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China’s Online Travel Market – Market Analysis Report 2012-2013

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With the rapid development of Internet and mobile network, online travel bookings are becoming future trend for Chinese travelers. According to the statistics, the growth of the online travel revenue …

With the rapid development of Internet and mobile network, online travel bookings are becoming future trend for Chinese travelers. According to the statistics, the growth of the online travel revenue scale will be expected to rise at a phenomenal rate of 20% to 30% over the next few years.

As China’s online travel market is booming rapidly, the key to break out from this competitive market is to win visitors. Shifting towards audience buy is now an ongoing trend for advertisers to stay ahead from its rivals. From the market research report we created for China’s online travel market, we have revealed some interesting facts about the current China’s online travel market, allowing you to discover not only the mounting threats within the market but the importance of audience buy locating your target consumers in a concentrated manner.

More in: Marketing , Travel , Business
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  • 1. China’s Online Travel Market - Market Analysis Report (2012-2013) Private and Confidential
  • 2. Foreword Online retail has boomed significantly over the past 2 years while the online travel market has also evolved drastically with the proliferation of new advertising channels and technologies. According to the statistics from iResearch, the transaction scale of online payment yielded $1,700 billion Yuan (CNY) in the online travel industry in 2012. This marks an annual growth rate of almost 30%. With increasing fierce competition in the market, vertical research engines operating on OTA such as Ctrip and Qunar.com have been battling head to head in the online travel industry. The entire online travel industry has maintained a strong momentum, where channels of sales are further diversified , with sales moving onto social platforms and other media channels. Overall, the growth of online retail business is expected to further be fueled by the emerging use of various media channels. Following the continuous improvement of the market, marketers are challenged with the task of the industry weakening in every tier of the value chain and the tendency of user dispersion. Marketers will soon be realized that capturing the key potential target users will be critical to its business success and stay ahead as a competitive leader in the online travel market. In iClick, we value our travel clients as close business partners and provide customized solutions that can best suit their business needs. We strive our effort to best provide a wide variety of services to keep our clients maintained at their leading position in the industry. For this reason, we have specifically researched, analyzed and compiled this industry’s specific report, in hopes of providing the finest sales support services in the industry. Last but not least, we will continue to work on various analytical reports on other industries such as luxury goods and eCommerce sector; for those who are interested, please stay tuned to our official website and our Weibo updates. —— Co-founder of iClick Ricky Ng -1Private and Confidential
  • 3. Table of Contents • Part 1 An overview of China’s online travel market - A history of China’s online travel market • An introduction to the value chain of China’s online travel market The current state of the online travel market Part 2 Competitive market segmentation in the online travel market - Midstream —— fierce competition among online agencies - Downstream —— continuous emergence of new marketing platforms • Upstream —— suppliers entering the online platform Weakening of the value chain in the online travel market Part 3 Parting the red sea: venturing off from users’ needs - Online travel industry: consumer psychological needs • Online travel industry: consumer profile Online travel industry: consumer behaviour analysis Part 4 iClick – key strategies to increase your revenue -2Private and Confidential
  • 4. An overview of China’s online travel market The value chain of China’s online travel market is mainly comprised of upstream suppliers, midstream online agencies and downstream online marketing platforms as shown in the graph below: Up Stream: Suppliers Downstream: Online Marketing Platforms Users Direct Sales Airlines Scenic Hotels Midstream: Online Agencies Spots Comprehensive Search Engines Online Videos Online Travel Agencies (OTAs) Social Media Car Rentals Users Mobile Applications Entertainment Facilities Concerts Tour Travel Agencies Guide Insurance ⋯⋯ Vertical Search engines Vertical Reviews ⋯⋯ Direct Sales Graph 1-1: The value chain of China’s online travel market Source:The National Tourism Administration of The People’s Republic of China, Increasing Trend in China’s Online Travel Industry Whitepaper(2012-2015) -3Private and Confidential
