ZenithOptimedia - China Media & Digital Scene 2014

CHINA GDP STEADIES UNDER RE-BALANCING
While GDP growth has decelerated as expected, it has tracked neatly to the official target of 7.5%
Source: National Bureau of Statistics –July 2014
Less dependence on investment in infrastructure and capital-intensive industries means a greater focus on domestic consumption.
FROM BUILDINGS, INFRASTRUCTURE,
& MANUFACTURING…
…TO CONSUMPTION AND SERVICES
9.5%
9.1%
8.9%
8.1%
7.6%
7.4%
7.9%
7.7%
7.5%
7.8%
7.7%
7.4%
7.5%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Q22011
Q3
Q4
Q12012
Q2
Q3
Q4
Q12013
Q2
Q3
Q4
Q12014
Q2
CHINA'S GDP GROWTH YEAR-ON-YEAR
2

GDP PER CAPITA
GDP per capita rises, but plenty of room to grow at just 29% of the global average.
Source: National Bureau of Statistics -2014 Q2
Household consumption rate* is ultra-low at roughly 34%. Some economists think that China’s consumption rate is lower than the U.S.’s ever was in its entire history.
*Household final consumption expenditure (formerly private consumption) is the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses.
Source: World Bank National Accounts data and OECD National Accounts data files -2014
RMB 22,077(USD $3583)
2014 GDP Per Capita -China
USD$12,356
2014 GDP Per Capita –Global Average
1,565
1,731
1,940
2,203
2,403
2,611
2,870
3,122
3,345
3,583
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
3500.0
4000.0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
GDP PER CAPITA (USD)
+7% YOY
VS.
34%
69%
58%
52%
3

CONSUMER SENTIMENT RECOVERY
Source: BCG China Consumer Sentiment Survey 2011-2014
36%
38%
33%
25%
40%
29%
40%
44%
24%
33%
27%
31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011
2012
2013
2014
MIDDLE-CLASS AND AFFLUENT CONSUMER INTENTION TO SPEND -COMPARED TO LAST YEAR
Plan to spend more
Plan to spend about the same
Plan to spend less
Compared to the performance of the past two years, consumer sentiment has made a recovery, with 75% planning to spend at least as much as last year.
75%
67%
62%
64%
4

LOWER-TIER GROWTH DRIVERS
However, it’s not upper tier consumers, but rather lower tier consumers, who are responsible for the overall improvement in consumer sentiment.
Source: BCG China Consumer Sentiment Survey 2011-2014
35%
36%
31%
26%
28%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Big Cities
Small Cities
% OF MIDDLE-CLASS AND AFFLUENT CONSUMERS WHO PLAN TO SPEND MORE THAN LAST YEAR
2012
2013
2014
-3% PY
-7% P2Y
+8% PY
5

SIX MEGATRENDS DRIVING CHINA
1. URBANIZING A BILLION PEOPLE
2. HUGE MANUFACTURING SCALE
3. RISING CHINESE CONSUMERS
Source: McKinsey April 2014
300 million have moved to cities already and 350 million more are on the way.
The manufacturing base has increased more than 18-fold in the past 30 years and is worth $2.2 trillion annually in value added.
An additional 200 million people will enter the middle class by 2026, joining 300 million who have done so in the past 30 years.
4. MONEY –AND LOTS OF IT
5. THE BRAINPOWER BEHEMOTH
6. THE CHINESE INTERNET
The country has more than $15 trillion in bank deposits, growing by $2 trillion a year.
Spending on education has doubled, and the number of college graduates has increased more than 7-fold since 1998.
Even though penetration is comparatively low, China still has more internet users than other country and it’s still exploding. 6

TOTAL MONITORED AD INVESTMENT
Media: TV/Radio/Newspaper/Magazine/Outdoor/internet, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media)
8.0%
6.5%
6.4%
5.2%
6.6%
10.9%
9.9%
2.7%
-1.3%
0.6%
3.0%
5.8%
-0.2%
-2%
0%
2%
4%
6%
8%
10%
12%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Jun. 2013
Jul
Aug
Sep
Oct
Nov
Dec
Jan. 2014
Feb
Mar
Apr
May
Jun
Ad Investment
YOY Growth
TOTAL MONITORED AD INVESTMENT (JUN YTD 2014): RMB 554,963 MILLION
RMB: Million
Source: CTR AdEx Power 2013-2014; iResearch 2014
Growth in monitored advertising spend for this year has not been as aggressive, averaging in at just 2% for YTD 2014 compared to 7.6% in the second half 2013.
June YTD 2014
2.0% YOY Growth
H2 2013
7.6% YOY Growth
8

ZENITHOPTIMEDIA ADFORECAST
4%
4%
4%
4%
4%
4%
2%
2%
2%
2%
1%
1%
13%
14%
14%
15%
14%
14%
22%
19%
16%
12%
10%
8%
43%
41%
39%
36%
33%
30%
14%
19%
25%
31%
37%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011
2012
2013
2014e
2015e
2016e
ZENITHOPTIMEDIA AD FORECAST
Radio
Magazine
Outdoor
Newspaper
TV
Internet
Source: ZenithOptimediaAdForecast-Q2 2014
Digital continues to draw advertising investment on TV and Newspaper, hitting nearly one-third of total spending for 2014.
+6 pts.
-3 pts.
-4% pts.
9

TOTAL MONITORED AD INVESTMENT BY SECTORS
(JUNE 2014 YTD)
RMB: Million
-4%
5%
-1%
10%
8%
10%
-1%
-3%
-24%
-21%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Food and Drink
Business and Service
Toiletries
Pharmaceuticals
Automobiles
Real Estate & ConstructionIndustry
Leisure
Post & Communication
Finance & Investment
Personal Items
Ad Investment
YOY Growth
Media: TV/Radio/Newspaper/Magazine/Outdoor/internet, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media)
Source: CTR AdEx Power 2013-2014; iResearch 2014
MONITORED AD INVESTMENT BY CATEGORY
Key drivers of growth come mainly from Pharmaceuticals, Automobile, and the Real Estate & Construction industries.
10

MEDIA SHARE OF TIME SPENT
Digital will soon reach half of all time spent on media, up from just a third of time spent two years ago.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012
2013
2014
Radio
Newspaper
Magazine
TV
Internet
Mobile Internet
32%
digital
37%
digital
44%
digital
68%
traditional
63%
traditional
56%
traditional
SHARE OF TIME SPENT 2012-2014
Source: CMMS Summer 2014
12

DIFFERENT TIERS ANALYSIS
0.3
0.2
0.2
0.2
0.2
0.1
0.2
0.2
0.2
0.6
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.4
0.1
0.1
0.1
0.0
0.0
0.0
0.1
0.1
0.1
3.2
3.0
3.0
2.7
2.6
2.4
2.3
2.3
2.2
1.9
2.1
2.6
1.3
1.4
1.8
1.5
1.5
1.7
0.2
0.3
0.6
0.1
0.3
0.5
0.4
0.4
0.6
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2012
2013
2014
2012
2013
2014
2012
2013
2014
Tier 1
Tier 2
Tier 3
TIME SPENT ON MEDIA PER DAY, BY CITY TIER 2012-2014
Mobile Internet
Internet
TV
Magazine
Newspaper
Radio
Source: CMMS Summer 2012-2014
34%
digital
39%
digital
45%
digital
30%
digital
34%
digital
43%
digital
38%
digital
40%
digital
45%
digital
While lower tiers spend slightly less time overall on media, the trend of increasing time spent on digital is true across all tiers.
13

MEDIA CONSUMPTION BY AGE
0.2
0.1
0.1
0.2
0.2
0.2
0.2
0.4
0.2
0.3
0.4
0.4
0.4
0.5
0.1
0.1
0.1
0.1
0.1
0.1
0.0
2.5
1.9
1.9
2.1
2.3
2.4
3.1
2.0
2.1
3.0
3.1
2.8
2.4
0.8
0.5
0.7
1.0
0.9
0.7
0.5
0.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Total Population
15-19
20-24
25-29
30-34
35-39
40+
Mobile Internet
Internet
TV
Magazine
Newspaper
Radio
56%
digital
62%
digital
59%
digital
54%
digital
48%
digital
20%
digital
TIME SPENT ON MEDIA PER DAY, BY AGE GROUP 2014
Digital has in fact already become dominant for the post-80s and post-90s generation at nearly 60% of all time spent.
44%
digital
14

TOTAL POPULATION
28%
72% OF NETIZENS
URBAN
RURAL
INTERNET PENETRATION
7% YOY
46% OF TOTAL POPULATION
632,000,000
NETIZENS
527,000,000
83% OF NETIZENS
MOBILE WEB
MOBILE NETIZENS
18% YOY
Nearly half the population has internet access, a 7% increase YOY.
Sources: National Bureau of Statistics of China July 2013; CNNIC July 2014
DIGITAL LANDSCAPE1,364,655,000
16

TOTAL INTERNET POPULATION 2010-2014
DIGITAL AD SPENDING BY FORMAT
13%
21%
29%
31%
34%
35%
35%
28%
28%
27%
26%
26%
26%
26%
37%
30%
24%
23%
21%
21%
20%
5%
6%
7%
8%
8%
9%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011
2012
2013
2014e
2015e
2016e
2017e
Other
Email
Classifieds
Text Link
Rich Media
Video
Display/Banner
Search
Vertical Search
Source: 2014 China Online Advertising Report -iResearch -May 2014
SHARE OF DIGITAL AD SPENDING IN CHINA BY FORMAT
Search and E-commerce take the lion’s share of digital spending, while video maintains its growth and display is in steady decline
88%
87%
85%
83%
17
(e-commerce sites, travel sites etc.)

