( 海量营销管理培训资料下载 ) ChinaMediaLandscape Everassion Consulting (Sichuan) Co. Ltd. UTS Advertising (Chengdu) Co. Ltd

( 海量营销管理培训资料下载 ) Welcome! Legend (Chengdu)

( 海量营销管理培训资料下载 ) Source: Statistical yearbook 2001; World Bank Facts at a glance 3rd largest country (9.6MM sq km) 1/5 worlds population (1.3B) *1,000+ dialects *32Provinces/municipalities, autonomous regions Urban population: 32.4% Inflation rate: 2.4% (CPI) GDP growth rate: 7% for 2001

( 海量营销管理培训资料下载 ) Urban Disposable income Per capita Over 8, , , , ,000 Neimenggu Qinghai Xizang Xinjiang Ningxia Liaoning Jilin Heilongjiang Gansu Beijing Tianjin Shanghai Sichuan Yunnan Hainan Taiwan Hebei Shanxi Shaanxi Henan Hubei Hunan GuangdongGuangxi Guizhou Jiangsu Anhui Zhejiang Jiangxi Fujian Shandong Average National Disposable Income Per Capita: 5,403 RMB Source: China Statistical Yearbook 1999 Chongqing

( 海量营销管理培训资料下载 ) Population By age and sex Source: China Statistical Yearbook 2000 China Population Statistics Yearbook 2000 Unit: ’000 person = Index M/F

( 海量营销管理培训资料下载 ) 1.China media development 2.Current research environment 3.Major media forms Agenda

( 海量营销管理培训资料下载 ) 2. China Media Development

( 海量营销管理培训资料下载 ) China media development Everything began at 1979 when Deng Xiao Ping announced the economic reform... Before 1979 There were only 10 advertising agencies in China Basically there was no advertising on newspaper, radio, or TV In 1979 The first TVC, Shen Gui Wine, was aired by Shanghai TV on January 28 On March 15, the first JV TVC, Rada Watch, was aired People’s Daily began to accept advertising on April 17 In November, the Central Propaganda Department has announced the new regulations for foreign advertisement And the rest is history...

( 海量营销管理培训资料下载 ) The media scene today….. MediumNationalProvincialCity/RuralCableTotal Television ,000+2,900+ Radio ,363+ Newspapers ,900+2,000+ Magazines Cinemas Source: Zenith Media 7, ,000+

( 海量营销管理培训资料下载 ) % % MediumAll Adults Aged TV (yesterday’s viewing) 8986 TV (P7days) 9695 Radio (yesterday’s listenership) 4144 Radio (P7days) 4145 Newspapers (daily) 6765 Magazines (monthly) 5367 Cinema (at least once a month) 714 Universe ‘000s37,875 14,492 Reach of mass media Source: CMMS’00 (20cities)

( 海量营销管理培训资料下载 ) 3. Research Environme nt

( 海量营销管理培训资料下载 ) Media research today 3 kinds of media research are available in China : TV ratings Advertising monitoring Readership /consumer media habits

( 海量营销管理培训资料下载 ) TV ratings Understand the viewership in different markets Provide a rational base for media planning Better media selection (channel, program, and timeslot) and more cost- efficient media investment *CSM: Covers 66 diary cities, 9 provinces Peoplemeters in BJ, GZ and SH *AC Nielsen :Covers 88 channels in 10 peoplemeter cities: BJ, SH, GZ, CD, WH, HZ, SY, NJ, TJ, FZ

( 海量营销管理培训资料下载 ) Advertising monitoring Monitor advertising in TV channels and Press Keep track of a company advertising delivery as well as competitive activities *X&L:Provide ad monitoring for 336 TV channels, 269 newspapers, 92 magazines *AC Nielsen:Cover 220 TV channels, 169 newspapers, 47 magazines *CVSC:Cover 339 TV channels and 150 newspapers

( 海量营销管理培训资料下载 ) Consumer research Three single source research tools exist in China, each providing *Readership data for different newspapers and magazines *Understanding of the profile of selected print media and media habits on a specific target *A base for other media selection (e.g. radio) *An understanding on product usage/lifestyle of Chinese consumers China Media & Marketing Survey China National Readership Survey AC Nielsen Media Index (Millenium Report)

