Mobile TV Target Audience Measurement (Report 1)

Mobile TV Target Audience Measurement (Report 1)

Executive Summary VisionChina Media Inc. (NASDAQ: VISN) commissioned CTR Market Research, one of China s largest market research providers, to generate the first TV rating measurement results for mass transit based digital mobile television The results show that for a very low cost, our TV ratings are extremely high and advertisements reach more than 90% of the population of cities in which we operate With third party research clearly reporting the efficacy of mobile advertising currently available, we have concrete evidence of the value of mass transit based digital mobile television which we can draw on in our marketing and sales processes Potential advertising clients no longer need to take a wait and see approach, the evidence is in the numbers. Early key findings indicate that we still have room to increase our prices, bringing them closer to the rates of traditional television, and as the price of traditional advertising timeslot continues to rise, we should be able to increase our price at a faster rate than traditional television.

Background Digital Mobile TV, a new media to the market, has no industrial standard measurement on the medium s efficiency and efficacy The premature pricing structure of competitors misinterpreted digital mobile TV s media value, and has had a negative impact on VisionChina s rate-card settings Even though advertisers recognize the high target coverage of digital mobile, there is no detailed rating analysis on timeslots and delivery Potential digital mobile TV advertising businesses have no actual numbers of buses and screens to which they can refer VisionChina Media, as the market leader in digital mobile TV in China, is committed to encouraging market sophistication, and thus commissioned a third party to conduct research on target audience ratings in 16 cities continuously

Objective Understanding the demographic and psychographic traits of bus commuters Using ratings measurement to evaluate: rating share of different digital mobile TV operators in different cities media value of digital mobile TV in terms of timeslot and weekdays vs. weekends cost effectiveness of digital mobile compared to traditional TV media, to guide future rate-card incremental readjustments acceptance level of digital mobile TV by mass audiences

CTR Research Launch The first ever on-going digital mobile TV rating measurement launched on May 28, 2008 This project was recognized and endorsed by advertising industry experts including advertisers associations, 4A agencies (e.g. Mindshare), as well as market opinion leaders

Research Methodology City Period Frequency Methodology Sample Measurement : Q2-2008 (BJ/SH/GZ/SZ) : June - July : Three times a year : Diary : 450 person/city 15-55 岁 : - Rating - Rating Share - Cost effectiveness comparison - Reach - Overall media evaluation - Target Audience profile structure

1 Digital Mobile TV Measurement Findings 2 Overall Media Evaluation 3 Target Profile This report focuses on Beijing, Guangzhou and Shenzhen

Mobile population reaches about 90% of total city population City Beijing Shanghai Shenzhen % of City Pop 81.9 85.5 94.1 Total Mobile Pop 6,932,347 4,799,236 2,609,036

Beijing, Guangzhou and Shenzhen Mobile TV Rating

(Aged 15-55) Average 2.5 hours Rating Rating Two peak timeslots were found Some ratings in certain timeslots are higher than traditional TV channel performance (average 3-4 rating) Timeslot Media Ave. Week day Week end Media Ave. Week day Week end Media Ave. Week day Week end 5:30-7:29 2.43% 2.88% 1.31% 1.15% 1.30% 0.80% 0.98% 1.15% 0.59% 7:30-8:59 5.54% 6.40% 3.38% 2.90% 3.28% 1.95% 3.37% 3.92% 2.01% 9:00-11:29 1.23% 0.97% 1.88% 0.31% 0.24% 0.49% 0.52% 0.46% 0.69% 11:30-13:29 0.61% 0.51% 0.84% 0.16% 0.12% 0.26% 0.30% 0.24% 0.45% 13:30-16:59 VISN 1.29% 1.10% 1.78% VISN 0.37% 0.29% 0.55% VISN 0.44% 0.41% 0.51% 17:00-18:59 4.42% 5.40% 1.95% 2.25% 2.62% 1.32% 2.54% 2.99% 1.41% 19:00-20:59 1.31% 1.42% 1.04% 0.94% 1.01% 0.77% 0.96% 1.07% 0.67% 21:00-23:30 0.30% 0.31% 0.31% 0.12% 0.09% 0.24% 0.36% 0.35% 0.39% 日 平 均 2.14% 2.37% 1.56% 1.03% 1.12% 0.80% 1.18% 1.32% 0.84%

