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Search Engine Marketing Proposal

Fashion Sector

Content

1 China Internet Situation

2 Fashion Sector Situation in China

3 Industry SEM Situation

4 Workflow

China Internet Situation

China Internet SituationChina Internet Users

2007 2008 2009 2010 2011e 2012e 2013e 2014e-100

100

300

500

700

900

1100

1300

1500

0

10

20

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60

70

182303

351

467549

632

716

797

13.8

22.8

26.3

34.8

40.7

46.7

52.6

58.2

Internet users scope(million)

Internet users pe-netration （ % ）

Predict over 700 million in 2013 covering half of Chinese population

CHINAhas theinternet usersin the world

310 million

498 million

Total Population

No.1

Data sources: IMF

China’s Internet Population Surges to 564 million

China Total Online Population

2005 2006 2007 2008 2009 2010 2011 2012 -

100

200

300

400

500

600

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Internet Users Linear (Internet Users)Growth Rate

Unit: Million 564 Million at the end of 2012

Boosted the China Online Penetration rate to 42.1% and hope to reach 52.1% in 2016.

10.5%

2006

42.1%

2012

52.1%2016

• 20.5 hours average amount of time per week spend online which is up from 18.7 hours in 2011.

Data Source: CNNIC Report, Dec 2012

China Mobile Online Users Reach 420 million

2007 2008 2009 2010 2011 2012 -

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100

150

200

250

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400

450

0%

10%

20%

30%

40%

50%

60%

70%

80%

24.0%

39.5%

60.8%66.2% 69.3%

74.5%

Mobile Online Users % of Online Population

2007 2008 2009 2010 2011 2012 -

50

100

150

200

250

300

350

400

450

0%

10%

20%

30%

40%

50%

60%

70%

80%

24.0%

39.5%

60.8%66.2% 69.3%

74.5%

Mobile Online Users % of Online Population

74.5% of total experiencing mobile online

• Desktop PC access dropped from 73.4% in 2011 to 70.6% in 2012• Laptop usage dipped slightly, to 45.9%

China Mobile Online PopulationUnit: Million

Data Source: CNNIC Report, Dec 2012

China Internet Situation Advertising Channel analysis

40.2%

47.4%

51.9%

62.1%

64.2%

65.5%

74.7%

78.7%

79.4%

79.6%Search engine

Instant message

MP3

News

Blog

Online gaming

Online video

Email

Social network

Online book

Data sources: iResearch, 2011. 6

SEARCHis the

No.application1

China Internet Situation Baidu Owns Mostly Market Share

Data Source: EnfoDesk © Analysys InternationalSearch engine market share in China, 2013

Baidu dominates search in Chinatakes 63% market share in terms of number of search queries

BAIDUis thesearch engine in China

No.

Baidu63%

so36015%

Sogou13%

Google6%

Others3%

1

Fashion Sector Situation

In 2012, the online business scale for fashion industry is about EUR 40 billion , and the annual growth rate is 55.6%, which is much higher than other industries.

Fashion industry online shopping occupied 26.9% of whole online shopping market, which remained No.1 for online shopping.

Y2008 Y2009 Y2010 Y2011 Y2012 Y2013e Y2014e Y2015e Y2016e0.0

1000.02000.03000.04000.05000.06000.07000.08000.09000.0

10000.0

2.40%

24.00%

240.00%

Online fashion s hopping scale (hundred million) Growth rate (%)Percentage of online fashion shopping(%)

Data sources: CNNIC

Online Sales of Apparel Estimated to reach CNY300 Billion in 2012

Brand

Daily Search Volume Brand

Daily Search Volume

Top Fashion Brands Top 10 Mundial & Top 5 Spain

Data Source: Baidu index , 2013Q2

LOUIS VUITTON 20,990

Uniqlo 13,199

Calvin Klein 12,399

Nike 11,023

ZARA 10,455

Burberry 9,631

Prada 9,365

H&M 9,204

Armani 6,699

ZARA 10,455

Mango 1,358

LOEWE 746

Bershka 417

Pull&Bear 191

Travel

The number of outbound tourism increased year by year in China

Y2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -

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20

30

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80

90

number of people (million)

Data Source:Special.caixin.comThe number of outbound tourism in China, 2013Q1

•China's outbound tourism has increased year by year, has developed into the world's largest market.•The number of outbound tourism was around 77 million in year 2012.

