2012

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2012. 2

Nana Lin

‣ 2012 China Online Market Status Update

‣ Display Advertising Market

‣ Online Video Advertising Market

‣ Social Advertising Market

‣ Mobile Market

‣ 2012 Olympic Marketing

Agenda

hdtMEDIA is China’s Leading Integrated Online Advertising Platform

MARKETER

PUBLISHER

AUDIENCE

Media Planning

Brief Management

Ad Serving / DSP

Real Time Optimization

Analytics & Reporting

Iresearch/CNNIC/DCCI/Comscore/CMMS

MillwardBrown/DoubleClick

hdtMEDIA integrated online advertising platform bridges marketers and publishers. This leading platform covers over 80% chinese internet users, deploying display ads over major portal, video, social and vertical websites.

China Online Market is Fast Growing, Nation Coverage up to 38%

With the government driving the “The national 12th-5-year plan” and “3-screen project”, broadband facilities have been fast setting up nationally and internet access has become a necessity in tier 1 cities.

In the rural part of China, Internet penetration rate grows even faster. For the advertiser to reach low tier cities, internet starts to play an increasingly important role.

65%

43%

20%

Tier 1 Tier 2 Tier 3

Tier 1-3 City Internet Coverage

200

298

384

457

513

2984 106 125 136

2007 2008 2009 2010 2011

Total Internet UserRural

User in Millions

CNNIC 29th China Internet Statistic Report Jan.2012

Mainly reach < 40 age group increasingly time consumption

CMMS Summer 2007 – Summer 2011

CNNIC 29th China Internet Statistic Report Jan.2012

Newspaper

Magazine

TV

Internet

Broadcast

Avg. time spent hour/day

Internet users almost spend the same amount of time on Internet and TV daily and the time spend on Internet will keep increasing due to the massive choices of content, easy & fun to social and interact.

Addictive

Internet Penetration by Age Group

10-19

20-29

30-39

40-49

>50

0% 80%

7%

25%

51%

73%

69%Not just for Youth anymore

Internet gained larger percentage of reach to age 30-39 in 2011, creating more opportunities for marketers to reach those stable-income group. Huge potential for E-commerce.

China Internet Ad Market Maintains the Fastest Growth

0

45

90

TV Internet Print Outdoor

21

36.5

25.6

75.9

24.1

3937.4

85.1

(Billions)

12%

DCCI Internet Marketing Trend Report Jan.2012

20112010

46%7%

15%

With more and more marketers get into digital thinking and shift traditional ad budget into digital market, Internet ad market will keep an even faster growth up to 50% in 2012. With users’ fast adaption to smartphone and tablet, we expect to see new opportunity and growth in mobile internet ad market as well.

China Display Ad Market will remain BIG% of display ad budget

Display Ads Main Vendor

2010 2011 2012E 2013E 2014E

38%

39%

40%

41%

43%

Emarkers Nov.2011

Portal Ad Network Others

26%32%

42%

Ad network Market

2010 2011 2012E 2013E 2014E

2.93.6

4.65.9

7.7(Billions)

DCCI Internet Marketing Trend Report Jan.2012

Generating massive impressions is still the first priority for marketers to build brand image and an important KPI to measure online campaign.

Whereas, marketers have become more sophisticated in planning display ads to reach more target audience.

An increase of ad network budget and a decrease % of portal display ad budget shift to ad network is foreseen, due to ad network’s capability in cross-website coverage and targeting technology.

hdtMEDIA Ad Network Help Marketers Achieve Better Display Ads Result Over...

Targeting

Performance/ROI

Control

Coverage

Optimization

Transparency

Massive coverage, up to 80% of China Internet Users, effectively reach Tier1-3 cities.

Technology driven, deploy ads through major types of targeting methods: Contextual/Behavioral/Geographic/Affinity/Demographic/Day part

Proven result on achieve campaign KPIs, deliver high brand marketing ROI

Real time campaign monitor and optimization over websites, keywords and creative

Frequency control, reduce coverage redundancy due to websites overlap

Client side control enable real time data report. Open to the majority of third-party data monitors

China Online Video Users Still keep a fast growth

160202

240284

325

2007 2008 2009 2010 2011

Online Video User

13%

21%

51%

15%10-1920-2930-39>40

CNNIC 29th China Internet Statistic Report Jan.2012

CNNIC 29th China Internet Statistic Report Jan.2012

63%of total internet users

The increasingly amount of online video content has played an important role in driving more online users to video sites. Whereas, with the rising price of copy right, the earning from selling ad spots is not enough to cover the cost. Nowadays, very few video websites are profitable.

