New Media Business Trip China (DRAFT)

New Media Business Trip China

29 march – 5 april 2008

New media business trip china

New media business trip china

Shanghai

China Basics

• Slightly larger thanUS, incl. AlaskaPRC area: 9,596,960sq km

• 1.3 billion people China about twice the population of EU

• 90+% literacy• Government focus on English language

developmentSource: www.worl-gazetteer.com and http://www.cafediverso.com

China = 4 xUS population

Population

Defining the tiersFirst-Tier CitiesFour municipalities: Beijing, Chongqing, Shanghai, TianjinCities with total retail sales of more than RMB30bn, annual per capita income of RMB11,000 and high per capita retail sales as proportion of income:10 provincial capitals: Changchun (Jilin), Chengdu (Sichuan), Guangzhou (Guangdong),Hangzhou (Zhejiang), Harbin (Heilongjiang), Jinan (Shandong) Nanjing, (Jiangsu),Shenyang (Liaoning), Wuhan (Hubei), Xi’an (Shaanxi)Four leading cities: Dalian, Qingdao, Shenzhen, Xiamen

Second-Tier Cities17 provincial capitals: Changsha (Hunan), Chengdu, Fuzhou (Fujian), Guiyang (Guizhou), Haikou (Hainan), Hefei (Anhui), Hohhot (Inner Mongolia), Kunming (Yunnan), Lanzhou(Gansu), Lhasa (Tibet), Nanchang (Jiangxi), Nanning (Guangxi), Shijiazhuang (Hebei),Taiyuan (Shanxi), Urumqi (Xinjiang), Xining (Qinghai), Yinchuan (Ningxia), Zhengzhou(Henan)50 prefecture-level cities, including, Ningbo, Suzhou, Wuxi, Wenzhou, Nantong,Dongguan, Zhanjiang15 more cities with populations of between 500,000 and 2mn

Third-Tier CitiesApproximately 200 county-level cities

Fourth-Tier CitiesApproximately 400 capitals of county towns

Media landscape

Digital Media Landscape

• Approx. 220 million internet users• Approx. 550 million mobile users

Market differences• Much younger internet population• Grass-roots internet usage (entertainment,

games)• Strong sense of community (blogs, bbs)• No trust in online payment• Dynamics of a high-growth market (scalability,

fast moving competitors)• Perception that non-local internet companies

fail (Google vs Baidu, Youtube vs Todou, Netvibes vs Yaawa)

What’s hot in China?

• Search in blogs and bbs (eg CIC data)• Entertainment, games, music

Emerging Economies Lead Future Online Growth

0%

25%

50%

75%

100%

0% 5% 10% 15%

CAGR of Online Population (2006 to 2011)

Onl

ine

Pene

trati

on in

201

1

Note: Not all countries are included. Size of bubble indicates relative size of the online population in 2011.

World averages in 2011US

UK

Australia

Japan

Germany

Singapore

Czech Republic

Israel

Italy

Chile

Bulgaria Romania

Argentina

UAE

Mexico South Africa

Egypt

Russia

Brazil

China

IndiaIndonesia

Philippines

France

Netherlands

Sweden

Saudi Arabia

Canada

Norway

Advertising market

Advertising market

Online Advertising in China

Online Advertising in China

Online Advertising in China

Online Advertising in China

Online Advertising in China

Online Advertising in China

Mobile coverage China