Beijing, Guangzhou and Shenzhen Mobile TV Rating Share

Total Rating Share (Aged 15-55) Average 2.5 hrs Rating share By timeslot 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% Rating share Leading position 60.11% VISN-BJ VISN-GZ VISN-SZ 36.44% Premier League position 66.97% VISN-BJ VISN-GZ VISN-SZ Remarks : VISN successfully secured competitor s resources after the survey period concluded Leading position 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 52.83% 72.06% 62.46% 68.08% 39.79% 36.25% 5:30-7:29 7:30-8:59 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 62.44% 65.00% 61.00% 65.22% 27.93% 33.33% 9:00-11:29 11:30-13:29 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 57.59% 60.27% 61.56% 64.14% 38.14% 33.38% 13:30-16:59 17:00-18:59 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 59.55% 70.07% 68.18% 70.59% 47.72% 35.29% 19:00-20:59 21:00-23:30

Beijing, Guangzhou and Shenzhen Mobile TV Cost Effectiveness Comparison

Beijing, Guangzhou and Shenzhen Cost Analysis (CPRP) Traditional TV cost (TTV) / rating % Mobile TV cost / rating % after 60% discount Mobile TV Rating-VISN People aged 15-55 BJ Pop 6,932,347 GZ-Pop 4,799,236 SZ-Pop 2,609,036 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 TTV 6,800 VISN-BJ 1,104 TTV 2,000 VISN-GZ 747 TTV 3,900 BJ GZ SZ VISN-SZ 1097 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% VISN-BJ 2.14% VISN-GZ 1.07% VISN-SZ 1.18% BJ GZ SZ Population Reached People in Thousand Cost/thousand (CPM) Cost / thousand people 160 140 120 100 80 60 40 20 0 VISN-BJ 148 VISN-GZ 51 VISN-SZ 31 BJ GZ SZ 160 140 120 100 80 60 40 20 0 TTV 98 VISN-BJ 16.59 TTV 41.6 VISN-GZ 15.56 TTV 149 BJ GZ SZ VISN-SZ 42 VISN CPM is approximately 23% of TTV Cost

Beijing, Guangzhou and Shenzhen Reach of Digital Mobile TV

(Aged 15-55) Reach Accumulation of 3 weeks Reach 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% VISN-BJ VISN-GZ VISN-SZ 96.79% 87.28% 64.85% VISN-BJ VISN-GZ VISN-SZ

1 Digital Mobile TV Measurement Findings 2 3 Overall Media Evaluation Target Profile

Overall Evaluation Acceptance Level % % Attention Level Highly accept 16.22 Highly attention 11.52 Accept 68.29 Pay Attention 59.49 Fair Relatively not accept TTL not accept 14.73 0.68 0.08 In general, digital mobile TV is highly appealing to the mass Fair low attention No attention 1.78 0.12 27.1 population in terms of Positive Opinion acceptance level, attention level, level of Credibility positive opinion and Like very much 13.21 credibility Highly Creditable 5.91 Like 64.64 Creditable 63.99 Fair 20.53 Fair 27.95 Relatively don't like 1.54 Relatively not creditable 2.07 Don't like 0.09 % % Non-creditable 0.08

Media Advantage Rich content, high broadcasting quality, and real-time broadcasting are the key competitive edge of VisionChina s Digital Mobile TV % Rich content attracts my attention 25.9 67.73 Good broadcasting quality 22.5 67.48 Informative message 29.4 65.14 Popular advertising brands broadcasted 30.5 62.78 High quality of products advertised 32.1 61.51 High credibility of products advertised 34.6 58.97 Good environment to focus on TV 34.1 52.65 Bottom2(1+2)= Complete/Do not agree Middle (3)= Fair Top2(4+5)=Agree/Strongly agree

