The "Digital New Infrastructure · 2020 (3rd) China FMCG Conference" hosted by New Distribution was grandly held from August 24 to 26 at Shanghai Fuyue Hotel! This grand event attracted 3,000 industry professionals including distributors, manufacturers, and internet companies from all over the country, with a full house and an unprecedented scene. The following is the speech content delivered by Mr. Jiang Nanchun, Chairman of Focus Media, organized and published for our readers. The 2020 pandemic has had a significant impact on all industries. Although FMCG has also been greatly affected, it remains one of the most sought-after industries, with funds across the market heavily investing in consumption. In the future trend of internal circulation, FMCG, as an industry that permeates every aspect of life, should be the least affected by external factors. In the future development of FMCG, there should be both an increase in channel penetration and an improvement in consumer mindshare penetration. So in the field of rising consumer mindshare penetration, what changes have occurred in the Chinese market? -01- Digital Transformation of China's Communication Market Since 2015, China's advertising market has begun to decline, and the advertising model has undergone structural changes, with elevators, cinemas, and the internet continuously rising. From data research between 2016 and 2018, it can be found that the trend of internetization is very obvious. From the perspective of consumption time of various advertising media, internet advertising began to develop from 2011 to 2015, and the viewing time of internet advertising has exceeded the total of other advertising media. Traditional information forms and models have undergone significant changes. With the development of the internet, trendsetter groups have drifted away from television media. The popularity of mobile internet has brought about a shift in consumer awareness, with WeChat, Weibo, and news clients occupying more time of mainstream audiences. Precise distribution can bring some traffic, but users are more focused on content, information, and entertainment, and the opportunity for consumers to see ads is not great. In the internet era, TV advertising has shifted to video advertising, and content, PR, and topics have gradually become the focus of users. How to create content that plants seeds is key to getting customers to watch internet ads. Since 2015, video has sparked a wave of charging, with video websites starting to offer paid memberships. Among China's 700 million video users, over 300 million are paid members, and after purchasing memberships, they basically skip ads. In this process, the advertising format needs to undergo a holistic transformation to win stronger consumer attention. Focus Media is a company that grew up during the SARS period. At that time, we always insisted on one point: a major change in China's future will definitely be urbanization. The characteristic of urbanization is elevators. Locking onto the elevator as a carrier, it will become the infrastructure that influences the mainstream urban population. Having been in advertising for ten years, I have a great insight: advertising is an anti-human industry. Who wants to watch ads when using their phone, watching TV, or watching programs? At that time, I asked myself how to make consumers actively watch ads. After a period of observation, I found that when waiting for the elevator, consumers will actively watch ads. The elevator is a closed space without signal. In that time and space, consumers are likely to actively watch ads. Elevators represent four keywords. First, mainstream people: elevators cover almost all urban populations, and these users are mostly mainstream consumers. Second, elevators are an essential living space for urban people. Whether you use Weibo or WeChat, you cannot avoid taking the elevator. Third, high frequency: the essence of advertising is repetition, and the essence of the audience is forgetting. Especially in today's information explosion, consumer memory is increasingly difficult. Elevator ads, through repeated playback, leave a deeper impression in consumers' minds. Fourth, low distraction: the elevator is a relatively closed space, and attention will be attracted by the ads inside the elevator, with no more distractions. When users have no choice, that is the best choice for advertising. In the mobile internet era, there is too much information, making it difficult to be remembered even after investing a large amount of money. So the theme of this conference, "Digital New Infrastructure," is about using better and more precise means to reconstruct these things. The future media environment has both changes and constants. "Change" is mobilization - content planting. Information models will become more diverse and complex. Consumers spend 6 hours a day on their phones, but what they watch is content, not ads. Marketing must create topics through content, integrating into Douyin, Xiaohongshu, Bilibili, etc. From a brand perspective, advertising cannot change media mobilization. In the process of advertising mobilization, how to do more precise distribution, how to form better fission and private domain traffic construction, and identify which are lowlands and which are dividends is very important. "Unchanged" is that living spaces remain unchanged. Consumers still move in original scenarios - apartment buildings, office buildings, cinemas, etc. The core living spaces of consumers have not changed. Therefore, it is necessary to reach and influence audiences in consumers' life scenarios, choosing high-quality scene media with characteristics such as being on the necessary path, closed, forced, and efficient, so that brand exposure is built on consumer mindshare. -02- Alibaba-Empowered Digital Focus Media From the perspective of overall market changes, every medium has its own characteristics. All offline media revolve around living spaces to ignite life scenarios, and they also need to consider how to develop in digital infrastructure. We can see that after Alibaba invested in Focus Media in 2018, we began to explore digital infrastructure. Focus Media has created a new generation of smart elevator TVs. Through online distribution of screens, content can be updated at any time. As a digital public platform, it is essentially no different from a phone screen. In this case, how to test and update content at any time becomes the core evaluation standard for creative that quickly responds to consumer needs and changes. From the backend, through Alibaba Cloud empowerment, comprehensive networking and IoT screen construction have connected advertising distribution across millions of terminals, achieving network push and real-time data feedback in the building elevator