iGB Affiliate 52 AugSept | Page 46

INSIGHT OPPORTUNITIES FOR AFFILIATES IN CHINA With involvement in traditional iGaming products carrying high risks in China, the strongest opportunities for affiliates currently reside in forex and financial betting, writes Kathryn Farrell from Digital Fuel Marketing. AS OF DECEMBER 2014, China is now the world’s leading economy in terms of size, releasing the US’ stranglehold on the top spot for the first time in over 140 years. China has also experienced rapid social development over the past few decades, now boasting the most Internet users of any nation in the world. According to InternetSociety.org and its Annual Global Internet Report for 2014, 46.03% of the population (or almost 642 million people) in China have Internet access, which represents nearly 22% of the total Internet users worldwide. As a nation, China is increasingly becoming an upper-middle income country, with the middle classes expanding at a rate not seen before in history and affluent consumer households in China set to reach the same proportions as the US by 2020 (see Figure 1). Couple this statistic with the fact that the population of China has largely embraced the digital age and mobile technology, “Social media, in particular Facebook equivalent Weibo, has something called ‘sponsored influencers’, who you can pay to promote your brand.” and you have the perfect platform for opportunistic online affiliate marketers to step in and reap lucrative rewards. Chinese online behaviour The Chinese demonstrate similar online behaviour to that of Western countries, but display an unusually high level of online trust (see Figure 2). This translates into a strong receptiveness to affiliate marketing and the messages being delivered online. Plus, by February 2015, about 1.29 billion mobile users had been registered in China, with 81% of them accessing the Internet via their mobile phone. So more than ever before, the affiliate marketer can use digital marketing techniques to reach out to a large portion of the population in China, with somewhat Figure 1: The expanding middle class in China Urban household disposable income 2010 1 Households Millions 12 13 53 34 69 61 66 57 39 36 23 Household annual disposable income (USD) thousands >$200 Upper affluent Lower affluent $16 - $31.5 Middle Class $9.5 - $16 Emerging Middle $6 - $9.5 Aspirant $4 - $6 Poor <$4 44 Urban household disposable income 2020 iGB Affiliate Issue 52 AUG/SEP 2015 Households Millions