317
201
16 14
WeChat QQ Weibo LRB Baidu Tieba
2020 Top 5 Social Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug(till 9th)
Unit:
Mil
1220 1260 1255 1249
92.5 93.5
90.5 91.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0
200
400
600
800
1000
1200
1400
2019 avg. 2020 H1 2020 Jul 2020 Aug(till
9th)
2020 Social Networking Apps User Behavior
Average DAU Average time spent
Unit:
Mil
Unit:
mins
Sources: iResearch, period: 2019-2020.08.09

44. OTV usage has slightly declined during summer months
44
365
421 413 413
112.1
121.2 122.7 123.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
0
100
200
300
400
500
2019 avg. 2020 H1 2020 July 2020 Aug(till
9th)
2020 Online Video Apps User Behavior
Average DAU Average time spent
Unit:
Mil
Unit:
mins 167
153
78
32
22
181
164
92
44
26
172
156
88
49
31
172
157
87
49
32
iQIYI Tencent Video Youku Mango TV Bilibili
2020 Top 5 Online Video Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug(till 9th)
Unit:
Mil
Sources: iResearch, period: 2019-2020.08.09

45. The rise of short video continues, especially time spent has
increased significantly in July and August
45
430
468 474 476
39.0
58.3
62.2
66.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
0
100
200
300
400
500
600
700
800
900
2019 avg. 2020 H1 2020 July 2020 Aug(till
9th)
2020 Short Video Apps User Behavior
Average DAU Average time spent
Unit:
Mil
Unit:
mins
211
123
52 46
36
280
140
56 49
35
298
136
57 49
37
300
137
57 49
38
Douyin Kwai Watermelon
Video
Douyin Volcano
Edition
Haokan Video
2020 Top 5 Short Video Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug(till 9th)
Unit:
Mil
Sources: iResearch, period: 2019-2020.08.09

46. Both News and Gaming apps with stable usage compared to H1,
but on a much higher level compared to last year
344
384 391 390
46.9
54.2 52.6 53.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
0
100
200
300
400
500
2019 avg. 2020 H1 2020 July 2020 Aug(till
9th)
2020 General News Apps User Behavior
Average DAU Average time spent
Unit: Mil
Unit:
mins
249
292 290 292
70.2
75.9 76.7 77.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
0
50
100
150
200
250
300
350
400
2019 avg. 2020 H1 2020 July 2020 Aug(till
9th)
2020 Gaming Apps User Behavior
Average DAU Average time spent
Unit: Mil
Unit:
mins
46
Sources: iResearch, period: 2019-2020.08.09

47. During the summer months navigation apps see a significant rise
in time spend, while OTA apps usage remains low
47
127 134 143 146
19.5
23.1
34.4 33.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
0
50
100
150
200
250
300
2019 avg. 2020 H1 2020 July 2020 Aug(till
9th)
2020 Navigation Apps User Behavior
Average DAU Average time spent
Unit:
Mil
Unit:
mins
24
18 18 19
9.5
7.7 7.4 7.3
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
0
5
10
15
20
25
30
2019 avg. 2020 H1 2020 July 2020 Aug(till
9th)
2020 Online Travel Apps User Behavior
Average DAU Average time spent
Unit:
Mil
Unit:
mins
Sources: iResearch, period: 2019-2020.08.09

48. 279
73
37
16 10
286
86
40
18 11
300
89
38
18 11
300
88
37
19 11
Taobao Pinduoduo JD.com Xiaomi Mall Tmall
2020 Top 5 EC Apps by DAU
2019 avg.
2020 H1
2020 July
2020 Aug(till 9th)
Unit:
Mil
Compared to H1 EC usage sees further growth in July and August,
particularly Taobao increased its userbase
363
410 425 424
17.9
16.9 16.4
16.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0
50
100
150
200
250
300
350
400
450
500
2019 avg. 2020 H1 2020 July 2020 Aug(till
9th)
2020 E-commerce Apps User Behavior
Average DAU Average time spent
Unit: Mil Unit:
mins
48
Sources: iResearch, period: 2019-2020.08.09

