Leveraging the Digital Opportunity, Developing Online Measurement

Confidential & Proprietary

© 2008 The Nielsen Company 1

Leveraging the Digital Opportunity,

Developing Online Measurement Science

in China

August 2009



Nielsen e-Quiz #01

TRUE OR FALSE

Chinese Internet Population is more than total of US and Japan.


© 2008 The Nielsen Company

Global Active Digital Media Universe

Active Digital Media Universe (millions)

Time Per Person

Web Pages Viewed Per Person (000)

Sessions Per Person

Total Minutes (billions)

Total Page Views (billions)

Australia 12 41:22:41 1.3 41 30 15

Brazil* 25 33:50:13 1.7 28 50 41

China** 298** 11:08:38 0.7 33 199 207

France 34 59:19:09 2.6 57 120 83

Germany* 36 37:48:29 1.8 36 82 63

Italy 21 46:14:59 2.2 39 58 44

Japan 56 59:01:37 2.1 48 197 111

Spain 24 50:37:52 2.2 44 72 51

Switzerland* 4 31:27:47 1.3 33 7 5

UK 35 56:04:48 2.3 46 119 78

US 167 61:11:56 2.4 57 613 386

3

* Source: Nielsen Online NetView, Feb 2009

Home Only

** China Data Source: CR-Nielsen CR-NetRatings, Feb 2009. Browser based reporting

due to significant shared PC Usage (e.g. Internet Café)

CNNIC the 23th Internet Statistics



The China Internet Market is like no other …

Sources: Nielsen Online, CNNIC

Over 90% users are broadband.

Over 100 million

bloggers

Estimated 30% - 40% of internet

users share access through internet

cafes

Strong regional / local segment

internet users behavior differences

World’s largest online population,

over 300 million. Less than 25%

penetration!

Over 100 million

mobile internet

users.



Popular Research Question #01

What is the definition of ‘Internet Population’ ? Is the definition consistent cross the different market?



Nielsen e-Quiz #02

TRUE OR FALSE

China Internet is So Dynamic and is Hard to be Measured.



Measuring the Internet in China is a Huge Challenge

• Even keeping track of the universe is a challenge.

– Massive volume of new internet users (almost 100 million Chinese citizens came online

in 2008)

• Large traffic to non-commercial sites makes tag-based “census” approach incomplete.

– Over 100 million bloggers in China, large traffic to non-commercial, non-professional

content

• Unique access patterns make metered panels difficult.

– Significant portion of traffic from internet cafes and other public places

– Significant and growing portion of traffic from mobile devices

• “Online” is much more than web sites.

– Large penetration of IM, gaming, and other unique applications developed in local

market

• Unique government regulatory environment



But Measurement is An Imperative!

• The Chinese internet population is, by far, the largest in the world (and larger than the entire U.S. population).

• Online advertising in China is growing rapidly, especially as global advertisers increasingly view it as a critical way to reach Chinese consumers.

• Existing global internet players have made large investments to try to win in China.

• Chinese Internet companies like Baidu and Alibabaare increasingly focused on becoming the next wave of global internet players.

• Almost total lack of measurement, results in immature ad market.

– Alexa.com is closest thing to a measurement

currency

– Advertising sold largely on “time slots”




Can any methodology value the dragon head and the long tail both?



Nielsen e-Quiz #03

TRUE OR FALSE

As a main force of Internet population, youth use Internet for entertainment on home and public

PC.



Country Gender Age Children

% Male Female 2-17 18-34 35-49 50+ Yes No

Australia 50 50 22 24 26 28 49 51

Japan 55 45 20 22 41 17 na na

US 48 52 20 20 27 33 51 49

Switzerland

56 44 16 25 31 28 38 62

UK 50 50 11 31 28 30 40 60

Germany 54 46 13 24 33 30 40 60

Italy 56 44 10 33 34 23 39 61

Spain 55 45 10 39 35 16 37 63

France 50 50 14 29 32 25 48 52

Brazil 51 49 29 35 23 13 56 44

China 54 46 na 60 16 4 na na

The China Internet Market skews much younger than other markets

Source: Nielsen Online NetView Active Universe Composition - August 2008, Home+Work data (* Home only for AU, BR, DE, CH, JP), Including Internet Applications.

China: cnnic 22nd survey report June 2008



More Than 55% Internet Users Surf on Public PCs

Source: cnnic 22nd survey report June 2008

Home Café Work School Other Public



0%

20%

40%

60%

80%

100%

TV match % NewsPaper match %

Internet Users' Media Consumption

> 20 hours

15-10 hours

10-15 hours

5-10 hours

2-5 hours

< 1 hour

Internet Becomes One of Main Media for Internet Users

52% of Internet users watch TV less than 5 hours per week

29% of them don’t read newspaper




How to measure the total Internet value in a dynamic growing market and industry?