Europe got the 16.7% share of the China travelling market

• Europe got the 16.7% share of the China travelling market.

• Europe travelling is the second biggest market of Chinese overseas travelling market.

• In 2011 there were 110 thousand Chinese tourists travel to Spain.

• In 2012 it increased to 150 thousand.

16.70%

67.80%

8.80%4.10% 2.60%

Market share

Europe Asia America Oceania Africa

Data Source: www.cntour2.comThe number of outbound tourism in China, 2013Q1

Overseas travelling in China

• “Travel in Europe”: High search volume growth

occurred before the Spring Festival .

The highest search volume in spring.

The lowest search volume in summer.

• “Overseas travel”: High search volume growth

occurred before the Spring Festival.

•Overseas travel•Travel in Europe

Data Source: Baidu index , 2013Q1Daily Search Trend, proportional to the traffic

High search volume city in Chinapeople who search “travel in Madrid”

High volume city 1 Beijing 2 Shanghai 3 Hangzhou 4 Dalian5 Suzhou6 Dezhou7 Hefei8 Kunming9 Shenyang

10 Harbin

• Beijing, Shanghai get the highest search volume

Traffic “Travel in Madrid”

•Travel in Madrid•Travel in Spain

Data Source: Baidu index , 2013Q1Daily Search Trend, proportional to the traffic

• “Travel in Spain”: numerous searches began in 2008, the traffic is more than 50% higher than “travel in Madrid”;

• “Travel in Madrid”: numerous searches began in 2012, the traffic is about 12 thousand per day;

• All this traffic is active search, so the search marketing is important

Search popular city in Spain travelling

Popular city

Madrid

Barcelona

Granada

Sevilla

Córdoba

Tenerife

Sitges

Gran Canaria

Shopping Overall

Luxury Products Shopping

Amounts of Online Spending Increases year by year in China

Unit: Hundred MillionYearly Compound Growth rate

Data source: Iresearch

The number of Luxury Products Online Shopping increased year by year in China

Online shopping scale(hundred million) Business growth(%)Percentage of Online Shopping Business(%)

Market scale (ten thousand)

Growth (%) Percentage of Internet action (%)

2010-2015 China Industry Products Online Shopping Scale 2010-2015 China Online Shopping Scale

Date Source: IResearch Date Source: IResearch

• There are two surveys from Irsearch toward the scale of China Luxury Products Online Shopping, In these years, the scale of it is increasing for all

China, 1st Luxury Products Online Shopping Purchase Power

Euro 51%

North Ame-rica15%the Middle East

14%

Hongkong41%

Region Percentage of China Luxury Products Shopping

World

Euro

North America

the Middle East

Hongkong

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Chinese Purchase Power Share

• Euro is now being the biggest market for China luxury Products Online Shopping;

• Beyond 80% amounts of Luxury Products Online Shopping from China in Hong Kong market;

• Beyond 20%......in the Middle East market;• Beyond 25%......in North America market;• Beyond 60%......in Euro market;

• Beyond Half ….all over the world

Most of the Chinese tourists travel to Spain for holiday

• 75.5% of Chinese tourists travel to Spain for holiday travelling, and 15.9% for shopping;

73.10%

15.90%

3.40%

3.30% 4.30%

vacation shopping visit family and friends business trip other

44.50%

55.50%

self-help travelling tourist groups

• 44.5% of Chinese tourists chose self-help travelling

Industry SEM Situation

Baidu vs Other Searchers

Baidu 360 Sogou Google

AlgorithmAds Quality &

Ranking

As Google but Quality

Score different

As Baidu As Baidu Yes

Web Search Textual Ads Yes Yes Yes Yes

Site-Links Yes - - Yes

Brand-Zone Yes Yes Yes

Click-2-Call Yes - Yes -

AFS Textual Ads Yes - - Yes

MobileTextual/

Image AdsYes Yes

Display Network

Contextual Target

Yes - Yes Yes

Site Target Yes - Yes Yes

Re-Marketing Yes - - Yes

Searched KW Target

Yes - - -

Baidu SEA StrategyAdvertising Allocation

•Brand Campaign

•General Campaign

•Targeting Campaign

•Competitor Campaign

Baidu Search

•Keyword Targeting

•Re-Targeting

Baidu Content

•Different type of formats

•Customized-high impact advertising

Brand Zone

Baidu SearchSearch Result Analysis- Brand example

The 1st rank of SERP be not official site

The official site link performances at the 2nd rank

Baidu Search AdsCreative Demo Structure

Recommended Reasons

• Keywords reflect potential customer exact request.

