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Wine IndustryBaidu

Content

1 China Internet Situation

2 Wine 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

30

40

50

60

70

182303 351

467549

632716

797

13.8

22.826.3

34.8

40.7

46.7

52.6

58.2

Internet users scope(million)Internet users penetration （ % ）

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%

201252.1%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 - 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

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

NewsBlog

Online gaming

Online videoEmail

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

Wine Sector Situation in China

Wine sectorHigh potential-opportunity

• China's per capita consumption of wine is increase quickly.• China has been the fifth wine importer country in the world, and it will

become the second largest country in demand in Y2016.

China's per capita consumption of wine

Wine sectorHigh potential-opportunity

• 16% from the Chinese wine market is imported

• Wine imports amounted to 361,600 KL in Y2011, and it increased 4 times during Y2012.

Spanish wine in Chinese marketTOP 10 popular wine countries

China's top 10 popular wine countries of sale

FranceAustraliaItalySpainThe United StatesintelligenceArgentinaNew ZealandPortugalSouth Africa

• Spain is one of the fourth popular wine countries for Chinese people.

• France is the largest country in sales, and Spain has the fastest sales promotion.

Online searches for “Spanish wine”Increasing rapidly

• “The Spanish wine”: searches began in 2010, the traffic is close to “imported wine” now.

• “Imported wine”: searches began in 2007, the traffic now is about 11 thousand per day.

• All this traffic is active search, so search marketing is very important for this sector.

•Imported wine•The Spanish wine

Online searches for “Spanish wine”Increasing rapidly

High volume per city 1 Beijing2 Shanghai3 Xiamen4 Guangzhou5 Fuzhou6 Shenzhen7 Changsha8 Hangzhou9 Tianjin

10 Chengdu

• Beijing, Shanghai, Xiamen represent the highest search volume cities for Spanish Wine. High search volume of people searching “Spanish wine”

Online searches for “Spanish wine”“Spanish wine” and “Imported wine”

lower low medium high higher0%

10%20%30%40%50%60%70%

Income level of people who search “Spanish wine”

lower low medium high higher0%

10%20%30%40%50%60%

Income level of people who search “Imported wine”

• Most of the people that search “Spanish wine” is medium & high income level.

• People that search “imported wine” cover all income levels.

Some conclusions• China has been the fifth wine importer country in the world, and it will

become the second largest country in demand in Y2016.

• Spanish wine is popular, and has a faster growing demand in China.

• Spanish wine has a high volume of searches in China, especially in Beijing, Shanghai, Xiamen.

• Most of the people that search “Spanish wine” is medium & high income level.

…The important point is to increase exposure, get visitors and sale…

Industry SEM Situation

Baidu vs Other SearchersBaidu 360 Sogou Google

Algorithm Ads Quality & Ranking

As Google but Quality

Score different

As Baidu As Baidu Yes

Web Search Textual Ads Yes Yes Yes YesSite-Links Yes - - Yes

Brand-Zone Yes Yes YesClick-2-Call Yes - Yes -

AFS Textual Ads Yes - - Yes

Mobile Textual/Image Ads Yes 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-TargetingBaidu

Content

•Different type of formats•Customized-high impact

advertisingBrand 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

C2CFORMS

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/CPL Conv. Value Spending

Total 1.796.683 401.423 22,34% 0,06 € 2,0 118.998 29,64% 0,22 € 16,05 € 25.810,71 €

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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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