Focus Commercial Buildings LCD Advertising Network- FMCG

New Version

The Largest Digital Media Group in China

FocusMedia

2009.9

• Largest China’s Media compan

y listing on Nasdaq, with marke

t cap of US$ 7 Billion in Dec., 2

007

• China’s No. 2 largest media co

mpany in 2007, only after CCTV

， About US$ 6 Billion turnover

in 2008

Focus Media (China) Holding Limited

Commercial Location NetworkCovering over 95 cities,

over 90,000 LocationsIncluding as follows:

Commercial Location ChannelElite ChannelDigital Poster

Reach 250 Million Urban Consumers Daily

Outdoor LED Located commercial centers in Shanghai & Beijing

Focus Media DirectCovering 20,000+ well-known corporations3 million business professionals

In-elevator Poster Frame Network in Residential Buildings

Covering 51 cities, 160K elevators 65 million middle-high

income earners

In-store NetworkCovering 148 cities4000+ hypermarkets,

supermarkets and convenience stores90 million shoppers per week

Movie Theatre NetworkCovering 77 cities300 prime movie theatersRep. 85% of total ticket value

China’s Largest Digital Media Group

The fastest growing media group

0

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2003 2004 2005 2006 2007 2008

RMB: Mil

317%

300%

100%

100%

46%

Over 3000 Domestic & International Clients

–Food/Beverage：

-Shampoo：

–Beverage/Alcohol:

-Health care：

-Home Electronics：

-Service：-Home Furniture:

-Internet：

- Handset：

- Telecom：

- IT/Digital：

-Insurance：

Over 3000 Domestic & International Clients

–Airline：

–Travel：

- Finance：

-Luxury/Watch：

- Auto：

Over 3000 Domestic & International Clients

Building LCD NetworkBuilding LCD Network

Hardware

• 17-inch LCD at elevator bank

• 42-inch PDP in larger area

Main Position

• Elevator Lobby / In-elevator

• Rotating 60 times / day

Location of LCD Screen

Covering over 95 cities /70,000 High-end Buildings in China

• Beijing

• Shanghai

• Guangzhou

• Shenzhen

• Chengdu

• Wuhan

• Nanjing

• Changsha

• Xi’an

• Shenyang

• Kunming

• Dalian

• Qingdao

• Hanzhou

• Tianjin

• Ningbo

• Xiamen

• Fuzhou

• Haer’bin

• Changchun

• Chongqin

• Zhengzhou

• Taiyuan

• Huizhou

• Zhuhai

• Dongguan

• Foshan

• Huizhou

………

。。。

Penetrating 94% of High-end Office Buildings

Source ： AC Nielsen

In Terms of Commercial Buildings, Focus In Terms of Commercial Buildings, Focus Media Takes 98% of the Market ShareMedia Takes 98% of the Market Share

100%96% 97% 98% 99% 99% 97% 97%

100% 99%98%

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100%

Shanghai Beijing Guangzhou Shenzhen Chengdu Chongqin Hangzhou Nanjing Tianjin Wuhan Average

Building LCD Network Building LCD Network

Target Audience ProfileTarget Audience Profile

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Age 20-24 Age 25-29 Age 30-39 Age 40-49 Above Age 50

• Most target audiences’ age are around 20-50

Demography-Age

Base ： All respondents n=2510

Demography-Education

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Below college College Bachelor Master and above

• Target audience are well-educated.

Base ： All respondents n=2510

Demography-Personal Monthly Income

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Under 2,000 2,000-2,999 3,000-5,999 6,000-9,999 10,000 and above

• Tier 1: Personal Monthly Income 3000+ RMB• Tier 2: Personal Monthly Income 2000+ RMB

Base ： All respondents n=2510

-17-

Focus Media Building LCD Network

Locks on eyes of 150 million middle above

income consumers in China

Becomes an indispensable advertising channel

for FMCG products

Media Effectiveness of Building LCD

No. Of Taking Lift in the Building Per Day

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Under 3 times 3-4 times 5-6 times 7-8 times Above 8 times

Target audience take the lift more than 4 times per day.

Base ： All respondents n=2510

Claimed Average Waiting Time for a Single Trip

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Under 1 minute 1-2 minutes 2-3 minutes 3-5 minutes Above 5 minutes

On average, it takes about 2 minutes or more for waiting lift for each lift-trip.

Base ： All respondents n=2510

In a TV Campaign, what is the added-value of building LCD?

