:: Sam Flemming is the co-founder and CEO of CIC (blog), the first and leading Internet Word of Mouth (IWOM) research and consulting firm in China. His company is at the forefront of exploring Chinese digital culture and helping companies and brands understand how Chinese Internet Word of Mouth is impacting and can be used to inform marketing communications, customer relationships, and research and development.

56minus1: Why is IWOM relevant for companies / brands in China? We all know about the crisis side of things online in China, with nationalistic “fenqing,” etc., but what kind of opportunities does the world of Chinese IWOM present companies / brands in China?

Sam Flemming: Ultimately, we see IWOM as INTELLIGENCE that enables brands to understand and take part in the way IWOM is redefining the relationship between institutions (like brands) and consumers. This is the theme of our recently released white paper series, see part 4 here; I also wrote about this here. IWOM is an essential part (among many) of the marketing communications mix: it’s part of crisis / reputation monitoring, marketing effectiveness measurement, market research, marketing (i.e. online community marketing), competitive intelligence, and creative inspiration. IWOM is, in essence, reshaping each of these different marketing communications disciplines.

What are some of the biggest mistakes you and your team see companies / brands / agencies making online in China regarding IWOM (or digital marketing / PR / interactive work)? Why are they mistakes?

Sam Flemming: One big mistake is thinking they can control IWOM by posting fake messages or getting negative messages deleted (see great example here; the whole Sanlu Milk powder case is also worthy of mention). IWOM is made up of the hundreds of millions of voices of the Internet community and to assume that as a single institution the brand can control IWOM is a fantasy at best.

Without naming names or pointing fingers, tell us a little bit about the darker side of the Chinese Internet (i.e. astroturfing, portals’ manipulation of scandalous brand crises for page views, its overly commercial nature, sketchy forum administers working with astroturfers, privacy issues, etc.)

Sam Flemming: Here’s my quick take on some of the “hot button” issues:

1. The biggest difference of IWOM in the West and in China is that Chinese IWOM is hosted on very commercial platforms like portals, whereas in the US, for example, blogs are not. When platforms are commercial, the incentives for the platforms to do most anything to drive page views, including courting controversy, is very strong.
2. Astroturfing is relatively cheap due to lower labor costs in China and it offers a very tangible solution for agencies or managers to appear to “do” something “web 2.0″ even if it doesn’t have much effect (other than alienating and harming the community). You and I both shared thoughts on this here.
3. Some forum administrators will work with astroturfing agencies to post messages for a fee, this is true; this actually points to the larger trend that IWOM platforms are commercial and need to generate revenue for the value that they provide (i.e. connecting brands to consumers). Charging brands to connect / participate “in the conversation” within a community that takes time / effort / money to build and maintain is not inherently wrong, especially when it can provide distinct value. Why shouldn’t Twitter charge brands for commercial accounts when companies like Dell have reportedly generated US$1 million in 1.5 years (in the West, not in China). However, such processes / policies should be transparent, and they most often not in China.
4. Monitoring and removal of content is largely done by the commercial IWOM platforms themselves; it is in their best interest to not have content that is offensive or breaks any law.

56minus1: What are some of the smartest / most-effective campaigns you and your team see companies / brands / agencies executing online in China regarding IWOM (or digital marketing / PR / interactive)? Why are they smart / effective?

Sam Flemming: I outline our view of “IWOM centered marketing” here where I talk about how Johnson Baby has done great things with its Mom Ambassador program and how Intel used a simple but powerful approach to generate buzz within the Intel (aka “I-fan”) community.

56minus1: Can u share a few examples of CIC clients using CIC insights to inform their digital marketing / PR / interactive strategies or campaigns?

Sam Flemming: I can’t get into too many specifics, but our insights about sports communities regularly feed into the creative for Nike digital and media. We track campaign effectiveness of several other clients by tracking various elements of IWOM buzz (see here for example measurements) and combine these findings with other digital and market research agencies to put together comprehensive reports that provide a detailed understanding of campaign performance from all important angles. We also work with R&D departments to assist in their product development and with PR departments for reputation monitoring. You can see plenty of case studies of how brands use IWOM intelligence to help drive their communications in our recent “The Internet is THE Community” white papers, especially part one and part four.

