Source:CatalystChina,2006Market:Shanghai05101520253035AdsonTVAdsordisplaysinstoresTVprogrammesponsorshipAdsinmagazinesProductintroinmagazineAdsinnewspaperProductintroonTVProductPlacementLCDadsAdsatsportsorentertainmentarenasDiscountcoupons/freesamplesAdsontransportationOutdoorbillboardsandpostersAdsontheInternetAdsreceivedinthemail/emailAdsinradioAdsinmoviesormovietheatresAdsintaxiOutdoorpromotions/roadshowsSMS/MMSIfollowthelatestfashionsandtrendsP18-39%FashionShopperswindow-shopsbeforedecidingwalkingintoashoptotryandtobuybutMagazine&TValsogreatlyinfluencetheirfashionchoice…©StarcomWorldwideISTHISREFLECTEDINCOMPETITORSMEDIACHOICE?©StarcomWorldwide5744443511941711581448716074342051924802620802963350100200300400500600700ESPRITGIORDANOBENETTONTOMMYHILFIGERMANGOONLYJACKJONESUNIQLOVEROMODAMISSSIXTYZARAJan-Dec2005Jan-YTD2006Euro‘000MassBrands;e.g.Espirit&Giordanohavehigherspendingversustheupscalebrands…Source:NielsenMediaAdquest©StarcomWorldwide7812214321167678576275351267210125703236222731501391213520100200300400500600700JanFebMarAprMayJunJulAugSepOctNovDecYear2005Year2006Euro‘000Source:NielsenMediaAdquestExpectedSeasonality–S/SandF/WPeak...©StarcomWorldwideTotalSpendingEuro2,122,900Magazine-1,446Newspaper-376TV-300Magazine-1,513Newspaper-223TV-436Unit:Euro’0002005TotalSpendingEuro2,172,1002006YTDPrint–MagazineisTHEChoiceofMediumforFashionRetailAdvertisers…Source:NielsenMediaAdquest©StarcomWorldwideIncreasingOOHMediaExposures…DataSource:ChinaMedia&MarketingSurvey2006S/SWave©StarcomWorldwideSource:CatalystChina,2006Market:Shanghai05101520253035AdsonTVAdsordisplaysinstoresTVprogrammesponsorshipAdsinmagazinesProductintroinmagazineAdsinnewspaperProductintroonTVProductPlacementLCDadsAdsatsportsorentertainmentarenasDiscountcoupons/freesamplesAdsontransportationOutdoorbillboardsandpostersAdsontheInternetAdsreceivedinthemail/emailAdsinradioAdsinmoviesormovietheatresAdsintaxiOutdoorpromotions/roadshowsSMS/MMSIfollowthelatestfashionsandtrendsP18-39%ApartfromMagazine,TV,Newspaper&InternetalsoofferhighPotentialReachtotargettheFashionableGroup…©StarcomWorldwideMilestoneOfTVDevelopmentInChina1978~2000MassMediaBoom…200020012002200320042005StartofmediaconsolidationinviewofWTO,anticipatingforeignthreatbut#channelsstillgrowing…Politicaldrivenconsolidation‘failed’…CentralGovt.stepintospeedupmarketconsolidationSARFT#17•Sellers/Buyerslookingforstrongmediaforeffectivecommunication;betterrating/coverage/content•Maintainratecardformedia,keepCPM/CPRPforbuyer…•Shake-upistheonlymarketequilibrium…YearofdigitalTV…•2010:coverkeycities•2015:shutdownanalog©StarcomWorldwideDifferentLevelsofTVCoverage…CCTVSatelliteTVProvincialTVLocalCityTerrestrials16Channels…Nationalroll-out,costefficient200+Channels…Costeffectiveregionalcoverage33ProvincialSatelliteChannelsSecondaryNationalCoverage2000+TerrestrialChannels…HighReachandFrequency...Enhanceefficiency&frequency©StarcomWorldwideDataSource:CSM/Target25-55/WholedayaverageviewingChinaTVChannelShareByCityTier…Nationallevel,CCTVviewingshare↑Tier1:LocalTVmaintainstrongholdTier2:SatelliteTVstealssharefromLocalTV©StarcomWorldwideTimeSpentWatchingTVIsSteadilyDecliningAsTVFightsForConsumerAttention.WeNeedToIntegrateCommunicationMessagesWithOtherMedia…3537394143454749JanFebMarAprMayJunJulAugSepOctNovDec20012002200320042005©StarcomWorldwideSource:CINICNB:UserdefinedaspersonwhoaccessesInternetatleast1Hourperweek.Ifindividualaccessesfrommultipleoutletscountedeachtime0.61.24.016.926.545.868.079.594.0100.0111.0020406080100120MillionsOct-97Jul-98Jul-99Jul-00Jul-01Jul-02Jul-03Jan-04Jan-05'Sep-05'Mar-06CumulativeNo.InternetusersNumberOfInternetUsersSoaring…©StarcomWorldwideMyConsumptionHabitHasChanged…%ofTimeSpentByMediainYear2000TV51%Magazines6%Newspaper13%Radio20%Internet10%%ofTimeSpentByMediainYear2005TV48%Magazines4%Newspaper11%Radio18%Internet19%MediumYear2000Year2005TimeGrowth%GrowthTV24.9226.461.546.18Magazines2.802.14-0.66-23.57Newspaper6.385.87-0.51-8.04Radio10.0110.010.000.00Internet4.8610.235.37110.49Total48.9754.715.7411.71TimeSpentOnMedia(Hours)Source:CMMSS/S2006,People18-39©StarcomWorldwide46%OfAllPeopleLookAtTheInternetFirstForInformation…1124917232734465968808794103020406080100120Oct97Jul98Jan99July99Jan00Jul00Jan01Jul01Jan02Jul02Jan03Jul03Jan04Jul04Jan05Jul05OnlineUser(Million)Source:CMMSS/S2006WeareSourcingInformationFaster…MoreThan60%ConnectedThroughBroadband…6.2BillionHours/MonthAreSpentOnTheNet…©StarcomWorldwideDidYouKnow…Internet&InstantMessengerNews67.9SearchEngines65.7Email64.7InstantMessenger41.9BBS41.6InformationSearch39.8OnlineMusic&Radio38.3Watching&DownloadingVideo37.1FileDownload&Uploads33.8InternetGames33.2TopTenInternetActivitiesVideoChat68.6VoiceChat61.6FileTransfer47.9OnlineGames40OnlineMusic38.9OnlineTV33.6SearchEngine31.1SMS/MMS25.4MultilateralVoiceChats24.3VideoonDemand18.7Blog14.7MultilateralVideoChats14.8IPTelephony12.9ActivitiesonInstantMessengerSource:CNNIC,17thInternetSurvey©StarcomWorldwideDidYouKnow…SearchEngineMarketing©StarcomWorldwide©StarcomWorldwideSource:CatalystChina,