World s 2 nd largest advertising market

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China Media Scene 2012

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

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

Advertising expenditure kept growing in 2011 347 Billion in 2011 15% 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

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

PSTV getting more popular Channel s viewing share(%) 40 35 30 25 20 15 10 2008 2009 2010 2011 5 0 CCTV PSTV PTV Local TV Other Drama Entertainment News Source: CSM 35 cities, P4+, Total TV, Whole Day

Boom of Digital TV 115 million household users by the end of 2011. 56.5% penetration rate. Internet Protocol TV Soars 14 million household users by Jan 2012.Estimated to reach 21.1 million by the end of 2012. Source: Guideline Research, July 2011

Radio 227 Stations 2549 Channels Rapid expansion of car ownership led to radio consumption growth 25.0 Listening radio in cars Car ownership rate 20.0 17.9 19.3 18.1 20 15.0 10.0 5.0 0.0 2008 2009 2010 2011 Source: CSM Infosys Radio, P10+, whole day, continuous monitored markets

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 25.0 20.0 15.0 10.0 5.0 0.0 17.9 Listening radio in cars Car ownership rate Opportunities 19.3 18.1 20 Integration with digital terminal and mobile internet Challenge Rising printing & distribution cost Digital media has reshaped reader s reading habit 2008 2009 2010 2011

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

Internet Internet penetration continues to grow steadily 2006 2012-6 Internet Users (million) 137 538 Penetration 10% 2008 39.9% 2012-6 Boost of micro-blog & group buying Mobile Internet Users (million) 118 388 Micro-blog Group buying 2011 Users (million) 250 300M times Usage Rate 48.7% 12.6 Compare to 2010 +296% +244.8% Source: CNNIC, China Internet Development Report (Jan.2012)

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

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

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

Mobile Terminal 356 million Chinese mobile netizens in 2011 +17.5% 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

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

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

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