  • 5. A history of China’s online travel market From 1999 to 2012, the online travel industry has surged rapidly in China. The table below describes some major highlights in the history of China’s online travel market. Phase 1: from late 1990’s to early 2000’s Phase 2: 2004 - 2006 Maturity Stage for online travel market Early stage for online travel market • • Mainly commission based through airline ticket and hotel bookings Launch of online travel agencies such as Ctrip, eLong, etc. • Entry of new online travel agencies such as Mangocity.com and 17u.cn, providing consumers with a portfolio of diverse and mature offline products • Huge price discrepancy amongst various agencies resulting in the development of price comparison search engines such as Qunar.com Segmentation of online travel market and rise in social media • Rising demand for vacation packages including lvmama.com or tuniu.com with features such as tourist attractions and route maps, providing more indepth online booking services • Maturation of users whose demand extend from booking to sharing such as social networking sites, including tip sharing site mafengwo.cn, travel review site daodao.com, etc. Phase 3: 2006 - 2010 New competitors in the online travel market • Major eCommerce platforms such as QQ, Taobao and JD.com enter the online travel market, providing more comparable sites through commission based scheme • Airlines and hotels increased their efforts in direct sales as they create their own official websites or reach consumers directly through vertical search engines Phase 4: 2010 - 2012 -4Private and Confidential
  • 6. Continuous Expansion in China’s online travel market The total revenue of China’s tourism industry in 2012 is estimated to be valued at $2.4 trillion Yuan. Within that portion, China’ s online booking transactions are estimated to be valued at $1,729.7 billion Yuan, thereby giving the online tourism a penetration rate* of 7%. It is evident that there is still much room for growth. Hence it is estimated that the online travel market will keep growing at a rapid rate of 20% to 30%** over the next few years. 58.0% 60000 38.5% 50000 34.4% 29.7% 35.0% 40000 30000 4.8% 11.6% Growth Rate (%) 22.4% 29.1% 4.2% Scale of Domestic Travel (in one trillion Yuan) 5.1% 6.1% 7.2% 8.5% 9.6% Online travel penetration rate 20000 10000 0 2008 2009 2010 2011 2012e 2013e 2014e 2015e Graph 1-2 Penetration rate of china’s online travel vs domestic travel market * Online travel penetration rate = Scale of online transaction/Gross Income of Online Travel Industry ** The National Tourism Administration of The People’s Republic of China, Increasing Trend in China’s Online Travel Industry Whitepaper(2012-2015) -5Private and Confidential
  • 7. 3 Key Factors Boosting Continuous Growth • Tour operators Online agencies (OTAs) and suppliers provide more product features such as car rentals, ticket sales, tourist attractions • Increasing popularity in direct sales of travel products via third-party platforms • Provision of 24/7 online service • Transparent pricing; vertical search engines allow further price comparison • Location service from mobile networks facilitates the booking of nearby services or Online Players accommodations • Rise of segmentation for services such as supply of travel guides, vacation package group buy, etc. Consumer Habits • According to a report published by the China Tourism Academy in June 2012, the number of users booking travel arrangements have reached 42,070,000, with a recorded annual growth of 16.5%* * China Tourism Academy Wuhan Branch, 2012 Chinese Tourism Development Report -6Private and Confidential
  • 8. Table of Contents • Part 1 An overview of China’s online travel market - A history of China’s online travel market • An introduction to the value chain of China’s online travel market The current state of the online travel market Part 2 Competitive market segmentation in the online travel market - Midstream —— fierce competition among online agencies - Downstream —— continuous emergence of new marketing platforms • Upstream —— suppliers entering the online platform Weakening of the value chain in the online travel market Part 3 Parting the red sea: venturing off from users’ needs - Online travel industry: consumer psychological needs • Online travel industry: consumer profile Online travel industry: consumer behaviour analysis Part 4 iClick – key strategies to increase your revenue -7Private and Confidential
