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