1. China Digital
Marketplace
Overview: Q2 2010
Module 1: China Internet User Profile
Module 2: Mobility
Presented by: Shane Crombie

2. A bit about me..
●1996-2001: Digital creative production, ad serving & project
management with Carat Fusion in San Francisco & Wunderman
in Los Angeles
●2001-2008: Digital media planning & buying with Tribal DDB &
Carat in Australia & UM in China.
●2008-2010: Executive sales consultant with Sina & Wanmo
●Key category experience: IT, Travel, Auto & FMCG
●Key client experience Microsoft, Intel, Tourism Australia, Cathay
Pacific, Jaguar, Nissan, Unilever & Roche
●Key specialisms: Ad serving, social media & haggling

3. Presentation Structure
1.0 Thought Starters
1.1 Demographic Profiling
1.2 Usage Trends
2.0 Mobility- Global Survey
2.1 Mobility- PRC Overview
2.2 Conclusions

4. 1.0 THOUGHT STARTERS

5. Digital is a phenomenon …
Average hours per week
media consumption
1
09
00 Gam
8
es
Wirele
0
7
Outdo ss
0
6 or Digital
0 Cine
5 radio
ma
0
4 Analog Digital
0 ue TV
3 radio
0 Analogue
2 TV
0
1 Intern
0 Pr et
0 int
19 19 19 19 19 20 20
00 20 40 60 80 00 20
Source: Aegis

6. What are we most curious about?
China searches
focused on
badoo wealth
Facebook management
Dailymotion
Webkinz
Ebuddy
Secondlife International
Hi5 searches
Club penguin predominantly
2.0 social
networks

7. 1.1 DEMOGRAPHIC PROFILE

8. Key Demographic and Internet
Metrics
Source: eMarketer, March 2007

9. China Internet Population Growth 2002-
2009
60.8% of Internet usage is mobile
8.9% of Internet usage is mobile only
Source: CNNIC Mar CNNIC WEBSITE
2010

10. Key Market Internet Penetration
Source: Internetwordstats.com Dec 2009

11. Internet Penetration by Region
Source: CNNIC Mar 2010

12. Internet Penetration By Province
Source: CNNIC Mar 2010

13. GDP Vs. Internet Penetration By
Province
Source: CNNIC Mar
2010

14. Age Distribution
Male/Female Ratio:
54.2/48.8
Over 30 now 38.5%
Internet This situation
population is M/F ratio still is consistent
moving into lags mature with a new
the over 30 markets internet
category market
Source: CNNIC Mar 2010

15. China and USA age profile comparison
Source: Internet June 2010

16. Education Distribution
Growth or pre
Early adopters Primary
tertiary usage
more school uptick
indicative of
educated/high due to earlier
rural usage
er income age adoption
growth
*Tertiary education here refers to college education received
through full-time study and also includes adult education and
Source: CNNIC Mar other equivalent education
2010

17. Employment distribution
Students &
junior office staff
like using the
internet (!)
Growth in
Unemployed
usage likely due
to recession
Source: CNNIC Mar
2010

18. Income distribution
Salaries are
Greater
rising leading to
unemployed
a skew in the
using the
Income usage
internet
profile
Source: CNNIC Mar
2010

19. Urban Vs. Rural Usage
40% of non
Rural
usage due to
Growth slowed knowledge gap
lack on
in rural areas in may develop
knowledge, 20%
2009 vs. 2008 leading to socio-
due to lack of
economic divide
access
Source: CNNIC Mar

20. 1.1 USAGE TRENDS

21. Access Time & Costs
2 hours per week
is a considerable
increase= 96
more hours online
in 2009 per
netizen
At work audience
relatively small in
China, internet
mainly used for
leisure purposes
Source: CNNIC Mar
2010

22. Access Device Profile
The desktop is The computer is
dead long live dead long live
mobility!!! smart phones!!
Source: CNNIC Mar

23. Mobile Usage comparison by age
Under 30
netizens prefer Small screen size
mobile internet, is not a barrier for
suggesting this is content
the future for all consumption
internet usage
Source: CNNIC Mar

24. Mobile Content Consumption Profile
Reading content
and txt Search is a
messaging/IM popular aspect of
predominant mobile internet,
usage indicating no info on what
lack of 3G the key topics are
penetration
Source: CNNIC Mar

25. Global Broadband Speed
Comparison
Korea has
Yes China has
fastest
‘broadband’ but
broadband at
at 800 kbps its
14.6 mbps,
half the global
HKG at 7.6 and
average of 1.5
the USA 18th at
mbps
3.9mbps
Source: CNNIC Mar

26. Preferred Access Locations
Home and work
access continued iCafe usage
usage growth due decline attrib. to
to more mobile internet
importance assoc usage increase
with internet
Source: CNNIC Mar
2010

