World s 2 nd largest advertising market

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1 China Media Scene 2012

2 Asia's No.1 outbound tourists source country 2011 GDP: No.2 in the world World's largest luxury goods market Foreign exchange: No. 1 in the world ODI: No.5 in the world (+9.7%) 2011 CPI: 5.4% World s 2 nd largest advertising market

3 A very crowded media market 247 TV Stations 1,928 Newspapers 9,849 Magazines 227 Radio Stations 2.3million Websites Millions Outdoor media Source: CTR 2011 Report

4 Advertising expenditure kept growing in Billion in % Advertising expenditure in 2011 by media type Internet +59% Radio + 28% Magazine +14% TV +13% Newspaper +11% Outdoor +6% TV 58% Radio 4% Newspaper 11% Magazine 3% Outdoor 9% Internet 15% Source: GroupM 2011 China Media Report

5 Television 247 TV Stations 22 CCTV Channels 44 Provincial Satellite TV More than 3000 Provincial TV & Local TV Channels Total 3,350 channels in China Source: China Statistical Yearbook,2011

6 PSTV getting more popular Channel s viewing share(%) CCTV PSTV PTV Local TV Other Drama Entertainment News Source: CSM 35 cities, P4+, Total TV, Whole Day

7 Boom of Digital TV 115 million household users by the end of % penetration rate. Internet Protocol TV Soars 14 million household users by Jan 2012.Estimated to reach 21.1 million by the end of Source: Guideline Research, July 2011

8 Radio 227 Stations 2549 Channels Rapid expansion of car ownership led to radio consumption growth 25.0 Listening radio in cars Car ownership rate Source: CSM Infosys Radio, P10+, whole day, continuous monitored markets

9 Rapid Newspapers expansion of car ownership led to Radio consumption growth 1928 publications of newspapers in 2011 Provincial titles dominate in ad spending 227 Stations 2549 Channels Listening radio in cars Car ownership rate Opportunities Integration with digital terminal and mobile internet Challenge Rising printing & distribution cost Digital media has reshaped reader s reading habit

10 Magazines 9849 magazines available in China 2011 Integration with digital terminals & mobile networks New technology bring more interactive magazine ads Source: CTR 2011 Report

11 Internet Internet penetration continues to grow steadily Internet Users (million) Penetration 10% % Boost of micro-blog & group buying Mobile Internet Users (million) Micro-blog Group buying 2011 Users (million) M times Usage Rate 48.7% 12.6 Compare to % % Source: CNNIC, China Internet Development Report (Jan.2012)

12 Online Video 325 million online video users 14.6% 63.4% penetration 2.1% 4.3 billion online ad revenue 97.7% Opportunities Entertainment Restriction bring more young audience to these sites. Major events stimulate video industry. Micro blog, SNS have expanded the video communication platform. Challenges Increasing operation cost due to high copyright cost. Fierce competition Source: CNNIC: China Internet Development Report (Jan. 2012); iresearch : China Internet Market Report 2011

13 E-Commerce 194 million online shopping users 20.8% 37.8% penetration 7.7% 7700 billion market size 46.4% Opportunities Major internet users (80s & 90s) will drive shopping market. Popularity of smart phones and tablet. Challenges Online shopping security. Fierce competition. Physical distribution & review system. Source: CNNIC: China Internet Development Report (Jan. 2012); iresearch : China Internet Market Report 2011

14 Out of Home Media Platforms Roadside Transport Destination Event Mobile New Trend Diversified interaction between OOH & Mobile phone Bus is the most favored transportation mode Increasing opportunities for Metro media Source: China Statistical Yearbook,2011

15 Mobile Terminal 356 million Chinese mobile netizens in % The number will reach 492 million in 2013 News, SNS & Working plan are TOP 3 Smart Phone preferred choices New technology for mobile Internet boosts digital marketing Source: CNNIC, China Internet Development Report (Jan.2012); iresearch: China Internet Market Report 2011 ; IMMS-2011H1; GroupM Smart Phone Smart Life Report

16 Movies 2011 Box Office Top5 Imported movies soared Total box office 2012(Jan-June): 8 billion 28.9% Titanic 3D 930million Mission Impossible 680million Avengers 560million Man in Black 3 500million Journey 2 390million Source: SARFT

17 Trends: Convergence and Development TV Print Radio Internet Traditional TV gradually import new tech and new media; From watching TV to playing TV. Breakthrough in digital. Outside home became a new trend of listening in digital broadcasting era. E-commerce Sell Everything ; Social Media plays important roles in communications; A great potential of Mobile Internet. Digital More Interactive & Outdoor

18 Publicitas China Beijing office Clients Media Partners in China Shanghai office

19 Thank You!

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