China Search International. Baidu Guide for Advertisers

China Search International Baidu Guide for Advertisers

CONTENTS 1. Introduction to China Search International 2. The China Opportunity 3. Baidu s Advertising Solutions 4. Random Facts About Baidu and China 5. Getting Started with Baidu

Baidu Guide for Advertisers INTRODUCTION TO CHINA SEARCH INTERNATIONAL

China Search International China Search is Baidu s largest international reseller.

China Search International CSI are expert Baidu Re-sellers. Our clients are predominantly international companies looking to capitlise on opportunities in China. Overview Some of our more well known clients CSI is a Baidu re-seller not an agency DO NOT charge management fees 2.5% FX fee Offices in Singapore, San Francisco, Los Angeles, Sydney and London CSI team have all previously worked at major brands / agencies in the UK, USA, Australia and NZ Help clients launch on Baidu in the most cost effective and hassle free way

A Guide for Advertisers THE CHINA OPPORTUNITY

The world s largest online economy China already has the largest online population in the world at 591 million users. Astonishingly that s only 42% of their population, so their capacity for growth is enormous 600 591 500 400 300 245 200 100 0 42 79 121 10.2 101 80 79 39 84 89 53 20 Online Population MMs % of Population online Source: China Internet Network Information Center

Or to put it another way Australia UK USA China = 50 million online users

Becoming affluent The number of Middle and Affluent Consumer HOUSEHOLDS in China will be the same as the US by 2020 Urban household disposable income 2010 Urban household disposable income 2020 1 Households Millions 12 Households Millions 13 34 61 57 53 69 66 39 36 23 Household annual disposable income (USD) thousands Upper affluent >200 Lower affluent $16 - $31.5 Middle Class $9.5 - $16 Emerging Middle $6 - $9.5 Aspirant $4 - $6 Poor <$4 Source: BGS Consultants

Chinese Growing Wealth The total wealth among millionaire households in 2011 was $1.7 trillion. This is expected to quadruple to $8.2 trillion by 2020. 3,000 Growth in the number of Millionaire households in China (in 000 s) 2,500 2,000 1,500 50 120 600 330 690 1,000 460 1,480 500 4 800 1,090 0 310 2000 2010 2015 2020 $1m - $5m $5m - $30m $30m+ Source: Deloitte

Chinese Online Behaviour Instant Messenger Search Engine Music Video 82% 76% 82% 65% Source: China Internet Network Information Center

Chinese Online Behaviour Online Spending Habits 33.8% shop online 30.5% pay online 29.1% bank online Reasons for Going Online Research Products to Buy 45.5% Research for Work 49.2% Stay up to date news / events 51.3% Online Trust Chinese online consumers display a high level of trust when it comes to conducting transactions online. Higher level of trust for brands that use SEM than SEO - purchase only from brands they are familiar with. Baidu screening process for advertisers is vigorous the Chinese public trust the brands that has been granted permission to advertise. Most Popular Activities Search Engine 76.3% Online News 78.5% Online Music 82.5% Source: China Internet Network Information Center

Baidu Guide for Advertisers BAIDU S ADVERTISING SOLUTIONS

Baidu, China s dominant Search Engine Baidu is the major search engine in China with over 531 million regular users. That the equivalent of all the Google users in Europe and Asia combined. Population of China: 1.3 billion Online Population: 591 million Baidu s Reach: 531 million Source: China Internet Network Information Center

Baidu Products Baidu Paid Search Baidu Content Network Baidu Landmark Baidu Brandzone

Baidu Products Baidu Paid Search Baidu Content Network Baidu Landmark Baidu Brandzone

Baidu Paid Search Baidu s SEM solution works similarly to Google clients select keywords and nominate a price per click that they are prepared to pay. Targetting Campaigns Campaigns can be targeted by - Day Part - Geo targeting (regions of mainland China, major cities, Japan, rest of world) NB: Cannot target Hong Kong or Taiwan Just like on other search platforms, Baidu don t publish the exact algorithm that gets a site the top advertising slot. However, we do know that it s a combination of quality score and maximum keyword bid.

