CHINA SEARCH INTERNATIONAL, BAIDU ADVERTISING PRODUCTS AND SERVICES MEDIA KIT – BAIDU UNION – Q4 2012

China Search International is a value added-service provider that allows western companies to launch into China. We help companies to succeed on Baidu in China by adding our own insights, recommendations and best practice. Leveraging our direct relationship with Baidu as a representative in AU, NZ, US and UK, China Search International can assist clients launch a successful Baidu campaign that delivers results

OPPORTUNITY IN CHINA

‘INFLUENCERS’ ARE TALKING ABOUT CHINA“Asia will become home to most of the world's middle class by as early as 2025. Not only becoming the world’s largest producer of goods and services; becoming the largest consumer of them. This is good news for Australia and it should drive a profound change in our thinking about our economic relationship with Asia”

Source: Launch Speech for “Asia Century” White Paper

‘INFLUENCERS’ ARE TALKING ABOUT CHINA"The rise of Chinese middle class will change the world… Lucky for us at Crown, they don't mind having a punt”

Source: News.com.au

THE CHINA ECONOMY

Source: Econsultancy; China, The Digital Market Landscape Report, October 2012

Of the world’s emerging markets, China is often viewed as the region with the greatest potential. Home to more than 1.3 billion people and with an economy which has grown at around 10% per year since the 1980s China has fast become the driving force of the global economy

THE LARGEST INTERNET POPULATION IN THE WORLD

Source: CNNIC 30th Statistical Report on Internet Development in China, 2012

513 Million39.9% reach of total population, & growing YOY

OPPORTUNITY IN CHINA

Source: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

PEOPLE IN CHINA, ONLINE

Australian Online Population17m

China Online Population513m

Source: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

Key insight;

China… great potential

Baidu; 78.00%

Others; 9.00%

SoSo; 7.30% Google; 2.60%

While IM records the highest growth, search provides a broader, and more mature, audience

Stock Trading

Travel Booking

Group Deals

Forums/BBS

Internet Banking

Online Payment

Online Shopping

Literature

SNS

Email

Weibo

Blogs

Games

Video

News

Music

Search Engines

Instant Messenger

40.02

43.07

64.65

144.69

166.24

166.76

193.95

202.67

244.24

245.77

249.88

318.64

324.28

325.31

366.87

385.85

407.4

415.1

Source: CNNIC 30th Statistical Report on Internet Development in China, 2012

CHINESE CONSUMER USES SEARCH ENGINES TO NAVIGATE THE WEB

Key insight;

China is searching and consuming

Key insight;

Huge explosion of users with present scale lifting by 10% YOY

Key insight;

Heavy use of search & directories similar to AU composition

Key insight;

Similar engagement times to mature marketplaces

Key insight;

Online buying big and will get bigger

Key insight;

Only way for China internet penetration is up

MIDDLE AND AFFLUENT CONSUMERS (MAC’S)

Year Households2005 11,000,0002011 50,000,0002020 130,000,000*

*Approx. the same number as this classification in the USA

Source: Boston Consulting Group

MORE MOBILE MILLIONAIRES THAN EVER BEFORE

*Source: Boston Consulting Group – China’s Digital Generations 3.0 , April 2012

"more than half of the travellers surveyed from mainland China were intending to travel to Australia over the next two years”**

**Visa PATA Travel Intention Survey 2011 (published 2012)

30% YOY growth (1.4M)*

5 fold increase in affluent households by 2020*

Actively shopping for luxury goods, gambling, travelling abroad*

Top twenty regions by millionaires

Source: Boston Consulting Group – China’s Digital Generations 3.0 , April 2012

ADVANCED TARGETING AVAILABLE WITH BAIDU ADVERTISING PRODUCTS

90% of China’s wealth can be found in 20 cities and provinces, 50% can be found in 3 cities and provinces alone (Beijing, Guandong and Shanghai). However, wealth will continue to flourish across the country

ACCELERATED GROWTH

China India Nigeria Russia Iran USA0

50100150200250300350400450500

New Users 2007 - 2010 (MM) Total UsersSource: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

Key insight;~35% of China’s digital population have come online in the last 5 years

