Evento Mobilidade 2016.

1. CHINA MOBILE MARKETCHEN YONG
Presidente
IAB China

2. Hello everyone
Boa tarde a todos!
November 2016

3. China Mobile Market
01

4. Ad Market Outline02
In 2015:
Ad market scale: RMB 597.3 BILLION;
Ad industry practitioner: over 3.07 MILLION;
TV: RMB 114.6 BILLION；
Newspaper: RMB 50.1 BILLION；
Radio：RMB 12.4 BILLION；
Magazine: RMB 7.2 BILLION；
Interactive advertising: RMB 198 BILLION
互动
电视
报纸
广播
杂志
Interactive
TV
Newspaper
Radio
Magazine
Ad spend by media

5. Population / Mobile Phone / Internet03
People & mobile:
•Population: 1.3746 BILLION (in 2015)
•users: 1.306 BILLION, penetration: 95.5%
Internet user & mobile internet:
•Internet users: 710 MILLION, 51.7% of the population
•Mobile internet users: 656 MILLION, 92.5% of internet users
Internet environment:
•3G/4G used：91.7% ， increases 2.9% than previous year
•Wi-Fi access：92.7% ， increases 0.9% than previous year
•Average time spent on internet per person: 26.5 hours / week
农村网民
城镇网民
网民男女比
例构成 男
网民男女比
例构成 女
0
10
20
30
40
10-19岁 20-29岁 30-39岁 上网年龄结构

6. Regional environmental advantages05
Rate of urbanization increases by 1 persentage
every year
Urban population in 2020 ： about 840m 56.1%
Rate of urbanization in 2015
Urban population
771M
Increases 0.6－0.8 percentage every year
Urban population in 2030：almost over 900M

7. Humanity advantage of Chinese mobile
developing in global background07
3,1 2,01
4,96
13.7
2,5
0,23 0,5 1,26
2,5 1,71
3,66
7.7
1,3 0,2 0,41 1,18
US Brasil EU Mainland Indonesia Taiwan Korea Japan
China
Total population (100m)
Urban population(100m)
US 80.6%; Brasil 85%

8. Advantage of population distribution06
City size
Number
of cities
Above 10
million
6
5-10 million 10
3-5 million 21
1-3 million 103
0.5-1 million 138
Under 0.5
million
378
Total of cities 656
Total of towns 20515

9. Why mobile internet develops rapidly04
High penetration rate of mobile user
Rapid development of mobile technology
Broadband (3G/4G) develops in high speed
Multi-level and full coverage of mobile phone
People’s desire of pursuing better life
Mobile device brings convenience to life, entertainment and study
Younger generation highly depends on mobile
Sufficient capital involved in

10. 08
WeChat
Social tools brings
people closer to mobile

11. Social function09
1. Social platform: WeChat combines instant messaging &
moments. When your friend posts a video, link or photo, you can
response immediately
features: strong privacy, non-visible for non-friends
2. Social media: over 20m official accounts on WeChat. Brands,
individual & journalist are allowed to issue news, information, ads
or promotion through it.
It is a life service+social platform in nature.

12. Social function10
3. Electronic pay: powerful paying and account transfer. WeChat
has subsituted cash to a large extent. 58% WeChat users largely
use WeChat wallet to pay. By scaning QR code to pay, you can
directly transfer accounts to WeChat friends
4. City service: “WeChat city service” is the official platform of
governmental affairs and people’s well-being service, where
citizens can easily handle medical care, transportation, traffic
service, social ensurance, housing fund, exit-entry administration,
household registration, education, etc.

13. Social function11
5. Sticker gallery and game center: WeChat
users can also save and download their
favorite emoji in sticker gallery, some of
them needs to be paid. Also, in the game
center in WeChat, you can find hot Tencent
mobile games like King of Glory and Cross
Fire and check what games friends are
playing recently.