DIGITAL CHANNELS SPENDING GROWTH
Search Advertising
WeChat
Industry Verticals
Microblogs
Video Advertising
Mobile Advertising (Mobile Phone)
Social Networks
Real-Time Bidding (RTB)
Mobile Advertising (Tablet)
Portal
89%
70%
59%
52%
43%
41%
35%
29%
22%
22%
Large/Slight Increase
Source: 2014 China Digital Media Survey –R3 Worldwide and Admaster
72%
50%
48%
41%
43%
41%
24%
22%
15%
22%
17%
20%
11%
11%
0%
0%
11%
7%
7%
0%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
ADVERTISER’S DIGITAL MEDIA SPENDING CHANGE FOR 2014
Growth for Search and WeChat advertising are claimed to have the biggest gains, despite limited advertising possibilities still in WeChat.
18

TOTAL INTERNET POPULATION 2010-2014
338
384
420
457
485
538
564
591
618
632
233
277
303
318
356
388
420
464
500
527
0
100
200
300
400
500
600
700
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Total Internet
Mobile
Million Users
Source: CNNIC 2010-Jul 2014
Growth of total internet users is correlated with the growth of mobile netizens.
MOBILE NETIZENS
19

MEDIA CONSUMPTION ON PC
On PC, most categories remained stable, with the exception of social platforms dropping in both coverage and time spent.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MONTHLY COVERAGE BY CATEGORY
Jun-13
Jun-14
-4.4% reach
Source: iUserTracker Jun 2013-2014, coverage don’t include software on PC (might affect video category)
34%
35%
18%
14%
10%
10%
8%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun-13
Jun-14
SHARE OF TIME SPENT
Video
Social
Search
E-commerce
News
Game
Entertaining
Finance
Others
-4 pts.
20

MEDIA CONSUMPTION ON MOBILE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MONTHLY COVERAGE BY CATEGORY
Jun-13
Jun-14
-11%
Source: mUserTracker Jun 2013-2014, mobile applications only, does not include mobile sites
+18%
-12%
-13%
-11%
+9%
10%
23%
20%
22%
12%
10%
12%
10%
7%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun-13
Jun-14
SHARE OF TIME SPENT
Video
Instant Messaging
E-Reading
Browser
Game
Social
E-commerce
Music
Others
+13 pts.
-3 pts.
VIDEO
SOCIAL
On mobile, consumer attention has shifted away from traditional social, game and even music, towards video, IM and payments.
21

INTERNET PENETRATION BY DEVICE 2010-2014
83%
80%
82%
79%
78%
71%
71%
70%
70%
70%
69%
72%
72%
70%
73%
72%
74%
79%
81%
83%
35%
40%
50%
49%
49%
45%
46%
47%
44%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Desktop
Mobile
Laptop
-0.1%
-3%
+5% reach
Source: CNNIC 2010-Jul 2014
Mobile internet reach continues to grow while older devices of desktop and laptop begin to dip.
REACH BY DEVICE
23

SHARE OF MOBILE ADVERTISING
Sources: PWC Mobile Advertising in China –May 2014
Mobile continues to gain share within digital ad investment.
4,710
6,500
9,294
12,563
16,761
21,021
25,750
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2011
2012
2013
2014e
2015e
2016e
2017e
MOBILE AND NON-MOBILE DIGITAL ADVERTISING (MILLION RMB)
Mobile Internet Advertising
Non-Mobile Internet Advertising
10%
9%
11%
12%
13%
14%
16%
24

2.0
2.1
3.0
3.1
2.8
2.4
0.8
0.5
0.7
1.0
0.9
0.7
0.5
0.1
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Total Population
15-19
20-24
25-29
30-34
35-39
40+
Internet
Mobile Internet
TIME SPENT ON MOBILE VS. DESKTOP
TIME SPENT ON MOBILE INTERNET VS. DESKTOP INTERNET
Sources: CMMS Summer 2014
25% of a user’s time on digital is now directly on mobile phone.
25

SMARTPHONE PENETRATION
Source: eMarketerJune 2014
353
446.8
521.7
574.1
621.8
666.5
709.9
69%
27%
17%
10%
8%
7%
7%
26%
33%
39%
42%
46%
49%
52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
100
200
300
400
500
600
700
800
2012
2013
2014e
2015e
2016e
2017e
2018e
SMARTPHONE USERS (MILLIONS)
Smartphone Owners
% Change
% of Population
Smartphone growth continues, while at a slower pace than previous years given that 39% of the population are already owners.
26

TABLET PENETRATION
Tablet ownership in China among netizensranks among the highest in the entire world, ahead of more developed nations such as the UK and the US.
Source: eMarketer, Global WebIndex–July 2014
41%
41%
39%
36%
36%
33%
34%
35%
36%
37%
38%
39%
40%
41%
42%
Singapore
China
United Kingdom
United States
Hong Kong
% PENETRATION AMONG NETIZENS
27
Note: It is likely that China numbers are inflated due to sample bias towards more affluent consumers

MOBILE CARRIERS
41% of all mobile netizens have high speed mobile access, with some 20 million early adopters already making the move to 4G (still limited in geographical access).
760.1
532.2
152.6
75.3
488.9
240.9
143.3
104.7
20.4
20.4
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
Total
China Mobile
China Unicom
China Telecom
MOBILE SUBSCRIBERS BY CARRIER (MILLIONS)
Other Subscribers
3G users
4G users
47
87
128
181
234
325
417
489
20
0
100
200
300
400
500
600
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
TOTAL 3G AND 4G SUBSCRIBERS IN CHINA (MILLIONS)
3G Subscribers
4G Subscribers
Source: Mobile Provider Claimed Data
28

Xiaomi and Samsung together make up nearly half of all new phones sold through May 2014.
Source: Kantar Worldpanel -July 2014
30%
13%
16%
17%
20%
5%
XIAOMI BUYERS PREVIOUS PHONES OWNED
YTD 2014
First Time Smartphone Buyer
Repeat Buyer of Xiaomi
Switch from Samsung
Switch from Nokia
Switch from Domestic Brands (Huawaei, Lenovo, OPPO, ZTE, Coolpad)
iPhone
Xiaomi rakes in a significant number of first- time smartphone buyers.
23%
21%
16%
10%
6%
6%
3%
2%
1%
11%
0%
5%
10%
15%
20%
25%
% OF SMARTPHONES SOLD YTD 2014
% of Smartphones Sold
SMARTPHONE MANUFACTURERS
Other
29

SMARTPHONE OS
Source: Baidu –Q2 2014 Report
13%
79%
3%
5%
2014 Q2 SMARTPHONE SALES
iPhone
Android
Windows
Others
Android continues to dominate new phone sales, with Apple and Windows
phones trailing.
30

HOUSEHOLD INCOME BY SMARTPHONE OPERATING SYSTEM
MEDIAN HOUSEHOLD INCOME BY SMARTPHONE OPERATING SYSTEM
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Android
iOS
Windows Phone
Other OS
7,508 RMB
14,217 RMB
7,229 RMB
6580 RMB
iPhone users have significantly higher income than other phone users.
31

DIGITAL USAGE BY OS
2.5
3.1
2.3
1.3
0.8
1.0
0.7
0.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Android
iOS
Windows Phone
Other OS
Mobile Internet
Internet
iOS users spend 20% more time on mobile and 25% more time on other digital channels.
SMARTPHONE USERS TIME SPENT ON DIGITAL MEDIA 32

ADVERTISING FORMATS ON MOBILE
46%
26%
20%
8%
MOBILE ADS ON TABLET 2013
Video Ads
Banner/display Ads
Interactive Ads
Text Link Ads
Source: eMarketer2014
48%
39%
7%
6%
MOBILE ADS 2013
Search
Banner/display Ads
Video Ads
Other
Mobile advertising, while dominated by banner and search overall, skews heavily to video ads, especially on tablets.
33