OPPORTUNITY IN CHINAChina already has the largest online population in the world at 513 million usersAstonishingly that’s only 38% of their population, so their capacity for growth is enormousThey’re not just growing in size – the Chinese are growing in affluence, the number of millionaires is expected to grow 33% year-on-year for the next 5 yearsThe middle classes are expanding beyond the largest cities more rapidly & in greater numbers than any market has ever witnessed. The number of Middle and Affluent Consumer households in China will be the same as the US by 2020As China's recent economic growth continues to surge, the demand for online goods and services will continue to grow

Source: China Internet Insights, 2012; ChinaInternetWatch.com April 2012

CORE BAIDU PRODUCTS 2012

CORE BAIDU PRODUCTS 2012

Baidu Sponsored Search

Brandzone

Baidu Mobile

Baidu Union (Content Network)

Baidu Sponsored Search

Brandzone

Baidu Mobile

Baidu Union (Content Network)

In addition to a search campaign, customers can choose to run a display campaign. Similar to Google, Baidu is able to place display ads on a wide network of websites. This allows advertisers to spread their message to a broader audience than search results alone. They call their content network ‘Content Network’ or sometimes “Baidu Union”. Baidu tracks where web users go, what sites they visit, what search terms they use and what they say on social networks The result is a very rich detailed profile that advertising clients can use, to target exactly the right audience for their products

WHAT IS BAIDU UNION?

Baidu collateral correct as of September 1st 2012

Banner ads have an advantage over pure search results in that they can use imagery, flash, text and levels of interactivity that a website user is more likely to engage withIt’s also great for clients whose campaign objectives include extending brand awareness. The use of logos, colours and imagery will do a much better job of extending the reach of a client’s brand than search results aloneVideo banners can even be used as “pre roll” whilst Baidu users are waiting for online games to load

WHAT IS BAIDU UNION?

Baidu collateral correct as of September 1st 2012

Baidu’s own sites including, social, music, forum, community and utility based sites and, External network including, 600,00+ websites and over 60 million indexed/catalogued pages of content

BAIDU UNION, DISPLAY CONTENT NETWORK – TWO NETWORKS

Baidu collateral correct as of September 1st 2012

ADVANCED TARGETING ACROSS BOTH NETWORKS OF BAIDU UNION

GeographicDemographicDay part & time part

Category & subcategoryPrevious search historySpecific websites

Baidu collateral correct as of September 1st 2012

ADVANCED TARGETING ACROSS BOTH NETWORKS OF BAIDU UNION

Geog

raph

icDe

mog

raph

ic

Day p

art &

tim

e

part

Cate

gory

&

subc

ateg

ory

Prev

ious

se

arch

hist

ory

Spec

ific

web

sites

Baidu collateral correct as of September 1st 2012

Baidu Targetisement offers advertisers the opportunity to display their ads on Baidu’s high traffic properties

BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES

Baidu collateral correct as of September 1st 2012

How does it work?

Targetisement works in much the same was as Baidu Content Network placements, except that ads are seen exclusively on Baidu’s own high traffic properties

Minimum requirement to use Baidu Union is a current sponsored search campaign Sites within Targetisement include:

Baidu Baike (China’s equivalent to Wikipedia)Baidu Zhidao (China’s equivalent to Yahoo answers)Baidu Hi – Social Networking siteBaidu Paste Bar - Forums

BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES

Baidu collateral correct as of September 1st 2012

Targetisement banners, placements are available in a range of sizes and in JPG, GIF and SWF

BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES

Baidu collateral correct as of September 1st 2012

Targetisement placement is a pop-up that must be dismissed by the user before they can continue to their search results on Baidu paste bar

BAIDU UNION, DISPLAY CONTENT NETWORK – BAIDU PROPERTIES

Baidu collateral correct as of September 1st 2012

BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES

With over 600,000 websites and a detailed audience targeting algorithm, Baidu display banners are a fantastic way to reach exactly the right users with exactly the right content to build traffic and brand recognition60 million contextually indexed pages with advanced categorisation specifically for targeted advertising

Baidu collateral correct as of September 1st 2012

How does it work?Baidu tracks where web users go, what sites they visit, what search terms they use and what they say on social networks The result is a very rich detailed profile that advertising clients can use, to target exactly the right audience for their productsBanner ads have an advantage over pure search results in that they can use imagery, flash, text and levels of interactivity that a website user is more likely to engage withIt is also great for clients whose campaign objectives include extending brand awareness. The use of logos, colours and imagery will do a much better job of extending the reach of a client’s brand than search results aloneVideo banners can even be used as “pre-roll” whilst Baidu users are waiting for online games to loadOnce we define the audience profile – they will see client banners on every content network site they visitAPI compatible to ensure all results could be tracked in 3rd party platforms such as Marin, DART etc.Minimum requirement to use Baidu Union is a current sponsored search campaign

BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES

Baidu collateral correct as of September 1st 2012

There are over 600,000+ sites within the Baidu Content Network. They cover a wide range of genres, ensuring your target audience will be presented with client creative regularly. Most sites exclusive to Baidu

BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES

Baidu collateral correct as of September 1st 2012

Baidu Embedded Video Ads, displayed pre-roll video while online game loading

BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES

Baidu collateral correct as of September 1st 2012

Baidu display/image based placements, available in 18 different sizes, in JPG GIF or SWF formats

BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES

Baidu collateral correct as of September 1st 2012

Baidu floating ads, placements move down page and stay in the users line of sight. Available in 3 sizes and in JPG GIF or SWF formats

BAIDU UNION, DISPLAY CONTENT NETWORK – EXTERNAL PARTNER SITES

Baidu collateral correct as of September 1st 2012

BAIDU UNION, DISPLAY CONTENT NETWORK - AD SPECIFICATIONSDisplay AdsFormat: JPG/GIF/SWF，textSize: 55k

1. 468x60, 728x90, 960x90, 960x60, 640x60, 460x60, 580x90, 760x902. 250x250, 200x200, 336x280, 300x250, 360x3003. 120x600, 160x600

Floating AdsFormat: JPG/GIF/SWFSize: 55k

1. 120x2702. 120x1203. 300x250, 250x200

Pre-roll / Pause Ads(Displayed when video / games is loading or paused)

400x30055kbFormat ： SWF/JPGLength (Flash) ： 3-4 secondsCPU usage （ Flash ）： <25%

Baidu collateral correct as of September 1st 2012

HOW CHINA SEARCH INTERNATIONAL CAN HELP

HOW CHINA SEARCH INTERNATIONAL ENSURES SUCCESSChina Search International is a value-added service that is free to use, some of the value added tasks that we can perform are:

Insights Strategy Implementation Maintenance

HOW CHINA SEARCH INTERNATIONAL ENSURES SUCCESSChina Search International is a value-added service that is free to use, some of the value added tasks that we can perform are:

Speed-to-market in China, account set up in 4-6 weeksDirect relationship with Baidu account managers in ChinaBudget recommendations and overarching strategy specific to BaiduInsights into the Chinese marketplace and audience in terms of purchase habits, seasonality and method of search-engine useKeyword recommendations in local language or creation from scratchProposals including estimated volume and cost based on pre-selected keywords, estimated conversion volumes based on your own in-house metricsRecommended max bidsAd copy translation, semantic/idiomatic translation or ad copy built in local language from scratch Bid management API application process to Baidu Full end-to-end account set up Website and shopping cart/conversion funnel translation, working with strategic partners, if required Consulting staff and contracts that are based here in Sydney, Australia available by phone or email

OPENING AN ACCOUNT ON BAIDU

ACCOUNT OPENING PROCESSIf you’re considering a search, display or Brand Zone online advertising campaign on Baidu, the team at China Search International is here to help

Setting up an account on Baidu is a complex and sometimes lengthy exercise. China Search International makes this process easy and fast for our clients

Please click to download detailed instructions on how to kick-off the process of setting an account up on Baidu

To pair with these instructions, China Search International has created a one-pager step-by-step guide to help keep track of the process, please click to download . This will also give you some transparency on time frames and some of the activity to expect in the future

We can help you get started by selecting and translating your keywords for Baidu

Send us any keywords you’re currently using for other search campaignsIf you don’t have an existing keyword list, we will help you develop a list of what keywords you should be usingWe use the list to check how many Baidu users have typed in keywords to gauge demand for your goods and servicesThis allows us to present a budget estimate. You can refine your keywords and budget until you have a mix you’re comfortable with. We can recommend budget lines for Baidu based on key client KPIs and goals

SELECTION CRITERIA FOR CLIENTS

KEY PROSPECT CRITERIA FOR CLIENTS

• Commercial motivation via sales to a new marketplaceHas products and services that can

be sold to China

• Marketers understand value and performance of PPC to their businessIs currently active in PPC

