WANG Yan 15 nov. 2006 iDate
1 China’s Internet Market Abstract
China's Internet is Developing Rapidly ...
Chinese Internet Users Makes China Second Only to the United States
China currently has 119 million Internet users, second only to the United States, and that number is expected to grow to 200 million by 2007
1.23亿
万人 14000 12000 10000 8000 6800 6000 4000 2000 0 2001.06 2002.06 2003.06 2004.06 2005.06 2006.06 2650 4580 8700 10300 12300
数据来源：中国互联网络信息中心（CNNIC）
Maybe even more... China’s becoming the biggest Internet market!
The annual growth rate has been maintained at more than 20%
The Stickiness of China Online Media is No 1 in the World
Snapshot of China's Mobile Telephone Market
As of 9/2006, China has 443 million mobile users Mobile surpassed fixed line (369 m) users by far; Mobile userbase increases 5.5 m/month (2.1 m/month for fixed line); 1 mobile for 3 persons, penetration rate reaches 33.9% (28% for fixed line); Family penetration rate reaches 90% in cities, similar to Japan and Corea (80% for European countries, 75% for the US, 60% for Canada).
Sources: MII, Ipsos
Snapshot of China's Mobile Telephone Market
Historical growth 1987: 700 users 1997: 10 m users 2001: 100 m users 2002: 200 m users 2003: surpassed fixed line users 2004: 300 m users Annual mobile phone production: 340 m (70% for export)
Telecom market: USD78b (2006e), AGR 10%-12%
cont’d
Sources: MII, Ipsos
Mobile telephone Information terminal
SMS sendings 2006e: 450 billion (1 SMS/day/person) 2005: 300 b 2004: 217 b 2000: 1 b only 2.5G & 3G users 75 million (36 million in Japan, 14 million only in the US)
PC Internet users + Mobile Internet users = China, the World Biggest Internet Market
Sources: MII, Strategis
Rapid Development of China's Online Advertising Market
Leading Position in Online Advertising Market
Best contents and largest userbase bring to SINA the biggest share of the market for almost 1 decade. SINA, the No.1 player of the online advertising market in China, with over 20% of market share.
8 7 6
The amount of advertisers for major portals in 2005
6.8
Sina Sohu
5.4
5
Yahoo 163
4 3 2 1 0
3.4
China.com QQ
1.7
2
TOM 21CN
2001
2002
2003 Ad Income(￥100M)
2004
2005
Source：Sina Finance
Source: iResearch Market Evaluation Report 2005
Sina is the Preferred Media of Most Advertisers for Online Marketing in China
新浪客户数量
1345
906 613 301 382
2001
2002
2003
2004
2005
Source：iAdTracker 2006
Sina is the FIRST CHOICE of numerous first-class domestic and international corporations for promotion
Information Integration 2 Sina’s Core Strengths
Who is SINA? Unique Channel for Global Chinese People！ – China NO.1 Portal Website！ – Preferred Media of Online Marketing Platform!
–
Unique Channel for Global Chinese People
A leading online media company and value-added information service (VAS) provider for China and for Chinese communities worldwide
San Francisco
Beijing
Shanghai Nanjing Global Registered Netizens: 155M Guangzhou Taipei Shenzhen Hong Kong Average Daily Visit Rate : 550M Average Daily Unique Visitor: over 40M Average Users of the Various Paid-services: over 18M
China No.1 Portal Website Brand Advantages and Commercial Values
The Development of SINA
The PV for World Cup break the record in a unique sports event in China
Launch Blog 3.0
Sina was the one of Top 50 Internet brand in 8 subdivided fields
Launch Blog 2.0 Launched search engine “iAsk” Launched instant messenger “UC”
Brand spirits “You are the One” Renamed SINA Corporation from Sina.com
Provided paid Email First Chinese websites allowed to publish news on-line IPO on NASDAQ Merged with the US-based SINANET.com to form Sina.com The predecessor company Stone Rich Sight founded in Beijing 2002.12 2001.8 2000.12 1998.12 2000.4 2005.6 2004.7 2003.11 2006. 7 2005.9 2005.12 2006. 7
1993.12
SINA’s Products & Services
Contents • News • Informations Communications Communities Commerce
• Email • A/V IM • SMS / MMS
• Blogs • Forums • Chat Rooms • Online Dating • Casual Games • Wiki
• SINA Mall • Corp Email • Classified
• Books
• Map Service • Search • Downloading • VIP Interview
SINA Leads the Development of China's Internet Media
SINA made the history in news reporting and expanded influences
1999年
2001年
2003年
2003 年
2004年
2005年
2006年
– …
9.11 incident Kosovo of 2003, Sina reported series In the of occurred 10 minutes, Sina position Sina’s reportssecond half war established its wasathe firstof media In events suchinformationNielsen/NetRatings V" has released 2003, as In 2006, that “Sun United as the social October the medium. reported "Shenzhou monitored the PV during World leader of online Guangdong the Zhigang Sina This report made Cup. July 16, unique visitors first States suffered a people event”, From on a MarchSina hosted， spreaded.thecumulativelaunchofthe understand 2004-2005, the 2005Yong and reports andto atotal how terrorist A series of the Culture fast 23, As ofSina was Shenyang, “Liuattack, – breakmade made PV for case“, successfully launched. news Chinese-FrenchIn record Year and a unique sports was 57.68M over 80M. the in permanent historical record No official Chinese againstnational becameChinesedaily was signature in the ranking of of French campaign website Japan Sina 1999, Sina became thethat 1case"PV in China. Almost 40% Year.New returned every week. Launched the Heilongjiang "BMW the . These reports created a event of huge Reuters, Security "The AP, AFP, became the impact that United Nations important event visitors later, member website hours websites and and preferred ofSina’s theduebecame the Council.ain cultural kept the leading positionmostto its fast and 40 components in reporting till influences as French Culture Year Sina Blog now… is buzz revealed huge York Times" online portals started toPost“significant campaign. and "Washington launch and same CNN large amount news…. other the countries. There were 250,000 of it were leadingexchange media. twothe reports . partners (sponsors) blogs released (published) online between World Cup.The website reproduced 110,000 articles on signatures, of Sina Blog; And the total Finally, Sina collected fields…. all well-known brands in the various20,000 the channel far ahead of