  • 9. Competitive marketing segmentation in the online travel market • From industry’s perspective, target users are highly fragmented. As indicated, the consumer has nearly visited 8 different categories from the beginning of the journey to sharing the trip experience. • According to BCG’s report on the travel industry, none of the existing travel websites are able to provide an all-rounded service while the consumer has to spend a lot of time visiting different sites for their travel itinerary. Hence, the ad conversion rate tends to be low. • Although travel sites from different tiers strive to enhance their service portfolio, but it is rather difficult to satisfy every single type of service demanded by the consumer. Not a single website was able to create a comprehensive, closed ecosystem of the services provided. Graph 2-1 China Online Travel Market Categories -8- -8 Private and Confidential -
  • 10. Upstream — suppliers entering the online platform Upstream — Suppliers: • Include airlines, hotels, attractions, car rentals and other travel service providers Revenue Model: • Suppliers generate profits from tourist resources and ancillary services Market situation and competition: • Airlines and hotels from upstream tend to use direct sales to enter into the competition as they offer services directly to consumers while eliminating costs given to the resellers through commission based • Although airlines and hotels provide single service only, but they have large capabilities in providing large discounts to the consumers in the competitive market • OTAs from the midstream have already accounted for a large market share in the industry but it is relatively difficult to steal users away while their consumer habits are gradually formed over the decade -9Private and Confidential
  • 11. Midstream — fierce competition among online agencies Midstream — Online Resellers: • Include online agencies, integrated eCommerce platforms etc. Revenue Model: • Connect suppliers with users to generate profits based on a commission based model through online transactions Market Situation and Competition: • Diversification of online platforms; new entries of online agencies and eCommerce players keep emerging as to capture more from the user market • Suppliers from the upstream market increased their sales effort • Downstream vertical search engines have captured a lot of visitor traffic, bring visitors towards suppliers and smaller online agencies - Confidential Private and 10 -
  • 12. Downstream — Continuous emergence of new marketing platforms Downstream — Marketing Platforms: • Include websites offering price comparison search, guides, reviews, etc. Revenue Model: • They are not involved in the transaction process of online travel booking but they mainly use vertical search engines or social network to attract visitors. They rely heavily in providing retail services to upstream and midstream companies for profits. Market Situation & Competition: • • • The success of the model is mainly determined by visitor traffic. New models keep appearing, e.g. Home Exchange* etc. Travel social networks for mobile users are growing rapidly in order to capture the market e.g. BreadTrip** etc. Major midstream online agencies are gradually improving their customized services in capturing users and traffic * Refers to the swapping of home between two friends, allowing them to enjoy a more personalized vacation ** BreadTrip – a new mobile application to record travel footprints with offline support and share travel experience with family and friends - Confidential Private and 11 -
  • 13. Weakening of the value chain The continuous improvement and updates made to the value chain result in the continuous weakening of the tiers within the industry. Graph 2-2 - The Value Chain of China’s online travel industry - Confidential Private and 12 -
  • 14. Table of Contents • Part 1 An overview of China’s online travel market - A history of China’s online travel market • An introduction to the value chain of China’s online travel market The current state of the online travel market Part 2 Competitive market segmentation in the online travel market - Midstream —— fierce competition among online agencies - Downstream —— continuous emergence of new marketing platforms • Upstream —— suppliers entering the online platform Weakening of the value chain in the online travel market Part 3 Parting the red sea: venturing off from users’ needs - Online travel industry: consumer psychological needs • Online travel industry: consumer profile Online travel industry: consumer behaviour analysis Part 4 iClick – key strategies to increase your revenue - Confidential Private and 13 -
