Using online to tap into the booming Asian market

Agenda:

1

Jon Baron

Head of

Multinational Sales

Using online to tap into the booming Asian travel market

2

Ed Pushman

Search Media Strategist

The Search Travel

market & adCenter

Eastern Opportunity: How online advertising can help you unlock the potential of the booming Asian travel market

Why Asia? – Tapping into the Consumer Potential

With about 61% of the world’s population living in the region in 2007, Asia-Pacific is a huge consumer market

China and India account for 37% of the world’s population

Source: US Census Bureau, International Data Base, July 16 2007. Emarketer calculations, August 2007

Asian Travellers Are Big Spenders

Singapore currently biggest spenders on travel (6 th of personal disposable income)

China, India and Indonesia will be among the world’s fastest-growing countries in travel

and tourism

Growth in Chinese spend on travel & tourism expected to be 4 times US growth

Source: www.Emarketer.com

And a lot of that money is going online...

73% of affluent Asians are online (pax) and spend more time online than any other medium (Asiabus)

1 in 5 of all travel sales in Asia-Pac will be online next year

“ In 2007, $17.7 billion worth of leisure or unmanaged business travel will be booked online in the Asia-Pacific region - up 28.3% from 2006. Strong future growth will ensure that the market about doubles to $35.5 billion by 2010 and approaches $42 billion in 2011.” Jeffrey Grau, Senior Analyst, eMarketer

No. of hours & time share on each medium per week Magazines 3.7 Hrs – 7 % Markets: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand Universe (Sample): Top/Mid Management – 16,519,992 (1,473) Source: Synovate AsiaBUS Survey June/July 2007 The Internet surpasses TV in time spent Top/Middle management Radio 10.6 Hrs – 19% Internet 20.8 Hrs - 37% TV 15.2 Hrs - 27% Newspapers 5.9 Hrs – 10%

The Ones to Watch: China & Indi a

China and India are two of the region’s largest and fastest growing

online travel markets

Last year they combined to capture just over 15% of the total online

travel market share

By 2011 their share will triple to 46.3%

Market share of online leisure/unmanaged business travel bookings for India and China – 2006 & 2011 (% of Asia-Pacific* total) Note: includes all online travel bookings whether paid for online or offline * Australia, China, India, Japan, New Zealand, South Korea; Source: eMarketer Sept 2007

What the Money Is Being Spent On Sample size: 6,736 Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate % Share of Respondents Travel Services bought online in the last 12 months 2006/07 China Hong Kong India Japan Malaysia Air Tickets 30% 20% 48% 37% 47% Hotels 30% 22% 21% 48% 32% Event Tickets 11% 12% 10% 15% 12% Travel Packages 15% 8% 15% 11% 12% Travel Insurance 11% 15% 5% 12% 11%

Online Is Not Only A Place To Spend But A Place To Plan, Share and Discuss Travel Purchases Base: Those who have traveled for business or leisure (Sample size: 5,871) Source: MSN/Windows Live Online Travel Survey 2007 conducted by Synovate % Share of Respondents Sources used for planning/ researching travel 2007 China Hong Kong India Japan Malaysia Internet 81% 76% 81% 93% 83% Printed Travel brochures 41% 49% 65% 65% 53% Guidebooks 53% 56% 29% 55% 41% Newspapers 40% 33% 40% 15% 49% Travel agents 41% 55% 40% 43% 54% Friends/relatives/colleagues 56% 46% 40% 29% 58% Magazines 39% 34% 40% 15% 49%

Online is a Strong Influencer of Offline Travel Bookings Researched online Purchased/ booked online Purchased offline Hotels 55% 33% 26% Air Tickets 54% 36% 25% Travel packages 37% 12% 18% Sightseeing t ours 36% 9% 19% Event tickets 30% 19% 19% Rental Car 17% 9% 13% Other Travel related services 33% 8% 15%

European Hot Spots for Asian Travellers UK, Germany & Italy lead the way Number of tourists arriving from China, HK, India, Japan and Malaysia in 2006 Source: Euromonitor > 1,000,000 500,000 – 1,000,000 < 500,000