of competitors… 2.3Mposts (replies) were sent on the forum
SINA Leads the Development of China's Internet Media
SINA’s engagement makes the blog a mainstreaming culture of China
05年9月 05年9月 06年5月
06年7月
July 2006， Launch Blog3.0，new facilities of blog circle and As of May, 2006, The PV for Xu Jinglei’s blog was over 33.5M and Sina organized “first Blog cell(mobile) phone blog participants contest”, nearly 10,000 added. Nowadays, Sina receives more the top of well-known blog searching ranking. Currently, Sina Star and also attracted numerous mediums to report it. A report from First portal website launching blog channel in China...provides athe blog .for direct Blog made a huge than 200,000 new blogs everyday The different articles are impact and blog South Weekend said：“Sina’s Engagement makes platform reproduced more than 300 times every month by traditional become mainstreaming culture of China and stars communication between fans rapidly”. media…
SINA Leads the Development of China's Internet Media
SINA broadband, cross-media new type collaborative forms
2003年 2003 2004年
2004年
2005年
2006年
During the reported “Real Madrid for the audiovisual In July November,2004 successful launch rate China Tour”. It was contents 03 2003, Sina videoOlympics，the hit of “Shenzhou 5” attracted of audio-visual Oct 2004, Sina obtained 2006，Sina “Internet dissemination of the of the Games on Augest 16 was of an major was a 4.7M and the the attentionOlympic global with August reports overbroadband madeavailable online after revised, first time providing users world. The unique day hit rate for video 2005, in programs In Olympics, which was the first permit for domestics permits” “Super collaboration with 12 TV stations, columnsvideo exclusive Girl ”became a myth。The contest was cooperation events. It created a buzz inside the industry. audiovisual contents attracted Sina’s new record. During video contents of Shenzhou 5 exclusively by Sina and provided fans with the 1.6M. reported was overstations, exclusive columns collaboration with 5 TV Internet enterprise with 20 TV more thant 1M unique visitors.and issued by the State Administration of comprehensive scene video.companies and contents cooperation with 8 program production Radio Film and Television。 radio stations.
SINA’s Strong Presence in Mobile VAS in China
SINA Mobile Value-Added Services
SMS, MMS, WAP, JAVA/BREW, IVR and CRBT Platforms
Content Subscriptions
•News and information •Sports scores and horoscopes •Search Engine
Entertainment Downloads
•Pictures and screensavers •Ringtones and sound effects •Java-based games
Dating and Community
•Dating communities •Hometown communities •Audio chatrooms
Online, offline and direct media advertising marketing channels Over 10 million monthly unique paid users Huge mobile advertising opportunities
SINA-The Most Preferred Website in China
The Preference of Internet Users
Sina Sohu Netease Baidu Yahoo 0% 5% 6.70% 6.30% 10% 15% 20% 25% 30% 13.40% 13.40%
30.90%
35%
Source: “the Preference of Internet users from Five Cities in China” survey, made by Chinese Academy of Social Sciences in May 2005.
Comparison Between China and the US 3
Internet Advertising Market Development Comparison Between China and the US
Market Share of Internet Advertising
In the US, the Internet advertising market share is on rise.
China’s Internet advertising market share in overall market has grown at an average of more than 50%.
China Internet advertising market share in overall advertising market
8%
US Internet advertising market share in overall advertising market
2.3%
4.6%
6%
6.7% 6.1% 5.4%
4.6%
4%
3.6% 3.1% 2.5% 3.0%
2%
0%
2001
2002
2003
2004
2005
2006e
2007e
2008e
Source：IAB 2005
Source:iResearch 2006.01
Internet Advertising Market Development Comparison Between China and the US
In the United States, Internet search engine advertising accounted for the largest proportion, about 2/5 The share of rich media online advertising was increased rapidly
The proportion of different forms of Internet advertising in the United States
Search Engine Graphic Adverts Classified Adverts Rich media Adverts Sponsored Adverts E-mail Adverts Others 0% 4% 5% 5% 2% 3% 7% 7% 10% 20%
2004年
In China, the amount of the brand/product graphic advert is nearly 50%
The proportion of different forms of Internet advertising in China for 2005
Email Adverts Rich Media Adverts Text Link Adverts Others
40% 39% 20% 23% 18% 19% 8%
Search Engine Classified Adverts
Brand Graphic Adverts
30%
2005年
40%
50%
Source：IAB 2005
Source：iResearch 2006.01
The online advertising focuses on brand promotion in China. With the development of blogs, broad-band video and the Olympics plan of next two years, the demand for online brand advertising will continue to make a huge increase.
Conclusion
China’s Internet market is becoming the most important one of the world, but multinational players are much weaker there than in any other countries.
The Internet is more regarded as a media in China and the online advertising is almost the only revenue model, besides mobile VAS and online gaming.
Industrial use of Internet is still quite limited in China, the combination of the net and traditional value chains will bring more business opportunities.
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