  • 15. Parting the red sea: venturing off from users’ needs Despite the intense competition in the online travel market as previously described, the entire market will continue its growth at a phenomenal rate. According to a report from the China Tourism Academy, the country’s online travel transactions in 2014 will reach $4,580 billion Yuan, which will double the figure* from this year. The key to break out from this intensely competitive market is to win visitors. Currently, the marketing platform is at a competitive advantage because they have secured the top spot in visitor traffic, but suppliers using direct marketing as well as OTAs are able to increase the volume of sales by attracting more users. Volume of Sales = Number of users x Customer Conversion Rate. To gain shares in the market, both volume of sales and customer conversion rates need to be tackled. On one hand, the online travel company can actively try to find their online travel target users to boost visitor traffic. On the other hand, they can use specially targeted advertisement and promotions to raise their customer conversion rate. * China Tourism Academy Wuhan Branch, 2012 Chinese Tourism Development Report - Confidential Private and 14 -
  • 16. Parting the red sea: venturing off from users’ needs The Opportunity: Find the target users & personalized products To raise the sales for online travel agencies, it is important to find the target users and cater to different consumer groups by providing them with personalized information about travel products. 1. Who are they? 2. What do they want? 3. How do we find them? - Confidential Private and 15 -
  • 17. Online travel industry: consumer profile 1) Female and male ratio of online travel consumers** Internet users who are interested in the travel industry in 2012, 38% are female, 62% are male. 2) Age group (ratio) of the online travel consumers** 38% 62% As Generation Y became a major force of consumption, the travel industry saw the 20 - 40 age group making up the largest proportion of consumers online. They account for 68% of the searches. The market for Internet users aged 40 years old and above is also rising. 3) The location of the online travel consumers: distribution across cities Internet users from Beijing and Shanghai are most interested in obtaining information about travel. They are then followed by Internet users from Shenzhen, Guangzhou and Tianjin, etc. These five cities make up more than 35% of the total. * Source: iClick Database iClick’s unique audience data has collected a total of 1.7 billion user’s access data and 26 million active users’ data. The data is derived from the character traits of active users including their interests, hobbies and spending habits over the past 30 days in order to come up with 22 distinctive groups of audience segments such as “Paradise Seekers”, “Online Shopper, etc. It is then further divided these segments into 4 to 6 categories. This report is mainly based on the category of “Paradise Seekers”, which include users in terms of their usage on computers, tablets and Smartphones; Areas restricted to Internet users within China; period between Jan to Dec 2012. ** iClick is based on the browsing sites of Internet users and compared with the data from iResearch and Comscore to generate user’s Private and 16 - Confidential gender and age .
  • 18. Online travel industry: consumer profile Time of Browsing AM PM 4) Time of browsing Users are most active browsing online from 10am to 12 noon and 8pm to 10pm in the evening. Least Active Most Active 5) Browser version When it comes to browsers, it appears that 34% of consumers in the online travel industry would like to try new things. They are particularly keen on using the latest version of browsers*. * latest version means that said browser version has been released for use over the past six months - Confidential Private and 17 -
  • 19. Online travel industry: consumer profile Devices used for Browsing Devices used for Booking 2.3% Smartphone PC tablet Desktop 5.7% 92% Smartphone PC tablet Desktop 6) Devices used for browsing and booking 73% of the typical online travel consumer uses a desktop to gain access to the internet. Those who make use of a smartphone or a laptop/tablet amounted to 19% and 8% respectively. However, as the penetration rate of smartphone usage continues to increase, more and more users obtain information about hotels, attractions, maps, directions and instructions, etc., via the use of their smartphones on the go. It is expected that smartphone usage will increase exponentially. However, as users are not yet comfortable with entering information for payment while they are on the go, they are still refused to call the supplier directly by phone as to make a reservation or a purchase. Users who make use of a mobile phone or Smartphone for their reservations amounted to nearly 2.3%. - Confidential Private and 18 -