56minus1: Who “gets” IWOM and the “digital imperative” best in China? PR firms, advertising agencies, interactive / digital agencies, etc.? Or, are they all hopeless? Who gets its the least (or is the most hopeless)? Why? What brands really get it?

Sam Flemming: Digital agencies seem to do better, in general, since they are more familiar with the overall digital environment. PR and advertising still view social media as a last minute add on. These are generalizations, and there are always exceptions. Of course the agencies and clients who get IWOM the best are the ones who work with companies like us.  ;-)

56minus1: What are three (or more if you have more) IWOM (or digital marketing / PR / interactive) trends in China to keep a look for in the near future?

Sam Flemming:

1. SNS audiences prove finicky: SNS will continue to grow, but the key challenge will be for the SNS players to garner loyalty. Xiaonei was 2007 / 2008. Kaixin is 2008 / 2009. What’s next? I am not sure there is much loyalty with Chinese netizens.
2. Development of vertical SNS: I predicted last year that vertical SNS like Babytree would become more popular. I still think this will happen as there are already so many BBS verticals with powerful communities (i.e. Xcar and HoopChina), that it seems like a no brainer for existing BBS communities to leverage SNS functions or new SNS verticals to develop within popular topic areas.
3. Refinement of communications strategies based on different roles of blogs, BBS, and SNS: Blogs are driven by self expression (i.e. content driven by “me’”), BBS are driven by information / topics (i.e. content driven by “topics”), and SNS are driven by netizen relationships. Like any good conversationalist or community member, brands need to shape their communication approach based on understanding the motivations and purpose of each communication space. This was a topic that came out in our IWOM summit meetings with 17 of our clients late last year. I also wrote about it in detail here.

56minus1: What’s special or unique about Chinese netizens and local Internet culture? Interesting examples?

Sam Flemming: I would say the sheer force of the Internet as a primary and mainstream media which both influences and serves as a channel for consumers, especially in top tier cities, is unmatched by any other market, at least in the West (Korea could make some claims here). We continually document examples in our white papers (see especially our IWOM watch half year reviews like this one and special IWOM watch on the Sichuan earthquake here) and on our blogs www.seeisee.com/sam (English) and www.seeisee.com (Chinese). Another unique element is that, as I mentioned above, the hottest social media platforms are largely commercial which can lend to a different dynamic than the West (i.e. there may be a certain tendency to highlight controversy).

56minus1: Does CIC have plans to move from a research / consulting firm to an agency that executes digital / interactive campaigns? Considering CIC’s insight and understanding of the space in China, seems like a logical step. Why haven’t you done it already?

Sam Flemming: We believe it important to serve as 3rd party, credible, and objective partner in providing research and consulting to our clients. If we execute, then we lose that unique positioning. We don’t think the market needs more agencies; we think agencies need to better learn to appreciate how IWOM can inform their strategy and execution.

56minus1: Talk about your business. When did the company start? How have you grown over the years? Practices? Products? Offices, staff numbers, company culture, plans for the future, hiring, etc.

Sam Flemming: Founded in 2004, CIC has always focused exclusively on IWOM research and consulting. We have developed our own proprietary text mining technology for the unique Chinese social media landscape and have a dedicated team of analysts who understand IWOM, communications and vertical industries in China (esp. auto, mobile phone, consumer electronics, cosmetics, baby, sports, and beverage). I do think we have a unique company culture as an independent agency which is “out of the box” as part of its very DNA.

56minus1: Thanks Sam.

// AjS

:: this graphic (inspired by the Conversation Prism) was originally published in part one of CIC’s four-part white paper series on Internet word of mouth (IWOM) in China. Part one is title The Chinese IWOM Landscape – An overview of the development, the architecture, and the impact of Chinese IWOM, available for download in English or Chinese. You can downoad a hi-res version of the image below here.  // AjS

:: originally published in an Analysys International instant messaging marketing report (Q2, 2008), and also shared in CIC’s recent white paper, “The Chinese Internet Word of Mouth (IWOM) Landscape” (view / download the paper in English or Chinese), the chart below shows market share for instant messaging software in China.

Tencent’s QQ still dominates China’s instant messaging market. Active QQ user accounts reached 341 million in the second quarter of 2008, giving QQ 80.2% of market share, followed by Fetion with 4.2%, and Microsoft MSN with 4.1%.

