The document provides an overview of Chinese digital marketing trends and predictions for 2012. Some key points include: 1) Mobile marketing and gaming will continue growing in popularity as ways to engage users on social media. 2) Search will remain an important component of campaigns, and brands will allocate more budget outside of Baidu. 3) E-commerce is expected to maintain rapid growth, with the market reaching 4.8 trillion RMB. 4) In 2012, agencies need to focus on engaging users through social media and consider communication strategies as "push and pull" rather than just "push". Micro-targeting will also be more possible.

1. Chinese Digital Marketing Outlook 2012 …
A glimpse into the crystal ball!
Presented by Dr. Mathew McDougall
CEO & Founder, Digital Jungle
Beijing, China

2. 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.

3. Lets get down to business… Ye Baby!!
Who is Digital Jungle?
Chinese Online Marketing Trends
Looking at the numbers
Implications for Advertising Agencies

4. 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

5. The ‘Motherhood’ Statement
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
I’m Dr
. Matt the application of search, affiliate and online marketing, we commit to:
CEO, D McDou
igital J gall,!
ungle
• 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.

6. CHINESE TRENDS
Predictions for 2012…!

7. 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

8. 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

9. 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

10. 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

11. 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

12. GETTING INTO THE
DATA
Need the 2012 stats….!

13. 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’

14. 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.

15. 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)

16. 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

17. 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%.
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’
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.
Source: 2010-2011 China’s Internet Economy Market Research Report (iResearch), CNNIC Dec, 2011

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

19. Power to the people… the marketing
spiral!
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

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

21. The Digital Marketing Phases
Phase I
Phase II
Current Online Situation Assessment Build Digital Media Plan
(typically 4-6 weeks)
(typically 3-4 weeks)
A
B
C
D
E
Monitor Optimize
Listen
Segment
Strategy
Measure
Refine
Sets the Stage for
Phase III
Execution
(varied/ongoing)
Digital Marketing Campaigns
Optimization of Marketing
Online Marketing Outreach
(Considering all online channels)
Assets (SMM + Marcom)

22. Digital Marketing… Example Plan!
Phase I
Phase II
Phase III
Current Digital Marketing
Build the Digital Marketing Plan
Program Execution
Situation Assessment
• Monitoring the digital landscape
• Assess existing assets
• Optimization plan for current
digital media assets
• Mapping the segments online • Create engagement strategy
ecosystem/ marketing touch • Execution of digital strategy
points
• Create outreach strategy and
campaigns
• Social Media Presence
• Understanding and profiling the • Active conversations and
target segment
• Establish social marketing plan community participation
and roadmap
• Amplify with Search (SEO/
SEM)
• Establish monitoring, metrics
and reporting strategy and KPIs
• Integrated campaigns
• Measure results
Key Phases, Activities and Timing
On-going
Ongoing
Week 1
Week 4/6
Week 7/10

23. Thanks!
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Also, don’t miss out on !
Dr. Mathew McDougall’s new book!
“The Chinese Social Media Universe” !