Asia SEM (Search Engine Marketing) - An Overview, contains includes a collection of research and findings on the search engine landscape within Asia, focusing mainly on Japan, Korea and China. Useful for any marketer, agency or researcher, looking to better understand the SEM landscape in Asia.

1. January, 2009 “ Introducing Search in North Asia.” www.sozon.com Digital Marketing Specialists

2. The Asian Online Landscape SEO at 32% of the share is the strongest driver of traffic in Japan - Impress Internet R & D Whitepaper 2007

3. Asian Internet User Growth Geographic Distribution of Internet Users (MM) 390 490 620 723 850 975 1,120 1,299 Note: ROW denotes Rest of the World | Source: Morgan Stanley Research Asia (547MM users, +24% Y/Y); Europe (336MM, +10%); N. America (211MM, +3%); LatAm (110MM, +17%); ROW (95MM, +27%) Internet Users 15+: comScore World Metrix, April 2008 Asia now comprises more than 40% of the world’s Internet users & is still growing rapidly!

4. Asia also leads the world in many categories… Source: Morgan Stanley Research Mobile eCommerce: Japan MicroTransactions via SMS: Philippines Most Online Users: China Online Gaming: China Mobile Search: Japan Social Networking: S. Korea Blogging: Japan Broadband: S. Korea eGovernment: S. Korea

7. Search Engine Market Share in Asia 60% 18% 10% 55% 45% 60% 10% 20% 27% 64% 20% 70% 5% 20% 75% 25% 51% 23% 43% 10% 43% 31% 11% 21% 71% 4% 5% 11% 77%

9. Japanese Online Space….

10. The Japanese Online Advertising Market By 2011, Search will represent 36% of all web based online ad spending, with Mobile Search forecast to represent 40% of all mobile ad spending by 2011 Dentsu Ad Report, 2007 * I ncludes banner, text, rich media, streaming video, tie-up and e-mail ads; ** Includes image, text, tie-up, e-mail and (from 2007 onward) mobile search ads ¥ Billion

11. Search Marketing in Japan.. Japanese consumers are online: “ More than 70% of the population are internet users . Approximately 88.9 Million users…. ” “ There are more than 90 Million mobile internet users. (the largest in the world)…” — eMarketer, 2007 And use search engines: “ 92% of internet users use search engines to find information” “ 51% of mobile users, use search engines” - ComScore, 2007 “ 75% of the Japanese respondents said that if they could not find the company in the search results, their image toward that company would go down. — Japan Ministry of Affairs Report, 2007 And it works! “ SEO (32%) and SEM (25%) are considered the strongest drivers of traffic in Japan by Japanese marketers .” — Impress R&D Whitepaper, 2007 “ 32% of users that have seen a ‘keyword search ad on TV or a train, had actually used that keyword in a search ” — Goo Research, 2007 Search influences 20%-30% of all purchases made at retail locations.” — eMarketer 2007

12. The Japanese Engines Natural Search Listings Paid Search Listings Distribution Partners Distribution Partners

15. Mobile Search Engine Usage 81% have used Yahoo! Mobile with Google mobile second with 41.5%

16. In Japan - Search is “Cross Media” “It’s a button on your phone” “it’s a keyword on every ad!”

18. Korean Online Space….

19. The Korean Internet Environment Korea leads the world in proportional search spending and high end internet penetration Koreans are more online than anyone: “ More than 71% of the population are internet users . Approximately 34.8 Million users…. ” “ 44.5 million mobile subscribers in total, or a 90.7% penetration rate…” “ 85% Broadband penetration , the highest in the world”

21. Main Korean Engine’s Distribution Partners Distribution Partners Overture Sponsored Links Power Links Pro Plus Dictionary Business Ads & Other Links Google Paid Listings Q & A Image Paid Listings News / Blogs / Video / Organic

22. Naver Search Result Structure Sponsored Links Power Links Pro Plus Biz Site Ads Dictionary Q & A Local Information Shopping Sites Books Video Prof Resources Music News Web Images

23. Chinese Online Space….

25. Engine use varies with Socio Demographics And Socio Economic Status (High end user* Market Share) Engine Preference varies by location By user Age Distribution * Aged 25+, 4 yr degree, Earn 3,000+ RMB / Mnth Search Engine Share Baidu Other Yahoo Google

26. The Chinese Engines Natural Search Listings Hot Space Distribution Partners Distribution Partners Exact Match Paid Listings Paid Search Listings Natural Search Listings Intelligent Match General Ads

27. China – Comparative User Search Patterns

28. About Sozon SEO at 32% of the share is the strongest driver of traffic in Japan - Impress Internet R & D Whitepaper 2007

29. Sozon in Brief Based in Ginza, Tokyo. Sozon employs 35+ experienced, multilingual professionals, uniquely focused on delivering seamless business results to our clients both domestically and globally. A search pioneer in Japan, Sozon has focused on combining global best practice in search and online marketing services & technology, with Japanese attention to detail, speed & responsiveness. Sozon has established, proven processes to help manage challenging communications, smooth project delivery and maximize both results and performance for our customers. Sozon both delivers solutions in-house and partners with ‘best of breed’ technology providers / agencies both in Japan and throughout the world. Giving us more flexibility in providing competitive advantage Philosophy & Services People Evolution Process & Results Technology & Partnerships F ounded in 2003, Sozon has evolved from a small Japanese SEO software company to a Search & Interactive Marketing agency offering customized solutions for the Japanese and Asian markets.

31. Integrated Digital Marketing Services Analytics Log File Analysis / Reporting Click-stream Analysis Campaign Conversion Tracking Technology Integration Site Optimization Site Review Navigation & Usability Design Application Design Landing Page Optimization Online Advertising Digital Media Campaign Planning Media Planning / Buying Creative Design & Execution Mobile / Web 2.0 Promotions Search Engine Optimization (SEO) Site Analysis & Consulting Web Tuning Guide Site Optimization Website Ranking & Reporting Pay Per Click Advertising (PPC) Keyword Research / Buying Bid / Budget Management Program Optimization Copy Writing / Translation Affiliate Marketing Campaign Planning & Optimization Affiliate Program Management Detailed Reporting / Analysis

32. Our Optimization Process

33. Managing the Digital Marketing Environment Landing Pages Campaign Pages Web Analytics Web Analytics Pull Marketing Push Marketing RSS Marketing Email Marketing CGM Marketing Blogs SNS Viral Marketing Web Optimization SEO Usability LPO Your Digital Site Web / Mobile External Efforts Conversion Zone Marketing Database PPC / SEM Affiliate Marketing Media Buying Widgets / Apps

36. Regional Network & Partnerships Sozon is currently implementing search & online programs across more than 14 countries, with a primary focus on Japan. All work is centrally managed out of our Tokyo office from our multinational team, with the assistance of “in market” partnerships as need. = Active Campaigns Key Partners

37. Some of our Clients Some Key Customer Accounts under Management

38. www.sozon.com Digital Marketing Specialists