  • 20. Online travel industry: consumer profile 18% Website* Vertical Search Engines 10% OTAs 9% Reviews & Ratings websites Channels of obtaining information % 55 Comprehensive Search Engines 5% 3% Travel channels or pages on large-scaled sites 7) Top 5 Channels of obtaining information Currently, it appears that a majority of the online travel consumers obtain information on trips and voyages via various channels. Comprehensive search engines and vertical search engines are found to be mostly used by these users. * include official websites of tourism board, hotels, airlines and major attractions - Confidential Private and 19 -
  • 21. Online travel industry: consumer profile Conversion Time 15% 8% Conversion Path 7 — 14 Days 32% 10% <7 Days 45% 18% Touch Points <10 28% 10 — 20 15 — 30 Days 20 — 30 >30 >30 Days 44% 8) Conversion time From the first viewing of an ad to the point of final conversion, it takes about 7 to 14 days for such change to happen accounting for almost 50% of the online travel consumers. This indicates that ads must be implemented and published at various stages (of site visits) in order for the consumer to be converted and attracted by the advertisement. 9) Conversion path The term "touch point" refers to the number of times a consumer comes into touch with an advertisement. Almost 50% of all online travel consumers require between 10 to 20 touch points before they finally convert. This process includes the use (and visit of) comprehensive search engines, vertical search engines, official websites of tourism boards, hotels and airlines, as well as reviews, ratings and how-to type of strategic sites, forums, travel channels in large-scale sites, OTAs and large-scale online retail platforms, etc. - Confidential Private and 20 -
  • 22. Online travel industry: consumer psychological needs Most popular travel destinations for consumers Destinations within China Sanya Xiamen Lijiang Jiuzhaigou Guilin Beijing Chengdu Qingdao Xi’an Hangzhou 1 2 3 4 5 6 7 8 9 10 Destinations outside of China Hong Kong SAR and Macao SAR Thailand Korea Japan Maldives Indonesia Singapore Taiwan Cambodia Malaysia 10) Places of Interest Online travel consumers are most interested in the following travel destinations within China: Sanya, Xiamen, Lijiang, Jiuzhaigou, Guilin, Beijing, Chengdu, Qingdao, Xi’an and Hangzhou. Online travel consumers are most interested in the following travel destinations outside of China: Hong Kong, Macau, Thailand, Korea, Japan, Maldives, Indonesia, Singapore, Taiwan, Cambodia and Malaysia. - Confidential Private and 21 -
  • 23. Online travel industry: consumer psychological needs Interest 9.63X 5.53X 2.21X 2.11X 1.51X Travel Jewelry & luxury goods Computers & Electronics Beauty & Cosmetics Real Estate 11) Points of interest As consumers in this industry generally have more disposable income than the average online users, they are more inclined to browse about “jewelry and luxury goods” as well as “computers and electronics”, other than obtaining information related to travel. Relevant data shows that these consumers display 9.63 times and 5.53 times more interested in information falling under these two respective categories than the average online users. - Confidential Private and 22 -
  • 24. Online travel industry: behaviour analysis The backpacker Self Traveller Honeymooner Photographer Shopper Age Group TOP 20-29 30-39 20-29 max. followed 30-39 followed by 30-39 by 30-39 20-29 Origin Beijing, Guangzhou, Shanghai, Chengdu, Wuhan, Fuzhou, Hangzhou Beijing, Shanghai, Chengdu, Tianjin, Guangzhou, Xi’an, Suzhou, Shenzhen Beijing, Shanghai, Tianjin, Hangzhou, Suzhou, Nanjing, Shenzhen Beijing, Shanghai, Chengdu, Tianjin, Hangzhou, Suzhou Beijing, Guangzhou, Shenzhen, Shanghai, Chengdu, Tianjin Gender ratio (M)52.8% / (F)47.2% (M)71.1% / (F)29.9% (M)64.4% / (F)35.6% (M)70.5% / (F) 29.6% (M)38.9% / (F)61.1% Interests eCommerce & online retail, sports, leisure and entertainment Automobile, jewelry & luxury goods, banking and finance Jewelry and luxury goods, cosmetics and beauty products Computers and electronics eCommerce and online retail Device(s) used for Internet PC PC and Mobile PC PC PC and Mobile TOP - Confidential Private and 23 -