Who, Where and Why? 39% Families 29% Couples 70% Leisure Top: Singapore, Dubai US & UK Europe: UK & Switzerland Emerging: Germany Bollywood Emergence of low cost Carriers ‘Open Skies’ govt policy Targets Destinations 17% Families 11% Couples 42% Organised Tours Top: Macau & Hong Kong (68%) Emerging: South Africa Europe: Austria , Backpackers/ Independent Traveller India 13% Families 26% Leisure 38% Organised Tours Opportunities 14% Families 14% Couples 49% Organised Tours 20% Families 32% Leisure 18% Organised Tours Top: China (70%) Emerging: Europe, Australia. North America Business Travellers Cruises and sea trips Top: South Korea, Thailand Leisure tourism & organised tours Top: Singapore Emerging: Macau, Hong Kong, Thailand Independent Traveller; Flexible travel packages to Australia & New Zealand Malaysia Hong Kong China Japan Source: Euromonitor

Case Study Cathay Pacific

The Campaign:

‘ Born to move’ campaign

Aim: to increase brand

awareness among frequent

travellers within Asia

Improve its position as

most admired airline

Ascertain reach and efficacy of

online branding for its target audience

Campaign results:

The survey results on MSN exceeded expectations:

Brand message association increased by 35%

Unaided brand awareness increased by 26.9%

The campaign was effective in establishing

the perception of Cathay Pacific as an airline

with the widest network.

Boosted purchase intent by 14.9%

“ There is no doubt in our mind that MSN is a great communications partner for the airline industry. We derived great value for our investment and the survey results exceeded our expectations.” Celine Ho Manager, Marketing Communications, Cathay Pacific Airways

Case Study Tourism Malaysia

Tourism Malaysia : Online Global Branding Campaign

Campaign objectives:

Increase brand visibility globally by showcasing Malaysia’s uniqueness

Create hype around Malaysia’s 50 th Golden Celebration in conjunction with Visit Malaysia Year (VMY)

Encourage potential tourists to visit Malaysia

Target audience:

Potential travellers globally aged 21+

Covered a total of 13 countries (Asia, Europe and North America)

Online tools used:

MSN / Windows Live Platform which includes:

MSN Homepage

Windows Live Hotmail

Windows Live Messenger

Windows Live Agent

Snapshot of Campaign Impact on target audience : Singapore & Australian s

91% Of Australians & 69% of Singaporeans exposed to the campaign were main/ joint decision makers for family travel (the campaign reached the desired audience)

Positive uplifts were seen by all key brand metrics indicating the online campaign initiated positive influence and achieved the set objectives.

Source: AdIndex Advertising Effectiveness Research 2007 conducted by Dynamic Logic Unaided Awareness Aided Brand Awareness Online Ad Awareness Brand Favorability Purchase Intent Not exposed to the online campaign Exposed to the online campaign 9% 6% 96% 94% 44% 34% 54% 49% 52% 47% 44% 41% Message Association +10% +5% +3% +5% +3% 0 20 40 60 80 100

Ongoing Online Engagement With Siti

Promotion of Malaysia continues with a Travel World First launched on 1 st November 2007

‘ Siti’ – new digital brand ambassador to promote national tourism via Windows Live Messenger

Taking Tourism Malaysia to the next level of interactivity via innovative technology

Potential to reach more than 285m instant messenger users across multiple markets worldwide

Add Siti to your Windows Live Messenger buddy list today : sitimalaysia@hotmail.com

Why Microsoft? We connect with your audience all day

Global reach, local knowledge, one point of contact Multinational Sales team have offices located in Hong Kong, Japan, London, New York, Paris, Singapore 465m unique users in 42 markets and 21 languages MSN & Windows Live Hotmail – more than 300 million active accounts worldwide More than 294 million active Windows Live Messenger accounts worldwide More than 111 million unique users worldwide (Source: Comscore, August 2007) Over 2.16 billion worldwide queries each month

