WANG Yan 15 nov' 2006 iDate

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WANG Yan 15 nov. 2006 iDate
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Chinas Internet Market Abstract
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China's Internet is Developing Rapidly ...
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Chinese Internet Users Makes China Second Only to
the United States
China currently has 119 million Internet users,
second only to the United States, and that number
is expected to grow to 200 million by 2007
1.23?
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Maybe even more... Chinas becoming the biggest
Internet market!
The annual growth rate has been maintained at
more than 20
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The Stickiness of China Online Media is No 1 in
the World
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Snapshot of China's Mobile Telephone Market
As of 9/2006, China has 443 million mobile users

• Mobile surpassed fixed line (369 m) users by far
• Mobile userbase increases 5.5 m/month (2.1
  m/month for fixed line)
• 1 mobile for 3 persons, penetration rate reaches
  33.9 (28 for fixed line)
• Family penetration rate reaches 90 in cities,
  similar to Japan and Corea (80 for European
  countries, 75 for the US, 60 for Canada).

Sources MII, Ipsos
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Snapshot of China's Mobile Telephone Market
contd

• Historical growth
• 1987 700 users
• 1997 10 m users
• 2001 100 m users
• 2002 200 m users
• 2003 surpassed fixed line users
• 2004 300 m users
• Annual mobile phone production 340 m (70 for
  export)
• Telecom market USD78b (2006e), AGR 10-12

Sources MII, Ipsos
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Mobile telephone ? Information terminal

• SMS sendings
• 2006e 450 billion (1 SMS/day/person)
• 2005 300 b
• 2004 217 b
• 2000 1 b only
• 2.5G 3G users
• 75 million (36 million in Japan, 14 million only
  in the US)

PC Internet users Mobile Internet users
China, the World Biggest Internet Market
Sources MII, Strategis
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Rapid Development of China's Online Advertising
Market
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Leading Position in Online Advertising Market
Best contents and largest userbase bring to SINA
the biggest share of the market for almost 1
decade. SINA, the No.1 player of the online
advertising market in China, with over 20 of
market share.
The amount of advertisers for major portals in
2005
Sina
Sohu
Yahoo
163
China.com

QQ

TOM

21CN
SourceSina Finance
Source iResearch Market Evaluation Report 2005
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Sina is the Preferred Media of Most Advertisers
for Online Marketing in China
195 ??
SourceiAdTracker 2006
Sina is the FIRST CHOICE of numerous first-class
domestic and international corporations for
promotion
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Information Integration Sinas Core Strengths
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Who is SINA? Unique Channel for Global Chinese
People! China NO.1 Portal Website! Preferred
Media of Online Marketing Platform!
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Unique Channel for Global Chinese People
A leading online media company and value-added
information service (VAS) provider for China and
for Chinese communities worldwide
San Francisco
Beijing
Global Registered Netizens 155M Average Daily
Visit Rate 550M Average Daily Unique Visitor
over 40M Average Users of the Various
Paid-services over 18M
Shanghai
Nanjing
Guangzhou
Taipei
Shenzhen
Hong Kong
China No.1 Portal Website Brand Advantages and
Commercial Values
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The Development of SINA
The PV for World Cup break the record in a unique
sports event in China
Launch Blog 3.0
Sina was the one of Top 50 Internet brand in 8
subdivided fields
Launch Blog 2.0
Launched search engine iAsk
Launched instant messenger UC
Brand spirits You are the One
Renamed SINA Corporation from Sina.com
Provided paid Email
First Chinese websites allowed to publish news
on-line
IPO on NASDAQ
2006. 7
2006. 7
Merged with the US-based SINANET.com to form
Sina.com
2005.12
2005.9
2005.6
The predecessor company Stone Rich Sight founded
in Beijing
2004.7
2003.11
2002.12
2001.8
2000.12
2000.4
1998.12
1993.12
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SINAs Products Services
Contents
Communications
Commerce
Communities

• News
• Informations
• Books
• Map Service
• Search
• Downloading
• VIP Interview

• Blogs
• Forums
• Chat Rooms
• Online Dating
• Casual Games
• Wiki

• SINA Mall
• Corp Email
• Classified

• Email
• A/V IM
• SMS / MMS

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SINA Leads the Development of China's Internet
Media
SINA made the history in news reporting and
expanded influences
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SINA Leads the Development of China's Internet
Media
SINAs engagement makes the blog a mainstreaming
culture of China
05?9?
First portal website launching blog channel in
China...
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SINA Leads the Development of China's Internet
Media
SINA broadband, cross-media new type
collaborative forms
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SINAs Strong Presence in Mobile VAS in China
SINA Mobile Value-Added Services
SMS, MMS, WAP, JAVA/BREW, IVR and CRBT Platforms

• News and information
• Sports scores and horoscopes
• Search Engine

• Pictures and screensavers
• Ringtones and sound effects
• Java-based games

• Dating communities
• Hometown communities
• Audio chatrooms

Online, offline and direct media
advertising marketing channels
Over 10 million monthly unique paid users Huge
mobile advertising opportunities
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SINA-The Most Preferred Website in China
The Preference of Internet Users
Source the Preference of Internet users from
Five Cities in China survey, made by Chinese
Academy of Social Sciences in May 2005.
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Comparison Between China and the US
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Internet Advertising Market Development
Comparison Between China and the US
Market Share of Internet Advertising
In the US, the Internet advertising market share
is on rise.
Chinas Internet advertising market share in
overall market has grown at an average of more
than 50.
US Internet advertising market share in overall
advertising market
China Internet advertising market share in
overall advertising market
2.3
4.6
SourceIAB 2005
SourceiResearch 2006.01
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Internet Advertising Market Development
Comparison Between China and the US

• In the United States, Internet search engine
  advertising accounted for the largest proportion,
  about 2/5
• The share of rich media online advertising was
  increased rapidly

In China, the amount of the brand/product graphic
advert is nearly 50
The proportion of different forms of Internet
advertising in China for 2005
Email Adverts
Others
The proportion of different forms of Internet
advertising in the United States
Rich Media Adverts
Text Link Adverts
Brand Graphic Adverts
Classified Adverts
Search Engine
SourceiResearch 2006.01
SourceIAB 2005
The online advertising focuses on brand promotion
in China. With the development of blogs,
broad-band video and the Olympics plan of next
two years, the demand for online brand
advertising will continue to make a huge increase.
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Conclusion
Chinas Internet market is becoming the most
important one of the world, but multinational
players are much weaker there than in any other
countries.

The Internet is more regarded as a media in China
and the online advertising is almost the only
revenue model, besides mobile VAS and online
gaming.
Industrial use of Internet is still quite limited
in China, the combination of the net and
traditional value chains will bring more business
opportunities.
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Thank You! We Look Forward to Cooperating with
You!