  • 25. Online travel industry: behaviour analysis The backpacker Self Traveller Honeymooner Photographer Shopper Conversion Path 7-14 Days 7-14 Days followed by 15-30 Days >30 Days 15-30 Days 7-14 Days followed by less than 7 Days Touch Points >30 10-20 followed by 20-30 >30 10-20 <10 Specific characteristics • “Graduation trips”, primarily students in universities and born in 1990s (not much ratio difference between male and female) • • • Usually a large majority of people joining graduation trips and mostly local travel; Less majority choose to travel within China and Taiwan Mostly car owners and family oriented with money surplus available for frequent travel for relaxation • • Honeymooners are mostly in their 80s, originated from countries with high living standards (more males in this group) Look for romantic, relaxing holidays especially on the coast; Main destination within China is Hainan and outside of China would be Maldives, Tahiti, Europe, etc. • • Photography lovers, mostly males and born in the 70s and 80s, great interest in electronics Primarily prefer to choose destinations known for their exotic landscape and seasonal travellers • Primarily female, born in late 70s and are usually from well developed cities within China • Self travellers are predominantly made up of late 70s and early 80s, more males in this group “ Most of them have successful career and love to shop for luxury goods to reward themselves or to buy it for friends and family. They are also avid online shoppers. - Confidential Private and 24 -
  • 26. Table of Contents • Part 1 An overview of China’s online travel market - A history of China’s online travel market • An introduction to the value chain of China’s online travel market The current state of the online travel market Part 2 Competitive market segmentation in the online travel market - Midstream —— fierce competition among online agencies - Downstream —— continuous emergence of new marketing platforms • Upstream —— suppliers entering the online platform Weakening of the value chain in the online travel market Part 3 Parting the red sea: venturing off from users’ needs - Online travel industry: consumer psychological needs • Online travel industry: consumer profile Online travel industry: consumer behaviour analysis Part 4 iClick – key strategies to increase your revenue - Confidential Private and 25 -
  • 27. iClick – key strategies to increase your revenue From Media Buy to Audience Buy The fragmentation of the industry's user profile means that we can no longer rely on the typical behavioral patterns when it comes to media buying. We need to move towards automating the traditional methods of media buy. With a better understanding of the typical traveler’s behavioral pattern, needs and demands, our robust technology in audience buy can assist online travel advertisers in locating their target consumers, investing in advertisements and marketing in a targeted manner. Media Buy Audience Buy Difference in Focus Mainly focus on media content Mainly focus on personal traits of the consumer Difference in approach Ad placement and position Audience segment and needs Difference in Technology Targeting by URL and web context Targeting by users cookies Distributed in a “net-casting” manner Create personalized ad display for online users who exhibit similar behavior patterns that are most relevant Features * The “Database of Audience Classification” will build a personalized profile catered for each and every target user. The data can be categorized into the following types: demographics, geographic locations, lifestyle, types of social media used, points of interest, etc. Every category will be further divided into sub-categories in forming a complete and comprehensive description for each individual. - Confidential Private and 26 -
  • 28. Solution to increase the conversion rate of purchase Volume of Sales = Number of users x Conversion Rate of Purchase It is essential to consider customers’ needs as top priority if we are to seize the market. So how can we effectively make "audience buy" a reality? 1) Audience buy via audience segment targeting iClick connects quality media partners and covers over millions of Internet users. The users are categorized into 22 categories in accordance to their behavior traits. Within each category, we further classified these individuals into 4 to 6 different levels. With the specific performance data available from each category, iClick is designed to provide any online travel clients in performing audience buy by optimizing their advertising campaigns across online channels for the best configurations and thus to maximize ROI in a sustainable manner. • For example, products such as an "Island Honeymoon" are specifically recommended to female online users aged between 20-29 who are interested in wedding gowns and rings. In accordance to their income level and regular browsing habit, we can simply divide the ads into “great value” or “premium relaxation” • Particular segment who have once searched for flight tickets and hotel reservation about South East Asia, we can further sub-divide the segment to “flight deals” or reservation for “luxury hotels” - Confidential Private and 27 -