// AjS

:: as a follow-up to part one and two, here is some more on Chinese net-speak, courtesy of a recently published CIC white paper titled “The Diversity of Chinese Net Language.” View / download the paper in English or Chinese.

If everything below is “old hat” for you, try taking CIC’s Chinese net-speak test. If you get every question correct, Sam Flemming, the founder and CEO of CIC, will pop out of the screen (time traveling back from the early 90’s) and serenade you.

1) The word “ke” / “客” is used all over the place online, for example:

• shai ke / 晒客 – Netizens who “shows off” online via pictures and videos; “Shai ke” typically “shai” things brand-name goods / products, personal collections, recent purchases, decorations, pets, new haircuts, and…well…just about any thing else worth shai’ing
• shi ke / 试客 – Netizens who love samples & freebies; “Shi ke” are professional samplers happy to participate and join activities for free stuff in return; you can find hanging out on sites like iTry and Try2u
• pai ke / 拍客 – Netizens “reporters” who use digital video or photo to capture and share interesting (i.e. cool or hot) stuff with the online community; sites like Ku6 have tapped into this culture by organizing “bounty hunter” type competitions and campaigns
• bo ke / 博客 – Netizens that write blogs, i.e. blogger(s); nterestingly the word for blog and blogger in Chinese is exactly the same
• bo ke / 播客 – Netizens that create and upload user-generated content; this phrase also can refer to netizen “podcasters,” as bo (in this case “播”) means to broadcast
• huan ke / 还客 – Netizens who barter for goods or products online
• ji ke / 极客 – Netizens who could be considered tech / IT / Web geeks; in some uses the term can mean “hacker” (黑客)
• shan ke / 闪客 – Netizens who use the multimedia software Flash to create animations, videos, etc.
• zhui ke / 追客 – Netizens who are up-to-date on all the latest online trends such as online novels, online TV series, hot memes, etc.
• wei ke / 威客 – Netizens who receive payment for sharing knowledge and exchanging services / information

2) Mars language (火星文):

• created and used mostly by China’s post-90’s generation (九零后), this “language” combines symbols, pictographs, and English letters / grammar, together with rare and traditional Chinese characters; post-90 netizens have created dedicated sites, manuals, and even software / input methods for Mars language
• to the right is a letter composed completely in the Mars language (link)
• English translation: “Dear Jing: I didn’t make a draft of this letter before writing to you, but I will make an exception this time. Without you, my life resembles a piece of paper filled with black and white letters. I am missing the time we spent together laughing and hanging out at home. Although you haven’t answered my letter, it’s ok.”

3) Jiong / 囧, discussed in part one, has evolved into an entire “family” of related net terms:

• 崮 / gu – 囧国国王, the king of the Jiong empire
• 莔 / meng – 囧国皇后, the queen of Jiong empire
• 商 / shang – 戴斗笠的囧, Jiong with a bamboo hat
• 回 / hui – 没眼睛的囧, Jiong without eyes
• 四 / si – 没嘴巴的囧, Jiong without a mouth
• d 囧 b – 百事可乐“爱中国”的手势, the Pepsi’s “Love China” gesture
• T囧T – 鄙视你的囧, Jiong looking down on you
• 囧rz and ssr囧 – 下跪的囧, kneeling person with Jiong face
• 囧囧有神 – 十分囧, 囧到“有神,” very Jiong
• for more on Jiong, link to the official Jiong Web site.

:: CIC has published an insightful four-part white paper series on Internet word of mouth (IWOM) development in China, series topics include:

1. The Chinese IWOM Landscape – An overview of the development, the architecture and the impact of Chinese IWOM. (EN / CH)
2. Alternative Ways to Measure Internet Community Dynamics – An introduction to some examples of community measurement indexes to display the dynamics of the Internet environment. This introduction will help brands and community owners systematically understand the impact and importance of community and IWOM from a third party perspective. (EN / CH)
3. The Diversity of Chinese Net Language – A look at the importance and uniqueness of Chinese net language and how it has become an integral part of netizens’ life online. (EN / CH, or on 56minus1 here)
4. Reshaping the Relationship between Brands and Consumers – Exploration of the power of the community and how the Internet Community is redefining the relationship between brands and consumers by leveling the playing field. (EN / CH)

Stay tuned, 56minus1 will be highlighting content from these papers with upcoming posts.

To learn more about CIC, link to its homepage here, its English blog here, or its Chinese blog here.

// AjS