MOBILE ADS FORMAT
VIDEO ADS
IMPACT DISPLAY
PLACEMENT/
IMPLANTATION
REGULAR DISPLAY
INTERACTIVE DISPLAY
CONTENT COOPERATION
35

TWO WAYS OF BUYING ADS IN MOBILE
AD NETWORKS
HERO APP COOPERATION
36

MOBILE BANNERS TARGET PHONE COMPETITORS
LG G2 mobile banner ad campaign deftly pokes fun at the competitor phones on which they appear, using device recognition.
“Tired of charging your HTC One?”
“Hard to read this on your iPhone?”
“Waiting for your Galaxy to catch up?”
The banners gained a click rate up to 830% higher than average. After only five days, the banners had been picked up by 7,130 blogs, tech forums and newspapers worldwide, earning an estimated 184 million impressions from earned PR value alone.
37

VIEWPOINT ON MOBILE
Mobile advertising should be at least 10% of a brand’s digital presence. Display ad network and video sites are now wide reaching enough to effectively complement awareness driven campaigns.
1.
Of all targeting options, iOS device targeting remains one of the safest way to focus on higher spending consumers; at the same time, don’t forget to include more expensive devices from Android platforms.
2.
Tablet advertising is reaching maturity, especially for higher tier cities and proves valuable for premium brands. Beware however of current inflation rates, that value is being priced by video sites and costs per reach are highest of all.
3.
Beware of focusing only on WeChat. Advertising options are still limited and WoM can be harder to generate than on traditional Weibo platforms, especially if you don’t provide a WeChat tailored experience.
4.
38

TV & OTV COVERAGE
Source: CMMS, IMMS Summer 2014
48% watch OTV
95% watch TV
37%
39%
41%
40%
37%
35%
32%
63%
61%
59%
60%
63%
65%
68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total
Age 15-19
Age 20-24
Age 25-29
Age 30-34
Age 35-39
Age 40+
SHARE OF TIME SPENT ACROSS OTV AND TV
FOR OTV VIEWERS
OTV Percentage
TV Percentage
On average, TV makes up two-thirds of video viewing time.
43% watch both
5% watch OTV only
Of the total population:
52% watch
TV only
44

Impression per episode('000)
TV*
OTV
我是歌手第二季
I’m a Singer
31,837
44,623
最强大脑
The Brain
12,245
41,333
笑傲江湖
Laughing
4,898
31,747
花儿与少年 DivasHit the Road
13,470
31,355
PROGRAM
IMPRESSIONS PER SEASON (‘000)
TV*
Online Video
HIT SHOWS ON OTV
Especially for some hit shows, the OTV audience easily rivals or surpasses that of TV.
Source: TV from CSM national rating & TV population, OTV from top 11 sites
1STAIR RATING
1STWEEK VIEWS
41

FIGHT FOR COPYRIGHT
The fight goes beyond video sites, as TV stations feel the pressure to likewise make some significant rights acquisitions.
…
HNTV: exclusive broadcasting right for own site imgo.tv
CCTV: exclusive broadcasting right for own site CNTV
46

2014OTV EXCLUSIVE COPYRIGHT FOR ENTERTAINMENT PROGRAMS
China’s Got Talent 5th season
中国达人秀第五季
The Voice of China 3rd season
中国好声音第三季
I’m the Singer 3rdSeason
我是歌手第三季
Happy Camp
快乐大本营
Day Dayup
天天向上
Your Face Sounds Familiar
百变大咖秀
Where are we going, Dad? 2ndseason
爸爸去哪儿第二季
Kangxi
康熙来了
You Are The One
非诚勿扰
43

DEVICES FOR VIDEO
LETV C1S
LETV SUPER TV x60
PPTV AND SUNING
IQIYI AND SKYWORTH
MEDIA
PC
LAPTOP
PHONE
TVBOX
SMARTTV
YOUKU
√
√
√
√
-
TUDOU
√
√
√
-
-
IQIYI
√
√
√
√
√
PPS
√
√
√
-
-
PPTV
√
√
√
√
-
SOHU VIDEO
√
√
√
√
-
TENCENT VIDEO
√
√
√
-
-
LETV
√
√
√
√
√
FUSHION
√
√
√
-
-
XUNLEI
√
√
√
√
-
BAOFENG
√
√
√
-
-
At the same time, video players are all building their multi-screen strategy with devices expanding to TV.
IQIYI AND TCL
48

MONITORED TV ADVERTISING
Media: TV, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growthrate exclude new added media) Source: CTR AdEx Power 2013-2014
RMB: Million
TOTAL MONITORED TV AD INVESTMENT (JAN –JUN.2014): RMB 466,142 MILLION
1.1%
9.1%
8.7%
5.4%
8.0%
12.6%
12.9%
1.3%
-1.3%
0.5%
2.9%
5.6%
-1.3%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
20,000
40,000
60,000
80,000
100,000
120,000
Jun. 2013
Jul
Aug
Sep
Oct
Nov
Dec
Jan. 2014
Feb
Mar
Apr
May
Jun
Ad Investment
YOY Growth
June YTD 2014
1.7% YOY Growth
H2 2013
9.5% YOY Growth
TV growth slowed down to just 1.7%, compared to the highs of the second
half of 2013.
46

PRIME TIME TV AD INVESTMENT
RMB: Million
TOTAL MONITORED TV IN PRIME TIME (17:00-24:00)
AD INVESTMENT (JAN -JUN.2014): RMB 302,301 MILLION
12.5%
6.3%
9.5%
4.0%
5.7%
10.6%
10.1%
2.6%
-0.1%
2.7%
4.8%
5.7%
0.5%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
0
10,000
20,000
30,000
40,000
50,000
60,000
Jun. 2013
Jul
Aug
Sep
Oct
Nov
Dec
Jan. 2014
Feb
Mar
Apr
May
Jun
Ad Investment
YOY Growth
Prime time ad investment was similar, at 2.7% YOY for the first half of this year.
June YTD 2014
1.7% YOY Growth
H2 2013
7.7% YOY Growth
47

TV AD INVESTMENT BY CATEGORY
RMB: Million
TV MONITORED AD INVESTMENT BY SECTORS (JUN.2014)
4.5%
-19.3%
22.0%
67.3%
8.6%
-7.1%
-18.7%
0.2%
26.1%
-27.6%
58.9%
3.1%
22.5%
-54.2%
-6.2%
-69.1%
-35.0%
-13.7%
-44.6%
-10.1%
-79.8%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Ad Investment
YOY Growth
Some key categories pushed strongly on TV advertising, particularly pharmaceuticals and household at over 50% growth.
48

SPENDING SHARE FOR CCTV/SATELLITE/LTV
21%
18%
21%
25%
35%
36%
54%
47%
43%
0%
20%
40%
60%
80%
100%
Y 2012
Y 2013
2014 YTD
CCTV
Satellite TV
Local TV
Source: VivakiExchange
SHARE OF SPEND ACROSS TV PLATFORMS
*CCTV’s exclusive broadcast rights of the 2014 World Cup were a key reason behind the 3% share of spend increase on CCTV this year.
+3%*
+1%
-4%
The spending share of Local TV continues to drop as pressure mounts primarily from Satellite TV.
49

China Blue
Zhejiang PSTV
2013：387 mil RMB
2014：497 mil RMB
JinyingDrama
Hunan PSTV
2013：239 mil RMB
2014：523 mil RMB
I’m a Singer
Hunan PSTV
2014：636 mil RMB
Happy Camp
Hunan PSTV
2014：286 mil RMB
Day DayUp
Hunan PSTV
2014：35 mil RMB
Dad, where are we going
Hunan PSTV
2014：1,005 mil RMB
Chinese Idol
Dragon PSTV
2014：235 mil RMB
Voice of China
Zhejiang PSTV
2013：1,040 mil RMB
2014：1,273 mil RMB
BIDDING WARS ON PSTV
Note：Y2013<Happy Camp>+<Day DayUP>239 mil RMB
PSTV vie for top media properties by ramping up bidding in 2014.
50

THE LARGEST SPONSORSHIPS FROM HUNAN & ZHEJIANG SATELLITE TV
SPONSORSHIP: YILI310 MILLION
SPONSORSHIP: LIBY 230 MILLION
SPONSORSHIP: JDB250 MILLION
Source: Publicly Available Bidding Result
51

BIG SHOWS IN Q4
Channel:
Dragon Satellite TV
On air time: Saturday
2100, Nov.1, 2014
Program type: Outdoor Reality Show
Channel:
Zhejiang Satellite TV
On air time: Friday
2100, Oct.10, 2014
Program type:
Reality Show
Channel:
Jiangsu Satellite TV
On air time: Friday
2100, Sep, 2014
Program type:
Star Reality Show
52