( 海量营销管理培训资料下载 ) China Media & Market Survey *Research House:Sino-Monitor / BMRB *Fieldwork Period:CMMS 99 (Dec’98,Jun’99) CMMS 2000 ( Feb -Jun ‘00) *Coverage Area:20 cities *Survey Media:TV, Radio, Newspaper, Magazine *Sample:50,000 for CMMS 99 and CMMS 2000 each

( 海量营销管理培训资料下载 ) China National Readership Survey *Research House:CVSC *Fieldwork Period: Oct’98; continuous from July’99 *Coverage Area: 60 cities(98); 30 cities ( ) *Survey Media: TV, Radio, Newspaper, Magazines *Sample:47,800 (98); 71,500( )

( 海量营销管理培训资料下载 ) AC Nielsen Millenium Report *Research House:AC Nielsen *Fieldwork Period:May-Dec’99 *Coverage Area:30 cities *Survey Media:TV, Radio, Newspaper, Magazine *Sample:44,000

( 海量营销管理培训资料下载 ) 4. Overview of Major Media forms

( 海量营销管理培训资料下载 ) Advertising Expenditure Source: China Advertising Association; Zenith Media Million US$ Estimated figures for

( 海量营销管理培训资料下载 ) Television

( 海量营销管理培训资料下载 ) TV Advertising Expenditure Source: China Advertising Association; Zenith Media Million US$

( 海量营销管理培训资料下载 ) National vs Local Stations National (CCTV)Local CoverageNationalSpecific region Program TypeInformation-oriented :More entertainment e.g. news, educational,oriented : e.g. drama.documentary, etc. Flexible, negotiable, Conservative, strict, welcomed foreignmainly local produced or local program exchange LanguageMandarinMainly Mandarin, but dialects may be used

( 海量营销管理培训资料下载 ) Advertising environment Most commercial breaks are outside program For drama and long programs (e.g. sports game, variety show) inside program breaks are more likely Other inside program opportunity : Program and Syndication (P&S) No strict governmental regulation on total commercials. For most stations minutes in primetime ; time slots lengthened for good dramas An average break has 5-8 minutes. However, it can be as long as 15 minutes in some imported drama Since most GD cable stations transmit the 4 HK channels, their commercial break pattern would follow HK : 3-5 minutes break for every other 15 minutes

( 海量营销管理培训资料下载 ) Advertising environment... There may be missing spots (has been dropped from 8% in 96 to less than 0.6% in 99) The length of the TVC may be shorter due to : *The stations accept too many advertisers for a break : sometimes intentional, sometimes not *Poor quality control There is no such thing as category protection. Advertising is highly concentrated in the prime time Program sponsors and international agencies (like ourselves) normally get better ad position (first 3/last 3) There is rate card inflation every year; more frequently for some stations

( 海量营销管理培训资料下载 )CCTV Established on May 1958 There are 12 channels Local stations have to broadcast Channel 2 and 3, normally through microwave It is the “voice of the government”. Therefore, all the programs / commercials are strictly censored Although CCTV does not have any legal authority on local stations, they respect it as the head Not only the ad department accepts bookings but also : *Some program departments, e.g. the sports division (CCTV- 5) *Some brokers which buy out all the airtime of a specific time-slot

( 海量营销管理培训资料下载 ) Satellite TV in China Foreign Star TV was banned in 1993 after the station was sold to Murdoch Pheonix TV was launched in March 1996 as a JV channel Limited distribution is allowed for entertainment (e.g. MTV), sports (e.g. ESPN), and selective business channel (e.g. CNBC) Local 31 Provincial TVs are broadcast via satellite However, though the signal is there, distribution is still a key issue The existing distribution methods : *Provide decoder for local distributors *Pay a supplement for local distributors *Barter deal with other Satellite Provincial TVs

( 海量营销管理培训资料下载 ) Cable TV in China There are over 2,000 cable operators at different levels : provincial, city, and county, spreading from the coastal provinces to the inland Government began to control the numbers of stations 1999 Moreover, the transformation of the MRFT also introduced a balancing force to limit the power of GARFT to develop cable networks in China

( 海量营销管理培训资料下载 ) Top television advertisers By category Spending (US $ ‘000) Category Jan 99 - Dec 99 Tonic340,291 Shampoo200,642 Chinese Wine & Spirits 184,883 Skin Care Product 168,914 Laundry Product119,979 Soft Drink 111,459 Toothpaste 101,714 CD Video 96,141 Air Conditioner 92,574 Beer 78,736 Source : X&L Monitoring Services

( 海量营销管理培训资料下载 ) TV viewership Weekdays Source: CMMS 00’(20 cities)

