- Mobile online TV coverage has grown significantly in the past 3 years, with mobile online TV viewers now matching PC viewers in terms of time spent. Most of this growth has come from older, higher income earners. - Advertising spending on mobile online TV currently lags behind the audience growth, accounting for only 9% of spending versus 33% of traffic. - Mobile online TV advertising spending will only start matching PC levels when tracking capabilities become more common. - Video viewership will continue fragmenting as smart TV penetration increases, presenting challenges around measuring, planning, and integrating video across all online screens.

1. Video Beyond PC:
Opportunity in Mobile and Beyond
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2. 72% of China’s netizens own a
smartphone
And they spend 2.34 hours on their
phone using the internet
Data Source: IMMS 2014 China Netizen Internet Behavior

3. 42% of China watch
online videos every week
Data Source: CNRS 2013

4. In the past 3 years, Mobile Online TV
coverage has almost tripled
Data Source: iUserTracker, June, 2014
2012 2013 2014
70
million
116
million
200
million

5. 15
mins
25
mins
46
mins
Mobile Online TV viewers have caught up
daily time spent on video
41
mins
42
mins
46
mins
2012 2013 2014
Data Source: iUserTracker, June, 2014
PC
Mobile

6. 2012 2013 2014YTD
Mobile WAP 65,396 184,683 198,331
Mobile APP 1,474,077 4,969,966 14,088,152
PC 28,409,611 27,736,602 28,301,310
95% 84% 66%
5%
15%
33%
MONTHLY TRAFFIC TO ONLINE VIDEO SITES
(PAGEVIEWS, MILLION)
Mobile traffic to video sites has also grown
significantly; meanwhile PC traffic has
stagnated
Data Source: iUserTracker, June, 2014

7. Already, 31% of YouKu’s monthly
audience comes from mobile.
Not only that, the mobile OTV audience
contribute to 54% of YouKu’s page
views.
Data Source: iUserTracker & mUserTracker, June, 2014

8. This trend is being reflected on other sites
Top 10 Online Video Websites
Video Site
Total Monthly
Users (mil)
PC
%
APP
%
Page Views
Total
(mil)
PC
%
APP
%
YOUKU 354 69% 31% 9,748 45% 54%
IQIYI 345 77% 23% 5,990 52% 48%
LETV 263 89% 11% 2,696 74% 25%
TUDOU 176 89% 11% 1,844 76% 23%
PPTV 162 73% 27% 2,505 80% 20%
56 157 98% 2% n/a
FUNSHION 157 89% 11% n/a
XULEI KANKAN 157 97% 3% 1,429 98% 2%
PPS 141 54% 46% 3,039 12% 88%
KU6 135 100% 0% n/a
Data Source: iUserTracker & mUserTracker, June, 2014

9. Growth has accelerated amongst older,
higher income audiences
Under 24 57 84
25-30 46 67
31-35 26 41
36-40 19 32
Above 40 13 24
No Income 18 28
Below RMB1,000 7 10
RMB 1,000-2,000 16 20
RMB 2,000-3000 33 47
RMB 3,000-5,000 41 62
Male 94 146
Female 67 101
Dec 2013 June 2014
+55%
+51%
+47%
+46%
+58%
+68%
+85%
+56%
+47%
+46%
+58%
+68%
Data Source: mUserTracker, June, 2014
Mobile Online TV Monthly Population (Million)

10. Mobile OTV viewers skew higher income13%
12%
21%
23%
16%
15%
11%
4%
8%
19%
25%
32%
NO INCOME BELOW RMB1,000 RMB 1,000-2,000 RMB 2,000-3000 RMB 3,000-5,000 ABOVE RMB 5,000
MONTHLY PERSONAL INCOME
OTV MONTHLY COVERAGE % BY PC & MOBILE
OTV-PC
Monthly Coverage%
OTV-Mobile
Monthly Coverage%

11. Yet, advertising still lags behind audience
growth
91%
66%
98%
84%
100%
95%
9%
33%
2%
15%
5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2014 YTD Spends
2014 YTD Traffic
2013 Spends
2013 Traffic
2012 Spends
2012 Traffic
ONLINE VIDEO SPENDS VS. TRAFFIC
Data Source: iAdTracker, iUserTracker, June, 2014

12. P&G UNILEVER MARUBI 37WAN LOREAL MARS CHINAMOBILE COLGATE
UNI-
PRESIDENT
MENGNIU
APP 11 4 67 0 2 3 1 2 0 3
PC 178 105 39 88 85 72 73 45 40 35
94%
97%
37%
100% 97%
96% 99%
96% 99% 93%
6%
3%
63%
[VALUE]% 3%
4% 1%
4% 1% 7%
TOP 10 ADVERTISERS' AD SPEND 2014 YTD
(MILLION RMB; %)
Lack of accountability hinders spending from
the big players
Data Source: iAdTracker June, 2014

13. THE FUTURE
Mobile OTV ad spend will only start matching
PC OTV spends when tracking becomes
common place
There is headway, tracking agencies have just
launched SDK cookies and mobile OTV spends have
risen in the past year.

14. THE FUTURE
Video viewership will continue to fragment as
more smart TVs enter the market
Smart TV penetration amongst higher income
households will only grow and video viewership will
follow—when the Chinese government provides more
regulatory flexibility for Smart TV content.

15. THE FUTURE
The challenge will be in measuring, planning
and integrating across all online screens
As Online TV fragments across multiple screens the
need for a single source of data for online video will be
paramount for holistic planning.

16. Summary
• In the past 3 years, Mobile Online TV coverage has grown significantly. Mobile Online
TV viewers now match PC viewers in terms of time spent.
• Most of this growth has come from older, higher income earners, 32% of Mobile OTV
viewers earn more than RMB 5,000 a month vs. 15% of PC online viewers.
• Advertising lags behind the audience growth—share of spend is only at 9% vs. 33%
of traffic.
• Mobile OTV ad spend will only start matching PC OTV spends when tracking becomes
common place.
• Video viewership will also continue to fragment as more smart TVs enter the market.
The challenge for marketers and agencies will be in measuring, planning and
integrating video across all online screens.

17. Thank You
For any enquiries contact
Bhasker Jaiswal, Managing Partner - Business Intelligence
Bhasker.Jaiswal@omd.com
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