Brands now get the power of gaming: Twitch co-founder

Kevin Lin says from gaming streams to esports, advertisers are finally giving the world’s largest entertainment genre the respect it deserves.

It’s taken a while but brands are now on board with the world of gaming, with the meteoric rise of esports being a critical catalyst, says Twitch co-founder and COO Kevin Lin.

Speaking to reporters at the All That Matters conference in Singapore, Lin said gaming is now being seen as “both a marketing tool and commercial opportunity” for numerous brands outside the industry and that esports has been “a great path for that”.

“We’re all about creators [at Twitch], but esports is a great amplifier of everything and its own industry now,” he says.

Founded in 2011, Twitch quickly established itself as the go-to streaming platform for the gaming community, which until then had been at best underserved and at worst ignored by the business and digital world.

“But now that you’ve got all these big investors from sports and music coming in, celebrities getting involved, that’s brought a lot of mainstream attention, which has been very positive,” Lin says. “Sponsors now get it more, there are more people evangelising, more people inventing other business models around it.”

For Lin, the equation is simple for advertisers, and it’s only surprising that it’s taken so long for many to understand the value of today’s gamers, who are a far cry from the stigmatised introverted shut-outs they have been portrayed as for so long.

“They don’t just play games 24 hours a day, they go to concerts, get on planes, stay in hotels, all the things millennials do,” he states wryly. “We have a very desirable, young millennial audience, that’s very present on the site—15 million people a day watch for two hours, probably one of the most engaged platforms on the internet.

“So that’s been a really good story to tell to advertisers and brands, and we’re continuing to innovate and re-invent solutions for them to reach our audience, whether that’s content activations, esports activations or products that really lean in to the culture of Twitch.”

Amazon bought Twitch in 2014 for US$970 million, a deal that helped shift the platform into the mainstream. However, Twitch has come under significant fire recently for the changes to its subscription Twitch Prime product. Rolled into the suite of Amazon Prime services, Twitch Prime users are now seeing advertising, unlike before, despite the fact they are paying a subscription. Those that want to go ad free must pay an additional subscription fee for new service Twitch Turbo.

Lin says plainly that the changes were largely made to expand Twitch’s variety of revenue sources. “It helps our creators and it helps us. I mean, we’re a business, we have to be able to make money. Kevin Lin

“Historically as we’ve surveyed our users, around subs particularly, the feedback has largely been the reason why they’re buying [is] around supporting streamers. So [ad revenue] felt like an ok thing to tease out. People understand that creators make money from that advertising, and Prime users are high-value viewers on the site. So it seemed like the right decision.”

Lin is quick to add that the changes are being closely monitored, as is user feedback. “We felt like it was a safe bet, but we’ll see. We listen to our users, we listen to our community, we shift our products around all the time, but it felt like the right thing to do.”

More broadly, for advertisers, Lin says the growing sophistication of streamers and esports athletes in their interactions with brands means the industry is at the start of a new and exciting period for advertisers to get deeper, more meaningful engagement with the gaming audience.

This stems, says Lin, from the fundamental difference between esports athletes and traditional athletes: proximity to fans. “Esports athletes develop a much tighter relationship with their fans. They’re much more accessible and approachable, and in fact they’re there talking to you, potentially playing games with you. You don’t really get that kind of access to athletes.

As brands start to learn about the space, and players start to engage with more brands, Lin believes there will be “unique ways” to reach the gaming audience that are more native to the format.

“Posting a picture on Instagram and getting paid to do that is great, and you might actually see decent results as an advertiser doing that, but there are many deeper ways to get involved as brands,” he says. “That’s just getting started.”

Source: campaignasia.com; 13 Sep 2018

Challengers take aim at Taobao and WeChat, with more live-streaming

Xiaohongshu and Pin Duo are among the new platforms that may give Taobao a run for its money.

While Alibaba and Tencent are still arguably the duopoly force shaping the Chinese social media and ecommerce landscape, up-and-coming platforms such as Pin Duo (拼多多), Xiaohongshu (小红书) and Dou Yin (抖音) may unlock further marketing potential and spur a new breed of KOLs, according to panellists in a discussion about China’s KOL scene Wednesday in Hong Kong.

