0
October 2007 ONLINE COMMUNITIES Crossing the chasm WILLIAM BAO BEAN SOFTBANK CHINA & INDIA HOLDINGS
China advertising revenues US$25.8bn in 2007 <ul><li>Internet and Search only 4.3% of total “publisher” intake </li></ul>N...
China Internet advertising and search revenues Units:  US$ millions Note:  Excludes agency fees Source: SBCI, Company repo...
Opportunity:  Communities <ul><li>69% of Chinese youth use social networking sites </li></ul><ul><li>Only children of only...
Online communities are where its at…where are the advertisers?  <ul><li>Online advertising spend in 2007 will hit US$1.17b...
Opportunity:  Music <ul><li>57% only download/listen to music online vs 32% in US </li></ul><ul><li>72% have played music ...
Opportunity:  Games <ul><li>Online gaming spend in 2007 will hit US$1.28bn </li></ul><ul><li>China has 40m gamers, only 21...
Opportunity:  Video <ul><li>Youth in China spends time differently than the US </li></ul><ul><li>TV content in China not c...
Video case study: Tudou <ul><li>Tudou has 47% share of the China online video market </li></ul><ul><li>Tudou sees 15bn min...
Crossing the chasm and doing it profitably <ul><li>Advertisers want: </li></ul><ul><ul><li>Reach customers where they are,...
Thank You! William Bao Bean [email_address]   +86 139 1789 8171
Upcoming SlideShare
Loading in...5
×

China Online Communities October 2007

2,135

Published on

Powerpoint for speech at Adtech Beijing on Online Communities in China October 16th 2007

Published in: Economy & Finance, Travel
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,135
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
155
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide
  • Transcript of "China Online Communities October 2007"

    1. 1. October 2007 ONLINE COMMUNITIES Crossing the chasm WILLIAM BAO BEAN SOFTBANK CHINA & INDIA HOLDINGS
    2. 2. China advertising revenues US$25.8bn in 2007 <ul><li>Internet and Search only 4.3% of total “publisher” intake </li></ul>Note: Excludes agency fees Source: SBCI, GroupM, Company reports, National Bureau of Statistics of China, Zenith Optimedia
    3. 3. China Internet advertising and search revenues Units: US$ millions Note: Excludes agency fees Source: SBCI, Company reports
    4. 4. Opportunity: Communities <ul><li>69% of Chinese youth use social networking sites </li></ul><ul><li>Only children of only children </li></ul><ul><li>Chinese youth have 37 “net” friends vs 18 in the US </li></ul>Source: Microsoft/MTV Circuits of Cool Project 2006/2007 (Millward Brown Sadek Wynberg OTX)
    5. 5. Online communities are where its at…where are the advertisers? <ul><li>Online advertising spend in 2007 will hit US$1.17bn </li></ul><ul><li>Online communities capture <5% </li></ul>Source: SBCI, Company reports
    6. 6. Opportunity: Music <ul><li>57% only download/listen to music online vs 32% in US </li></ul><ul><li>72% have played music on an MP3 in the past month </li></ul><ul><li>39% have downloaded and saved a song to their phone in the past month </li></ul><ul><li>63% have illegally downloaded music in the past month </li></ul><ul><li>Only 6% listen to music on the radio vs 20% in Asia </li></ul><ul><li>Only 8% watch music videos on TV vs 19% in Asia </li></ul><ul><li>Ad supported music in its infancy but growing fast </li></ul>Source: MTV 15-35 year old urban youth April 2007 (Synovate)
    7. 7. Opportunity: Games <ul><li>Online gaming spend in 2007 will hit US$1.28bn </li></ul><ul><li>China has 40m gamers, only 21m of whom pay </li></ul><ul><li>81% between 18-30 years old, female players on the rise </li></ul><ul><li>71% have high school education with 27% holding BAs </li></ul><ul><li>Gamers’ favorite promotions include 57% for free trials, 50% in-game treasure hunts and 42% game master gifts </li></ul><ul><li>64% of gamers play free games </li></ul><ul><li>Ad supported gaming gaining traction </li></ul>IDC, CGPA 2007
    8. 8. Opportunity: Video <ul><li>Youth in China spends time differently than the US </li></ul><ul><li>TV content in China not compelling… </li></ul><ul><li>… and the most compelling “voting” shows taken off of during prime time </li></ul><ul><li>Ad supported video in its infancy but growing fast </li></ul>Source: Microsoft/MTV Circuits of Cool Project 2006/2007 (Millward Brown Sadek Wynberg OTX)
    9. 9. Video case study: Tudou <ul><li>Tudou has 47% share of the China online video market </li></ul><ul><li>Tudou sees 15bn minutes per month vs 3.5bn for YouTube </li></ul><ul><li>Tudou’s average session is 40 minutes vs 15-20 for YouTube </li></ul><ul><li>Tudou sees 4m unique visitors per day </li></ul><ul><li>Tudou launching advertising platoform </li></ul><ul><ul><li>20 major advertisers </li></ul></ul><ul><ul><li>Frame and “barn doors” </li></ul></ul>Source: Company reports, Hitwise
    10. 10. Crossing the chasm and doing it profitably <ul><li>Advertisers want: </li></ul><ul><ul><li>Reach customers where they are, not just through TV </li></ul></ul><ul><ul><li>Avoid expensive Olympic TV ads </li></ul></ul><ul><ul><li>Control ad timing, location, context, format, pricing model </li></ul></ul><ul><ul><li>Coordinated campaigns across media and measurable results </li></ul></ul><ul><li>Agencies want: </li></ul><ul><ul><li>To become one stop shops for online services </li></ul></ul><ul><ul><li>Offer search while still making a cut </li></ul></ul><ul><li>Publishers want: </li></ul><ul><ul><li>Monetize unsold inventory </li></ul></ul><ul><ul><li>Raise pricing </li></ul></ul><ul><ul><li>Avoid cannibalizing CPD sales </li></ul></ul><ul><ul><li>Protect users from bad advertising </li></ul></ul>
    11. 11. Thank You! William Bao Bean [email_address] +86 139 1789 8171
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×