• Most effective online marketing Ads Format.

• More optimization ways through keywords selection, max CPC bidding, regional and time targeting.

Pricing Policy:

• Pricing at CPC.

• Similar bidding algorithm as Google.

• More manual influences.

Publicidad en Baidu Content o Display

Content Baidu

Contextual Targeting

Site Targeting

SearchTargeting

Retargeting

Publicidad en Baidu Content o Display

Contextual Targeting

Site Targeting

Show ads in relevant sites (according to the content) using your keywords or topics, among other factors

Show your ads only on specific placements you choose

Publicidad en Baidu Content o Display

Search Targeting

Retargeting

Show ads to your site visitors when they search for what they need on Google

Lets you reach people who have previously visited your site and show them relevant ads across the web

Baidu Brand ZoneBasic Format

Baidu Eyeball Experiments

No BrandZone With BrandZone

Pricing Policy

• Pricing at Fixed-Amount per month

• Pricing based on average daily search queries.

• Minimum 6.000€ per month and 20% more for Customized Template

I.多 tab展现样式 :系列产品全方位展示

Brand-Zone

IV.标准微博样式 :SNS助力搜索引擎，一键转发、加关注

Brand-Zone

VI.左侧视频样式 :富媒体焦点位置展现，传播品牌形象

Brand-Zone

Baidu ads formatsSome clues…

Extensions

Micro-Brand

Click to call

Workflow

Methodology

Brand & Market Analysis

PRODUCT AND PRICE

COMPETITORS

USABILITY AND CONSUMER EXPERIENCE

ACQUISITION

Campaign definition

Market analysis and objectives

Campaign structure related

to website

KW search and organization in

topics (ad groups)

Creativities and destination URL

Optimization: bids, matches,

ads, KW…

Contact

C2C

FORMS

TLF.

CHAT

DIRECT SALE

(E-COMMERCE)

Metrics definition Optimization

Landing pages

SEA Campaign

IMPSCLICKSLEADS

CPLCOSTS

IMPSCLICKSSALESCPA

COSTS

Reports (weekly)

• The client will receive a weekly report with main data about the campaign. The objective is to analyze main KPIs of the account to improve performance week by week with daily optimization tasks.

Campaign Impressions Clicks CTR CPC Position Conversions% Conv. CPA/CPLConv. Value Spending

Total 1.796.683 401.423 22,34% 0,06 € 2,0 118.998 29,64% 0,22 € 16,05 €25.810,7

1 €

Branding 668.603 58.823 8,80% 0,17 € 1,95 6.673 11,34% 1,49 € 16,42 € 9.942,35 €

Travel 1.020.502 319.800 31,34% 0,04 € 1,17 110.321 34,50% 0,13 € 16,11 €14.073,57

€

Long Tail 33.795 3.184 9,42% 0,16 € 1,55 68 2,14% 7,36 € 18,97 € 500,15 €User Targeting 73.783 19.616 26,59% 0,07 € 1,05 1.936 9,87% 0,67 € 15,90 € 1.294,64 €

Reports (monthly)

• These reports include an exhaustive analysis about account activity, with a very visual format and highlighting the market trends.

• In this report Kanlli will analyze main data and opportunities. Is an ad-hoc report highlighting main objectives of the client.

• Will include performance of most relevant KPIs, some examples are :

• Basic metrics:

• Impressions

• Clicks

• CTR

• CPC

• Conversions

• %conversion

• CPA

• Investment

• Conversion by campaign

• Traffic by campaign

• Coverage vs traffic

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€ 50.00

€ 100.00

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25 23

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31 32 32

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41

23 22

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32 32 35 35

Conversions & CPA Evolution

Conversions CPA/CPL

5.61%

92.71%

0.06% 1.63%

Conversions by campaign

Branding TravelLong Tail User Targeting

¿Quieres recibir más información? Puedes contactar con nosotros.

Pablo López CarralDirector Comercial

Pablo.lopez@kanlli.com615 228 798

Kanlli:C/ Príncipe de Vergara, 109. 9º

28002 Madrid.917259220

baidu@kanlli.comhttp://baidu.kanlli.com