SARFT REGULATION
Drama Limitations On Satellite Channels in 2015:
Channel
•Drama cannot be on more than two satellite channels during prime time
Drama series
•The same drama on must not exceed 2 episodes in the prime time slot on each specific satellite channel
OUR VIEWPOINT
1.Expect increase in cost of drama
2.The gap between each satellite channel’s coverage will widen
3.Video websites will benefit the most from the policy, though themselves also subject to ongoing updates to regulations
53

SARFT REGULATION
Online TV BOX
•Installing unaudited online TV boxes is forbidden in Shanghai & Zhejiang.
Wasu,
BesTV
•Required to rectify their content –cannot continue using other video providers’ content such as Youku or IQIYI
OUR VIEW
1.Online TV box can continue to supply the content from Wasu/BesTV, but not from other unaudited content.
2.Wasu/BesTVare required rectify their current offering, which will reduce their content significantly.
3.iQiyi/LeTV/PPTV continue to operate their boxes products in cooperation with their licensed partners.
4.Potential effect on those boxes that own no copyright content of their own, such as Millet box.
Tightening policy for video via TV boxes since late June 2014
54

438*MILLION USERS
69% REACH
AMONG ALL NETIZENS
9 DAYS
PER MONTH
48 MINUTES
PER USAGE DAY
PC
MOBILE
56% REACH
AMONG ALL NETIZENS
11DAYS
PER MONTH
48 MINUTES
PER USAGE DAY
Source: Reach from CNNIC, days and time spent from iUserTracker& mUserTrackerJun 2014;
Total user number only includes PC
ONLINE VIDEO OVERVIEW
56

MEDIA SHARE OF TIME SPENT ON PC AND MOBILE
32%
5%
20%
16%
8%
7%
5%
5%
2%
15%
9%
13%
4%
12%
11%
10%
10%
4%
3%
10%
IQIYI
PPS
YOUKU
TUDOU
PPTV
LETV
SOHU
TENCENT VIDEO
CNTV
FUSHION
Others
TIME SPENT BY MEDIA
Media evenly take share of consumers’ time on PC while top players are more dominant on mobile, especially for the two merged groups.
PC
MOBILE
-4%
+4%
+5%
-7%
+7%
-7%
-3%
+3%
-3%
4%
Source: iUserTracker& mUserTrackerJun 2013-2014
61

Drama
•Japanese TV Series
•Korean TV series
Variety
•Kangxi Talk Show
（康熙来了）
Sport
•USOpenTennisChampionships
Self-produced Program
EXCLUSIVE SHOWS IN IQIYI
IQIYI Exclusive shows
58

Source: Claimed Publisher Data
VIDEO VIEWS BY DEVICE
Mobile and Pad viewers make up as much as 55% of online video views depending on the platform.
65%
53%
59%
57%
45%
60%
65%
70%
90%
76%
28%
34%
35%
33%
35%
25%
27%
30%
10%
24%
7%
13%
6%
10%
20%
15%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Youku&Tudou
Sohu Video
iQiyi
PPS
PPTV
LeTV
Tencent
Baofeng
Xunlei
Fengxing
VIDEO VIEW % BY DEVICE
PC
PHONE
PAD
59

ONLINE VIDEO ADVERTISING REVENUE
Source: iResearch –2014 China Mobile Video Report
Mobile video advertising revenue takes up an increasing share of all video advertising, up from just 5% in 2013 to 19% in 2014.
0.19
0.48
2.51
5.32
9.06
13
6.4
9.1
11.0
12.7
13.9
15.2
2.9%
5.0%
18.6%
29.5%
39.5%
46.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0
5
10
15
20
25
30
2012
2013
2014e
2015e
2016e
2017e
ADVERTISING REVENUE FOR ONLINE VIDEO (MOBILE AND PC)
2012-2017
Mobile Video Advertising Revenue (Billion RMB)
Non-Mobile Advertising Revenue
Share of Online Advertising Revenue
60

The Rise Of An Online Video Influencer
Meet Queenie, a self -taught creator whose first video was launched
in October 2013. After reaching over one million views in January
2014, Queenie was approached by Tudou to launch a fresh show.
From that time to present, a total of 39 videos have been created,
with the new concept hitting a record 8 million views for the month
of August. Brands such as Green Tree Hotels and Huawei have
partnered with and been directly featured in the show.
RISE OF VLOGGERS
232 536 624
1,104
553 457 689 751
1,217
4,698
8,337
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14
Monthly Views ('000s)
* 8M+ views per month (Aug 2014 est.)
contributed by
Source: TMG Originals and Thoughtful Media Group
61

POPULAR UGC CONTENT
Wu Fei’sfairy trip
100 thousand black humor
Self written song “I’m legend”
1 mil views
227 mil views on Youku
6.65 mil views
Humor
Music
Innovation
十万个冷笑话
62

SARFT REGULATION:OTV
In its latest rulings on video websites, SARFT has made it clear that overseas television programs will be restricted in both content and number. On Sept 5 SARFT announced that overseas movies and TV
series that don't obtain a public screening and
distribution license cannot be streamed
on video websites.
Such sites are required to register details
of their ongoing programs before March 31
2015; starting on April 1 all unregistered shows should be removed. The policy came after a
series of progressive restriction policies regarding Internet-based programs.
OTV, formerly relatively free from the limitations of content on TV, has been under pressure to fall in line with regulation.
In March, the administration required that online content be examined by at least three government trained specialists. Programs should be removed immediately if they include inappropriate content, such as promoting superstition or glamorizing violence, sex or gambling.
In late April, it required four popular
American TV series, including The Good Wife
and The Big Bang Theory, be removed from
video websites without giving specific reasons.
63

NEWPAID ADVERTISING OPPORTUNITIES ON OTV
Youku, Tudou and Sohuprovide mid-roll on PC
iQiYioffers up to 5 spots, 75 seconds pre-roll
LeTVseeks advertising potential on its branded TV sets with start picture ads 65

THE ROLE OF VIDEO & INVESTMENT
AWARENESS
FORMAT: PRE-ROLL, DISPLAY & SPECIAL
KPI: TA REACH (%), COST PER TA REACH
AWARENESS
FORMAT:SPONSORSED PROGRAMS/PAGE
KPI: COST PER THOUSAND IMPRESSION, TA REACH(%)
PRE-ROLL
SPONSORSHIP
DISPLAY
SOMETIMES SPONSORSHIP MAY BE COUNTED
AS DISPLAY
66

请填写以下信息获取赠品机会
姓名
邮箱
手机号码
OTHER FORMAT SUGGESTION
BRANDED CONTENT
INTERACTIVE PRE-ROLL & DISPLAY
HEALTH TEST
CLICK TO BUY
EXERCISE
SOCIAL TOPICS
(Nutrilite)
(Durex)
67

VIEWPOINT ON VIDEO & OTV
Sponsorship of hot shows, while wide reaching, is an increasingly expensive battlefield. And as TV stations try to reclaim ownership of online views, negotiations will likely be more centralized, increasing the chance of bidding wars for key shows.
1.
New regulations will likely drive up the cost of drama on TV and international content on OTV, possibly creating new dynamics for cross TV advertising.
2.
The continuous increase of slot duration in OTV –now planned to expand to 90 seconds break –could impact ad effectiveness and needs to be closely monitored.
3.
UGC content begins to catch up with Western trends, and will grow as video sites implement revenue share policies for content creators. This can provide reach and authenticity to marketing efforts that want to become part of consumers’ conversations.
4.
68

SOCIAL PLATFORMS ACROSS DEVICES
39.5%
16%
11%
5%
5%
3%
2%
1%
1%
16%
Sina Weibo
Baidu Tieba
Qzone
Qiushi Baike
Momo
Renren
Tecent Weibo
Douban Group
Weishi
Others
-3.5%
+8.6%
+2%
-1.2%
Desktop/Laptop
Mobile/Pad
1,424,677,000hours
69% on Social (non IM)
653,593,638 hours
31% on Social (non IM)
91%reach
51% reach
+11% YTD
+68% YTD
-11% YTD
-8% YTD
While the vast majority of netizens still access social platforms via desktop and laptop, they have significantly shifted their use onto mobile devices.
SNS, WEIBO, OTHERS
33.8%
15.3%
7.6%
3.1%
1.3%
1.0%
37.8%
Qzone
Sina Weibo
Baidu Tieba
Sina Blog
Tecent Weibo
Douban
Others
+1.3%
-7.1%
+5.1%
+0.6%
Source: iUsertracker, mUsertracker–Jun 2014
-3.1%
-5.7%
+1.2%
70

