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According to a study by Nelson Research, interactive advertising is more effective than traditional advertising in raising brand awareness and overall advertising effectiveness. The research, involving over 800,000 users in 14 different brand categories, found that brand recall and brand awareness were significantly greater when the users were exposed to interactive ads.
Increase in Recall Rate
Research also shows that, when comparing similar demographic groups, people using interactive ads showed a 10% increase in the average recall rate, a 4% increase in brand awareness, and a 2% increase in the purchase intention rate.
When fans of a brand post their comments to friends, the brand recall rate increases to 16%; if they post to feeds the recall rate increases to 30%. The same thing happens with brand awareness-dramatic increases are shown when users participate in interactive advertising. The purchase intention rate increases to 8% as well.
The “many-to-many” model of viral messaging through social networks is highly interactive and gaining traction. As the internet develops and becomes mature in China, people are becoming more and more willing to get and share data interactively. When people feel they are part of a community they tend to become more interactive, participative, and enthusiastic about sharing. The result is that the traditional tools of online marketing such as banner ads and hyperlinks are transforming themselves into new types of interactive media.
Marketers have long complained that banner ads garner low attention rates and don’t penetrate deeply enough into their target markets. To make up for this, they began integrating rich media and advanced targeting technology to reach their intended audience. But these techniques still doesn’t solve the basic problem: Why do people need banner ads?
We believe that banners are valuable when they display necessary information, otherwise they are just a distraction. In today’s open environment of viral messaging and user generated content, people are better able to choose what they want to see and what they don’t. If information in an ad has value, people will pay attention; if not, they will leave.
Social networks provide new opportunities for effective brand marketing. Within a community, members usually share interests, backgrounds, and topics of discussion, which we collectively call “foundation sharing”, and can include particular shared vectors such as age, sports, or brand preferences. People frequently communicate with each other to share shopping experiences or to talk about a type of product. Such information is more easily accepted when it comes from someone in one’s own community.
Every one hundred years, a revolution in the media occurs. In the last hundred years, media was defined as the mass media, while in the next hundred years, information shared by connection via one person to another… nothing can influence people’s consumption behavior from a trusted friend… “Trusted recommendation” is the holy grail of the advertising industry. From “The Facebook Effect”