( 海量营销管理培训资料下载 ) Newspapers

( 海量营销管理培训资料下载 )Newspapers 2,000+ titles though Local papers still dominant Editorial content improving *Many local newspapers have diversified their editorial to cater to readers needs (e.g. social commentary, health, finance) Launch of weekend edition focusing on leisure & lifestyle with improved color reproduction *Pushing weekend circulation *New launches focused on special interests e.g. Live Weekly, Shopping Guide All titles are un-audited and their claimed circulations are grossly inflated

( 海量营销管理培训资料下载 ) Top newspaper advertisers By category Spending (US $ ‘000) Category Jan 99 - Dec 99 Villa 153,310 Computers81,677 Mobile Phone55,053 Tonic44,818 Department Store39,150 Telecommunication Co.34,114 Air Conditioner32,534 Mansion26,802 Computer-peripherals25,243 Computers dealer-retailer-manufacture 24,078 Source : X&L Monitoring Services

( 海量营销管理培训资料下载 ) Newspapers Leading titles Source: CMMS 00’ (20 cities)

( 海量营销管理培训资料下载 ) Magazines

( 海量营销管理培训资料下载 )Magazines 6,000+ titles, primarily skewed toward key urban areas Trend toward increased joint venture partnerships with overseas publishing houses entering China market *American Baby, Elle, Women’s Day, Cosmopolitan, Look, etc *Target to a niche group with limited circulation Hampered by limited quality of research, lack of circulation audit

( 海量营销管理培训资料下载 ) Top 10 national magazines TitleCirculation ’000s(claimed) Readers3,850 Bosom Friend 3,200 Family 3,000 The Family Doctor1,900 Securities1,000 Love 900 Shanghai Style 900 Travelling Scope 833 Modern Family 500 World Vision 460 Source: Media Owner

( 海量营销管理培训资料下载 ) Radio

( 海量营销管理培训资料下载 )Radio 1,363+ stations across China Broadcasting catered to the masses though already expanding into niche casting in key cities *Financial, music,traffic, kids, etc. *Contemporary broadcasting format, youth appealing *Flexible opportunities for program sponsorship News and music programs still attract the highest listenership Major international syndicator entries to China *e.g. Joy FM, Easy FM, etc Ratings data not available; still buying on spots

( 海量营销管理培训资料下载 ) National radio stations

( 海量营销管理培训资料下载 ) Radio listenership Weekdays Source: CMMS 00’(20 cities) Yesterday coverage (%)

( 海量营销管理培训资料下载 ) Outdoor

( 海量营销管理培训资料下载 )Outdoor Development in Public Transportation network by imported media firms as MPI, Top Result, Metro, etc. Among the most cluttered markets in the world *Anything goes anywhere (e.g. roof top, construction sites, street furniture, etc) *Increased government regulations in place to control the ‘clutter’ Increasing used by international/JV advertisers (e.g. Shanghai GM, Nokia, Coke, Pepsi, etc) Good locations are always high in demand and premiums of between 20-50% are often levied on sites

( 海量营销管理培训资料下载 ) Available forms of outdoor Roof top billboards Neons Buses / bus shelters Street level light boxes Wall sign Banner / balloons Metro posters Telephone booths Taxis

( 海量营销管理培训资料下载 ) Top ten outdoor advertisers 1. China Telecom 2. BAT 3. Coca Cola 4. China Mobile 5. Motorola 6. Nokia 7. Pepsi Cola 8. Unicom 9. SH Volkswagen 10. Philip Morris Source: PosterLink, No adex available

( 海量营销管理培训资料下载 ) Risks and challenges of outdoor No fixed rate card Regulations vary by city Lack of After-Sale Service Concept (Maintenance, Monitoring,etc) Lack of After-Sale Service Concept (Maintenance, Monitoring,etc) No research data available No industry association Unprofessiona l brokers

( 海量营销管理培训资料下载 ) Average cost of outdoor Billboard *US$ US$ 42 per sq metre/per month Bus *US$1,000 per bus/per month

( 海量营销管理培训资料下载 ) Cinema

( 海量营销管理培训资料下载 )Cinema Estimated 100,000+ cinemas across China *4,000 well - equipped (mini-theatre) Dominated by local film, about per year Allowed to import International movies per year (Average days per international movie) Average 6 shows per day Lack of research, quality control Attendance in decline due to the rising popularity of other forms of entertainment (e.g. VCDs)