The fact that even the highest-paid Chinese actress and super KOL, Fanbingbing, has joined Xiaohongshu recently is reason enough to watch the platform, said Kim Leitzes, founder and CEO of Park Lu. Fan has styled herself as a skincare maven on Xiaohongshu, posting various skincare tips and product recommendations that have sparked some frenzy online.

“With over 30 million active users, a lot of tagging, geo-based features, (backended by) ecommerce, Xiaohongshu is actively pushing to be bigger,” said Leitzes. “KOLs who only had 10,000 to 20,000 followers there a year ago now have five times more. This is pretty interesting.”

She further noted the ecommerce appeal of the platform, which provides a seamless experience from product discovery to reviews to purchase. “When a platform is early and new, that’s when the brand should consider creating their own KOLs,” she said. “We have also seen more brands tapping their own social media managers as in-house KOLs.”

She added that some brands have hired social-media heads who already have their own followings and can be assets for brands to build community engagement.

Horris Tse, director of strategy consultancy RollAngle, singled out Pin Duo, which Tencent is an investor in, as the challenger to Alibaba-owned marketplace Taobao. “I don’t comment on its business model, which is a bit like Groupon, not sure if it is sustainable,” said Tse on the group sales and freebies offered by the platform. What he does like about Pin Duo is its social capabilities, which allows users to share products with their friends, who can then participate in a bidding process to lower the price. He added that the Mini Programmes released by WeChat last year represent another platform with better social capabilities.

Meanwhile, live-streaming is expected to continue to be big in the Chinese ecommerce space. The key is to start on popular platforms such as Miaopai and Yizhibo to get viewers, said Ashley Dudarenok, founder of ChoZan and Alarice. She had earlier launched her book Unlocking the World’s Largest E-market: A Guide to Selling on Chinese Social Media during the event.

“Platforms invested by Alibaba such as Weibo will lead to more commercial results with the ecommerce links,” said Dudarenok.

Also, Leitzes again stressed on the advantages of KOLs, especially during livestreaming to help brands double-or triple stream at the same time.

“KOLs will help to bring their own followers. But all live-streams should have interesting product and content, and be at least an hour or two to allow for viewers to pop in and out,” said Leitzes.

Source: campaignasia.com; 8 Feb 2018

Are Chinese millennials bored of celebrity brand ambassadors?

Some brand ambassadorships—such as Dior’s recruitment of Angelababy and Zhao Liying—have been met with raised eyebrows from Chinese consumers.

Dior has Angelababy, Gucci has Li Yuchun, and Burberry has Zhou Dongyu.

Luxury brands in China have taken a big step forward with their ambassador strategies in 2017, hoping to ingratiate themselves with the celebrities’ phenomenal followings, a large portion of whom are Chinese millennials. But is it the right strategy?

The direction that luxury brands have taken is in line with the conventional wisdom, which holds that associating with celebrities enhances public awareness and the credibility of the brands, and ultimately influences people’s fashion purchasing decisions.

In reality, however, some brand ambassadorships—such as Dior’s recruitment of Angelababy and Zhao Liying—have been met with raised eyebrows from Chinese consumers. Critics point out a lack of coherency between the celebrities’ personalities and the brand’s emphasis on tradition.

Other brand ambassadors, like actor Huang Xiaoming (Angelababy’s husband) for the South Australian Tourism Commission (SATC) have garnered less criticism, but fail to excite anyone but the celeb’s biggest fans.

Brand ambassadors are not a dead strategy in China (at least not yet), but it is time to re-examine their role.

Two questions luxury brands must ask themselves: who is the right celebrity ambassador for us, and should we engage one at all?

Beyond movie stars and singers

One emerging trend is for brands to work with artists, instead of singers and movie stars. Fine jewellery brand Qeelin, for example, recently announced a partnership with visual artist and photographer Chen Man. Compared to traditional celebrities, artists tend to be viewed as more authentic and consistent with a brand’s values.

Another alternative is to work with Chinese supermodels, several of whom have recently broken out as personalities in their own right after appearances on reality TV shows. Working in the fashion industry, models have their own sense of style that’s seen as more sophisticated and credible than that of traditional luxury brand ambassadors.

