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How to reach Chinese millennials on social media

Finding alternatives that allow socially proactive organizations to place better advertising and interaction opportunities in front of Chinese millennials was the focus of the winning entry in the Hospitality Asset Managers Association’s (HAMA) Tenth Annual HAMA Student Case Competition.

The entry by senior Cameron Armstrong and junior Di Wang of Michigan State University, “How to Best Reach Chinese Millennials via Social Media,” offered among other things work-arounds due to China’s restrictions on social media. 

“With governmental restrictions on sites like Facebook and Twitter, it is a challenge to reach Chinese millennials via social media,” noted Wang. “That being said, there certainly are Chinese equivalent sites that allow hoteliers to reach this hugely profitable traveling segment.”

Here is a summary of Cameron and Wang’s winning entry:

With millennials developing more buying power, industries are developing social media platforms that adapt to their preferences. Problems arise when companies aim to appeal to millennials across income streams, countries and cultures. This paper will draw a focus toward one of the world’s biggest industries and largest consumer groups, hospitality business and Chinese millennials.

Chinese millennials are likely the single most important demographic on the planet today with regard to travel and tourism, the report continued. This group, generally defined as those from 16 to 35 years old, are traveling abroad more than ever, sourcing an increase of tourism in the United States. Chinese millennials are already having a major impact on consumer markets in China and abroad, which is an influence that will only grow over time. They are digital natives with a desire to break away from rigid tradition and see the world in a way that is experiential, meaningful, and shareable.

When looking at tourism, there is no denying that China has become a leader in global spend. This rise in international tourism spend was enabled by the Visa Waiver Program (VWP) introduced by President Obama in 2012. In addition to the VWP’s enactment, airlines have been increasing the number of non-stop routes that connect China and the USA. The combination of these elements has enabled China to lead the world in international tourism expenditure since 2012.

The sheer size of the millennial group is enough to make them a commercially attractive demographic to American hotel companies. This attraction is increased by the fact that two-thirds of Chinese millennials belong to the high-income bracket, with seven out of ten millennials holding ‘white collar’ jobs, according to their research.

Understanding the buying power of Chinese millennials is rather simple; it is understanding their buying habits that raises a lot of questions. As in America, most Chinese millennials considered to be members of the ‘digital elite.’ However, Chinese millennials have restricted Internet in China, disallowing Facebook, Instagram, and Twitter. With this knowledge, we know that these travelers are not being reached through traditional American social media efforts. One is forced to ask the question, “How are Chinese millennials being advertised to in their home country?”

After surveying 100 millennials of both Chinese and American origin, we noticed something dramatic in the way Chinese millennials are reached in their home country. Hotels through standard social media do not reach Chinese millennials effectively. In fact, Chinese millennials use WeChat and Weibo the most, which is the Chinese version of Facebook and Twitter. Millennials are often characterized as people seeking new experiences, looking for innovative concepts, and cultivating a strong desire to share both of the former through all relevant social media networks. As hotels seek to target this demographic, the traditional budget breakdown will likely be outed as one with concentrations in the wrong realms.

Automated, or programmatic, purchasing of ad space is increasing in popularity. This technique uses an array of technologies to automate the buying, placement, and optimization of media inventory. An adjustment by hotel companies is needed to capture Chinese millennials’ attention.

When looking at possible innovations through WeChat, a hotel company could sponsor an ad for an American gateway city, add linked directs them straight to brand.com website and so on. By cooperating with Brand USA, which has millions of followers on Chinese social media, hoteliers could expand the recognition of their brands as well.

Through the expansion of social media advertising and development of seamless mobile platforms, hotel companies can reach Chinese millennials in a way that is comfortable to the customer, agreeable to hotel operators, and advantageous to hotel owners.

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