Efficacy Rating Digital mobile TV is one of the best mediums of entertainment and education while commuting % Commuting is really boring 14.3 82.92 Mobile TV provides entertainment 17.7 79.1 Mobile TV provides useful messages 26.0 68.31 I had nothing else to do 26.9 67.7 Mobile TV advertisements alone are worth watching I spent a lot of time watching mobile TV I will share the information received in mobile TV to others Mobile TV influences my consumption decisions 31.0 36.1 35.2 34.2 63.2 58.42 53.76 50.88 Bottom2(1+2)= Complete/Do not agree Middle (3)= Fair Top2(4+5)=Agree/Strongly agree

1 2 3 Digital Mobile TV Measurement Findings Overall Media Evaluation Target Profile

Demographic Traits - Beijing Gender Gender 45 55 Male Age Age Female Marital Marital Status Status 24.03 Edu. Edu. level level 72.01 3.68 Single Married Divoiced % % Personal Personal Income Income Below RMB1,000 1,000-1,999 2,000-2,999 2.68 31.3 37.7 % 15-19 20-24 25-29 4.37 10.8 12.38 University College 11.37 21.89 3,000-3,999 4,000-4,999 4.38 16.46 30-34 35-39 40-44 45-49 50-55 11.46 11.88 12.26 17.81 19.03 Post-Secondary Career/Prof.sch Secondary Primary 11.52 10.97 0.14 43.95 5,000-5,999 6,000-6,999 No Income 0.43 0.22 6.83

Demographic Traits - Guangzhou Gender Gender 45 55 Male Female Marital Marital Status Status 28.66 70.69 0.41 Single Married Divoiced Personal Personal Income Income Below RMB1,000 1.67 % Age Age % % Edu. Edu. level level 1,000-1,999 2,000-2,999 22.45 32.55 15-19 20-24 15.17 6.99 University 5.69 3,000-3,999 19.13 25-29 7.05 College 16.73 4,000-4,999 6.18 30-34 35-39 11.26 16.63 Career/Prof.sch 14.59 5,000-5,999 0.91 40-44 12.23 Post-Secondary 53.93 No Income 16.17 45-49 50-55 15.43 15.23 Secondary 9.06 Refuse to answer 0.94

Demographic Traits - Shenzhen Gender Gender 52 48 Male Female Marital Marital Status Status 34.09 65.33 0.58 Single Married Divoiced Personal Personal Income Income Below RMB1,000 1,000-1,999 1.05 15.31 % Age Age Edu. Edu. level level % 2,000-2,999 3,000-3,999 23.85 30.94 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-55 7.29 17.37 24.27 18.34 13.25 9.61 4.27 5.6 University College Career/Prof.sch Post-secondary Secondary Primary 3 10.27 20.53 19.88 33.63 12.42 4,000-4,999 5,000-5,999 6,000-6,999 7,000-7,999 8,000-8,999 9,000-9,999 No Income Refuse to answer 14.6 5.18 3.23 0.45 0.67 0.45 3.56 0.69

