China Education Sector In 2012, 400,000 Chinese students were educated overseas. As full fee paying students, the Chinese are very attracted to overseas universities, high-schools, colleges, and management schools. Our education guide outlines the decision making process of Chinese students and their parents. It includes what time of the year they are likely to start considering education choices, education stats, and demographics. China Search International has partnered with NTENT to work with US companies/brands and their agencies to guide them through the complex Baidu process. All NTENT’s services (guides, training, account set up, keyword proposals etc.) are free of charge.

1. Education - Chinese Students Overseas

2. Market Overview
Education – Chinese Students Overseas
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3. China’s Digital Credentials
• At the end of 2013, there were 618 million internet
users in China – the world’s largest internet user
population. The internet penetration rate has now
reached 45.7%.
• There are slightly more male internet users in China
(55.9%) than female (44.1%).
• While nearly three quarters (73.4%) of China’s
internet users are going online via their PCs, more
than two thirds (69.3%) also do so from their mobile
devices.
• China’s students represent 30.2% of China’s online
population.
• The rural areas of China account for 26.5% of the
total internet population, or 156 million internet users.
• China’s online community is expected to exceed 700
million by 2016.
• In recent years, China’s internet population has grown
by approximately 10 million people monthly
(equivalent to half the population of Australia).
1,351,000,000
51% Urban
Total Population
Urban vs. Rural
618,000,000
45.7%
Internet Users
Internet Penetration
1,198,500
88.7%
Mobile Subscribers
Mobile Penetration
798,200,000
59.1%
Tencent QQ Users
Social Network Penetration
Source: US Census, CNNIC, Tencent, Mobithinking

4. China is the worlds largest online population at 618 million. Astonishingly this only represents
46% of their population, so the potential for continued growth is enormous.
The Chinese Online Population
China
USAUKAustralia
= 50 million online users

5. The middle classes are expanding beyond the larger cities more rapidly and in greater numbers
than any market has ever witnessed. The number of Middle and Affluent Consumer
HOUSEHOLDS in China will be the same as the US by 2020.
As their wealth increases, the Chinese are increasingly choosing to educate their children
overseas.
1
13
34
61
57
36
12
53
69
66
39
23
Household annual disposable income
(USD) thousands
Upper affluent >200
Lower affluent $16 - $31.5
Middle Class $9.5 - $16
Emerging Middle $6 - $9.5
Aspirant $4 - $6
Poor <$4
Households MillionsHouseholds Millions
Source BGS Consultants
Urban household disposable income 2020Urban household disposable income 2010
Growing Wealth

6. World Education Stats
More than 400,000 Chinese Students studied overseas in 2013. This number was expected to
grow in 2014.
Chinese students going abroad to study represents a fast-growing market; from 120,000 students in
2003 to over 400,000 in 2013. The US, Canada, UK, Australia, and Japan accounted for 75% of
destinations for Chinese students
The Chinese enroll at all levels of education, with the majority seeking higher education degrees.
• Higher education: 61%
• Vocational Education & Training (VET): 9%
• English Language Intensive Courses for Overseas Students (ELICOS): 19%
• Schools: 5%
• Non-award: 5%
The US, Canada, UK, Australia and Japan accounted for 75% of destinations for Chinese students
• USA: 194,000
• Australia: 135,000
• UK: 78,000
• Canada: 20,000
Source: Xinhua

7. The Decision Makers
Parents are the primary decision makers regarding which school their children will attend.
The decision about which university a student will attend and what they will major in is normally
decided on by their parents. As the Chinese place a high value on education for their children, cost is
rarely the main consideration.
Parents are more likely to consider:
• School rankings (which university your child attends is a serious point of pride in China)
• Curriculum
• Safety of the region
• Residential options
Traditionally, Chinese parents consult with a university agent that represents multiple universities who
will advise on which school would be most appropriate for the student. Most Chinese parents will still
consult with agents today, but they are more likely to carry out the initial research online.
The decision cycle is usually spread over 1-2 years prior to enrollment as the
Chinese spend a significant amount of time researching their options.
Online is increasingly used to gather initial information such as
student visa applications, curriculum details, residential options, fees, and
to make initial inquiries.
Source: Australian Education International; Xinhua

