SHANGHAI - The popularity of micro-blogs has serious implications for companies and brands that operate in China, creating a scenario where major public crises and scandals erupt with increasing frequency and speed, according to a white paper released by international advertising agency Ogilvy & Mather and CIC, a leading business consulting firm in China.

The report "Crisis Management in the Microblog Era" said that the emotionally charged tone of discussions on Chinese microblogs and the demographics of users means that a larger proportion of the Chinese public is now not only aware of any crisis, but is also actively participating in furthering its reach and intensity – a distinct shift from only a few years ago.

Debby Cheung, president of Shanghai Ogilvy & Mather group said in a press release Thursday: "The more famous the brand and the greater the number of its consumers, the bigger the risk for the company in the Micro-era."

"Real-time monitoring and analysis of microblogs is especially critical at the initial outbreak of a crisis when the news being spread occurs not in hours, but in minutes and seconds. Failure to swiftly and effectively respond can easily lead to a second crisis or even multiple crises online," said CIC CEO Daisy Zhang.

According to statistics from the China Internet Network Information Center (CNNIC), there are more than 250 million microbloggers in China as of December 2011, a 297 percent increase from 2010.