handbook to online china by trendsspotting

8/14/2019 Handbook to Online China by TrendsSpotting

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Handbook of

Online China

Brought to you by:

Olympics Eve, August 2008
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Brought to you by:

1. China Leads WWW
http://www.trendsspotting.com/blog/http://www.trendsspotting.com/blog/http://www.trendsspotting.com/blog/


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60.8%67.7%

29.0% 15.0%

10.2%17.3%

2002 2008

Rest Of World US China

253 M

223 M

Source : CNNIC
http://www.trendsspotting.com/blog/


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Rank Site Name Country Reach *

1 Yahoo ! Sites USA 66.8

2 Google Sites USA 62.5

3 Micros. Sites USA 57.9

4 Baidu.com China 22.7

5 Tencent China 22.7

6 Wikipedia Sites USA 20.1

7 SINA.com China 18.5

8 NetEase China 15.2

9 eBay USA 15.2

10 CNET Networks USA 15.1

Rank Site Name Country Reach *

11 Amazon Sites USA 14.3

12 Sohu.com China 14.2

13 Alibaba.com China 13.1

14 Apple Inc USA 12.9

15 AOL USA 12.2

16 Rakuten Japan 11.2

17 Friendster USA 11.218 FC2 Inc Japan 10.8

19 NTT Group Japan 10.0

20 Xunlei

Networking

China 9.9

~ Half of Top 20 Trafficked Asia Pacific Sites are in China

* Asia Pacific Reach

Source : Comscore


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Brought to you by:

2. China Insider


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7.9% 8.5%9.4%

10.5%12.3%

16.0%

19.1%

0%

5%

10%

15%

20%

25%

Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08

103 111123 137

162

210

253

0

50

100

150

200

250

300

Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08

Growth of Internet Users

In Million

China's Internet Penetration Rate

At the end of June 08, China's Internet penetration rate reached 19.1% .

This rate was slightly lower than the global average of21.1% Internetpenetration rate .

Source : CNNIC


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Less Than 18

19.6%

18-2430.3%

25-30

18.7%

31-35

11.0%

36-40

8.7%

41-50

7.8%

Above 50

3.9%

68.6% of Chinese netizens are 30years or younger.

39% of netizens are high schoolgraduates.30% of the users arestudents.

30.5% of netizens monthly earn below

500 Yuan ($ 68.50).

Female represents 46.4 % of netizens.

Source : CNNIC


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91.3% 91.1%82.9%

73.4%68.2%

63.4% 58.0%

81.4%86.6%

76.9%72.4%

59.3%

73.6%

56.5%

Youth (Less than 25 Years)

All Chinese

Source : CNNIC


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JingJing & Chacha are Chinas

virtual cops who can walk,

bike or drive across the screen

every 30 minutes , warning

Internet users to stay away

from illegal Internet content

and bad websites.

85% of Chinese Citizens approve Internet Censorship.

93% of internet users reports they consider much of internet content to beunsuitable for children.

Over 4 years of tracking user reaction, trust in the reliability of online content has

fallen by one-half, from 52% in 2003 to 26% today.Source : Pew Internet


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3. Top Players Online China


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1

2

3

4

5 6

7

8

9

10

Source : Comscore


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Rank Site Name Unique Visitors Major Business

1 QQ.Com 62,248 IM

2 Baidu.Com 60,174 Online Ad ( 64%)

3 Sina.Com.Cn 48,373 Portal (Online Ad)4 163.Com 40,805 Portal (Online Game)

5 Yahoo.Com.Cn 38,852 Paid Search

6 Google.Cn 34,882 Paid Search

7 Sohu..Com 31,184 Online Games & MVAS

8 Soso.Com 30,602 Paid Search

9 Microsoft.Com 27,999 Online Ad ,SNS

10 Taobao.Com 25,778 Online Auction

Source : Comscore


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53%

73%

80%

83%

5%

40%

19%

0% 50% 100%

US

UK

Germany

France

Korea

Japan

China

64.4%

25%

8%

Baidu

Google

Yahoo China

2008 Q2 China Search Market

Source : Comscore , Analysis International

Google share of search


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3. China 2.0


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Comparison Index to Global Average Share of Daily Usage on Various Categories

0.74

0.65

1.61

0.55

0.90

1.48

1.45 Korea

China

France

Germany

Japan

UK

US 0.67

0.50

0.67

0.47

1.27

1.10

1.50

Reading Blogs Writing Blogs

China ranks above daily Global average in reading & writing blogs

Source : Universal McCANN


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1.06

1.26

0.58

0.45

0.74

1.06

1.03 Korea

China

France

Germany

Japan

UK

US 0.65

0.41

0.88

0.53

0.88

1.12

1.29

Social Network Uploading Photo

China ranks above daily Global average in social networks & photo upload



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0.86

0.38

1.19

0.48

0.81

1.24

1.05


Korea

China

France

Germany

Japan

UK

US 0.59

0.67

0.89

0.44

0.78

1.30

1.07

Uploading Video Watching Video Clips

China ranks above daily Global average in uploading & watching videos



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0.8

0.4

0.95

0.45

0.75

1.35

1.15 Korea

China

France

Germany

Japan

UK

US

Downloaded Podcasts Subscribed RSS

0.93

0.48

1.67

0.89

0.96

1.04

1.07

China ranks above daily podcast download & RSS subscribes



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BBS in China are acting as ecommercehub & grape vine to spread buzz like Fake Tiger Scams & Nail House .

Per Day Time Spent on BBS Sites

Time Spent / Day % of Users

1-3 Hrs 36.3%

3-8 Hrs 44.7%

More than 8 Hrs 15.1%

60% of users - at least 3 BBS sites more than 3 times each week.98% of users have contributed to a BBS by publishing articles, replying toposts, participating in polls, etc..