Baidu Mobile Supports Title, Description and Telephone extension also downloads, emails and website links. Baidu s Brandzone product is now also available on mobile. Title Description Title Description Telephone extension

Baidu Products Baidu Paid Search Baidu Content Network Baidu Landmark Baidu Brandzone

Baidu Content Network Baidu Content Network is key to driving Brand recognition. Rich graphics, animation and video can be targeted to more than 500,000 sites in China. Targeting Campaigns Campaigns can be targeted by - Day Part - Sector e.g. financial sites or youth sites only - Geo targeting (regions of mainland China, major cities, Japan, rest of world) NB: Cannot target Hong Kong or Taiwan - Keywords and negative keywords - Types of sites visited recently - Search terms used in the past 2 months - Retargeting (via keywords or anyone who visited the site in the past 30 days) Top 10 Most Popular Banner Sizes Banner Size Usage 960x90 24.5% 728x90 17.6% 250x250 16.1% 300x250 15.9% 468x60 14.4%

Baidu Content Network 网 盟 广 告 Over 500k+ websites from a wide variety of content genres

Benefits of Re-targeting 0.3 % 5.0 % Precise re-targeting is directly linked to higher CTRs and improved click delivery overall Content Match Program without re targeting Content Match Program with re targeting Average Max CTR Source: Sample of 10 re-targeted advertisers in education, travel, real estate and financial services verticals, January 2013

Baidu Products Baidu Paid Search Baidu Content Network Baidu Landmark Baidu Brandzone

Baidu Brand Landmark Brand Landmark is a Branding building opportunity. Using Generic Keyword Terms, your creative will be shown in the Right Column in first position. CTR: around 1% Brand Landmark will make you stand out from other adver6sers and compe6tors

Baidu Brand Landmark Brand Building by Brand Landmark effective way to attract user attention and raise brand awareness. Right Columns View rises from 24% to 67% Results without Brand Landmark Results with Brand Landmark

Baidu Brand Landmark Display Formats Video Ads Floa6ng Ads Deep- Links Auto Rota6ons

Baidu Brand Landmark Ford s Brand Landmark campaign shows up in the Right Column First Position.

Baidu Brand Landmark California Tourism Board campaign shows up in the Right Column First Position.

Baidu Products Baidu Paid Search Baidu Content Network Baidu Landmark Baidu Brandzone

Baidu Brand Zone The ultimate way to build Brands in China the equivalent of a home page take-over. Burberry s campaign includes logos, videos, animated gifs, multiple product photos, latest news, deep links and social media. (Translated from Chinese using Google Translate)

Baidu Brand Zone Chanel Chanel s Brand Zone campaign includes logos, latest news results, product promotions, links to videos, their official television commercial, social media links, downloads and links to their iphone app. (Translated from Chinese using Google Translate)

Baidu Brand Zone Rolex Rolex dominates their competition with this campaign showing animated gifs and a full table of their biggest selling range for men and women. (Translated from Chinese from Google Translate)

No Baidu Brand Zone Omega preferred to focus on SEO forgoing customers to competition and resellers Paid Search results Omega s official site

A Guide for Advertisers RANDOM FACTS ABOUT BAIDU & CHINA

Travel There are approx. 9.5 billion travel related search queries conducted on Baidu each month this is about 10% of all search queries, and expected to reach 20% of all search queries by 2015. Most searched for travel information Food, 1% Pictures & Photos, 2% Souvenir & Specialty, 1% Travel Agency, 3% Accomodation, 4% Others, 12% Attraction, 47% Travel Guide, 5% Attraction Ticket, 6% Travel Websites, 8% Destination + Travel, 11% Source: Baidu Data Analysis Centre

Travel 2012 was the tipping point when online travel booking spiked in China Country Penetration Rate Millions Online travel booking users United States 40% United Kingdom 47% 120 112 India 20% 100 Brazil 25% China 7.9% 80 60 40 20 30 36 42 2012 was the tipping point when online travel booking spiked in China China now has more online travel booking users than the United States (98 million). 0 2009 2010 2011 2012 The current penetration rate is only 7.9%, which indicates growth opportunity ahead Source: Baidu, World Travel Mart

Most Popular Online Payment Methods view!of!popular!online!payment!methods!in!china! opular'online'payment'methods'in'china! The market share of the online payment services for transaction volume in Q4 2012 according to the latest data from EnfoDesk. elow!is!a!chart!that!illustrates!the!market!share!of!online!payment!services!regarding!transaction!volume! n!q4,!2012,!according!to!the!latest!data!from!enfodesk.! Huanxun( IPS,(3%( YeePay,(4%( China( PnR,(6%( Others,(2%( Nearly 240 million online shoppers China online payment transaction scaled to 976 Billion Yuan (USD$160bn) in Q3 2012 99Bill,(6%( Unionpay,(12%( Alipay,(47%( Online sales are expected to grow at a rate of 30% annually to 2015 Tenpay,(21%( Source: China Digital Quarterly, Q3 2013!