8. The Importance of Service
The Chinese traditionally favor a very personal service from a known and trusted source when
making significant purchases.
Whether it’s a major holiday, a university, or a bank account, the most successful Chinese businesses
are those that provide hands on, personal service.
This would normally take the form of a bricks and mortar presence and a face-to-face conversation,
although more recently a dedicated account manager via telephone is also common. With regards to
education this traditionally took the form of an education agent.
There is a growing trend however for research prior to a big decision to be carried out online. In
particular in the under 40 age groups, customers are more likely to conduct their research online and
form their own decisions. (McKinsey – Mapping China’s Middle Class 2013)
Final decisions still often require a more personal approach. Education advertisers need to consider
how they can compete at a service level.
Within CSI we have seen our education clients go the extra mile with online chat applications, and
dedicated Chinese phone numbers to give potential students the high service levels they require.
Consider providing substantial research on the site and keep an
eye on your consumer feedback across Chinese social media.

9. Timing of Education Campaigns
The Chinese school year starts in September, following the USA timing. In line with this, the
application process for overseas schools tends to occur between April and July each year with the
majority of campaign budgets being spent in May and June.
At other times of the year, overseas schools tend to maintain a minimal presence on Baidu which
allows for the long term planning and online research that Chinese parents tend to undertake. A brand
focused campaign in the off-peak seasons ensures their schools remain top of mind for Chinese
parents.
The Education research process starts as early as 2 years in advance. There is a need for an
on-going presence on the platform to accommodate this trend.

10. Target Audience Profile
Suki Lui, 18, University Student
• Educated at a private girls school in
Shenzhen where she received excellent
grades.
• Would love to study law but is also interested
in economics.
• While she has travelled internationally, this
will be her first time away without her parents.
• Her family values her education above all else
and has saved and invested for years to
enable her to study overseas.
• Her parents want peace of mind while she is
overseas and to know that she is financially
and academically looked after.
• Ultimately it is her parents who will make the
decisions about her course of study,
residence, and choice of major.
• She enjoys coffee, live music, and staying in
contact with her friends back home via social
media.
Her Parents Want: To learn as much as
possible about prospective universities, their
rankings, and the residential options
available. Focus on prestige of the school
and safety of the accommodation.
She Wants: To see the curriculum details,
reviews from other Chinese students,
understanding of the campus community.
Equal focus on the academic and social
aspects.

11. Education – Chinese Students Overseas
Initial Staged Roll-out Opportunities
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12. Initial Roll Out Suggestions
Research into potential universities often starts 2 years prior to high school graduation. Due to the long
tail nature of Chinese research into educational facilities, we recommend that a small campaign is
maintained throughout the year. This allows parents to consistently find your site and review relevant
details.
During the peak application and research period, we then recommend increasing campaign spend
levels to reflect the competitive nature of the industry at this time of the year.
It is not unusual for our education clients to have to cut their campaigns short during the peak season
as their quota for Chinese applicants is quickly reached. When this occurs, we advise clients to reduce
their spend down to the non-peak season levels.
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General Strategy

13. Initial Roll Out Suggestions
Focusing on brand keywords and selective use of generic keywords such as “study overseas” and
“{insert country name} universities”. Keep in mind that 77% of searches on Baidu are for brand terms
in this sector.
We can assist in providing a full keyword proposal including volume estimates.
All keywords need to be in Simplified Chinese with some double up in English such as the university
name as savvy students / parents will be familiar with the English translation. If targeting online sites in
HK or Taiwan, include Traditional Chinese translations.
For new brands in the market or schools who are not well-known globally, we recommend
supplementing a SEM campaign with a banner campaign on Baidu’s content network.
Banners allow your audience a chance see your brand and get a better idea of what you offer.
It’s the fastest way to build brand equity in China at a reasonable price.
(Average CPC is just 0.20 USD)
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Recommendations For SEM