49. 49
Media market news
China advertising market

50. iQIYI launched a new content library “Mist Theatre” dedicated
to suspense dramas
Data source: Iqiyi Media Update 50
In June 2020, iQIYI has launched the “Mist Theatre”, including
six short suspense dramas series. The series focus on tracing the
murderer, solving the murder case, and finding the truth. The
launch aims to enhance users' viewing experience through
curating a targeted content selection and offering a brand-new
theater operating mode.
Mist Theatre
• Build their own brand symbol to spread
• The Mist Theatre has a fixed broadcast cycle which will form
the ”Season“ concept as American series
• Promoted with several series, such as using the 5 in 1 poster
and the 5 in 1 Trailer video

51. Variety shows diversify with more new niche genres and less
celebrity involvement
Data source: https://mp.weixin.qq.com/s/Og8KhCO-V03QcgEE5Qf2SA
51
Variety shows focused on three emerging areas in 2020:
• Pop Culture
Based on pop culture, several variety shows are published in
recent two years. Also producers derived products leverage the IP
content.
• Comedy
Co-operations with the comedy industry not only produce online
shows, but also start developing other elements like Audio
products, video products, offline shows.
• Culture & Creative
Based on the representing of traditional culture, producers
developed creative concepts around Imperial Palace or Summer
Palace for example. These IP will stimulate or nurture offline
industries, for example theme
The variety show 《FOURTRY》Screenshot
“FOURTRY" is an original trend store management program
launched by iQiyi, which is a typical Pop Culture variety show.
The variety show launched IP relevant traditional clothing

52. Sponsorship formats: before & during drama / variety show
production
52
Creative integration Intensifies brand influence and develops a further long tail
propagation with the drama’s content

53. Demo
Sponsorship formats: after drama/variety show production
53
Tencent Video in Products are integrated in appropriate scenes
• Need to be censored by media concerning the copyright.
Via Video in product placement, the competitor’s
product is replaced by LEE KUM KEE product

54. OTV – New program hot Variety
54
中国新说唱2020 – The Rap of China
Period: 2020 Aug 14th
Episodes: 12
Cast: 吴亦凡，潘玮柏，张靓颖，GAI（周延），朴宰范
Media: iQIYI
Introduction
The show brought together label rappers, Internet celebrities, talented singers,
and topic contestants. Under the selection of star producers Wu Yifan, Pan
Weibo, Zhang Liangying, Zhou Yan (GAI), the program is going to create next
Chinese rap Star.

55. OTV – New program hot Variety
55
乐队的夏天 – The Big Band season 2
Period: 2020 Jul 20th
Episodes: 12
Cast: 周迅、大张伟、张亚东、马东
Media: iQIYI
Introduction
The four super fans in “The Big Band Season 2” are Zhou Xun, Zhang Wei, Zhang
Yadong, and Ma Dong. They have their own unique perspectives. They will lead
the public to deeply understand the charm of the band's music and culture. The
new lineup of 33 bands, with the help of content design and musical
performances of different themed units, presents unique style and charm in
multiple dimensions, and competes for the 2020 HOT5 band with wonderful live
performances.

56. OTV – New program hot Drama
56
非常目击 – Crimson River
Period: 2020 Aug 18th
Episodes: 12
Cast: 宋洋，袁文康，尤靖茹
Media: iQIYI
Introduction
An unsolved murder case of a young girl repeats itself twenty years later and
awakens the memories of a peaceful town. Shan Feng, who was once a witness
to the murder case, now returns to the town as a policeman, unable to forget
the painful memories. He seeks out the truth and discovers all the people
related to the case have undergone drastic changes.

57. OTV – New program hot Drama
57
摩天大楼 – A Murderous Affair in Horizon Tower
Period: 2020 Aug 19th
Episodes: 16
Cast: 杨颖，郭涛，杨子珊
Media: Tencent
Introduction
A beautiful coffee shop owner Zhong Meibao suddenly dies in a condo at the Horizon
Tower. This case shocks the whole tower, and after investigation the clues point to
three suspects - security guard, architect and property manager. All three suspects
were enthralled by Meibao's beauty, and all had an intimate relationship with her. All
the clue seem to point to the possibility of a love crime. However in the midst of the
investigation new clues begin to emerge and turn the focus to Zhong Meibao's
complicated and painful youth. Her family, consisting of her step-father, mother,
younger brother and foster mother, were implicated into the case. Just who could be
the real murderer?