Luxury Goods &Cars&remains&the&most&searched&for&luxury&sector&in&China!! Cars Lead. Cars remain the BREAKDOWN most BY searched SEGMENT for Luxury sector in China How Chinese Consumers &Chinese&consumers&search&for&brands&in&va being&remembered&in&the&mainland.&&brands developing&their&communication&strategies& entering&the&market.! Consumer Search Pattern for Brand Names on Search Engines and E-commerce Sites ital&luxury&group,&sa&! Chinese consumers search for Brands in various ways reflecting how Brands are being remembered on the mainland. 11" 1%. 3%. 6%. 10%. 30%. 20%. English#acronyms#or#others. Non;official#Chinee#name#. Brands should keep this in mind when developing their communication strategies in China especially new Brands entering the Chinese market. 62%. 66%. Official#original#name. Official#Chinese#name. Source: Digital Luxury Group, SA Search#engines#. E;commerce#sites*.

Financial Services Immigration Banking sector in China Annual Number of Mainland Chinese Migrants to Australia 2012-13 2011-12 2010-11 2009-10 27,334 25,509 29,547 24,768 2008-09 21,831 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 China has been amongst the top 3 source nations for new immigrants Australia is a destination of choice for the Chinese for study, investment or immigration (SIV) Significant Investor Visa a new business and investment visa program that started in July 2013 is gaining significant interest from mainland China Australian banks are actively pursuing significant investors as well as students and immigrants Source: Australian Bureau of Statistics; Datamonitor; Guardian

Financial Services (FX) Foreign Exchange in China Nascent phase of expansion FX market more than doubled over each of the last 3 measurement periods from 2007 Growth attributed to the improvement in Chinese internet infrastructure and penetration More consumers are heading online to search for, learn about and trade in financial products FX Market Daily Average Turnover (selected markets; USD billion / day) 1995 1998 2001 2004 2007 2010 2013 China 0.26 0.21 0.30 0.83 9 20 44 Hong Kong 90 80 68 106 181 238 275 Japan 161 146 153 207 250 312 374 Singapore 105 145 104 134 242 26 383 United Kingdom 464 685 542 835 1483 1854 2726 United States 244 383 273 499 745 904 1263 Source: Bank of International Settlements; CFETS; Financial Times; SAFE

Building your Brand with Baidu Awareness 晓 Familiarity Consideration 虑 Purchase 购 买 Loyalty 诚 Content Network Hong Media Targetisement Keyword Search (SEM) Baidu Wireless (mobile) Brand Zone Brand Landmark Many International brands launch with Paid Search campaigns Once optimised, Content Network, Landmark and Brandzone activity follows

Baidu Guide for Advertisers GETTING STARTED WITH BAIDU

Getting Started with Baidu China Search International can help you select and translate your keywords for Baidu Send us the keywords you re currently using, i.e. Google or Yahoo campaigns Otherwise, we will develop a list of what keywords you should be using We filter and estimate Baidu search query volumes for each keyword in the past 30 days to gauge demand for your products Provide a monthly budget estimate Refine your keywords and budget until you re comfortable Minimum spend is $15,000 USD - but your investment can run over 2-3 months.

Opening a Baidu Account New accounts need to provide a number of documents to Baidu before your account can be opened. 1. Letters of Commitment These 2 contracts commit the advertiser to not break any Chinese laws. 2. Business Registration Documents proof of your company s registration and ownership. You must have a registered company to advertise on Baidu We can translate these for you 3. Proof of advertiser domain ownership the about us page details must exactly match the business registration certificate You ll also need to provide a signed screenshot of the homepage that clearly shows the URL NOTE - There are no agency accounts on Baidu; each advertiser needs their own account. We can take you through the account opening procedure step by step to ensure a smooth and hassle free process.

Contact Us Dean Capobianco Director Telephone: +61 (0)2 8272 5350 Mobile: +61 (0)402 045 120 Email: dean.c@chinasearchint.com Address: Suite 17, 13 Hickson Road Walsh Bay NSW 2031 AUSTRALIA Skype: dean.capobianco1 Web: www.chinasearchint.com