14. Commercialization function12
1. WeChat Moments Ads
2. Scan QR
Code

15. Commercialization function13
3. Shake
4. Brand
emoji 5. Red Packet

16. 14
E-Commece
With convenient life services,
people cannot live without
mobile

17. 11.1115
Mobile GMV : 83.62%
Covers 235 countries & region
Tmall shopping platform: RMB120.7B/day
Turnover till the 56th seconds breaks RMB 1B
At 6’58’’, turnover exceeds RMB10B

18. E-commerce pushes rapid development of mobile payment16
Number of payment in e-commerce platform expands
by 278 times;
Internet consuming scale index expands by 219 times;
From 2009-2016:
Total number of payment with Alipay: 1.5B
Spike of payment on 11.11 exceeded 120,000 / seconds;
Successful Payment rate: 99.99%

19. Trend17
There will be no the concept of “e-
commerce” in the future, instead is
the “new retailing” combining
various services online and offline.
——Jack Ma

20. UNDERSTANDING
DIGITAL COMMERCE
IN THE US & CHINA

21. Research result: China & US are both mature
e-commerce markets

22. 10 features of Chinese digital shoppers18
Younger More Male More Mobile
Crazier More Frequent & Enthusiastic
More adept at online/offline comparison &
driven by price
Feel more unsecure Stronger experience
sharing

23. 10 features of Chinese digital shoppers19
Younger
on one hand，average age of Chinese digital shoppers is
lower than their US counterparts；on the other hand，
there are more ”new comers” of digital shoppers in China
than in the US
More male
more male digital shoppers than female in China,and the
difference is obvious in China than in the US

24. 10 features of Chinese digital shoppers20
More mobile
Chinese digital shoppers more prefer mobile devices
More of a“black sheep”
Chinese is more willing to pay in e-commerce

25. 10 features of Chinese digital shoppers21
More Frequent
There are far more digital shoppers with shopping
frequency “ 1 + times per week”or“daily”in
China than in the US
More Enthusiastic
The trend of staying away from in –store shopping
and crazy about digital shopping is obvious with
Chinese than Americans

26. 10 features of Chinese digital shoppers22
More adept at online/offline comparison
Chinese digital shoppers research & compare
price in store more often，more tend to regard
physical store as showroom of online shopping
Value more on price
“price driven” is more obvious with Chinese
digital shoppers

27. 10 features of Chinese digital shoppers23
Feel more unsecure
Chinese digital shoppers suffer
double unsafety from“internet
information secure”and“sellers’
fraud”

28. 10 features of Chinese digital shoppers24
More happy to share
Chinese digital shoppers more tend to decrease risk by sharing post-purchase experience and participating in
“group mutual aid” in social posts

29. Consumption behaviour of post-
80s’, 90s’ & 00s’
You have captured future market
once you capture new generation
consumers

30. Consuming habits of young people25
Post-80s’has been core consumption force in the society, while post-90s’is rapidly catching up
Post-90s’
population
170M
1.3 Japans
3.4 Koreas
2.6 Britains
=
“more money”is key，more
important is “willing to
spend”
 %average monthly spend of main
personal daily use / average
individual monthly income
* average monthly individual spend refers to spend on daily use, including skin care, cosmetics, mobile communication, using internet, cloths, shoes（except for sports shoes ）
Individual average
income(m)
Individual average
spending(m)*
ratio
Post-70s’ ￥6,427 ￥1,209 19%
Post-80s’ ￥6,654 ￥1,549 23%
Post-90s’ ￥4,561 ￥1,237 27%

31. Consumption concept of post-90s’：
obvious in sensational consumption & consumption of belonging26
Based on data, comparing with other generation, post-90s’consumption concept is more sensational &
casual , and has stronger consumption of belonging and is more willing to keep pace with the masses.
Thus, post-90s’consumption concept is gradually being shaped
 % agree “as long as I like, I will buy
even I don’t need or it is useless”
37,3
33,2
38,6
41,1
Total post-70s’ post-80s’ post-90s’
 % agree“I’d better own the
product which everybody owns”
43
37,9 40,7
45,7
Total post-70s’ post-80s’ post-90s’