SOCIAL PLATFORMS ON PC
DESKTOP/LAPTOP –SOCIAL WEBSITE REACH (%)
Sina Weibo is the only platform on desktop to maintain coverage.
0
10
20
30
40
50
60
70
80
90
100
Qzone
Renren
Sina Weibo
Tencent Weibo
On Mobile, Weibo and traditional SNS continue losing monthly users.
WEIBO AND SNS –SOCIAL APP REACH (%)
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
QZONE
Sina Weibo
Baidu Tieba
Sinal Blog
Tencent Weibo
Douban
Tianya
Renren
-5%
0%
-5%
-7%
-13%
-2%
-1%
-7%
CHANGE IN REACH
71

NICHE SOCIAL APPS
Source: mUsertracker–June 2014
0
1
2
3
4
5
6
7
8
9
10
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Baidu Tieba
Momo
Qiushi Baike
WeiShi
Dianshi Chengjin
Baihe Hunlian
Instagram
Zhihu
Outside the top four apps, the next most popular social apps individually have a limited following, with none reaching over 9% of mobile netizens.
SOCIAL COMMUNITIES MONTHLY REACH (%)
76

30%
40%
50%
60%
70%
80%
90%
REACH OF WECHAT AND SINA WEIBO,
SINA WEIBO APP
Sina Weibo (site)
Sina Weibo (app)
WeChat
The decline of Sina Weibo on app can be directly tied to user’s migration to WeChat, where checking “Moments” has replaced Weibo feed on mobile.
Source: iUsertracker, mUsertracker–Jun 2014; CNNIC –Jun 2014
USERS SHIFTING SOCIAL PREFERENCES
77
77% OF WECHAT USERS ARE ACTIVE ON MOMENTS

TOP INSTANT MESSAGING PLATFORMS
0
10
20
30
40
50
60
70
80
90
100
IM App Monthly Reach (%)
WeChat
QQ
Wangxin
Yixin
Laiwang
QQ Light
Line
IM ON DESKTOP
IM ON MOBILE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
IM Software Monthly Reach (%)
QQ
Ali Wang Wang 阿里旺
Fetion 飞信
QT 语音
YY 语音
Sina Weibo 微博
RTXC 腾讯通
Skype
Outside the top 3 chat apps, other apps have less than 5% reach, QQ dominant.
On Mobile WeChat eclipses QQ.
74

WECHAT BREAKING RECORDS
5.8 million WeChat public accounts
15,000new public accounts every day
67,000 apps connected to WeChat
400 apps connect on average daily basis
Shopping
Flight Check-In
Movie Tickets
XiamiMusic
Youku
Sina Weibo
One-Click Login
Video Content
Youku
Meipai
75

QR CODE INNOVATION
…even video
…to animated gifs
+
=
QR Codes have evolved…
…from pictures
77

Visual QR codes can be unique to each channel used by brands, thus giving channel-specific metrics on engagement for each campaign.
Offline
Magazines, Packages, Stickers
Digital
TV, Out-Of-Home
Online
Website to Mobile, Online Video
CHANNEL SPECIFIC QR CODES
78

DISPLAY ADVERTISING
ADVERTISING FORMATS
OPENING PAGE AD
UMS: Target IDs – Fans & Competitive Fans
3rdPost in feed
FANS HEADLINES: Target Fans
1stPost in feed for 24 hrs
BRAND EXPRESS: Target based on demographics
3rdPost in feed.
Shared to user fanbase
DISPLAY ON MOBILE & PC
IN-FEED ADVERTISING ON MOBILE & PC
80

NEW FORMATS & OPPORTUNITIES
HOT TOPICS
mobile & pc
LOCATION BASED ADVERTISING TO PUSH OFFLINE EVENTS
mobile only
E-COM VIA ALIPAY
mobile & pc
SUGGESTED SEARCH (NOT BRAND)
mobile & pc 81

ADVERTISING FORMATS
TEXT & TAB ADVERTISING IN MESSAGES
FROM PUBLIC ACCOUNTS
WECHAT DAILY NEWS DISPLAY
82

WECHAT ADDS CLICKABLE BANNER ADS
WeChat Ad Formats Text Link vs. Banner Image
Tencent’s WeChat launched its advertising platform in late June 2014 and started with text link ads, connecting WeChat Public Accounts with advertisers.
This update allows advertisers to use image banners of fixed width 582px and height of 166px, no bigger than 50K. Four image formats are supported including bmp, png, jpeg, jpg and gif.
In addition, the update of WeChat Ad Platform in August now allows advertisers to drive WeChat traffic to an external site.
To become a WeChat publisher sharing ad revenue with Public Accounts, the minimum required number of following users is 100,000.
83

BURBERRY PARTNERSHIP WITH TENCENT & WECHAT
“London in Shanghai” campaign launched on WeChat to win a ticket
to the offline SH Grand Opening.
Online -WeChat Interaction
Offline -SH flagship store opening
Online –Experience the Event
360 event scenes, including interactive hotspots to discover extra content.
PRE
LAUNCH
POST
Burberry has established a special partnership with Tencent at the highest levels of management which has yielded first-to-market experiences on WeChat. 84

INTEGRATING WECHAT INTO OFFLINE EXPERIENCES
Scan QR code at the entry
Receive Gamification
Follow the Guide
Receive present when finishing the tour
TAG drives consumer engagement at La Maison Exhibition through WeChat functionality.
85

ESTEE LAUDER’S CRM APPROACH TO WECHAT
1. Skin test
2. Customize beauty plan
3. Collect personal sample set offline
Estee Lauder has a membership section in their WeChat Service account which provides users with latest skin care tips, personalized beauty plans, sampling etc.
86

MOMO ADVERTISING
Popular location-based dating app Momo lets users see nearby strangers filtered by distance –a mechanism that’s easily translatable to helping retail business attract traffic to their stores. This is particularly true for the post-90s generation with whom the app is more popular.
Purchasing a placement can even be completed without a computer, as ad buying is in fact fully executable via smartphone. The cost to reach each user starts at RMB 10 cents. Momo will estimate the total number of reached users and charge accordingly after retailers specify the geographic range and time period for the ad placement.
As of June 2014,Momo’s total number of registered users reached 148 million; with 52.43 million monthly active users.
Dating APP Momo leverages its location based competency to help drive traffic to retail stores.
87

VIEWPOINT ON SOCIAL
Whether planning your campaign on Wechat or Weibo, it has become the norm to think of social as a mobile channel. Any content that is not tailored for mobile has much less chance to spread through social media.
1.
Don’t just think platforms, also think content creators. Working with talents who make the most of emerging social platforms is a powerful way to stay current without having to make heavy investments in your own social pages.
3.
Advanced WeChat brand tie-ins using interactivity and O2O –for example, in-store redemption of QR coupons – is becoming the standard
4.
Value for the consumers is still mostly driven by lucky draws, competitions and special offers, making it even more important to tie your e-commerce activities with social media gratification.
5.
88
Recognize that different platforms are optimized for different user behaviors. For instance Weibo is shifting more toward users looking for information, and thus can serve as a broadcast platform to increase visibility. On the other hand WeChat is more about one-on-one interaction and rewarding the customer relationship.
2.

PRINT MEDIA OVERVIEW
34%
75%
61%
21%
19%
95%
31%
68%
63%
31%
16%
95%
30%
64%
67%
46%
16%
96%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Magazine Reach
NewspaperReach
Internet Reach
Mobile InternetReach
Radio Reach
TV Reach
2012-2014 Reach of Print Media
Series1
Series2
Series3
Print media has a steadily declining readership.
14.4 minutes on magazine
37.2 minutes on newspaper
However among the remaining readers, the average daily time spent has been stable.
90

NEWSPAPER AD INVESTMENT
Media: Newspaper, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, whilegrowth rate exclude new added media) Source: CTR AdExPower 2013-2014
-15.4%
-11.1%
-11.0%
-10.8%
-3.1%
-5.2%
-4.8%
-13.7%
7.6%
-14.2%
-7.3%
-6.0%
-7.5%
-20%
-15%
-10%
-5%
0%
5%
10%
0
2,000
4,000
6,000
8,000
10,000
12,000
Jun. 2013
Jul
Aug
Sep
Oct
Nov
Dec
Jan. 2014
Feb
Mar
Apr
May
Jun
Ad Investment
YOY Growth
Total Monitored NP Ad Investment (Jan -Jun.2014): RMB 38,246 Million
RMB: Million
Spending on newspaper continues to be the biggest loser among traditional media to digital, though it still has a seasonal role to play during Chinese New Year.
91