Other examples of the trend away from traditional celebrities include wang hong, or internet influencers. Major partnerships in recent months include vlogger-comedian Papi Jiang’s ad for Swiss luxury watch brand Jaeger LeCoultre, and fashion blogger Mr. Bags’ collaborations with high-end labels such as Givenchy, Fendi, Burberry, and Longchamp.

Consumers as KOLs

Many commentators, however, now believe that even pivoting from movie stars to wang hong is not enough.

“For luxury brands, maybe it’s time to ask whether celebrity ambassadorship is still an effective tactic if the very objective here is to attract millennial buyers,” said Ray Ju, Senior Branding Consultant at Labbrand New York.

“After all, we are entering an era when millennials aspire themselves to be ambassadors of a brand, a lifestyle, or simply a kind of vibe on social media. They are not crazy about being represented by a celebrity who just happens to have a huge following on social media.”

According to an August survey by China University Media Union (CUMU), a whopping 42 percent of college students now want to become wang hong themselves after graduating.

“I believe [future brand ambassadors] will be specialized key opinion leaders and live-streamers talking to a very targeted audience, rather than the Fan Bingbings of their time,” said Louis Houdart, founder of the marketing and branding agency Creative Capital.

“Thanks to social networks, any user is her own little KOL of her group of friends, which explain all the work millennials are putting into crafting the best pictures [on their accounts],” he said.

It is no longer about being famous for 15 minutes, but for 15 friends.

Many brands in the beauty sector have already started to make consumers their first ambassadors. Houdart revealed that some brands he works with have come to realize that directly making consumers the core of their engagement and outreach strategy has become much more effective than finding a high-cost celebrity to represent their products.

“They work so hard on the graphics [and] visual aspects, and thinking of how it will look online in a WeChat or Weibo post.”

RTG’s Chief Strategy Officer Marc-Olivier Arnold expects to see more brands moving away from investing a significant portion of their marketing budgets on a single brand ambassador and instead making efforts to be a platform for a wider range of influencers to curate content on the brand’s behalf.

“It’s a win-win partnership between the brand and the influencers, instead of a simple transaction between a brand and a celebrity. It’s also a more effective way to engage in a constant, more authentic and meaningful dialogue with their specific followers, which is what China’s millennials expect,” he said.

Not so fast…

Brian Buchwald, co-founder of New York-based marketing agency Bomoda, holds a more optimistic view of brand ambassadorships in China. He believes the strategy will remain significant, but will need to be more intelligently executed.

“The strategy is hugely important in China and will continue to be so for the foreseeable future. In fact, some of the largest splashes brands have made in the past 12 months are those associated with the naming of such ambassadors,” said Buchwald.

“However, as the Chinese consumer is becoming more discerning and such partnerships are increasing in price, it is incumbent upon smart brands to assiduously vet ambassador candidates. This vetting can include top of the funnel metrics related to brand awareness and general engagement. But it is critical to also now consider how such influencers impact lower funnel metrics like consumer sentiment, purchase intent, and ultimately sales.”

Ultimately, luxury brands’ should be careful not to let dubious data and follower numbers distract them from the stories they have to tell. Sometimes, by counting on celebrities, brands miss the opportunity to nurture a more authentic, organic relationship with their consumers.

The takeaway
• Chinese consumers are becoming more critical of ill-suited brand ambassadors
• Artists, supermodels and wang hong may have more credibility than traditional stars
• 42 percent of Chinese college students want to be KOLs, not follow them
• Having many consumers as brand ambassadors may be more effective than one star

Source: Jing Daily/ campaignasia.com; 18 Dec 2017

A checklist for hiring celebrities in China

Zero tolerance: Five things China’s government and/or public won’t accept in celebrity endorsers.

In recent years, foreign luxury brands in China have heavily relied on celebrities to enhance brand recognition and gain customer loyalty. Though this strategy can bring about repercussions when brands work with someone who does not fit their image, partnering with celebrities can at least bring a substantial amount of traffic and attention on social media. Marketers can then leverage this attention to promote products and tell brand stories.