32. Post-90s’consumption concept：
wiling to share, comment & communicate27
For buzz communication，post-90s’is active,too. They are willing to share
consumption information and deliver the product information they accept This demographic
group
consume self-willedly;
big-time spender;
in large size
 % agree “when I find a new
product that I like very
much, I must share my
finding with others”
62,6
67,1
69,1
post-70s’ post-80s’ post-90s’
 % agree“I often discuss with
other people the products &
brands I find recently”
58,7
63,9
64,9
post-70s’ post-80s’ post-90s’

33. Post-90s’concept of advertising:
like new media & new format28
For ad impact，post-90s’more like creative ad and more accept the ad on mobile app
 % agree“I think internet ad
is very creative and make me
more and more like to
watch”
27,4
35,6 36,2
post-70s’ post-80s’ post-90s’
 % agree“I can often notice
the ads on mobile app”
24,1
31,4 32,5
post-70s’ post-80s’ post-90s’

34. Internet is indispensable in post-90s’life
Mobile social intercourse is their life focus29
According
to data，
social
intercourse
is NO.1 in
post-
90s’life(75
%，2 times
of online
shopping
% TOP5 things done yesterday by post-90s’ using internet
NO.1 NO.2 NO.3 NO.4
Social
intercourse
75%
Digital
shopping
34%
Streaming
video
55%
Digital
news
46%
Search
engine
52%
72%
Total
populaion
Index 100
90%
post-
90s’ Index 124
NO.5
Daily reach of internet

35. Aim of advertisers choosing different media
0 50 100
Radio
Magazine
Newspaper
Film
Mobile
Pc
Ooh
TV
0 20 40 60 80
promote/strengthen
brand image
31%
0 50 100
boost
sales/promotion
26%
0 20 40 60 80
consumer relationship
maintaining
15%
Source: C1: Below is the main aim/motivation of advertisers to marketing. Which media will your company choose for brand marketing
for the main marketing aim____
promoting brand reputation
28%
30

36. Mobile choice for advertisers
superior media for advertisers
Internet & mobile internet is popular
0 20 40 60 80 100
Magazine
Newspaper
Tech
platform
Ooh
Mobile
E-commerce
TV
internet
0 20 40 60 80 100
TV mobile
Streami
ng
video
Digital
retaile
r
Hunan
TV WeChat iQiyi taobao
Zhejian
g TV
Weibo
mobile app Youku Tmall
Dongfan
g TV
Tencent
Myapp
Tencent
video JD
Jiangsu
TV Netease LeTV YHD
cctv-5 Toutiao
Sohu
video
Dianpin
g
Source: E1: Among the various TV/internet/video/e-commerce platform/OOH/media platform&technology/digital retailer,which is your company’s
superior choice
E2: Which media’s prospect do you expect? Please choose 3-5 media brand you would superiorly to choose
advertisers' superior mediaSuperior choice of media brand in
marketing
Prospect of media brand mostly
being expected
OOH
Tech
platform
Focus
Media
Baidu
Lianmeng
bus
online Alimama
JCDecau
x Miaozhen
White
Horse Yoyi
Touch
Media
Google
AdSense
Superior media for advertisers

37. Role of IIACC（IAB China）30
Three phases：
1996—2005，cultivate and educate market to
promote industry development
2006—2012，provide professional service to
accelerate market development
2013 till now，unify market standard and drive
market development

38. National Standard of Mobile Advertising31
Interactive Advertising part 1：terminology & introduction
Interactive Advertising part 2：requirements on launching & verification
Interactive Advertising part 3：requirements on results metrics
Interactive Advertising part 4：interface requirement
Interactive Advertising part 5：requirements on privacy protection

39. Thanks
Obrigado!
November 2016
Chen Yong
President of IIACC
cy36999@126.com +86-10-63317929