As for marketers, to mix brand image with content will be more effective. We foresee branded content the next big thing for online video advertising .

China Online Video Ad Market has Better Opportunity vs. TV

Post-80s online video usersdecrease TV view time by 63%

GroupM research

Online Video Time Spend

2007 2008 2009 2010 2011

1500MMh

X12124MMh

784MMh

(Billion)X2

Online Video Ad Market Doubled

SARFT TV regulations on Entertainment content & no insert ad during TV show

2007 2008 2009 2010 2011

0.210.43

0.88

1.75

3.64

CCTV ad price Increase 12.5%, Hunan TV increase 54% on average.

China Online Video Ad Market The Challenges

‣ Redundancy

‣ Targeting

‣ Price

Major ad spots on video portal sites are not able to conduct demographic targeting. Advertisers have to target their audience through the choice of certain TV series

The overlap among major video portal sites are as high as 60%, cross-site frequency control is difficult to achieve

A overall of 50% ad price inflation is expected, additional cost over geographic targeting

hdtMEDIA Online Video Ad Network: Help Marketers Achieve Better Video Ads Result Over...

• Overall reach 80% of online video users, covering major video portal sites, portal video channels, client-side video players and provincial TV websites

• Prolific ad formats: display, video and rich media ads

• Cross-site frequency control

......

hdtMEDIA Online Video Ad Network: Powerfully reach Tier 1-2 cities, complement TV coverage

0

1250

2500

3750

5000

Beijing Shanghai Guangzhou Tianjin Nanjing Xian Chonging Zhengzhou

hdtMEDIACCTV1CCTV 6HuanTVJiangsuTV

GRPs

CSM 2011.8

0%

50%

100%

H2-5 H6-9 H10-13 H14-H17 H18-H21 H22-25

hdtMEDIATV

CMMS 2009-2010

Coverage

China Social Ad Market’s Overall Growth Slow Down, SINA WEIBO Tops

50

3645

74

98 97

20092010

2011

KAIXIN001RENREN(Million)

Total User Coverage

• Social websites like RENREN has shown slight drop in reach more online users

• RENREN move to combine online video & e-commerce function in its site.

• Interest-based social sites: DOUBAN, Dian Ping gain traction

CNNIC 29th China Internet Statistic Report Jan.2012

35%

2010

20115%

The usage of Micro-blog The usage of non micro-blog social

CNNIC 29th China Internet Statistic Report Jan.2012

• Become the main portal with over 200MM registered user account

• Shape online user behavior on obtaining customized news

• Start to sell display ad spots on mobile apps

hdtMEDIA Exclusively Corporate with Sina WEIBO

China Mobile Market: Popular mobile equipments drive mobile internet usage China Mobile Internet User

0

100

200

300

400

2007 2008 2009 2010 2011

355MM

50MM

X7

Overlap for China mobile internet user and internet user up to

CNNIC 29th China Internet Statistic Report Jan.2012

70%

Internet user media behavior turns to multi-screen view

hdtMobile China Mobile Market Report 2012

16MM

China Smartphone Market

0

30

60

90

120

2008 2009 2010 2011

111MM

X7Smartphone market penetration reach

GroupM Mobile Report 2011

In Tier 1-2 cities, users have more advanced mobile equipments and common usage of APPs; In rural area, users tend to access WAP sites through mobile phone.

20%

hdtMOBILE: Build the cross-media bridge through Multi-screen Ads

WEB

WAP

WEB

APP

IOS

Android&

360 Digital Communication

WAP

Wide Coverage & Reach

Effective costBetter ROI

Active Interaction

hdtMEDIA Offers Exclusive Opportunity for 2012

Exclusive opportunity for advertiser to sponsor a certain Olympic sport and gain massive impression from display ads through all hdtMEDIA ad network keywords matched webpages in real-time.

pingpang

China national pingpang team

pingpang match

pingpang player

And etc....

hdtMEDIA Offers Exclusive Opportunity for 2012

We are looking forward to hearing from you

We can be find at: 17/F, Tower A, Ocean Int’l Center, 56 Dongsihuan Zhonglu,Beijing +86 10 65916827

7/F, Building C, Income Int’l Tower, 547 TIANMU XI LU, Shanghai+86 21 63178866

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