Making celebrities the public face of brands, nonetheless, has become an increasingly difficult task nowadays, which requires marketers to understand the political, cultural and social reality of China and vet potential brand ambassadors.

In recent months, the Chinese government has rolled out a series of measures to regulate celebrity and entertainment circles. The most recent prominent example of this is Katy Perry, who was scheduled to perform at the Shanghai Victoria Secret Fashion Show this year. However, her visa was denied because of her 2015 performance in Taipei, where she donned a dress with sunflowers on it and waved a Taiwanese flag. The sunflower was the symbol of the 2014 Sunflower Student Movement, which protested a bill that aimed to liberalize trade between China and Taiwan. However, many protesters feared further economic integration with China would encroach on Taiwan’s political independence.

The above example speaks to the necessity for luxury brands to fully understand the lifestyles, personal behaviours and relationships, as well as political attitudes of the celebrities who they want to hire. Celebrities’ massive online popularity will make their career-ending scandals go viral much more easily than others, which could bring irreversible damage to the brands that they represent.

Though there are no perfect precautionary measures that can be taken to totally avoid celebrity scandals from occurring, there are many lessons that luxury brands can learn about what the Chinese government and the public dislike based on some previous cases. The following are several issues that the Chinese government and online citizens show zero tolerance for:

1. Drugs

Drugs are totally forbidden in China. This includes marijuana, which has been legalized in many nations around the world. In 2015, the Chinese government passed a regulation that stipulates that celebrities who are involved in drug-related scandals cannot appear in TV shows, advertisements, films, etc. and brands that work with them have to drop their contracts.

The Taiwanese actor Kai Ko, who used to be the brand ambassador of the French premium cosmetics brand L’Oreal, is a prominent example of a brand ambassador running into trouble for drug use. Ko gained fame for his role in the film “You Are the Apple of My Eye.” In 2014, he was detained by Beijing police for drug use and L’Oreal issued a public statement to apologize to the public for working with Ko.

2. Political stance

It is equally important to check the political stance of celebrities before hiring them. In China, the public cannot promote Taiwanese and Tibetan independence. It is also unacceptable to criticize the country’s political system and leaders or publicly show affinity for Japan.

Lancome’s previous brand ambassador, Denise Ho from Hong Kong, was removed from her position after voicing her support for the “Occupy Central” movement, which sparked backlash on China’s social media sites last year.

3. Extramarital affairs

The Chinese online community also has zero tolerance for celebrities’ extramarital affairs. Extramarital scandals cause substantially more uproar on the Chinese internet and the unfaithful party is often harshly criticized for his or her unethical behaviour. In recent years, the Chinese populace has at times voluntarily boycotted celebrities who are involved in this type of scandal.

Montblanc‘s previous Chinese brand ambassador Lin Dan, a professional badminton player who has won two Olympic gold medals, is a prime example. He was replaced by other celebrities immediately after his extramarital affairs were exposed to the public in 2016.

4. Charity fraud

For Chinese celebrities, it is a highly valuable practice for them to participate in philanthropic activities. The government and the public like to see them give their time or money for a cause.

The Hollywood star Zhang Ziyi, who was also the brand ambassador of Giorgio Armani, came under fire for charity fraud. Zhang reportedly lied about donating money to aid people who suffered in the Wenchuan Earthquake in 2008. Zhang quickly received harsh rebuke from both the Chinese government and the public. The state-owned People’s Daily wrote an open letter to Zhang, that said that her behaviours “challenged human being’s moral limitation.” The brand immediately dropped Zhang.

5. Unethical business practices

Nowadays, many Chinese celebrities have their own businesses along with their careers as actors or singers. Therefore, luxury brands have to ensure that they are aware of the kind of businesses that their celebrity partners have been running. For example, Emporio Armani’s Chinese brand ambassador Hu Ge owns a Japanese restaurant in Shanghai. Dior’s brand ambassador Angelababy is also the founder of two venture capital firms.

Last week, the brand ambassador of the high-end watch brand Jaeger-LeCoultre, Zhao Wei, was involved in a financial fraud case. Chinese authorities discovered her and her husband’s unethical activities in the country’s capital markets.

Source: Jing Daily/campaignasia.com; 20 Nov 2017