TV field. The biggest challenge faced by traditional media is that it is unknown who saw the ad and which people were reached. Focus Media has solved this problem through data empowerment. After the ad is pushed through the network, through the backend monitoring system, the reached audience data quickly returns to the Tmall Data Bank. In the backend, it becomes your digital asset. Advertisers not only make a single placement but also accumulate data. Through data aggregation, it is possible to analyze how many mapped consumers the ad brings, and whether these consumers add to cart, follow, purchase, and become loyal customers in future practices. The past AIPL chain can no longer keep up with the pace in the digital era. After a brand places an ad, the company surveys data and then provides feedback, which takes a very long time and is inefficient. The brand digital asset accumulation empowered by the Data Bank, and Focus Media's data feedback will enrich the brand's Data Bank, recording and accumulating the brand's digital assets. In Alibaba's ecosystem, it will optimize the effectiveness of ad placement and improve sales conversion rates. Simply put, through data empowerment, consumer data can be fed back. How many consumers were exposed, how many added to cart, collected, or followed - the data is clear, and a comprehensive evaluation of consumer digital assets can be conducted. At the same time, data feedback can be used for online secondary retargeting. Many people see Focus Media ads offline, and then open Tmall or Taobao later, and they will see the brand's ads online again, forming a second touchpoint. This connects Focus Media's brand ad playback with Tmall's effect evaluation and optimization, as well as the re-touch within the platform after off-site data feedback, improving conversion efficiency and completing the synergy between Focus Media's brand planting and Tmall's brand sales. I have always opposed the unity of brand and effect; they are difficult to unify. Brand advertising has cumulative value. The method model, consumer model, and traffic model are different. Brand advertising and effect can be synergistic. When data is fed back to the effect side, it can be retargeted. In this way, the cycle for achieving advertising effects will be greatly shortened. Previously, a brand ad needed to run for a long time, and the final effect was unknown. Now, through the application of digitalization, after data feedback, those audiences that were truly reached can be pushed again on their phones, greatly reducing the cycle for producing effects. During the 2018 Double 11, we conducted a joint test with 17 brands. In the Tmall Data Bank backend, we found that the new customer sales conversion index averaged 118, and the old customer sales conversion index was 110, both much higher than customers who had not seen Focus Media ads - the new customer sales conversion index for those who had not seen Focus Media averaged 91, and the old customer sales conversion index averaged 94. This is what was mentioned above: in the full-link process, the effect of ad placement is visible. -03- Precise Building Selection with Thousand Buildings, Thousand Faces The front-end task is to conduct precise building selection with thousand buildings, thousand faces. Focus Media's elevator posters cover 70% of China's apartment communities, with precise reach of 310 million people daily. But the ads in each building are different. Behind the ads, we conduct property analysis. For example, clients like Gome and Suning prefer newly delivered buildings; BMW 7 Series needs buildings priced above 100,000 yuan per square meter; Li Ning likes buildings around sports stadiums, etc. Behind these are parameters for clients to freely choose, including cooperation with search companies to analyze the population behind the entire community, and which type of ads are suitable for the community - maternal and baby, travel, or wealth management. After connecting with Alibaba's backend, we can clearly know the population profile of the building, consumption power, and category consumption index. In this process, we provide clients with three directions through the index. First, around terminal opening, for example, if promoting in Carrefour, place ads within three kilometers around Carrefour; second, around category interest, what categories users are interested in, whether beauty or maternal and baby, different buildings will have different labels; third, distinguish people by housing price, high-end, mid-range, and low-end. Today's advertising is in a challenging environment, and it also needs to combine online and offline, and brand owners and distributors should combine more, so that overall return on investment will increase. Online, Focus Media is the main advertising platform for e-commerce platforms like Tmall and JD.com, and the two can exchange traffic. When brands place ads on Focus Media with Tmall or JD.com logos, they can get free ad exchange volume from Tmall and JD.com e-commerce networks. Offline, around store placement, exchange for in-store advertising resources to support sales. For example, when doing maternal and baby products in stores, all ads in Jiangsu are placed through dual screens, with Mead Johnson on top and Kidswant below. When you help Mead Johnson drive traffic, you can bring a lot of traffic to Kidswant, and in this process, conversion can often happen directly in Kidswant stores. Another important issue is that placement is entering intelligent placement, empowering omni-channel promotion. First, pre-sales shallow customer analysis to lock budget scale; during sales, data intelligence optimally allocates budget, how much money is most economical; after sales, attribution analysis, outdoor value verification, and data asset reuse, to define your target audience. Second, configure points, targeting the places where the target audience in the city moves. Third, how to use intelligent placement, generally economic placement efficiency and creative optimization. Fourth, effect evaluation, how to return to the Tmall Data Bank for effect evaluation. Fifth, how to conduct secondary retargeting to form a greater effect display. The digital infrastructure that Focus Media has built includes: first, cloud distribution; second, data feedback; third, attribution analysis; fourth, how to precisely select buildings and retarget online; and finally, form brand-sales synergy. Data calculation is something every company must practice. Through technical means, better calculation of users. Behind technology, there is another point: to calculate human hearts and human nature. These are the deep-level ways to win users. Traffic is just the result of the brand winning people's hearts. If your tip is adopted, you will be paid 400-2000 yuan.