Presented by Dr. Mathew McDougall CEO & Founder, Digital Jungle Beijing, China

Chinese Digital Marketing Outlook 2012 … A glimpse into the crystal ball!

The following presentation contains statements that are forward looking, including expectations and predictions regarding future industry trends and developments. Actual results may differ materially from our expectations or projections. This presentation also contains opinions, estimates, and forward looking statements by industry leaders. Such statements are the personal opinions of the individuals quoted and should not be attributed to any other entity or individual. Readers are cautioned not to place undue reliance upon forward-looking statements, which speak only as to the date of this document. Except as required by law, neither Digital Jungle Limited nor any of its affiliated entities undertake any obligation to update any forward looking or other statements in this document, whether as a result of new information, future events or otherwise. © Digital Jungle Limited. All rights reserved.

Lets get down to business… Ye Baby!!Who is Digital Jungle?

Chinese Online Marketing Trends

Implications for Advertising Agencies

Looking at the numbers

Digital Jungle… Rockin’ Digital!!A Leading Social Influence Marketing Agency

Specializing in Chinese & Asian social media solutions

Industry Focus: Tourism, Luxury & Automotive

Offices in China & Australia Beijing, Shanghai, Hong Kong & Sydney

The mission of Digital Jungle is to help our clients improve their business position and gain real value from their digital marketing investments Through our expertise in social media digital marketing programs and the application of search, affiliate and online marketing, we commit to: •  Providing exceptional value •  Driving incremental direct revenue •  Generating ROI unrivaled by traditional media •  Protecting your online reputation •  Increasing your market share over your competitors •  Building your brand awareness

We look forward to working with you.

The ‘Motherhood’ Statement

I’m Dr. Matt McDougall,!CEO, Digital Jungle

CHINESE TRENDS Predictions for 2012…!

Prediction #1… Mobile!Mobile is not simply smartphones but covers tablets. This medium will attract advertisers to move campaigns into this form. Expect to see cross platform gaming, eCoupons, banners and search delivered via this device type

Prediction #2… Gaming!Gaming made a lot of money for companies via virtual currency, subscription models etc. but in 2012 Digital Jungle expects many Brands leverage social/casual games create ‘stickiness’ on social media sites and campaign pages given the additional pressure to not just grow fans but to increase engagement

Prediction #3… Search!Search is not an option for campaigns but a required component. Brands fully understand the importance search plays in online in consumer behavior. More budget will continue to be allocated (increasing spend outside Baidu in 2012/2013) Chinese Search Engines: Google HK: www.google.com.hk Baidu: www.baidu.com Yahoo CN: www.yahoo.cn SoSo: www.soso.com Youdao: www.youdao.com Sogou: www.sogou.com Bing CN: cn.bing.com Zhong Sou: www.zhongsou.com Sina Search: search.sina.com.cn

Prediction #4… eCommerce!eCommerce has had a big impact on the way consumers look/value a Brand. Although B2C is dominated by 2-3 players in China, Digital Jungle expects to see more FMCG & Luxury Brands create direct eCommerce capabilities in 2012

Prediction #5… Sharing and fairing!Social sharing & fairing. When the number of microblog users exceeded 200 million, the role of microblog shifted from ‘new media’ to ‘hot media’. Not only Sina, organisations such as Sohu, Netease, and Tencent also are competing to expand their activity in this space. Expect to see more ‘vertical’ social sites developed by Brands in 2012

GETTING INTO THE DATA Need the 2012 stats….!

The Digital Landscape… Highlights

iResearch data suggests that eCommerce and Mobile will continue to grow although the actual market is also growing and therefore we can expect all sectors to see growth abet at different rates.

Digital Jungle is predicting that in 2012 more Brands will embrace mobile – not just apps but gaming and ads. Search will remain strong and used routinely in campaigns. Media buying will become more targeted and ‘verticalised’

Digital Marketing… Steady as you go!

In 2012, the online advertising market will continue to maintain its steady momentum, though with a slowing growth rate. Video websites and new media types such as the vertical websites will generate a more forceful impact on the market. Especially in travel, automotive and luxury sectors Meanwhile, social websites and the Weibo marketing will also be among the hot issues in the Chinese market.

Search… Growing & developing!

In 2010, China’s search engine market scale amounts to 10.98 billion RMB (approximately 1.65 billion UD$) with a year-on-year growth rate of 57.7%. The market share of search engines in the overall internet advertising market makes up 30.8%.

2011 saw Baidu being challenged Sina’s and Netease’s search offerings (soso, youdao)

E-Commerce… Super Hot!!!In 2010, China’s e-commerce industry continues to hold a rapid development with the trade size amounting to 4.8 trillion RMB over the year and with a year-on-year growth rate of 33.5%.

Internet retailing is set to increase in constant value by 42%, rising to RMB458 billion by 2015

M-commerce is reported to be worth RMB 117 billion in 2011

Summary… Cutting to the chase!Market Size: China’s Internet Economy Market Size Amounts to 151.32 billion China’s internet economy market scale amounts to 151.32 billion RMB in 2010, with a year-on-year growth rate of 53.9%.

Source: 2010-2011 China’s Internet Economy Market Research Report (iResearch), CNNIC Dec, 2011

E-commerce: Expecting to see more growth and e-commerce market will continue to maintain a rapid growth momentum. China’s e-commerce market amounts to 4.8 trillion RMB with a YOY growth rate of 33.5%. It is expected that in the future three to five years Netizens: China has the largest number of online netizens (485 million). These netizens have a high propensity to purchase online, create content, make friends and share.

Digital Marketing: Digital Jungle is predicting that in 2012 more Brands will embrace mobile – not just apps but gaming and ads. Search will remain strong and used routinely in camapigns. Media buying will become more targeted and ‘verticalised’

A NEW ROLE FOR AGENCIES " " " " " " " "in 2012!

Given the power in 2012 of social media, the way Brand connect and engage needs to be rethought. Messages and communication strategies need to considered as ‘push/pull’ and not simply ‘push’ Micro-targeting is more possible given the sophisticated level of marketing technologies

Power to the people… the marketing spiral!

Communicating …. not always the same!You can’t take a one size fits all approach to communicating a message and engaging netizens.

The Digital Marketing Phases

Execution���(varied/ongoing)

Phase III

Sets the Stage for

Digital Marketing Campaigns (Considering all online channels)

Online Marketing Outreach Optimization of Marketing Assets (SMM + Marcom)

Build Digital Media Plan (typically 3-4 weeks)

Current Online Situation Assessment���(typically 4-6 weeks)

Phase II Phase I

Listen Segment Strategy Monitor & Measure

Optimize & Refine

A B C D E

• Monitoring the digital landscape

• Mapping the segments online ecosystem/ marketing touch

points

• Understanding and profiling the target segment

• Assess existing assets

• Create engagement strategy

• Create outreach strategy and campaigns

•  Establish social marketing plan and roadmap

•  Establish monitoring, metrics and reporting strategy and KPIs

Week 1

On-going

Week 4/6 Week 7/10

Build the Digital Marketing Plan Current Digital Marketing

Situation Assessment Program Execution

• Optimization plan for current digital media assets

•  Execution of digital strategy

•  Social Media Presence

•  Active conversations and community participation

•  Amplify with Search (SEO/SEM)

•  Integrated campaigns

• Measure results

Phase III Phase II Phase I

Digital Marketing… Example Plan!

Key Phases, Activities and Timing Ongoing

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Also, don’t miss out on !Dr. Mathew McDougall’s new book!

“The Chinese Social Media Universe” !

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