Source : iResearch
http://www.trendsspotting.com/blog/?p=400http://www.trendsspotting.com/blog/?p=426http://www.trendsspotting.com/blog/?p=400http://www.trendsspotting.com/blog/?p=426http://www.trendsspotting.com/blog/?p=400http://www.trendsspotting.com/blog/


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21,154

19,790

19,698

15,134

14,191

14,03610,857

9,373

8,382

7,760

Tudou

Youku

QQ Entertainment

Baidu Top 10 Music Album

6.CN

SINA PodcastingSINA Entertainment

QQ Music

163.Com

CCTV

Top 10 video sites by Unique Visitors

Over 160 million online video users inChina by the end of 2007.

65.9% user view online videos by visitingvideo site, 63.7% through recommendationby friends, 56.3% though search engine, and42.5% through links of other websites.

Over 86.3% users would like to watch

movies and TV episodes online.

About 94.1% users tend to use IM, as QQor MSN, to share videos with friends

CNNIC Stats

Source : Comscore , CNNIC


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QQ

77.90%

WLM/MSN

Messenger

4.90%

Sina UC

4.10%

Fetion , 3.70% Wangwang,

3.10%

Others

6.20%

1. QQ is the undisputedleader (40.3 M peakconcurrent users)

2. IM is popular among 18-30

Under 18 18-2425-30

31-3536-40

41-50 Over 50

85%96.40%

90.20%

74.60%68.70%

54.90%

39.90%

Source : CNNIC, Analysis International


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Facebook

(RebelAlliance ?)

FB apps

FB apps

FB apps

FB apps

Google /

Open Social

(The Empire?Coalition of The Willing)

LinkedIn

= Announced Platform / API

= Unannounced Platform / API

Gmail ?

YouTube ?

BeboiGoogle

GoogleGadgets

MySpace(Clone Army?)

Photobucket

Hi5

Friendster

Orkut

Widgets

Widgets

ClearSpring

Widgetbox

Gigya


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Google /

Open Social

Xiaonei

Apps

Apps

= Announced Platform / API

= Unannounced Platform / API

51.com

Tiyanya.cn

MySpace.Cn

CityInWidgets

Widgets

Hainei

TaobaoApps

Apps

Comsenz

ManYou Open

Platform

Sina ?

Widgets

Widgets

SohuOpen Widget

Platform

Widgets

Friendster

5GSNS

UCenter

QQ?


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3. Business Online China


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$594

$382

$325

$263

$206

$11

$160

$0

$100

$200

$300

$400

$500

$600

$700

US UK Japan Germany France China Korea

Source : Cheil , Zenith Optimedia


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8.75%

18.32%

12.39%

4.16%

10.95%

8.06%

12.77%

0%

2%

4%6%

8%

10%

12%

14%

16%

18%20%

US UK Ja an German France China KoreaSource : Cheil , Zenith Optimedia


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Company

2008 Q1RevenueMillion US $

% of Revenue OperatingMargin

MVAS Gaming/IVAS Advertising

Sohu $84.4 10% 49% 41% 40 %

Baidu $ 81.9 - - 100% 27 %

Sina $71.3 33% - 67% 19 %

Shanda $111 - 97% 3% 40 %

NetEase $93 - 86% 14% 63 %

Tencent $204.1 20% 70% 10% 51 %

Total $ 646 11% 58% 31% 40%

Source: Company Reports; Figures rounded off

2004 : MVAS revenue was 2x > than Online Gaming & 3x > than Online Ad.

2008 : Gaming & Online Ad Market are real HOT !


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1

2

3

50% growth in onlineadvertising market in China in2008, driven by 2008 BeijingOlympics.

The branded advertisingmarket will witness a 38% YoYgrowth rate in 2008.

PPC search market enjoys ahigher growth rate of 82% to$562 million. Baidu willremain dominant player totake around 65-70% market

share.Source : JP Morgan


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415

127.6

43.17050

100

150

200

250300

350

400

450

GSM GSM CDMA

Million

Chinas mobile market remains a 2G market (including EDGE, GPRS, 1x). GSM

dominates Chinas mobile market with over 540 M subs, or 90% of the market.Source : Company Info


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45.0%

35.8%

33.7%

2.7%

1.0%

Photos

Music

Games

Video

Mobile TV/Video

3.8%

3.0%

3.0%

2.4%

1.6%

1.5%

1.3%

1.3%

0.9%

0.8%

News

Entertainment

Sports Info

Stock Quotes

BBS

Weather Info

Web Search

Movie Info

Comics

Stock Trading

News , Info & SearchTop 10 Categories

Entertainment

83.7%

9.4%

3.3%

3.1%

2.7%

Send SMS

IM

Email

Chat

SN/Blog

Communications

SMS is the primary means of communicating using amobile device, though almost 10% used an IM service.

Less than 3% accessed a Social Network or blog, andeven fewer watched mobile TV or video.

Even utility categories such as weather and news

have low penetration from mobile devices.


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68%heard about

iPhone

utility

trendinessand

design

Key Reason To BuyiPod owners express

interest in the iPhone

88%

$ 500Reason of

Disinterest ?

iPhone copycats$200 - $300

Source : Pearl Research


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Brought to you by:

Stay Tuned.. Olympics 2008


36/38

Chinas Olympic: August 2008

official Olympics website
http://www.beijing2008.cn/http://www.beijing2008.cn/http://www.trendsspotting.com/blog/


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Chinas Olympic: Whos Following?

Australian and New Zealand audiences are leading the chargeto the official Olympics website i
http://www.beijing2008.cn/http://www.beijing2008.cn/http://weblogs.hitwise.com/alan-long/2008/08/aussies_kiwis_most_interested_1.htmlhttp://www.trendsspotting.com/blog/


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