• Open minded to adopt native language and China specific content (notes about English pages on the next slide)

Has a website this is in Chinese or at least can be easily translated into

• Understands the scale of the opportunity and already has buy-in or is flexible to consider best-practice from China Search International

Has an existing strategy to China or can be persuaded to adopt one

• Potentially can be persuaded to reduce inefficient media-spend in existing markets and reallocate to China or has a specially budget-line for China

Existing budget lines that have been maximised in existing markets

NOTES ABOUT LANDING PAGES AND CONTENT

We have special approval to use English language landing pages paired with Chinese keywords and adsThis will mean a first stage approach, enabling the launch of existing websites and relying on the user’s browser to translate English to simplified Chinese. There are considerations here which we can examine with you, please contact China Search International for these aspectsWe do recommend that all landing pages be in local simplified Chinese languageHowever, a site launch in English is can facilitate an information gathering exercise while a website is being converted to Chinese languageChina Search International works with strategic partners to facilitate website build and translation, please speak to your point-of-contact for more information

TOP LINE STRATEGY AND KPI’S FOR CLIENTS

TOP LINE STRATEGY AND KPISSt

rate

gise

•Set easy-to-achieve success metrics

•Set the scene for a broad-based approach at the start in a brand new audience

•Use PPC sponsored search and content network in tandem

•Acquisition strategy for PPC and brand strategy for content network

•Consider different themes across all media, for example a consumer, wholesaler and agent/retailer strategy with different goals and messaging for each

•Build in expectations for client•Leverage the resources of China Search International to create China specific Baidu campaign recommendations

Laun

ch

•Use China Search International to assist with creation and launch of program

•Draw on China Search International to suggest semantic translation of existing keywords and also suggest others that are specific to the brand O

ptim

ise •Leverage China Search

International to define optimisation metrics and benchmarks

•Go back to search-101•Refer back to success metrics of the overall program

•Refine based on performance-to-goals

•Look for best performing ads and keywords and expand

•Look for worst performing keywords and pause

•Optimise image/video based creative to goals

• Increase content network bids to maintain max reach across the buy

ROADMAP AND BUDGET PLANS FOR CLIENTS

ANNUALISED PRODUCT PLAN FOR CLIENTS

Launch & Test

Allocate a min spend of $15K for PPCAllocate +50% for Baidu UnionCollect intelligence including ave CPCs, best performing keys, ads, offersStart with a broad based strategy with high max bids, $2 top bid recommendedMax bid of $1 for Baidu Union with RONLeverage China Search International native language keyword recommendations

‘Always-On’ PPC

Allocate a min budget of $15K per quarterStart folding additional keywords into the overall program, from Google, Yahoo, BingLeverage experience of China Search International to add sector specific terms into the program

Baidu Union (Content Network)

Recommended budget-line of +50% of PPC budgetBroad based approach to Baidu Union with RON recommendedPhased approach using video, image based creativeBrand building strategy utalising the extensive reach of the Baidu Union Content Network

Baidu Mobile

Launching in 2013Recommended budget-line of +200% of PPC budgetBroad based approach similar to Baidu Union, with and initial data collection, followed by optimisation and refinement

Brandzone

Recommended for clients with established brands in China, or has used tactical devices such as Baidu products to build

BAIDU ANNUALISED BUDGET ROAD MAP – PER QUARTER BUDGET SUMMARY

Launch & Test $15K

‘Always-On’ PPC $15K per Quarter

Baidu Union (Content Network) $8K per Quarter

Baidu Mobile $60K per Quarter

Brandzone $50K per Quarter

Spends recommended based on min spends per quarter with Baidu as of August 2012, except Content Network

Baidu Sponsored Search - $60K

Brandzone - $200K

Baidu Mobile - $240K

Baidu Union (Content Network) - $32K

BAIDU ANNUALISED BUDGET ROAD MAP – ANNUAL BUDGET SUMMARY

Spends recommended based on min spends per quarter with Baidu as of August 2012, except Content Network

MANY THANKS IN ADVANCE, WARM REGARDS AND BEST WISHESGUY BAXTER, SALES DIRECTOR, CHINA SEARCH INTERNATIONALGUY.B@CHINASEARCHINT.COMDIRECT +61 2 8417 2294MOBILE +61 414 585 254