NEWSPAPER AD INVESTMENT BY INDUSTRY
Media: Newspaper, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, whilegrowth rate exclude new added media) Source: CTR AdExPower 2013-2014
NP Monitored Ad Investment By Sectors (Jun.2014)
-19.0%
-9.8%
-2.0%
22.5%
-40.6%
-1.3%
244.8%
163.1%
7.4%
10.4%
-8.5%
-1.1%
-21.1%
-21.9%
-44.9%
43.9%
-3.9%
-31.5%
20.4%
38.3%
37.5%
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Ad Investment
YOY Growth
Real Estate & Construction and Business & Services dominate newspaper ad investment; Pharmaceuticals and Foodstuffs see a bit of a resurgence.
92

MAGAZINE AD INVESTMENT
Total Monitored MG Ad Investment (Jan -Jun. 2014): RMB 8,831 Million
-9.3%
-0.9%
-2.2%
-5.8%
-5.6%
-4.6%
-4.8%
12.0%
-1.1%
-1.9%
-5.1%
-7.6%
-6.2%
-15%
-10%
-5%
0%
5%
10%
15%
0
500
1,000
1,500
2,000
2,500
Jun. 2013
Jul
Aug
Sep
Oct
Nov
Dec
Jan. 2014
Feb
Mar
Apr
May
May
Ad Investment
YOY Growth
RMB: Million
Media: Magazine, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media) Source: CTR AdExPower 2013-2014
Magazine investment has steadily declined for nearly every month in the past year; Chinese New Year again is a key exception where spend on print persists.
93

Toiletries maintain the lead on magazine investment.
Media: Magazine, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media) Source: CTR AdExPower 2013-2014
MG Monitored Ad Investment By Sectors (Jun.2014)
-6.9%
-6.2%
-10.4%
-0.9%
16.7%
-8.1%
20.0%
2.0%
-27.1%
35.1%
9.0%
-17.5%
-16.4%
-36.0%
-41.8%
-5.7%
65.9%
-20.6%
-35.1%
-76.6%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
0
50
100
150
200
250
300
350
400
Ad Investment
YOY Growth
RMB: Million
MAGAZINE AD INVESTMENT BY INDUSTRY
94

REALITY OF DECLINING PRINT MEDIA
People's reading habits are steadily changing, and era of traditional print titles is in the past. Publishers are faced with plummeting subscribers, falling advertising investment. Young people especially have migrated towards new digital media to access information; print readership is facing a huge loss.
Faced with the challenges of new technology and new media, many brands are implementing cross-media strategy and hastening the implementation of digital channels. Official websites that provides free online reading electronic newspapers, mobile phone value-added services are among the many avenues that are being pursued
The shift away from print toward digital media is inevitable, publishers must embrace multiple media channels and services to stay relevant in the market.
iPhone & Android
iPad
TotalDownloads:7,395,310
DailyUniqueVisitors:258,835
TotalDownloads:3,089,835
DailyUniqueVisitors:163,143
＋
Paper (11 Titles in Total)
Digital (9 Apps in Total)
CROSS-MEDIA EXAMPLE WITH MODERN MEDIA
Example: Modern Weekly
Total Circulation: 930,000
Example:iWeekly
TotalDownloads:22million
95

Many fashion titles have issued tablet platforms in recent years, many of which feature exclusive digital content on top of select print content.
DIGITAL MAGAZINE ADS WILL BECOME A NEW GROWTH POINT
Advertisers are generally more willing to pay the higher cost for Tablet than networks, due to the quality of the audience as well as high-end device interface.
Media
IOS/Andriod
Launch date
Average monthly download
Total Download
Content Difference Compare To Traditional
Cosmopolitan
IOS
2011-07-21
1,227,384
30,836,450
60% selected from print
Bazaar Men
IOS/Andriod
2014-06-01
800,000
/
Esquire
IOS/Andriod
2011-05-01
520,000
20,535,457
Bazaar
IOS
2011-07-28
495,642
23,375,456
Competely different content with print, weekly updated
Caijing
IOS/Andriod
2011-08-01
300,000
1,606,819
No big difference with print
SELF
IOS
2013-07-25
200,000
/
Elle China
IOS/Andriod
2013-03-08
150,000
450,000
Marie Claire
IOS
2011-02-15
120,000
900,000
GQ
IOS
2012-12-15
110,000
510,000
Elle Men
IOS/Andriod
2011-03-01
82,800
467,000
Rayli EF
IOS
2011-09-01
50,000
1,350,000
Men's Uno
IOS
2013-01-01
20,000
240,000
Grazia
IOS
2013-02-06
9,900
72,000
96

CROSS-MEDIA USING PRINT
Extending traditional print media exposure to digital
GQ
The Beijing News
Advertorial
Integration of newspaper ads
and advertorial with radio
98

VIEWPOINT ON PRINT
For most industries print media’s relevance continues to decline; key exceptions for fashion and luxury brands for which magazine continues to be respected and influential.
1.
Magazine investment has become more focused; focusing on fewer, higher quality titles to optimize advertiser’s spend on print.
2.
Cross-media titles, often offering custom digital-only content on mobile and tablet, are a viable medium as they span across digital and traditional channels.
3.
Building strategic partnerships in print can help straddle the balance between global and localized content for luxury brands, building and maintaining brand equity while optimizing content for local nuances.
4.
99

RADIO OVERVIEW
Despite the supposed decline of radio, it is actually growing listenership among car owners.
1 hour 5 minutes on radio
Daily listening among car owners is also steady compared to the total population.
-3.5% YOY
Car Owners
Non Car-Owners
19%
47%
16%
16%
48%
13%
16%
49%
10%
0%
10%
20%
30%
40%
50%
60%
Total Population
Car Owners
Car Non-Owners
REACH OF RADIO 2012-2014 BY CAR OWNERSHIP
2012
2013
2014
Total Population
unchanged YOY
-3.5% YOY
101

RADIO AD INVESTMENT
Media: Radio, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media) Source: CTR AdExPower 2013-2014
TOTAL MONITORED RD AD INVESTMENT (JAN -JUN.2014): RMB 15,986 MILLION
11.5%
18.6%
20.6%
22.2%
26.8%
29.3%
28.5%
25.9%
20.5%
25.8%
28.1%
30.6%
29.9%
0%
5%
10%
15%
20%
25%
30%
35%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jun. 2013
Jul
Aug
Sep
Oct
Nov
Dec
Jan. 2014
Feb
Feb
Apr
May
June
Ad Investment
YOY Growth
RMB: Million
In June, radio advertising grew by 29.9% YOY.
102

Media: Radio, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media) Source: CTR AdExPower 2013-2014
RD MONITORED AD INVESTMENT BY SECTORS (JUN.2014)
29.9%
29.3%
38.9%
45.6%
-4.8%
28.3%
109.6%
61.7%
-6.0%
4.5%
79.3%
67.4%
59.2%
-9.6%
22.6%
90.5%
-31.7%
-27.0%
1.9%
2.6%
-26.3%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
0
50
100
150
200
250
300
350
400
450
500
Ad Investment
YOY Growth
RMB: Million
Business & Services lead radio advertising, while Alcohol more than doubles.
RADIO AD INVESTMENT BY CATEGORY
103

RADIO INNOVATIONS
CASE: SH Oriental Broadcasting Center
Optimizing programming
FM101 targeting people aged at 15-35, whose commuting time are 7:30-9:30 16:30-19:30
FM103 targeting people aged at 35-45, whose commuting time are 9:00-11:00 20:00-22:00
Targeting Elite(25-44)
To better cater to elite’s lifestyle and taste, the station cut a third of medicine-related ads which were seen as an irritating addition to the radio program by listeners.
Integrate Online & Offline resources
Case: Bright Dairy Spring Outing
Execution: Produced different ads version respond to different TA and broadcast them in daily prime time intensively to boost the concept of health. Audience can win a outing ticket by interacting with the Radio program or scanning the QR code.
105

BUDWEISER HIT FM CASE STUDY
Broadcast road show features Top DJs from all over the world such as Armin ban Buuren, Tiesto, Nicky Romero and Paul Oakenfold. Hit FM Dance on Saturday is a special episode called ”Hit FM Dance Countdown” which features a selection of the best Electronic Dance Music that week.
CASE: Customized Programs for Budweiser—Hit FM Dance
(Starting May 24 2014 Mon.-Sat. 10pm-12pm)
Budweiser Integration into the program
Announcement of program holders
Announced as in hourly news report
Discussion about party topics and brand to encourage interaction with audience
Broadcasting promotion clips
New Program Hit FM LIVE broadcasts live Budweiser’s live concertor events.
106

VIEWPOINT ON RADIO
Radio’s decline is misleading in the context of strong listenership among car owners, and therefore a worthwhile channel to reach China’s middle and upper classes.
1.
Integration with live is a natural connection between new technology and radio audiences, and including radio in your brand activations can be a powerful way to boost awareness of your events.
3.
107