( 海量营销管理培训资料下载 ) Opportunity for advertising Commercial transmitted before movies start (approx. 5 mins, max 2.5 mins for a advertiser) Standardized position (learning from “Titanic”) Allow area buy *Advertising cost varies in each area and subject to demand/supply Booking lead-time : at least one month before (Longer lead time needed for more popular foreign titles) Movie National Regional Position

( 海量营销管理培训资料下载 ) Internet

( 海量营销管理培训资料下载 ) Internet Supplier by End of 2000 Total number of: China URL (.com.cn)15,153 Service provider350+ Content provider250+ Search engines50+

( 海量营销管理培训资料下载 ) Increasing band wide and content Band Wide to USNo. Of China URL Source: CNNIC Report

( 海量营销管理培训资料下载 ) Internet user doubled every 6 months Source: CNNIC Report ‘000

( 海量营销管理培训资料下载 ) Source: BDA - The Internet in China …But is just the beginning to take off M

( 海量营销管理培训资料下载 ) Pageview increased quickly Source: Sina//Netease/Sohu Daily Pageview

( 海量营销管理培训资料下载 ) Source: TheStandard.com Feb 14, 2000 Internet Regulation in China - Still Unclear In December 1999, control of the Internet was moved from the Ministry of Information Industry to "relevant government departments”. Banned the discussion of "state secrets" over the Internet. Rules for e-commerce, online auctions and advertising are rumored to be in the works. After Jan. 31, China would restrict the use, sale and manufacture of products that use overseas encryption technology. But according to Foreign Ministry spokesman Zhu Bangzao, the law will not "hamper... foreign companies entering China."

( 海量营销管理培训资料下载 ) The statistics of internet users - by age Source: CNNIC Report

( 海量营销管理培训资料下载 ) The statistics of internet users - by region Source: CNNIC Report ‘00 Surfer are more concentrated in BJ, SH and GD (total 45%) which are developed area

( 海量营销管理培训资料下载 ) The statistic of internet users--by income 64% people have 1,000+ PMI Source: CNNIC Report

( 海量营销管理培训资料下载 ) The statistics of internet users --by sex Source: CNNIC Report More female than before, but still male skewed

( 海量营销管理培训资料下载 ) The statistics of internet users --Where people surf Source: CNNIC Report ‘00 37% is surf-at-work, Internet is one of the few media can reach people during work.

( 海量营销管理培训资料下载 ) 84% internet users have college degree or above in China The statistics of internet users --by education Source: CNNIC Report

( 海量营销管理培训资料下载 ) 1. 四通利方信息技术有限公司的 “ 新浪网 ” 2. 网易公司的 “ 网易 ” （ 、 、 ） 3. 搜狐爱特信（北京）信息技术有限公司的 “ 搜狐 ” （ 、 ） 4. 广州飞华电信工程有限公司的 “163 电子邮局 ” 5. 北京京讯公众信息技术有限公司的 “ 首都在线 ” （ ） 6. 联想电脑有限公司的 “FM365” 7. 世纪龙信息网络有限责任公司的 “21CN” 8. YAHOO! INC. cn.yahoo.com 9. 上海在线信息网络集成有限公司的 “ 上海热线 ” 天极信息发展有限公司的 “CPCW 网站 ” top ten popular websites Source: CNNIC Report

( 海量营销管理培训资料下载 ) Advertising Cost CPM (RMB) Banner /Newsletter100 Icon SponsorshipDepend on traffic Interstitial/Pop up 180+ Text Comparing with TV and Newspaper *TV (Beijing)36 *NP (Banner)145

( 海量营销管理培训资料下载 ) Advertising monitoring Third party monitoring *Sina: Use Ad Force to provide monitoring report Monitoring Software on website server *Sohu and Netease utilize Netgravity to create monitoring report Self developed software *Yahoo *Tianfu Online

( 海量营销管理培训资料下载 ) Summary China is definitely one of the most potential markets on earth with its huge population. Ad spend grows 19 times over the past 10 years and a high growth rate is forecasted to be continued. For TV, the market becomes more and more matured with the education from foreign advertising and media agencies. For other media, it still takes time to be regulated especially for newspapers. Though regulation on the internet is still uncertain, the growth of suppliers as well as the market size would be very significant in the next 5 years.

( 海量营销管理培训资料下载 ) Thanks! Legend (Chengdu) Co., Ltd.