Appendix Diary Measurement Card

Appendix - Diary Card Design Record time:5:30~23:30 日 记 卡 D E S I G N Reach time:every 5 minutes Rating criteria: To watch mobile TV at least 3 minutes continuously Record content: To watch mobile TV during commute Viewing definition: View and receive messages from mobile TV which include: Captive viewing View by chance Unconscious viewing No recollection of messages after viewing 时 段 时 间 是 否 是 否 是 否 是 否 是 否 乘 车 线 路 时 段 时 间 乘 车 线 路 时 段 时 间 乘 车 观 看 乘 车 观 看 乘 车 乘 车 线 路 30~34 1 30~34 73 30~34 145 05:30 ~ 11:30 ~ 17:30 ~ 05:44 35~39 2 11:44 35~39 74 17:44 35~39 146 人 员 姓 名 : 40~44 3 40~44 75 40~44 147 45~49 4 45~49 76 45~49 148 访 问 员 编 号 05:45 ~ 11:45 ~ 17:45 ~ 05:59 50~54 5 11:59 50~54 77 17:59 50~54 149 55~59 6 55~59 78 55~59 150 日 期 : 00~04 7 00~04 79 00~04 151 年 月 日 06:00 ~ 05~09 8 12:00 ~ 05~09 80 18:00 ~ 05~09 06:14 12:14 18:14 152 10~14 9 10~14 81 10~14 153 星 期 : 一 二 三 四 五 六 日 15~19 10 15~19 82 15~19 154 06:15 ~ 12:15 ~ 18:15 ~ 06:29 20~24 11 12:29 20~24 83 18:29 20~24 155 人 员 编 号 25~29 12 25~29 84 25~29 156 30~34 13 30~34 85 30~34 157 06:30 ~ 12:30 ~ 18:30 ~ 35~39 06:44 14 35~39 12:44 86 35~39 18:44 158 填 写 提 示 40~44 15 40~44 87 40~44 159 1 请 您 每 次 乘 公 交 车 时, 45~49 16 45~49 88 45~49 160 立 即 填 写 日 记 卡 06:45 ~ 12:45 ~ 18:45 ~ 50~54 06:59 17 50~54 12:59 89 50~54 18:59 161 2 请 认 真 核 对 姓 名 人 员 55~59 18 55~59 90 55~59 162 编 号 频 道 代 码 00~04 19 00~04 91 00~04 163 07:00 ~ 13:00 ~ 19:00 ~ 3 7:00 对 应 时 间 段 为 05~09 20 05~09 92 05~09 07:14 13:14 19:14 164 07:00-07:15 10~14 21 10~14 93 10~14 165 4 若 乘 坐 同 一 辆 公 交 车 时 15~19 22 15~19 94 15~19 166 07:15 ~ 13:15 ~ 19:15 ~ 长 超 过 3 分 钟, 则 在 是 否 乘 20~24 23 20~24 95 20~24 07:29 13:29 19:29 167 车 处 圈 选, 否 则 不 圈 选 25~29 24 25~29 96 25~29 168 例 如 : 7:00-7:15 乘 坐 嘉 青 专 线 30~34 25 30~34 97 30~34 169 但 并 未 收 看 电 视 乘 车 线 路 记 录 07:30 ~ 13:30 ~ 19:30 ~ 35~39 07:44 26 35~39 13:44 98 35~39 19:44 170 00-0519 嘉 青 专 线 40~44 27 40~44 99 40~44 171 07:00 05-1020 45~49 28 45~49 100 45~49 172 07:15 07:45 ~ 13:45 ~ 19:45 ~ 10-1521 50~54 07:59 29 50~54 13:59 101 50~54 19:59 173 55~59 30 55~59 102 55~59 174 5 某 时 段 内 收 看 车 载 电 视 累 计 时 间 超 过 3 分 钟 时, 在 记 录 处 00~04 31 00~04 103 00~04 175 08:00 ~ 14:00 ~ 20:00 ~ 填 写, 否 则 不 填 写 跨 时 05~09 32 05~09 104 05~09 08:14 14:14 20:14 176 段 收 听 类 推 10~14 33 10~14 105 10~14 177 例 1: 13:03-13:05 乘 车 并 15~19 34 15~19 106 15~19 178 08:15 ~ 14:15 ~ 20:15 ~ 收 看 车 载 电 视, 不 记 录 20~24 35 20~24 107 20~24 179 08:29 14:29 20:29 25~29 36 25~29 108 25~29 180 例 2: 13:01-13:10 乘 坐 123 30~34 37 30~34 109 30~34 181 08:30 ~ 14:30 ~ 20:30 ~ 路 并 收 看 电 视 35~39 38 35~39 110 35~39 182 13:00 13:15 乘 车 线 路 08:44 14:44 20:44 记 录 40~44 39 40~44 111 40~44 183 00-0591 1 2 3 45~49 40 45~49 112 45~49 184 08:45 ~ 14:45 ~ 20:45 ~ 05-1092 50~54 41 50~54 113 50~54 185 08:59 14:59 20:59 10-1593 55~59 42 55~59 114 55~59 186 是 否 观 看