58. TV/OTV – New program hot Drama
58
以家人之名 – Go Ahead
Period: 2020 Aug 10th
Episodes: 40
Cast: 谭松韵、宋威龙、张新成
Media: MangoTV，湖南卫视
Introduction
The story revolves around three troubled youths who find solace in their common
experiences. Growing up in dysfunctional households, three individuals treat each
other like family. Eldest brother Ling Xiao, second brother He Ziqiu, and youngest
sister Li Jianjian grow up together, experiencing life’s joy and strife. As Ling Xiao and
He Ziqiu graduate from high school, they return to their original families. Nine years
later, the three are reunited, but the heartaches from their complicated family past
becomes a shadow that constantly lingers. Can they finally fix their personal issues
to become better versions of themselves?

59. OTV – New program hot Drama
59
他其实没有那么爱你 – Love Yourself
Period: 2020 Aug 18th
Episodes: 36
Cast: 宋茜、郑恺、卢靖姗、张佳宁、李纯
Media: iQIYI
Introduction
In the city of Shanghai, four women strive for growth, independence and
ultimately find friendship and love. As four friends step into their thirties, their
lives which seemed to be on the right track start to go off the rails. TV producer
Sun Yihe may be bold and fearless at work, but she is at a loss when it comes to
love. Wang Xinyi is a fitness coach and single mom. As she hesitates before a
relationship, she discovers something about herself. Dingding is an aspiring
manager who wishes to help her trainees become the best boy band in China.
Corporate executive Renran has always been rational and on top of things, but
she craves for love and finds that the harder she holds onto it, the faster it
fades.

60. Opening Video Selectable Button
After Video Display
Select The Button Product Details Video
Will Display After
Selection
Click Video To The
Summary Page Of
Product Notes
Details Of Product
Notes
• The new format will induce 30% of inflation based on net media cost for the opening ad
• Deep impressions and higher engagement rate are expected for its interaction
In August Little Red Book launched interactive opening ad
format to enhance ad engagement
60Data source: The Red

61. GQ VANITY
WEIBO
GQ LAB
WECHAT
GQ REPORT
WECHAT
智族GQ
WEIBO
HELLO悦己
WEIBO
GQ LOVE
WECHAT
烦恼女孩
DOUYIN
1st post: 2020/4/23
Followers: 223,000
Content: Video Of One GQ Editor‘s
Life
1st post : 2019/12/29
Followers : 58,000
Content: Video Of GQ Cover
1st post: 2020/2/9
Followers: 2,978,000
Content: Animation Of Girl’s Daily
Life
GQ VANITY
DOUYIN
1st post: 2019/9/9
Followers: 82,000
Content: Video Of GQ Cover
月薪两万的金子酱
BILIBILI
This is a personal account and will be ran officially by GQ with
commercial cooperation in the near future.
GQ expands it’s social ecosystem with video content
Data source: GQ 61
2019
presence
Added in
2020

62. 62
Cinema – The movie market is expected to fully recover
After re-opening the Chinese box office is recovering fast
• In August, the box office of the domestic blockbuster “八佰”
exceeded 1 billion.
• In September, multiple types of films will be on-air after “八佰” ,
led by “信条”, “通往春天的列车” .

63. Media Location： airspace above Bund Shanghai
Media Format： Drone 3D show
Media Qty： 1 set (usually 150-350 drones,
depending on the specific plan)
Media Rate Card： RMB 2,000,000/15min (including
take-off & landing)
Production Fee: RMB 100,000/time (including site
approval)
Visitor Flow： 1,000,000 people/day
Location:
Located in the most dazzling location high above the
Bund in Shanghai, it is accompanied by Shanghai
Tower, Aurora, Citi, Jinmao Tower, World Financial
Center, and Magnolia of the Future. The 360-degree 3D
display, all areas of Shanghai are fully covered, adding a
beautiful scenery to the night of the North Bund.
New OOH Format - Drone show as media format at Shanghai Bund
63