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6AM 7AM 8AM 9AM 10AM 12AM 2PM 4PM 6PM 8PM 9PM 10PM 11PM 12PM 2AM 4AM 6AM

Most TV ad choose this period

Here is opportunity

TV ad would lose this “Golden

Time”

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of h

ome

Watch TV at homeOp

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r ad

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Building LCD Media Dominate Daytime, Home TV Evening Time

Data Source: CSM Rating

For those light TV viewer, we recommend a combination

of TV and building LCD to enhance media reach rate.

For those medium TV viewers, 1+ reach is to get, while 3

+/5+ reach is too expensive to achieve， deploying build

ing LCD will promote frequency with cost efficiency.

In terms of cost, CPM of building LCD is only about 1/2-1

/3 of the local TV, therefore, building LCD helps save bud

get without sacrificing campaign effectiveness.

Key Values of Building LCD Media ：

From media exposure timeslot and location perspective…

LCD Can Stimulate People’s Higher Purchase Intention

Outdoor LCD is more Outdoor LCD is more likely to stimulate likely to stimulate target audiences’ target audiences’ purchase intention.purchase intention.

Daytime TV promotes target Daytime TV promotes target

audiences’ consumption, and it audiences’ consumption, and it

also influences on brand also influences on brand

choice. choice.

Home

Evening

TV

Outdoor

Daytime

LCD

Complement of time

Complement of space

From media coverage perspective…

What is added-value of building LCD ？- Local TV + Buildings LCD

Tier One

Beijing

Target ： 20-50

Data Resource ： CMMS 08A

Beijing

20-50Male ：

20-50Femal ：

Data Resource ： CMMS 08A

Shanghai

Data Resource ： CMMS 08A

Target ： 20-50

Shanghai

Data Resource ： CMMS 08A

20-50Male ：

20-50Femal ：

Guangzhou

Data Resource ： CMMS 08A

Target ： 20-50

Guangzhou

Data Resource ： CMMS 08A

20-50Male ：

20-50Femal ：

Shenzhen

Data Resource ： CMMS 08A

Target ： 20-50

Shenzhen

Data Resource ： CMMS 08A

20-50Male ：

20-50Femal ：

From Media Investment ROI perspective…

Building LCD CPRP&GRP

• According to CTR’s traffic report, Focusmedia building LCD’S CPRP as below:

Notes ：（ 1 ） The number of buildings is based on Focus Media’s records until April,2008

（ 2 ） The number of traffic was counted from Jan. to Mar.2008,random samples.

(3 ) Net cost counted by 60% off.

Target Audience: Age 18-50

Notes ：（ 1 ） The number of buildings is based on Focus Media’s records until April,2008

（ 2 ） The number of traffic was counted from Jan. to Mar.2008,random samples.

(3 ) Net cost counted by 60% off.

Building LCD CPRP&GRP

• According to CTR’s traffic report, Focusmedia building LCD’S CPRP as below:

Target Audience: Age 18-50

Case Study ： Shampoo

SLEK

Multi Channel Media MixMulti Channel Media Mix

SLEK’s Multi channel media mix strategy: March-May, 9 weeks launch with TVC 30” + 15”, total 120 times/day. 4 weeks launch with 30” TVC,, 60 times/day, with promotion on the ground. Tag-on on machine frame Meantime run first round of promotion on the ground June-July, 6 weeks launch ad 30”+15”, 120 times/day and run 2nd round of on

the ground promotion.

SLEK’s Brand AwarenessSLEK’s Brand Awareness

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Unai ded ai ded

Source ： Intercept Interview in building

Time ： March ， July 2005

10 days after

Off-air

53 50 51

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61 59 57

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15 weeks after

Off-air

SH brand awareness doubled in 3 months among key target audience.

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5961

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Unaided Aided

Ad. 30”+15”

Ad. 30”+15”+Post+Preliminary Ad

Intermediary heat Ad. 30”+Ad 15”

Joint-ventures shampoo brands are key players in fierce competition market, like Shanghai. After 4 months airing in LCD media, SELK’s brand awareness matched with those Joint-ventures’ brands.