OOH AD INVESTMENT
Media: Outdoor, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media) Source: CTR AdExPower 2013-2014
TOTAL MONITORED OOH AD INVESTMENT (JAN -JUN.2014): RMB 21,210 MILLION
7.4%
-9.4%
-3.2%
-4.1%
2.9%
8.9%
7.5%
54.6%
3.0%
8.3%
10.5%
17.0%
11.4%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jun. 2013
Jul
Aug
Sep
Oct
Nov
Dec
Jan. 2014
Feb
Mar
Apr
May
Jun
Ad Investment
YOY Growth
RMB: Million
In June, OOH advertising increased by 11.4% YOY, again with a strong peak over the holiday season.
109

OOH AD INVESTMENT BY INDUSTRY
Media: Outdoor, exclude all no-cost items & Hong Kong TV Media, (Total monitoring Ad Investment include new added media, while growth rate exclude new added media) Source: CTR AdExPower 2013-2014
OOH Monitored Ad Investment By Sectors (Jun.2014)
37.4%
5.4%
35.2%
19.1%
6.5%
-4.9%
6.5%
-1.9%
-18.0%
12.2%
18.7%
-0.7%
-6.9%
-21.4%
1.3%
17.9%
-11.2%
-13.8%
7.9%
-49.6%
-27.9%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
0
100
200
300
400
500
600
Ad Investment
YOY Growth
RMB: Million
Real Estate & Construction was the leader in OOH advertising, growing by 37.4% YOY.
110

OOH SPENDING
Except for conventional billboard and some low-end network media, most of OOH spending shows growth, especially from airport and metro.
Source：CODC 2004.01.01～2013.12.31
29,678
11,219
9,765
5,669
5,335
4,041
1,447
579
1,080
31,640
15,451
9,258
7,029
5,685
4,293
1,388
630
3,025
Screen OOH
Metros
Unipole
Airport
Bus Body
Bus Shelter
Netwrok Media
Railway
Metros Screen
2012
2013
180%
Description: Growth rate calculation is not include Metros Electronic Screen.
13,700
16,440
20,550
26,715
34,730
39,939
49,924
59,909
67,733
68,634
0
10000
20000
30000
40000
50000
60000
70000
80000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
OOH SPEND (MILLION RMB)
7%
38%
-5%
24%
7%
6%
-4%
9%
3%
3%
-6%
10%
-5%
-1%
-4%
0%
Growth%
Net Growth%
OOH SPEND BY TYPE (MILLION RMB)
111

OOH FORMATS %SHARE
Metros20%
Unipole12%
Airport9%
Bus Body7%
Bus Shelter5%
Network2%
Railway1%
Building LCD20%
LED12%
Metros Screen4%
Metros TV4%
Bus LCD4%
Video LCD
43%
Screen OOH takes up almost half of total OOH spending, followed by standard Metro OOH.
Sources：CODC 2004.01.01～2013.12.31
OOH SPEND BY TYPE (MILLION RMB)
112

VIDO LCD OOH
OOHType
2012
2013
Growth%
Net Growth%
Building LCDs
12,641
16,140
28%
19%
LEDs
7,349
9,674
32%
-3%
MetrosTVs
5,943
2,926
-51%
-7%
Bus LCDs
3,745
2,900
-23%
-10%
Metros LCDs
1,080
3,025
180%
-
Total
30,758
34,665
13%
3%
Unit：RMB Million
Source：CODC 2004.01.01～2013.12.31
Amongst Screen OOH Media, only Building LCDs show big increases while others are in decline.
113

Measurement of OOH in China has faced the barrier of industry fragmentation and lack of measurement.
114
Vendors cannot invest in good data
Vendors use own data or use no data
Skeptical customers
Price pressure, slow growth
OOH industry is (still) fragmented, many small vendors
OOH CHALLENGES

NEW TOOLS FOR OOH EVALUATION
Map API
Billboard GPS
Travel Paths
Transport choices
Daily OOH contact data
Start point
End point
Big data analysis can tap sample audience’s travel records via GPS opportunities to optimize OOH spots.
Start point
End point
115

APPLBOXTM MAP
Cross referencing travel routes against OOH spot locationsprovides tangible measurement of reach and frequency.
Sources: All Media Count and Ipsos, 2014
116

METRO OOH EXPANDS
More Metro OOH is directly tied to more cities with new metros and continued expansion of existing lines in major cities.
MayKunming Line 1, 2 (Shenzhen Press Group)
Aug Harbin Line 1 (Local Metros Co.)
DecZhengzhou Line 1 (Asiaray)
Dec Guangzhou Line 6 (Fundamental Media)
NEW LINES IN 2013:
May Changsha Line 2 (Hunan Press Group)
Jun Ningbo Line 2 (Asiaray)
NEW LINES IN 2014:
118

INNOVATIVE OOH FORMATS
Cadillac used an innovative OOH display for its CTS “ 凌波微步” campaign,giving the illusion of floating above water in Shanghai’s Xintiandi
Buzz on
Sina Weibo
>60,000 Shares
>4,000 Comments
119

VIEWPOINT ON OOH
OOH innovations gives added possibilities to reach the commuting audience.
1.
Analytics combining user locations and OOH give actionable insights via big data, providing advertisers new sets of KPIs to evaluate the performance of their OOH campaign.
2.
OOH still has the ability to generate organic buzz if executed well, while new technologies offer chances to directly tie OOH formats with direct conversions to a store or online visit.
3.
Interactivity in OOH –such as peel-off coupons, magnets, iBeacons, and souvenirs which can be redeemed for prizes or discounts –is a rising trend and effective in high-traffic areas.
4.
120

331*MILLION USERS
53% REACH
AMONG ALL NETIZENS
7 DAYS
PER MONTH
15 MINUTES
PER USAGE DAY
PC
MOBILE
39% REACH
AMONG ALL NETIZENS
13DAYS
PER MONTH
7 MINUTES
PER USAGE DAY
*Total user number only includes PC
E-COMMERCE OVERVIEW
122

ONLINE SHOPPING OVERVIEW
216.55
260.42
287.45
422.37
363.71
427.41
461.67
639.71
525.09
628.76
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
100
200
300
400
500
600
700
Q12012
Q22012
Q32012
Q42012
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014e
CHINA ONLINE SHOPPING MARKET
Q1 2012 -Q2 2014
Total Transactions (Billion RMB)
QoQ Growth Rate
YoY Growth Rate
461
785
1187
1892
2760
3780
4772
5634
0.0%
20.0%
40.0%
60.0%
80.0%
0
1000
2000
3000
4000
5000
6000
2010
2011
2012
2013
2014e
2015e
2016e
2017e
CHINA ONLINE SHOPPING MARKET 2010- 2017E
Total Online Shopping Transactions (Billion RMB)
Growth Rate
% of Total Retail Transactions
Source: iResearch July 2014
YOY growth holds steady above 40%, as online shopping reaches over 10% of total retail transactions by year’s end.
123

MEDIA SHARE OF TIME SPENT ON PC AND MOBILE
52%
22%
4%
8%
10%
TAOBAO
TMALL
JUHUASUAN (GB)
JD.COM
VIP.COM
YIXUN
MEITUAN (GB)
WOWO (GB)
Others
56%
7%
3%
9%
5%
2%
2%
16%
E-COMMERCE PLATFORMS SHARE
Alibaba dominates EC market on group level, although competitors such as Jingdong see increases in share.
+4%
-4%
PC
MOBILE
+2%
-9%
+8%
*TMALL products can also be purchased through TAOBAO APP.
124

PRODUCT CATEGORY
ONLINE SHOPPERS VIA MOBILE DEVICES AND SOCIAL MEDIA
Source: CNNIC Online Shopping Report
Online shopping has grown for most categories in the last year, notably even among virtual goods.
18%
22%
23%
26%
31%
33%
35%
43%
45%
76%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Cultural & Sports Facilities
Food & Health Products
Household Appliances
Books & DVDs
Cosmetics
Bags & Suitcases
Virtual Products
Electronic Products
Groceries
Apparel & Accessories
+8%
+14%
+14%
+18%
+20%
+15%
125

B2C VS. C2C
13.7%
25.3%
34.6%
40.4%
48.0%
54.1%
58.1%
60.5%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
2010
2011
2012
2013
2014e
2015e
2016e
2017e
ONLINE SHOPPING MARKET B2C VS. C2C
BY TOTAL TRANSACTIONS
B2C
C2C
B2C continues to rise as consumers see at is more reliable source for significant purchases, making up almost half of all transactions.
57.4%
21.2%
3.5%
2.8%
1.9%
1.5%
1.5%
1.4%
1.4%
7.4%
CHINA TOP B2C WEBSITES MARKET SHARE BY TOTAL TRANSACTIONS
Q2 2014
TMALL
JD.com
Suning.com
VIP.com
Gome.com.cn
Amazon
Dangdang
Yixun.com
yhd.com
126