  • 29. Solution to increase the conversion rate of purchase 2) Cross-channel solution for audience fragmentation In response to the continuous growth of the online market and the increasing complexity in the conversion process of an online travel consumer, the fragmentation of this particular target audience means that a single channel of advertising is no longer able to satisfy the needs of the marketer. Hence, the primary use of cross channel nowadays is essential for marketers to gradually catch on in delivering their target markets with relevant messages. Channel Assist Effect across various media: Accurate analysis of various media across different channels for channel optimization resulting in the "channel assist effect" - Confidential Private and 28-
  • 30. Solution to grow the number of target audience Identify potential customer using machine learning The traits and behavioral patterns of an online travel consumer are extremely complex. With more and more online travel products entering the competition, more potential users would be able to identified. It is therefore vital for marketer to invest in machine learning to identify potential customers akin to their existing customers in terms of their needs and behavior. Specific traits of this population group: Male, 30-39, High Income, Beijing Browsing habits and preference(s): Business class airfare Consumer sample Gadget for internet access: Browser Resolution Time spent online Sites browsed and keywords searched Number of clicks on a site ⋯⋯ (Over 600 traits) Let’s set OTA client as an example. The client desires to promote its business class fare deals to customers, XMO will first collect all the relevant data of the related customer segment including their personal traits, browsing habits and interests in order to integrate such data into the database. XMO will then employ the learning sample and use that as a "prototype" to classify other Internet users based on the level of similarities of personal traits, habits and preferences in order to determine whether Private - Confidential the potential users are matched for the advertising and 29 campaign.
  • 31. About iClick • iClick has pioneered Asia's first Cross-Marketplace Optimization (XMO) Platform, introducing algorithmic optimization and programmatic media buy with exclusive focus on performance marketing inventories. • Integrate search marketing, display ad and mobile marketing to enable the channel optimization for online advertising. • Primarily focus on managing and connecting internet marketing strategies across various channels that provide marketers with maximum efficiency and return on investment. • Over 100 advertisers from Fortune 100 companies and various reputable multinationals; Specialized in serving sectors with high concern on advertising performance such as banking/finance, travel, CPG and eCommerce. • Offices in Hong Kong, Beijing, Shanghai, Shenzhen, Singapore, Taiwan and Korea with over 200 staffs. - Confidential Private and 30 -
  • 32. iClick – XMO Platform iClick's proprietary XMO platform, the only online buy-side platform available for media buyers that provide marketers with maximum efficiency and return on investment by involving optimization algorithms and taking into account of numerous performance data as to predict online campaign performance in various online channels. Also, XMO offers powerful and actionable insights through its robust, intuitive reporting and analytics system, making sustainable performance possible for every marketer. Audience Builder Media Aggregator XMO can access to a variety of digital channels, biddable inventories and RTB exchanges to reach the maximum audience in your target market as shown below: • • • Over 95% in Hong Kong Over 90% in China Over 80% in South East Asia • Sophisticated data-based empirical analysis yields accurate insights that enable marketers to learn how customer behavior is affected at the key points along the converting funnel • Specialized in visualizing performance through a combination of canned and custom reports XMO Analytics • • XMO performs distinct audience segments with the classification of users’ interests and lifestyles to best meet the different needs from the advertiser Using machine learning to identify online users who exhibit similar behavioral patterns to your converting users • Leading RTB technology that is built on our self-invented cloud-based infrastructure and featuring the highest queries per second (QPS) • Advanced attribution model with multiple attribution settings available right from the platform Programmatic Buy - Confidential Private and 31 -
  • 33. Thank you Website:i-click.com.hk Weibo:weibo.com/iclickasia Email:sales@i-click.com.hk The intent of this document is to provide supplemental information solely based on the opinions of the Company. The Company has made no effort to verify the accuracy and suitability of any information contained in this document. Accordingly, the Company will have no liability or responsibility whatsoever for any content presented in this document. Private and Confidential