The document presents insights on the rise of mobile online TV consumption in China, highlighting that mobile viewers have caught up with PC viewers in terms of daily video viewing time. It notes that 32% of mobile online TV viewers earn over RMB 5,000 monthly, with significant growth coming from older, higher-income demographics. However, advertising investments have not kept pace with audience growth, and future advertising spend will only align with PC expenditures once better tracking solutions are implemented.

1. Video Beyond PC: Opportunity in Mobile and Beyond
1

2. The moving image has changed
1892
1899
1927
1954
2010
2010
2005
2007

3. 72% of China’s netizensown a smartphoneAnd they spend 2.34 hours on their phone using the internet
DataSource:IMMS2014ChinaNetizenInternetBehavior

4. 42% of China watch online videos every week
DataSource:CNRS2013

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

6. 15
mins
25
mins
46
mins
Mobile Online TV viewers have caughtup daily time spent on video
41
mins
42
mins
46
mins
2012
2013
2014
DataSource:iUserTracker,June,2014
PC
Mobile

7. 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
DataSource:iUserTracker,June,2014

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

9. 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

10. 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
NoIncome
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)

11. Mobile OTV viewers skew higher income
13%
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-PCMonthly Coverage%
OTV-MobileMonthly Coverage%

12. 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
DataSource:iAdTracker,iUserTracker,June,2014

13. 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%
0%
3%
4%
1%
4%
1%
7%
TOP 10 ADVERTISERS' AD SPEND 2014 YTD
(MILLION RMB; %)
Lack of accountability hinders spendingfrom the big players
DataSource:iAdTrackerJune,2014

14. 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.

15. THE FUTURE
Video viewership will continue to fragment as more smart TVs enter the marketSmart 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.

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

17. ONE CONSUMER
MULTIPLE SCREENS
ONE MEASUREMENT

18. 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.

19. Thank YouClick for more detailsClick ZMadison BoomFor any enquiries contactBhasker Jaiswal, Managing Partner -Business IntelligenceBhasker.Jaiswal@omd.com
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