27. Internet Content Consumption
Profile
Growth in
Why the 5%
eCommerce
decline in IM
signals greater
usage?
trust in internet
45% of netizens Gaming now at
below to a social close to 70%
network penetration
Source: CNNIC Mar
2010

28. Blog Usage
Huge engaged
221 million
audience but
netizens now
limited
read blogs, 145
marketing
million netizens
penetration so
author a blog
far.
Source: CNNIC Mar
2010

29. "In just a decade, we'll have gone from half the world never
having made a telephone call to half the world owning a
phone"
Pesce, 2007
2. MOBILITY

30. 2.0 GLOBAL TRENDS

31. Device penetration by market
Device Laptop
ownership is ownership is
high in lower in China
developing due to relative
markets purchase cost
Source: UM ‘Anywhere Anytime’ Global Survey, 2007

32. Percentage that completely agree with the statement
“I like the idea of having one portable device to fulfill all my needs”
Affluent
markets prefer, China
and can afford, consumers have
multiple mixed
aspirational preferences
devices
Source: UM ‘Anywhere Anytime’ Global Survey, 2007

33. Penetration of content sources on
mobiles
Penetration of cameras on mobile phones Penetration of music players on mobile phones
Both India and China
the US fail to consumers love
reach 60% to listen to
uptake, music on the go,
interesting given perhaps highly
their differences cultural trend
Source: UM ‘Anywhere Anytime’ Global Survey, 2007

34. Global Mobile Usage Index: All data
points
US consumers
use phones to
make phone
calls only
All regions &
continents
evenly
distributed in
rankings,
suggesting
nation-unique
usage profiles
Source: UM ‘Anywhere Anytime’ Global Survey, 2007

35. Acceptiveness to advertising on mobile
devices
The key
Developed question is will this
markets have bifurcation change
lower levels of as developing
acceptiveness markets become
more sophisticated
over time
Source: UM ‘Anywhere Anytime’ Global Survey, 2007

36. 2.1
PRC MOBILITY
OVERVIEW

37. We are:
A
L
W
A
Y
S
THE GO
ALWAYS ON
D
E
M
A
N
D

38. The New Mobility
We have a highly personalized relationship with our mobile phone.
It’s with us 24/7, we depend on it and its a symbol of who we are. Its
our ‘mini me’
The traditional role of a phone, to send and receive calls &
messages, is no longer relevant. Today, we ask for more:
Customization: You order from a menu, a la carte is
out.
Personalization: You decorate in your own style
Interactivity: You react, respond & record
Convenience: You text & talk to anyone, anytime,
anyplace
Freedom: You control your destiny
*

39. 2009 Mobile landscape in China
750 million 61.6%
mobile users Professionals, young
executives and
students
90%+
aged 18-40
51% education+
diploma
60 WAP users
active
million
27.3% Access 430 billion
SMS were sent last
(44 million users)
to internet year
50 million
active MMS users
Source: Multiple
*

40. Selection of current PRC mobile marketers

41. Available mobile marketing programs
Interact with brands
Drive brand User engagement /
awareness participation
Text / audio/ images / – survey, voting, etc.
videos Event / product
promotion
CRM
Performance CRM database
marketing integration
Click-to-call Customer retention –
Lead generation coupons, reminders
Customer acquisition
Mobile Surveys

42. Mobile targeting capabilities
By geography (i.e., Beijing, Shanghai or not Guangdong)
By handset brand and model (i.e., Nokia Nseries with S60 platform)
By handset retail price segment (i.e., Targeting only 2,000RMB handsets
and above
By handset classification (i.e., High-end and smart phones or female and
music phones)
Beijing User Nokia
N70
Shanghai User
Sony Ericsson W550

43. Optimization capabilities
Optimize ad serving by analyzing ad version CTR in a specific ad position
by campaign and hour of the day, and automatically rotate in new versions
for best performance.
Ad Versions Day 1 Day 2 End of Campaign
Ad Version 1
Time Time
Rotation
Optimized
Time
Ad Version 2 Period Period Period
Fully
Optimize Optimize
Ad Version 3 Optimize
d d
Inventor Inventor …. d
Inventor
y y
Ad Version 4 y
Ad Version 5
Ad Version 6
New Ad Version New Ad Version

44. Platform optimization
●Serving optimized mobile ad banner automatically to fit different
screen resolutions of different phone models
●Optimize approx. 97% of the mobile handsets in China
X √ X

45. Conclusions
●With less than 30% internet penetration and annual growth of 70
million new users, China is on track to have half a billion netizens in
late 2011.
●The internet is going mobile and the demand for custom content and
platforms will shift internet resources and thinking to mobility
●The new popularity of social networking is showing signs it may impact
popularity of standalone platforms like Baidu, 10Cent and gaming
verticals.
●With close to 150 million active bloggers, marketers must execute
brand building programs successfully in this space to maintain market
share. Seeding & banners only offer so much.
●Netizens are getting older and richer and looking for engaging content
experiences that match their evolving interests
EPIC 2014