14. Target banners by:
• Keywords as per SEM campaign
• Sector e.g. on education websites or market
vertical websites such as investment, youth
or music
• Geotarget (Predominantly in the tier 1 cities
(Shanghai, Beijing, Shenzhen, and
Guangzhou). In addition, Hangzhou has the
third highest percentage of HNWIs after
Beijing and Shanghai)
• Demographics – keep this broad as the site
needs to attract both potential students and
their parents
See http://wm123.baidu.com/ for more details of
how banners work on the Baidu platform
Retarget banners by:
• Everyone who visited your website
• Searched for an education or university
keyword (using a broader list than your
current keywords – can include banned
keywords like “best” or “most profitable”
• Clicked on one of your banners
• Searched for a competitor keyword
• Visited an education related site
Initial Roll Out Suggestions
Recommendations For Banners – Baidu’s Content Network
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15. Peak Season April - July
Initial Roll Out Suggestions
We recommend an long term campaign to take advantage of the long tail (2-year) research
phase for this sector. A lower spend maintenance campaign for most of the year with a bigger
campaign during peak season.
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April to July is the most competitive time of the year
for the education sector, thus the need for a larger
budget.
This is in response to the peak period during which
students / parents search and make their final
decision on schools for the coming academic year.
Given that 77% of searches for this sector are on
brand terms – this must be a key area of
development for all Education advertisers.
Total Cost $20K USD per month
40% on SEM ($8K)
60% on Banners ($12K)
Duration 4 months per year
Non-Peak Season August - March
The aim of this campaign is to ensure that parents /
students are able to find your brand throughout the
year. Keeping in mind that parents start their
research 2 years in advance, its important to
maintain a minimal campaign throughout the year.
Disappearing from Baidu altogether during the non
peak season will have a detrimental impact on the
brand. We have had instances of parents calling
Baidu to enquire if a particular brand was “a real
school” as they could no longer find it on the
platform and as a result were disinclined to trust it.
Total Cost $5K USD per month
80% on SEM ($4K)
20% on Banners ($1K)
Duration 8 months per year

16. Summary and Next Steps
As a next step we would recommend sending us your current keywords (that you currently use on
other platforms). The CSI team will then translate and volume check your keywords. They won’t all be
appropriate for the Chinese market, but it’s a good place to start. Alternatively we can create a
keyword proposal for you from scratch, based on what we know works well in the China market.
In addition we need to start the account opening process. The process is very quick and we can have
you live within 1 week of receiving all of your documentation.
To start the process we require the following documents from you:
• A copy of your company registration certificate
• Signed copy of the Baidu contract
• A screenshot of your homepage (that clearly shows the URL)
• Signed copy of the V Qualification certificate (declaring your website
to be the official site for your brand)
• You can open your Baidu account online through our portal
which will collate all of your account information and provide
a filled in set of documents to be signed and returned to us.
You can find the portal at: http://signup.chinasearchint.com/
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How China Search International can help

17. China Search International / NTENT
Overview
CSI is Baidu’s International Partner, not an agency.
CSI has partnered with NTENT to work with US
companies/brands and their agencies to guide them
through the complex Baidu process.
As a result all services (including translations,
volume checking, account opening and training) are
completely free.
In fact – the only charge you or your clients will ever
see is a 2.5% processing fee to cover banking and
foreign exchange fees. In essence CSI/NTENT are
paid by Baidu to sell Baidu.
The result is that we’re well positioned to help
clients launch on Baidu in the most cost effective
and hassle-free way.
Some of our more well known clients
Baidu’s International Partner. Our clients are predominantly international companies looking to
capitalise on opportunities in China.

18. Our Free Services
• Translation of all documents for submission
to Baidu
• Facilitation of the account opening process
• Development of custom keyword lists as
required
• Translation and volume checking of
keywords
• Provision and / or translation of ad copy
• Loading of keywords into the client’s Baidu
account ready for launch
• Bid Management API application on the
client’s behalf
• Full training on how to manage accounts on
Baidu (use of the Baidu console)
• Issuing of invoices in the client’s preferred
currency and transferring of funds into the
client’s Baidu account.
• Full training on how to manage accounts on
Baidu (use of the Baidu console)
• Provision of research decks on relevant
sectors and updates in the Chinese market
• Pitch Support (provision of keyword
proposals, research, and recommendations)
CSI / NTENT’s role is to help International companies launch on Baidu.

19. Getting in Touch
Should you have additional questions,
please don’t hesitate to get in touch:
Kevin J. Carney
VP, Agency Partnerships & Strategic Accounts
KCarney@ntent.com
(646) 561-8643
www.baiduint.com