The article below is also my latest column post on iMedia Connection Asia. Check out their relatively new Asia section for some pretty interesting articles related to digital marketing and branding. INTERNET WORD OF MOUTH TRENDS IN 2008

I have been watching the Chinese internet word-of-mouth space since 2004, and I strongly believe that 2008 will be the most interesting year yet. Here are my 10 predictions for the IWOM Industry this year.

Brands (really) join the conversation

After sitting on the sidelines listening to the millions of conversations happening around them on bulletin board systems (BBS) and blogs, a number of high profile brands in China will join the conversation and become corporate netizens just as Dell, Intel, KFC and IPOD-wannabe Meizu did. They will use one of several platforms including blogs, BBS or a concept like Dell Idea Storm. “Joining the conversation” does not mean pure promotional blogs or BBS, which are set up for a quick campaign with frivolous posts or unsubstantial content that are later abandoned. Instead, these are rather long-lasting platforms that will succeed because they are the voice of the brand. This is a “non-corporate” voice that reflects the brand and resonates with the consumer conversations at the same time.

Online communities and brands forge more explicit relationships

Brands will begin to recognise the power of the communities that already exist on vertical BBS, such as sites like PConline, Xcar, Redbaby and Baidu Tieba. These owners and fans in communities like the one for Ford Focus on Xcar provide customer service. It has volunteer experts answering questions as well as marketing via IWOM recommendations. Companies like Get Satisfaction in the U.S. have figured out such a business model to take this service to brands, and it won’t be long before the commercial portals behind these communities begin to offer involvement, sponsorship or even outright purchase.

BBS sites add SNS-like features and rebrand themselves as SNS

Facebook is worth US$15 billion? In addition to sites like Xiaonei and 51.com making claims to be the Chinese Facebook, expect to see BBS communities add some social networking site (SNS) features and rebrand themselves as SNS in an attempt to ride the Facebook wave. The truth is, the Chinese BBS platform represents a ‘legacy’ SNS platform. BBS sites already have massive communities and have SNS features such as private messaging and profiles, and in many ways, have stronger social networks than any of the existing SNS sites in China.

“Real names” becomes a buzzword that netizens don’t buy into

Sites like Hainei tried to copy Facebook by employing “real name” systems. Expect more SNS and BBS sites to try this. While real names can reduce seeding from “gunners” (people hired by brands or agencies to pose as consumers to write ‘fake’ messages to promote the brand), it is unlikely netizens will adopt such systems. This is because self expression on the internet in China is driven by self exploration of different identities that netizens may feel inhibited to explore offline. Self exploration is better done anonymously.

Brands recognise IWOM as a separate skill set and headcount in China

Do a search on American job aggregator, Indeed ,and see the increasing number of job descriptions including the term “social media”. Many of these jobs are related to digital marketing and PR. Toyota USA has an IWOM manager. We see this same trend happening in China, with some of our clients beginning to have budget line items and headcount dedicated to IWOM.

Facebook acquires a local SNS, and Chinese netizens couldn’t care less

Facebook will acquire a local SNS, but no one will care except for the foreign media. What does Facebook have to offer in China? Chinese netizens have been expressing themselves and communicating online since the beginning of the Chinese internet in late 90s. Facebook will do fine, but they won’t have the impressive numbers it has in the West. There is too much competition for the community/ expression attention of netizens in China, and most of it is dominated by existing players like QQ.

Brands recognise the importance of social commerce

If you think Jack Ma’s Taobao is the eBay of China, or that Taobao beats eBay at its own game in China, then you are wrong. Taobao won by recreating C2C just for China by building up an incredible community of buyers and sellers. eBay has the platform, but Taobao has the platform and the community. Sellers build up reputation not only through the official trust management ratings, but also through active participation in communities offering helpful information and influencing purchase decisions. The fact that these sellers are not official reps and may sell grey market or repackaged goods from Hong Kong, will make brands uncomfortable as they struggle on the issues of if and how to develop relationships with these sellers to ensure they are offering the correct and most helpful information.

Digital agencies take ownership of IWOM marketing

PR firms in China are missing the IWOM boat by retaining an exclusive focus on mainstream media, or at best, treating IWOM in the same way as traditional media. Digital shops like Agenda and China Interactive will make impressive gains this year by adding even more impressive social-based programmes to their case list such as Agenda’s award winning Pepsi Creative Challenge II.

Vertical-focused SNS sites will emerge

Shao Yi Bao’s Babytree is an example of what will become a trend of successful vertical-based SNS. Expect new sites to be launched for other popular verticals with strong communities and strong commercial interest including mobile phone, automobile and cosmetics/fashion (these categories have the most active BBS communities).

IWOM has its day on Consumer Day

March 15th is Consumer Day in China, and consumers are encouraged to express their opinions about customer service on that day. Traditionally, Chinese mainstream media will select various companies or issues to focus on. This year, expect netizens to organise themselves online to bring attention to certain issues (perhaps with the help of portals). We saw a few examples of this last year and the groups that carried this out had official press contacts and a media strategy. This year, expect more.