BRANDS EMBRACE B2C
More and more big brands cross all categories opened their official stores in B2C market in past year.
127

MOBILE E-COMMERCE SURGES
5.0%
5.9%
7.4%
10.5%
11.9%
14.3%
18.7%
25.7%
26.8%
95.0%
94.1%
92.6%
89.5%
88.1%
85.7%
81.3%
74.3%
73.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
SHOPPING TRANSACTIONS -MOBILE VS. PC
Mobile
PC
One out of four transactions now take place over mobile phones.
13.1
18.1
31.2
38.1
50.7
65.8
119.4
135.1
168.4
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2e 2014
CHINA MOBILE SHOPPING MARKET
Total Transactions (Billion RMB)
QoQ Growth Rate
128

JD AND TENCENT PARTNERSHIP
Jingdong and Tencent reach a strategic e-commerce alliance.
As of March 2014, Jindongacquired 100% of Tencent’s e-commerce operations. This includes Tencent’s B2C platform QQ WangGou, as well as its PaiPaiC2C platforms.
JD also acquired a partial stake in Yixun, coupled with the option for a complete buyout at a later date.
In return Tencent acquires a 15% stake in JD, with the option for an additional 5% when Jingdong files for its IPO.
129

E-COMMERCE ON CHAT PLATFORMS
WECHAT
QQ
Jingdong announced they will give away RMB1 billion Hong Baomoney to users on mobile QQ..
JD brings e-commerce to Tencent’s WeChat and mobile QQ, with a strong emphasis on limited time offers and group deals.
JD is currently deploying its WeChat shop among select users in Beijing in Shanghai with WeChat version 5.3
130

FORMAT & SUGGESTIONS
SEARCH
RTB DISPLAY
ADVERTORIAL
REGULAR DISPLAY
132

THE ROLE OF E-COMMERCE
AWARENESS
EVALUATION
PURCHASE
FORMAT: DISPLAY ADS
KPI: TA REACH (%), COST PER TA REACH
FORMAT: ADVERTORIAL
KPI: COST PER VISIT, TIME SPENT(IF IT’S TRACKABLE)
FORMAT: SEARCH, RTB DISPLAY BANNERS
KPI: SALES REVENUE, ROI
133

VIEWPOINT ON E-COMMERCE
Expect further consolidation and partnerships to bring opportunities for e-commerce.
1.
Official brand stores will continue to gain momentum as more brands sign on to B2C, following the likes of Estee Lauder and Burberry.
2.
E-commerce dedicated search is becoming an important battlefield, with relatively new players like mobile-focused sm.cn, as well as in house search engines (e.g. on JD.com) breaking new ground.
3.
Mobile e-commerce is rising fast and definitely warrants planning for a mobile experience of your owned e-commerce channels.
4.
134

507MILLION USERS
80% REACH
AMONG ALL NETIZENS
12 DAYS
PER MONTH
9 MINUTES
PER USAGE DAY
PC
MOBILE
77% REACH
AMONG ALL NETIZENS
11DAYS
PER MONTH
11 MINUTES
PER USAGE DAY
Total user number only includes PC, mobile data refer to site
SEARCH OVERVIEW
136

Though people mostly search on PC, mobile is catching up -though mostly quicker searches compared to PC. On mobile, search via browser dominates vs. APPs
SEARCH ACROSS DEVICES
92%
76%
6%
15%
2%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan-13
Jan-14
SHARE OF TIME SPENT ON SEARCH
PC Site
Mobile Site
Mobile App
137

SEARCH –SHARE OF QUERIES ON PC AND MOBILE
Search remains dominated by Baidu, but it’s losing share to different players across PC and mobile devices. 360 search continues to rise and on mobile SM.cn makes a move.
Source: CNZZ, China Mobile –August 2014
SHARE OF SEARCH
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
2013Jan
2013Feb
2013Mar
2013Apr
2013May
2013Jun
2013Jul
2013Aug
2013Sept
2013Oct
2013Nov
2013Dec
2014Jan
2014Feb
2014Mar
2014Apr
2014May
2014Jun
2014Jul
2014Aug
Baidu
Qihoo 360
Sogou
Google
Soso
Bing
Youdao
Other
New Sogou
PC SEARCH MARKET SHARE (% QUERIES)
MOBILE SEARCH MARKET SHARE (% QUERIES)
79.7%
9.7%
7.4%
1.7%
0.9%
0.8%
Baidu
SM.cn
Sogou
Google
Easou
Other
138

A NEW MOBILE SEARCH ENGINE
Mobile-friendly e-commerce search engine sm.cn rockets to second place.
139

SOGOU AND WECHAT SEARCH
WeChat public accounts are now searchable via Sogou as of June 2014; recall that Tencent had acquired a 36.5% stake in Sogou in late 2013.
140

ALIBABA SEARCH TECHNOLOGY
OpenSearch is based on Alibaba’s self developed large- scale distributed search engine platform, which powers major digital e-commerce properties including such as Taobao and Tmall.
With OpenSearch, developers can implement on-site search functionality for their websites and even build a professional search engine.
Aliyun currently released OpenSearch to its users for free during public testing phase via its cloud computing platform.
Aliyun,Alibaba Group’s cloud computing services company, announced it is opening up search to public developers via OpenSearch.
141

THE ROLE OF SEARCH & INVESTMENT & FORMAT
EVALUATION
FORMAT: KEYWORDS SEARCH, BRAND ZONE
KPI: CPV, TIME SPENT
AWARENESS
FORMAT: SPECIAL SEARCH FORMAT (NOT COMMON)
KPI: IMPRESSION, REACH
BRANDZONE
PAID SEARCH
MINI ZONE
MOBILE ZONE
143

VOLUME OF PROGRAMMTIC BUYING
Programmatic buying from DSP is projected to double by year’s end 2014, hitting an estimated 3.3 billion RMB.
550
1,530
3,300
6,370
11,230
17,220
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2012
2013
2014e
2015e
2016e
2017e
MARKET SCALE OF DSP DISPLAY AD IN CHINA 2012-2017 (MILLION RMB)
Source: iResearch China DSP Market Trends Report
+115% YOY
145

GLOBAL GIANTS COMMIT TO PROGRAMMATIC BUYING
It’s a bold move given that P&G ranks as the world’s biggest media spender, committing roughly $235 million to online display last year. Until now it has been speculated that P&G’s use of programmatic buying has been mainly limited to relatively small tests.
The move has significant implications from brand advertisers, given an industry where until now more direct-response focused advertisers like AMEX have been more eager to embrace programmatic buys. AMEX, the U.S. based financial services company, in fact recently stated an intention to go 100% programmatic.
Consumer goods giant P&G announces plans to buy 70% to 75% of its U.S. digital media programmatically by the end of this year.
Source: WARC June 2014
146

ACCESS TO 12 BILLION IMPRESSIONS PER DAY
80% COVERAGE OF CHINA’S TOTAL RTB INVENTORY
Audience On Demand (AOD), Vivaki’s trading desk for programmatic buying, allows tremendous access to scale via search keyword cookies.
SEARCH KEYWORDS ON BAIDU
AOD TARGETING USING SEARCH KEYWORD COOKIES
147

DISPLAY ADS
AOD AUDIENCE TARGETING WITH OTV AND DISPLAY
exclusive to ZenithOptimedia
OTV ADS
AOD is able to reach a hyper-relevant audience on both OTV and display, coupled with frequency capping for even greater efficiency.
148

EXTENDING OUR PROGRAMMATIC FOOTPRINT
Remarketing
Look-Alike Targeting
A
B
C
Extended Key Words
EXTENDED KEYWORDS
RETARGETING
LOOK-ALIKE TARGETING
Optimization of programmatic via keyword extension, retargeting, and look-alike targeting further maximize relevance and effective reach.
149

VIEWPOINT ON SEARCH & PROGRAMMATIC BUYING
Take advantage of powerful targeting abilities of programmatic buying via search cookies, through platforms like Vivaki’s Audience on Demand.
1.
Use search and programmatic buying as a key source of insights and campaign optimization: test creative materials in real time and identify key consumer groups.
2.
Start integrating your databases (site, e-commerce, advertising cookies) to reach optimal retargeting and look-alike targeting campaigns.
3.
Don’t just look at the last click conversion! Invest in attribution modelling solutions to better understand the business drivers in your campaign
4.
150

QUESTIONS: DAVID.CHU@ZENITHOPTIMEDIA.COM.CN

ZenithOptimedia - China Media & Digital Scene 2014

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