Nielsen e-Quiz #04

TRUE OR FALSE

Local Chinese sites dominate the market.



Local sites dominate the online landscape in China

NetRatings Jun/08/09-Jun/14/09 Weekly

Unique Browsers in millions

Global Sites

Local Sites



Website Ranking by Province




Is the traffic volume a right metrics for Internet Measurement?



Nielsen e-Quiz #06

TRUE OR FALSE

More 200,000 different advertising formats have been deployed in past

10 years.



No of Banners Increased from 26,600 in Q1 to 46,300 in Q2 2009



Ad Creative Trend Comparison

Ad Creative Trend - Total Market

0

3000

6000

9000

12000

15000

18000

Ad Creative Trend - FMCG

0

300

600

900

1200

Ad Creative Trend - Unilever

0

20

40

60

80

100

Ja

n-0

7

Feb

-07

Ma

r-07

Ap

r-07

Ma

y-0

7

Ju

n-0

7

Ju

l-07

Au

g-0

7

Se

p-0

7

Oc

t-07

No

v-0

7

Dec

-07

Ja

n-0

8

Feb

-08

Ma

r-08

Ap

r-08

Ma

y-0

8

Ju

n-0

8

Ju

l-08

Au

g-0

8

Se

p-0

8

Oc

t-08

No

v-0

8

De

c-0

8

Ja

n-0

9

Feb

-09

Ma

r-09

Ap

r-09

Ma

y-0

9

Data Source: Nielsen Online AdRelevance



AdR + Reports More Ad Creative

Video Adv

SNS广告

In Game Adv

SNS Adv

WAP Adv

Application Adv

C:/Documents and Settings/user/桌面/Unilever_Lux.flv

C:/Documents and Settings/user/桌面/Pepsi_Jilang.flv




How to estimate the Ad Value and the Adv Spend online?



Nielsen e-Quiz #07

TRUE OR FALSE

Online TV Advertising may be more engaging than TV.



30% of Online Activity Takes Place While Simultaneously Watching TV

• This equates to 10 minutes a day

• Teens most likely to have simultaneous TV/Internet usage (42%)

• But 35-54 have most simultaneous minutes (11minutes)



TV Advertising impact dramatically better with addition of Online Video advertising

42%

32%

21%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Brand Recall Message Recall

TV

Ad

Pe

rfo

rma

nce

TV + Online Exposed Viewers TV-only Exposed Viewers

.

Source: Nielsen IAG



The Future Of Video Measurement Is Not Simply Counting Eyeballs

Inte

ractio

n



The Future Of Video Measurement Is Not Simply Measurement




How to measure the engagement of video adv?



Nielsen e-Quiz #08

TRUE OR FALSE

Kids learn the brand

When they play SNS Games.



Big growth in social networking, gaming revenue is higher than adv revenue



Top Social Media Sites in China

Rank Social Network Avg Weekly Unique Browsers – Dec 2008

1 51.com 14.0

2 Xiaonei 9.5

3 Chinaren.com 7.0

4 Kaixin001.com 3.5

5 Myspace.cn 2.0

6 5460.net 1.0

7 Wangyou.com 1.0

8 Ipart.cn 1.0

9 360quan.com 0.9

10 Cyworld.com.cn 0.8



Highly creative new revenue models emerging

Traditional banner advertising has

struggled to monetize traffic, like in

other markets.

New Social Network games are

proving a great revenue stream.

One of most popular is “virtual farm”

game created by three teenagers –

generating ~$500k/month selling

virtual vegetables and guard dogs.

Product Placement becoming very

popular.

Brands like Pepsi, P&G and auto

makers finding ways to place products

on billboards or even as objects for

sale within the Social Network games.



Is New Creative effective?




How do I know the effectiveness of my online campaign?



Nielsen e-Quiz #09

TRUE OR FALSE

Internet is not only about advertising, but also consumer research.



What’s Your Brand Influence Online?

Word of mouth – what does it mean towards your consumer sentiments.

http://tieba.baidu.com/

http://bbs.163.com/

http://www.tianya.cn/focus/index.shtml

http://www.55bbs.com/

http://www.chinanews.com.cn/

http://bbs.izhufu.com/index.php

http://www.cat898.com/

http://www.xilu.com/



Types of Online CGM Collected

Lux Campaign Discussion

Lux Skincare Review



What’s the Value of BBS Platform?



MyBuzzmetrics Launch in August 2009

Choose your language

preference

Create more dashboards

Create and arrange

widgets

Your saved reports

Your personal alerts




Is WOM research online a quantitative or qualitative or both?



Nielsen Offer #00

SUMMARY

PASSION

+

ACTION



Thanks

谢谢！

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