The change of brand awareness in Shanghai by media mix of difference version

Case Study ： Cosmetic

L’Oreal

L’Oreal TVC evenly played every two L’Oreal TVC evenly played every two weeks weeks New product launch in summer, targeted on young and

trendy women

2 weeks in June, 30”TVC, 60 times/day

2 weeks in July, 30”TVC, 60 times/day

High ad recall rate driven from High ad recall rate driven from continuous exposure

4137 37

57 58

4845

40 39

60 61

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BJ GZ SZ

Unaided June Aided June Unaided July Aided July

%

Source ： Intercept Interview in building

Base ： All Interviewees

• L’Oreal’s brand awareness in key cities is high. • Objective of this campaign is to maintain brand exposure and

promote purchasing.• With continuous exposure in FocusMedia LCD network among key

targets, L’Oreal maintained high brand awareness.

Case Study: Food and Drinks

Lipton Milk Powder Tea

Lipton Teabag SeriesLipton Teabag Series

Lipton teabag targeted on the middle above income white-collars,

and office building LCD covers its target audience directly.

Lipton tea run 15”TVC in office buildings LCD continuously in five

months, and products include Lipton teabag, green tea, flavored

tea, etc.

Two TVC versions was aired in office buildings LCD network.

Nov.-Dec., 4 weeks launch with 2 versions of 15” TVCs.

Version of ‘Radiation’ describes the problem of radiation in the office, and claims that Lipton tea can reduce effect of radiation.

Version of ‘Belly’ shows the problem of fatness in the office, and claims Lipton tea can contribute to improve metabolism.

Two TVC versions were especially made Two TVC versions were especially made for Buildings LCDfor Buildings LCD

• The 2 TVC versions were tailor made for office building LCD media.

• After 1 week’s airing, unaided ad recall rate reached 23%, and aided ad recall rate reaches 39%.

• Targeting on white collars and focusing on their concerns, the 2 TVCs catch targets eyes, therefore brand awareness improved quickly.

• According to retailers’ feedbacks, after airing purchasers increased obviously.

• Marketing manager believes that sales exceeds forecast for this year.

High Recall Rate From The 2 Versions

Case Study: Alcohol

Carlsberg

Carlsberg High Frequency Exposure Carlsberg High Frequency Exposure to promote salesto promote sales

Time

15”+15”+15” 15”+15”+15” 15”+15”+15” 15”+15”+15” 15”+15”+15” 15”+15”+15” 15”+15”+15” 15”+15”+15”

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9月 10月 11月

• New product launch, key sales channel is bars, targets on young and trendy group.

• Although Carlsberg’s brand awareness maintain a high-level in Chengdu, but it also faced challenge from other premium brands, such as Heineken, Budweiser, etc.

• To promote sales high frequency exposure is deployed to compete rivals in key media, i.e. run 3 spots in 12 minutes, 15” TVC in 3 months.

Frequency Reached 4.1 times/week.Frequency Reached 4.1 times/week.

• According to post campaign research:• Frequency reached 4.1 times/week, 16 times/month. • Target audiences’ ad recall rate has increased dramatically. • According to sales, orders from bars have increased by

200%, and this number is much better than the competitors.

Carlsberg

Frequency/week 4.1 times

Unaided recall rate

47 ％

Aided recall rate 69 ％

Case Study: Fast Food Category

Pizza-Hut

High Frequency, Long Duration High Frequency, Long Duration TVCTVC Pizza-Hut’s high frequency exposure, long duration

TVC in 2006.

March: 2 weeks with 60” TVC, 60 times/day

April: 2 weeks with 30” TVC 120 times/day

May: 4 weeks with 30” TVC 120 times/day

High Recall Rate Driven From High Recall Rate Driven From High Frequency Exposure High Frequency Exposure Pizza-Hut’s brand awareness in key cities is high.

With continuous exposure in FocusMedia LCD

network among key targets, Pizza-Hut maintained

high brand awareness.

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ShangHai Guangzhou Shenzhen

Mar Unaided Recall Rate Mar Aided Recall Rate

Apr Unaided Recall Rate Apr Aided Recall Rate

May Unaided Recall Rate May Aided Recall Rate

%

Single Media Investment

Pizza-Hut targets on the middle above income white-collars,

office building LCD network focuses on its target audience

directly.

Pizza-Hut chooses FocusMedia LCD as its single media

investment.

Positive evaluation from Pizza-Hut.

Clients’ comments

“FocusMedia covers Pizza-Hut’s target

audience directly. After two years’

observation, we chose FocusMedia as

the only media investment for

“Afternoon-Tea”. We believe that

FocusMedia could attract our specific

group effectively and deliver right

message to key target audience.”

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