Some of our Travel Customers:

adCenter and travel

Edward Pushman

Search Media Strategist

Microsoft adCenter

The Search Market Place

Live.com Search Live Maps and Virtual Earth adCenter

Microsoft’s UK Search Opportunity 7 Million 28 Million 9 Million 6. 1 % 81. 2 % 5. 4 % Source: comScore MediaMetrix, Aug 2007; queries per user per month 23 % 89 % 29 % No. 2 for share of users Users (UK-only) Share of Users Share of Queries

Integration

Autumn 2007 Core Investments

Coverage

4 x increase in index size

Query intent

Advanced query analysis

Query refinement

Auto Spell / Query Suggestions

RankNet

More intelligent algorithm

Structured information extraction

Product reviews / related people

Rich answers

Answers & multi media results (Coming soon)

Core Query Refinement Coverage Query Intent Local, Maps RankNet Structured Information Extraction Rich Answers

High Interest High Value Verticals Core Shopping Entertainment Health Local, Maps Shopping Entertainment Health Local, Maps

Local, Maps Find local business listings quickly and easily Sources: Microsoft Research Mapquest User Survey 82007; comScore MediaMetrix, August 2007 Core Shopping Entertainment Health Local, Maps Local search begins at a search engine Queries have local intent Active internet users use maps and directions

Local & Maps

The VE platform provides customers, partners, and developers with a set of integrated services for programming and building intelligent Web applications for location-based information. JLScoot: BE boosted online visits to highest levels ever & increased return visits by 47%. Number of unique visits per month increased by 11% Number of new visitors per month increased by 15% Aerial and Satellite Imagery Bird ’ s Eye View Proximity based Results

Microsoft adCenter increasing your ROI

Convert more with adCenter

High quality audience Paid Search and Travel Future of Search

Convert more Why Microsoft adCenter?

Our audience is more likely to convert than any other * NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website Percentage of click throughs that lead to conversion MSN/Live Search Conversion % Google Search Yahoo! Search AOL Search Total Average 5.8% 3.0% 4.2% 3.2% 3.2%

Our audience is more likely to convert than any other * NNR Jan-March 2007: Conversion equals a visit to a secured section of an advertiser’s website MSN/Live Search Conversion % Google Search Yahoo! Search AOL Search Total Average 9.4% 6.3% 6.7% 5.6% 6.6% Travel Percentage of click throughs that lead to conversion

High quality audience Why Microsoft adCenter?

Our audience is more engaged on your site *TGI Internet 2006 ** NNR Jan-March 2007 MSN/Live Search Average time spend on the destination site (mins) Google Search Yahoo! Search AOL Search Total Average 4.01 2.39 3.22 2.50 2.48 Level of Engagement

Our audience is more engaged on your site *TGI Internet 2006 ** NNR Jan-March 2007 Level of Engagement MSN/Live Search Average time spend on the destination site (mins) Google Search Yahoo! Search AOL Search Total Average 4.11 3.39 4.04 3.06 3.46 Travel

Paid Search and Travel

Spend for paid search 11% of travel companies said they spent more than £500,000 per year on PPC, and 25% said they spent over £1 million UP 57% UP 33% UP 23% DOWN 9% Paid for search listings increased from £337million in 2005 to more than £531 million in 2006 £600 £500 £400 £300 £200 £100 0% Spending in first half 2006 - £millions Paid-for Online Online Interruptive Search Display Classifieds Formats Spending

Click throughs Average Click Through Rate in Travel Microsoft adCenter 12% 10% 8% 6% 4% 2% 0% Average Click Through Rate Car Hire Cruises Ferries Flights Holidays Specialist Holidays Tourism Trains and Buses Travel Aggregators Accommodation

Actionable audience Intelligence 70 65 60 55 50 45 40 35 0 Females are More Likely to Click! Categories Ski Flights Car Hire Hotels Cruises Holidays Holidays Generic Brands Search Impressions Female Male

Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Impact of Events

Unique intelligent targeting Why Microsoft adCenter?