Now and the FutureNow and the FutureMobile Marketing in ChinaMobile Marketing in China

Joshua MaaFounder and CEOMadhouse Inc.

800 Million800 Million Mobile Subscribers

277 Million277 Million Mobile Internet Users

Source: CNNIC

95%95% Mobile Internet Users are on Data Flat Rate Plans

Source: DCCI

The number of Smartphone users The number of Smartphone users are growing rapidly in Chinaare growing rapidly in China

2010E2010E 20 Million 20 Million

2011E2011E 100 Million 100 Million

News News 79.9%79.9% Downloading Downloading

74.4%74.4%Search Search 74.2%74.2%

ReadingsReadings60.0%60.0%

Mobile bank Mobile bank 10.6%10.6%

Mobile Payment Mobile Payment 7.2%7.2%

Mini Blog Mini Blog 20.9%20.9%

Online GameOnline Game31.5%31.5%

Mobile VideoMobile Video27.5%27.5%

Online Music Online Music 32.7%32.7%

Instant Msg Instant Msg 39.7%39.7%

SNSSNS46.9%46.9%

Mobile ShoppingMobile Shopping20.2%20.2%

Mobile Functionality is Surpassing PC Functionality on Many Fronts

Source: DCCI

Increased App Usage is Increased App Usage is an an EMERGINGEMERGING trend trend

Smartphone Ads Will Smartphone Ads Will Become More Visually Become More Visually Engaging and InteractiveEngaging and InteractiveHTML5 mobile ad is HTML5 mobile ad is now on its way to now on its way to enrich user experienceenrich user experiencewith more interactivity with more interactivity

Or even a full screen ad like thisOr even a full screen ad like this

The Post-click Experience Will The Post-click Experience Will Become More EngagingBecome More EngagingThe new Smartphone ads allow us to integrated sounds, touch, The new Smartphone ads allow us to integrated sounds, touch, motion sensor and vibration, GPS and even more functionsmotion sensor and vibration, GPS and even more functions

The Post-click Experience Will The Post-click Experience Will Become More EngagingBecome More EngagingThe new Smartphone ads allow us to integrated sounds, touch, The new Smartphone ads allow us to integrated sounds, touch, motion sensor and vibration, GPS and even more functionsmotion sensor and vibration, GPS and even more functions

HOWEVERHOWEVER

Total Adspend in China (2009)

254.5254.5 Billion RMB

Source: GroupM

Approx. 0.2%0.2% went to Mobile

Source: iResearch

It should be …It should be …

And will be BIGAnd will be BIG

In 2010, Mobile internet usage has continued In 2010, Mobile internet usage has continued to grow…to grow…

Source: CNNIC and MIIT, Dec. 2008 vs., June 2010

Mobile phone users800 mm

Internet

Mobile Internet277 mm

Total: 420 mm

Mobile phone users640mm

Internet Mobile

Internet118 mm

Total: 298 mm