Western marketers may be underestimating Chinese online market

The Internet has transformed the lives of millions while disrupting and displacing the business models of traditional media channels around the globe. But what impact does the Internet have on how people live? How important a role does it play in their decisions? Does that role vary from country to country, or are users’ experiences universal? Will concerns about such issues as privacy and security dampen consumers’ digital enthusiasm, or will new media continue to play an expanding role in their lives?

These are critical questions. The Digital Influence Index has answers.

Now in its second year, the Digital Influence Index has expanded to cover 48 percent of the global online population, spanning France, Germany, the United Kingdom, Canada, China, Japan, and the United States. Through measuring key aspects of consumers’ use of the Internet — from media consumption patterns to the degree of adoption of digital behaviors, to involvement with social networking — the Digital Influence Index sheds new light on the ways in which the Internet is impacting the lives of consumers.

U.S. and European marketers may be underestimating the online marketing opportunity in China, according to a new paper released Thursday and written by Brian McRoberts of Fleishman-Hillard and George Terhanian of Harris Interactive.

The paper, “Digital Influence Index Study: Understanding the Role of the Internet in the Lives of Consumers,” indicates that China, which has 330 million Internet users, may have the largest and most advanced group of Internet users in the world. Additionally, the paper argues that China has the smallest “mobility gap,” which is the difference between the capabilities available on a smartphone and the number of capabilities actually used by the owner.

Chinese users actually use 90% of available smartphone capabilities, according to the paper. By way of contrast, users in the U.S., France and U.K. on average use less than 50% of their phone’s capabilities.

Nonetheless, Westerners seem unaware of the Chinese’s advancement on the Internet and mobile Web. A Harris poll found that 65% of Americans believed the U.S. had the most advanced Internet users.

When it comes to driving consumer decisions about a range of products and services, the Internet is by far the most influential media channel — but marketers have yet to capitalize on that influence. That is the central finding of the 2010 Digital Influence Index, released today by Fleishman-Hillard International Communications in conjunction with Harris Interactive.

The study also measures several key aspects of consumers’ use of the Internet, from media consumption patterns, to the degree of adoption of various digital behaviors, to involvement with online social networking. Now in its second year, the Index has expanded to include 48 percent of the global online population, spanning France, Germany, the United Kingdom, Canada, China, Japan and the United States.

“Our survey provides overwhelming evidence that the Internet is at the center of the decision-making process of consumers,” said Dave Senay, Fleishman-Hillard president and chief executive officer. “It suggests, definitively, that marketers who do not have end-to-end strategies which put digital influence at the center of their marketing plans are doing so at their own peril. Marketers who ‘get it’ will be able to leapfrog their competitors who don’t.”

The Digital Influence Index reveals the following nine key insights into the Internet’s global influence on consumers’ lives:

1. Funding Gap: Globally, digital dominates in influence but not marketing dollars spent. The Internet is by far the most important medium in the lives of consumers, but companies continue to underinvest in their online marketing efforts.

2. On the Edge: Chinese Internet users are more advanced, but are early adopters, with room to grow. Although the Internet is the most important medium in all countries, it plays an even more critical role in China, home to the world’s largest and fastest-growing population of online consumers.

3. Beyond Mainstream: Digital is core to decisions — for research, purchases and peer influence. The Internet plays an integral role in the decision-making process.

4. Too Much Information (TMI): Online oversharing of personal information isn’t just a bore, but a rising threat, as well. As more users embrace social media and generate content, a consensus is emerging — people share too much personal information, and too little of it is particularly interesting.

5. Cautiously Trusting: People trust the Internet most when they have multiple sources — and a friend is one of them.

6. Pay to Play Doesn’t Play: Trust in bloggers for hire remains weak. Across all countries studied, Internet users report a lack of trust in content produced by sponsored or paid bloggers.

7. Real-Time Trust: Microbloggers trust companies that listen and respond in real time. Users who have adopted microblogging tend to trust companies that monitor their online activity. They seem to view this online listening as a sign that organizations care about their needs and want their feedback.

8. Mobility Gap: As apps multiply and speeds increase, mobile users snap up smartphones — but realize only a fraction of their potential. Although mobile Internet use is growing, a significant gap exists between the capabilities available to mobile phone users and the number of individuals who actually take advantage of them.

9. Where to From Here?: As Internet use continues to grow, will its influence grow, too? Depends who you ask. As important as the Internet is now, will its consumer influence continue to grow in the future? The answer varies from country to country … but in China it is a resounding “yes!