64. 64
Campaigns Worth Mentioning
China advertising market

65. 65
Harbin Beer X Joyoung crossover celebrated
it’s 120th anniversary via multi-channel
Campaign Summary
• Indoor consumption has become main scene of consumption
during the pandemic. To open in-home scenario, Harbin Beer
cooperate with appliance brand for its 120th anniversary.
• In Harbin Beer held a 120th anniversary offline event in its
birthplace Harbin, where both brand and consumer
celebrated together.
Results
• Weibo #Harbin Beer 120th anniversary topic: 1.7 mn views,
12k discussion
• Douyin #Harbin Beer 120th anniversary topic: 580 k views
Key Takeaways
• Harbin Beer cooperates with Joyoung to expend in-home
marketing scene and Joyoung reaches Z generation
supported by brand resources of Harbin Beer.
• Harbin Beer and Joyoung shoot commercials under the topic
and key visual of #宅家快乐自造机# and happy formula
“XX+烤串啤酒=XX” to open in-home scene. They leverage
Weibo and Bilibili KOLs to further reach Z generation. During
Tamia Liu’s livestream for Joyoung, limited edition of Harbin
Beer were given out which strengthened the crossover.
• Harbin Beer held 120th anniversary event in Harbin and
launched limited ice cream-flavor beer with the century-old
brand to highlight the city feature.
• The drone show created social buzz. To interact with
consumers, Harbin Beer establish “wish train” to listen and
record wishes of participants, QR code of wishes will be
printed on bottle.
Key Visual
Harbin Beer X Joyoung
Commercials
Happy Formula
Homemade Video
KOL in Weibo/Bilibili
Livestream
Tamia Liu
Drone Show Ice Cream Beer
Harbin Beer X Modern
Wish Train

66. Key Takeaway
Excursion and short weekend trip have become a
new trend for domestic travel, especially
attracting young and experienced travelers. This
co-branding taps into the interests of the
younger generation and combines travel
inspiration with seasonal features and products.
High resonance with the young audiences led to
social buzz.
Campaign Summary
As a virtual endorsement of Heytea , Axi is
invited to be a host by Airbnb , who will launch
“Inspiration Home” on the platform. Users will
be able to book free “Inspiration Home” through
a lucky draw on Airbnb and Heytea's official
Weibo and WeChat accounts. The lucky user
could check in with a friend over the weekend of
July 25-26 and August 1-2.
Heytea & Airbnb jointly build a homestay
hotel to attract a young audience
66

67. 67
Havas POV
China advertising market

68. 68
Advertising activities are recovering, brands and platforms are
fighting for audiences, attention and sales
• Advertising activities continue to recover and show a strong growth since the COVID-19 peak in
February. Digital media continues to be the main battlefield for brands.
• TV and OTV performance shows stable development during summer months. Content wise, variety
shows diversify with more niche genres and have become popular platforms for sponsorships and
brand integrations. New hot dramas and hot variety shows are launched on TV and OTV platforms. Your
Havas team can help you evaluate and find the most meaningful shows to drive your brand visibility.
• For OOH ensure to lock in premium resources as soon as possible as inventory will get tight. While
Cinema is expected to make a full recovery given the remaining uncertainties and limitations ad
placements are currently not recommended.
• Overall digital media consumption showed strong increase vs. 2019. Social networking apps remain on
a stable and very high level of usage and short form video continues to grow driven by longer use time,
both continue to be the main battlefield to break through the intensifying clutter and gain audience
attention. Try new and innovative formats as forerunners presence pays off and help you to break
through the intensifying clutter.

69. 69
Advertising activities are recovering, brands and platforms are
fighting for audiences, attention and sales
• As EC continues to be at all time high level, platforms are competing in a fierce battle for audiences and
traffic acquisition
• Live streaming continues its growth momentum and more and more brands across all category
leverage streaming in their comms activities on various platforms in order to drive sales. EC
platforms continue to evolve and explore more new EC models, such as social EC, live EC
• Key platforms launch new ad forms in their fight for audiences, media dollars and to enlarge
inventory.
• The right platform and content strategy will make a difference in this fast changing and dynamic
marketplace. When increasing the number of activations and tactical campaigns including live
streaming, EC and social commerce activities, consistency is key to drive efficiency.
• Your Havas team can help you tailor your overall marcom strategy to drive brand and sales, including
adjusting your EC strategy based on the latest developments.

70. Register now
for
September
24th and 25th

71. SHANGHAI
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Shanghai 200020
+86 21 3397 8666
GUANGZHOU
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+86 20 3877 3282
BEIJING
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