Digital Market Landscape CHINA. Publicitas China Apr 2015
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1 Digital Market Landscape CHINA Publicitas China Apr 2015
2 642 M Internet Users Penetration Rate: 47% The world s largest internet population, up 9% y-o-y; Source: We Are Social, Jan 2015
3 565 M Mobile Internet Users Average time spent per day on the internet via mobile phones reached 2H35M Source: We Are Social, Jan 2015
4 2.73 M Websites Internet (81%)surpassed TV (79%)in daily reach among Chinese aged below 45 in 2013 Source: CNNIC, Jun 2014; 2013 Shan Hai Jin, CNRS
5 Table of Content 1. Overview Digital Consumption Habits Digital Advertising Expenditure 2. Trends by Category Online Video Search Engine Social Media E-Commerce News Portal 3. Top Sites by Category Youku.com Baidu.com Tencent Wechat & Sina Weibo Taobao QQ.com
6 1. Overview Digital Consumption Habits Digital Advertising Expenditure 2. Trends by Category Online Video Search Engine Social Media E-Commerce News Portal 3. Top Sites by Category Youku.com Baidu.com Tencent Wechat & Sina Weibo Taobao QQ.com
7 Digital Media Consumption Habits - An array of devices for internet access 44% 70% 642 M Internet Users 81% Source: CNNIC, Dec 2013
8 Digital Media Consumption Habits - Time Spent Online People in China spend 34% of their online time watching online videos, followed by social networking and e-shopping, at 16% and 10% respectively. Game 5% News 5% Others 21% Avg. 2H35M/ Day Video 34% Search 9% E-commerce 10% SNS 16% Source: Shan Hai Jin 2014; iusertracker, Dec 2014
9 Digital Advertising Expenditure Total online advertising spending in China amounted to 154 billion yuan in 2014, with a staggering y-o-y increase of 40%.E-commerce sites, search engine, video sites are the top 3 fastest growing categories. Y-o-y Growth % 44% Vertical 9% Portal 11% Video 8% Others 9% 154 B yuan ($24.7 B) E-commerce 32% Y-o-y Growth % 55% Search 31% Y-o-y Growth % 32% Source: iresearch, Mar, 2015
10 1. Overview Digital Consumption Habits Digital Advertising Expenditure 2. Trends by Category News Portal Online Video Search Engine Social Media E-Commerce 3. Top Sites by Category QQ.com Youku.com Baidu.com Tencent Wechat & Sina Weibo Taobao
11 News Portal Trends Growth Slowdown The Move from PC to Mobile e 35% 24 % 24 % Growth of UV almost flat Visits from Mobile Devices Increase Portal market ad revenue (RMB Billion) Top 5 Portals by monthly reach (million) 20 PC Mobile 7,9 9, ,1 qq.com sina.com sohu.com 163.com e 2015e ifeng.com Source: iresearch, Macquarie Research, Aug 2014
12 Online Video Trends A Booming Segment Time Users Spend No. of Advertisers 446.9% % Most-Watched Content Drama Variety Show Comic 34.2% 12.2% 8.1% Young & middle-aged audience 19-24: 28.9% 25-40: 50.1% Online Video ad revenue (RMB Billion) 18 13,5 9,6 6,5 4,3 Top 5 Video Portals by market share of ad revenues Youku & Tudou iqiyi Sohu Video 24.5% 19.5% letv e 2015e Tencent Video Source: iresearch, 2014
13 Search Engine Trends One of the Largest Digital Advertising Segments e 67% 36% 28% Traffic Share (Baidu, 2014) 33% 67% Avg. Age: User Profile Time Spent Per search: sec. Search Engine ad revenue (RMB Billion) 58,5 Top 3 Search Engines by monthly reach (million) 45,7 Baidu ,2 25,6 34,5 Qihu Sousou e 2015e Source: iresearch, Macquarie Research, Aug 2014; Enfodesk Q ; Baidu 2014; CNNIC 2013
14 Social Network Trends Active Social Accounts 629 M Penetration Rate:46% Y-o-y Growth:1% Active Mobile Social Accounts 506 M Penetration Rate:37% Y-o-y Growth:26% Avg. Age: High level Education: User Profile ( ) % % Sina Weibo NO.1 Microblogging Site 275m Monthly Active Users 82% Following 1 or more brands official account VS NO.1 Instant messaging App 468m Monthly Active Users 19% Following 1 or more brands public account Source: We Are Social, Jan 2015;Kantar China Social Media Impact Report;the CINIC Q3, 2014;Tencent Wechat User Survey, Jun 2014
15 E-Commerce Trends Transaction Volume (including B2B & Online Retail) 13 Trillion ($2.1 Trillion) in 2014 Top 3 E-Shopping Categories (items planning to purchase) 74 % 69% 64% Source of Information SNS Comments Friends & Relatives E-Commerce Sites 39% 38% 36% B2C Market Share in 2014 Others 28% C2C Market Share in 2014 Others 5% JD.COM 17% Tmall 55% Taobao 95% Source: the Ministry of Commerce 2014;KPMG, Feb 2014;Nielsen, Global Survey of E-commerce, Aug 2014;Enfodesk 2014
16 1. Overview Digital Consumption Habits Digital Advertising Expenditure 2. Trends by Category Online Video Search Engine Social Media E-Commerce News Portal 3. Top Sites by Category Youku.com Baidu.com Tencent Wechat & Sina Weibo Taobao QQ.com
17 QQ.com China's largest and most used Internet service portal owned by Tencent 420M Monthly Active Users Source: Tencent Data 2013
18 Youku.com China's largest streaming video sites 83.5M Monthly Active Users 60B Total Minutes spent on Youku app per month Source: iresearch MUT Data 2014
19 Baidu.com The dominant search engine in China 500M Monthly Active Users 70M 130M 516K Daily Active Users on Baidu app Android app downloads per day* Active online marketing customers *on the Baidu App Store and its sister site, 91 Wireless;Source: Baidu 2014 Q2, Q3 Report
20 Tencent Wechat The leading instant messaging app incorporating social media aspects & e- commerce features in to its platform. 1.12B Registered accounts 468M Monthly Active Users RMB 5 Million The minimum price for a WeChat Moments ad campaign Source:Tencent Wechat User Survey, Jun 2014
21 Sina Weibo The leading microblogging site in China known as the Twitter of China 275M Monthly Active Users 70% Of Daily Active Users from Mobile US$656 Million Mobile ad revenue in 2013, 40% of its total revenues Source:Mobile Asia Expo Report, Jun 2014
22 Taobao.com The dominant C2C e-commerce platform owned by Alibaba Group 231M 8M 19.7% Annual Active buyers Annual Active sellers Of total GMV from mobile transactions Source: Alibaba Group Report May 2014
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