Tapping into the Lucrative China Market with an Omni-Channel Strategy. Frankie Ho General Manager

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1 Tapping into the Lucrative China Market with an Omni-Channel Strategy Frankie Ho General Manager

2 A GENDA v China Digital Landscape & Latest Marketing Trends v Embracing the Mobile Age v Connect with Your Target Customers Anytime Anywhere v A Closer Look to China Travel & Tourism Market v Best Practices Sharing

3 CHINA DIGITAL LANDSCAPE & LATEST MARKETING TRENDS

4 Source: We are social, Jan 2016 G LOBAL DIGITAL LANDSCAPE TOTAL POPULATION INTERNET USER SOCIAL MEDIA USER UNIQUE MOBILE USER MOBILE SOCIAL USER BILLION BILLION BILLION BILLION BILLION YOY +10% YOY +10% YOY +4% YOY +17%

5 Source: emarketer, Sep 2015, PWC Internet advertising: Key Insights at a glance 2015 D IGITAL AD SPEND CONTINUES TO GROW Global Digital Ad Spend 66% Growth e 2017e 2018e 2019e The digital ad spend will exceed TV to become the largest single advertising category in 2017 Total Digital Ad Revenue (Billion, USD)

6 Source: We are social, Jan 2016 C HINA DIGITAL LANDSCAPE TOTAL POPULATION INTERNET USER SOCIAL MEDIA USER UNIQUE MOBILE USER MOBILE SOCIAL USER 1,379 MILLION 680 MILLION 653 BILLION 1,314 MILLION 577 MILLION YOY +8% YOY +4% YOY +2% YOY +14%

7 Source: emarketer, Sep 2015 C HINA LEADS APAC DIGITAL MARKET Digital Ad Spend in APAC (Billion, USD) APAC In 2016, China s digital ad spend occupies ~57% of the total spend in APAC China Japan Australia South Korea India Indonesia Other

8 Source: iresearch 2016 T HE BOOMING CHINESE DIGITAL MARKET Chinese Digital Ad Spend 42.3% 40.0% 36.0% 34.1% 24.9% 19.3% e 2017e 2018e The total ad spend of Chinese digital market is expected to exceed 400 billion RMB in 2018 Digital Ad Spend (Billion, RMB) YoY %

9 EMBRACING THE MOBILE AGE

10 Source: emarketer, Sep 2015 D IGITAL AD SPEND SHIFTS TO MOBILE 38.5% 52.4% 67.4% 68.6% e 2017e 2018e 62.6% In 2015, for the 1st time, more advertising dollar was spent on MOBILE than on desktop ads. In 2016, the percentage spend on mobile is forecasted to grow to 62.6%.

11 Source: emarketer, Sep 2015 C HINA MOBILE AD SPEND DOUBLES IN % e 2017e 2018e 54% 66% 73% 78% In 2016, Mobile ad spend in China reaches US26.07 Billion, YoY 55% growth

12 Source: emarketer, Sep 2015 C HINA MOBILE GIANTS China Mobile Ad Revenue in % 3% 13% 34% 46% Alibaba s mobile revenue is expected to reach US8,735.7m in 2016 i.e. 35% of total mobile ad revenue. Tencent has the largest YoY growth rate: +84.8%. Alibaba Baidu Tencent Sohu Youku Tudou

13 I NCREASING TIME SPENT ON MOBILE In Transit Wake up Entertainment Leisure Time Lunch Break 166min/day Average daily time spent on mobile Source: We Are Social Digital Snapshot China, Aug 2015 Off work Social

14 Source: iresearch, Aug 2015 P ROFILE OF CHINESE MOBILE USERS 69.8% Male 62.2% 58.8% Aged East & South China 38.1% Middle to High Income Quality of Life & Fashion

15 CONNECT WITH YOUR TARGET CUSTOMERS ANYTIME ANYWHERE

16 Source: emarketer, Apr 2016 B AIDU WIDEST REACH OF CHINESE AUDIENCE Paid Search Ad Spending Share in China % 4.90% 1.10% 9.20% 80.80% Baidu has the largest market share in Chinese search engine industry. Baidu Google China Qihoo 360 Sogou Other

17 Source: Baidu B AIDU MOBILE SOLUTION 3.2Bil Mobile Ad Daily Display Volume 1.2Bil App 2Bil Mobile Website 50,000+ Mobile App 700,000 Mobile Display Ad Network Baidu makes use of its mobile internet portal and big data advantages to develop cutting-edge mobile technology with customized creative touch to assist brands in precisely connecting and engaging their target customers.

18 M OBILE SEARCH MARKETING Site Link Click-to-Call Offer Page App Download Image Ad

19 M OBILE BRAND ZONE

20 M OBILE TARGETING DISPLAY AD GPS Location Targeting Ad

21 A CLOSER LOOK AT CHINA TRAVEL & TOURISM MARKET

22 D ESTINATIONS OF CHINESE TOURISTS 3 1 2

23 Source: Leisure Segmentation Study, CNNIC: Chinese traveler s behaviour W HEN & HOW DO THEY OBTAIN TRAVEL INFORMATION? More than a year in advance Trip Planning / Booking Duration 7-12 months in advance 4-6 months in advance 1-3 months in advance 8-30 days in advance 1-7 days in advance did not book in advance 0% 10% 20% 30% 40% Channels of Obtaining Information Baidu Research Center revealed that it takes 24.7 days for Chinese tourists to confirm a travel booking. Around 80% of them obtain travel information via Baidu search engine.

24 Source: Baidu H OW TO REACH THEM EFFECTIVELY? Baidu reaches the most no. of Chinese outbound travelers 42.4 Million Outbound : Domestic Avg. Search Queries by Chinese Outbound Travelers 2013 Chinese Outbound Travel Trend 25 Times vs. 20 Times by Domestic Travelers Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

25 Source: Baidu H OW TO REACH THEM EFFECTIVELY? Search Queries Distribution Geographical Search Queries Distribution PC VS Mobile More than half of the travel related search queries in China came from Beijing, Shanghai, Guangzhou, Jiejiang & Shandong. ~30% of travel related search queries are generated from mobile. 52.4% 25.4% 17.5% 4.7%

26 B AIDU TRAVEL Reaching 212 Million + Chinese Tourists Receiving 9,000 Million Travel Related Search per Month

27 H OW DO WE REACH THEM? Page View / Day 30 Million Destination Views 800 Million Travel Note DL 140 Million APP DL 40 Million APP Users 6 Million Registered Users 45 Million Active Users 20 Million

28 THANK YOU! FRANKIE HO (852)

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