The document provides findings from a survey of over 2000 Chinese internet users regarding their media consumption habits, attitudes towards advertising, and use of social media. Some key findings include: 1) Chinese internet users are spending more time online and engaging in multi-tasking like browsing the internet while watching TV compared to traditional media like TV or magazines. 2) Social media is growing rapidly in China and providing opportunities for brands to connect with consumers, though local social platforms dominate over global ones. 3) Users are generally tolerant of digital ads if they are relevant, funny, or surprising, and many are willing to see more ads to access free social media platforms. 4) Exposure to brands on social media

1. Initial Findings in the Relationship between
Title of Presentation
Brands, Consumers and Social Media
Prepared by: China Digital Team
Online Panel provided by Lightspeed China
Date 2009
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2. About AdReaction 2009 China
• A survey conducted by Millward Brown Dynamic Logic aimed to measure
consumer opinions and perceptions of various types and formats of
advertising
• AdReaction 2009 focuses on the social media realm:
• Consumers relationship with social media in general and with brands who have a
presence in social
• Reactions to advertising on social media sites
• Exploration into the types or segments of consumers who participate
• Methodology/Details
> 2000 China Mainland respondents aged 10 and up who are members of nationally
representative Lightspeed Research panel
> Data gathered late September 2009
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3. Key Findings
•Chinese netizens’ media habits keep changing nowadays
• Thanks to the fast development of Internet, people spend more time on online and
less on traditional media
• Power of TV is being diluted – even if people keep the TV on, they may browse online
at the same time
• Social media is growing fast with great potential, grabbing people’s leisure time from
traditional media
•Chinese netizens are more tolerant to digital ads, online or mobile
• … despite the overall low acceptance towards traditional media ads.
• Shocking/Unexpected and funny ads appear more memorable; relevance also counts.
• Overall, people are open to most of the ad formats. But we need to avoid too
intrusive ads, e.g. ads with personal information
•Social Media provide opportunities for brands to get closer to consumers
• Brands become more appealing, with closer connection to consumers via SNS
• Exposure to branded ads increases search interest and likeability of brand
engagement among SNS visitors
• Local SNS sites dominate in China, while global players are facing the problems of
localization and accessibility challenge
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4. Title of Presentation
General Findings:
Date 2009
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5. Chinese netizens are spending much more time on Internet
than on TV, or any other traditional media
•Media Habits (Time Spending Per Week)
% % % %
3 3 2
12 30
17
26
12
15 26
Never
less than 1 hour 32
16 38
1 to 4 hours
20
5 to 10 hours
11 to 20 hours 20
18 14
21-30 hours 42
More than 30 hours 11 9
10
5 5
7 4 2
2
Going Online Watching TV Reading Magazine/ Listening to Radio
Newspaper
Base (Total) (2000)
5
Q5. In a typical week, how many hours do you spend…

6. Multi-tasking is common – often watching TV and surfing
Internet at the same time
• Do netizens watch TV and use the Internet at the same time?
%
Watch TV and Everyday 28
Use Internet at
the same time
89%
Every week 21
Occasionally 40
Do NOT Watch Do NOT watch TV and use internet
TV and Use at the same time 11
Internet at the
same time
11%
Base: Total (2000)
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Q31. Do you watch TV and use the Internet at the same time?

7. Entertainment is more important to Chinese online users than their
counterparts in other countries. Social networking is still young but it shows
strong potential
Actively participate
Interested but never done it
Not involved at all Emailing 87 94 95 95
Downloading music 86 11 3 55 50
Watching online videos 86 11 3 63 54
Reading news/current events 83 13 4 76 78
Listening to streaming radio/music/podcasts 78 16 6 50 44
Shopping online 71 24 5 74 70
Banking online 68 25 7 63 74
Participating in community chats/blogs 64 27 9 36 34
Playing games 61 21 18 70 56
Social networking 51 33 16 59 77
Base: (2000) (2000) (400)
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Q6. Please indicate how involved you are in the following online activities.

8. Usage of SNS accelerated the shift from traditional media to online media
consumption
• Social Media Impact on Media Consumption Habits
% Spend more time Spend the same time Spend less
Going online 50 47 3
Reading magazine 12 65 24
Watching TV 11 60 29
Listening to Radio 7 46 46
Base (social networks visitors) (1930)
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Q21. How has joining …(site visit most often) changed how often you do each of the following activities?

9. Title of Presentation
Overall Attitudes towards Ads
Date 2009
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10. Chinese netizens are more tolerant (vs. US) to digital ads, online or mobile,
despite the lower acceptance towards ads on many traditional media
•Tolerance toward advertising on …
Top 2 Box Score %
(Very positive/Somewhat positive)
Magazine 42 45
Outdoor 42 39
Newspaper 29 42
Cinema 24 37
Online Display Ads 23 24
Direct Mail 23 29
TV (Free) 22 47
Radio 21 35
Mobile 15 10
Telemarketing 10 6
Base (Total) (2000) (2000)
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Q30. How would you characterize your attitude towards each of the following formats of general types of advertising?

11. Shocking/unexpected and funny ads are most remembered to
consumers, regardless of media. Relevance is also important.
•Most memorable advertising is …
Celebrities
Informative
28%
Shocking or
unexpected 63%
29%
45%
55%
Funny Relevant to me
Base: (Total) (2000)
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Q29. Thinking about advertising in general, what types of ads do you remember?

12. Most of the SNS visitors (more than 70%) would tolerate more ads
presence on SNS sites in order to keep it free
•Ad Tolerance by Sites Visitors
More Tolerant
(Top 2 Box)
19
54
Willing to accept more
Not willing but will tolerate
Would stop using this site
24
Not willing to accept more
5
Less Tolerant Base (site visitors)
(Top 2 Box)
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Q42. Thinking about the site(s) that you visit, how willing would you be to accept more advertising on the site(s) in order to keep it free?

13. Overall Chinese consumers are open to most ad formats; but brands do
need to be cautious with intrusive ads which incorporate personal
information
I like seeing this type of ad
•Opinion towards Ad Format I don’t mind seeing this ad as long as it is relevant to what’s on the site
I don’t mind seeing this ad as long as it is relevant to me and my interests
I don’t mind seeing this ad if it lets me access the site for free
I don’t enjoy seeing this ad, but it doesn’t particularly bother me
I dislike seeing this ad
% I’ve never seen this type of ad
Branded gift sent to you by a friend 14 19 22 19 14 7 5
Branded pages or profiles 10 20 18 23 16 9 4
Sponsored section on SNS 10 20 18 23 16 9 4
Sponsored events 9 20 19 24 17 9 4
Branded game 9 19 18 23 16 11 4
Video ads 9 16 16 20 19 16 4
Sponsored applications 8 19 17 22 18 12 5
Branded items in games 8 18 17 22 18 11 5
Ads that incorporate my profile 8 13 15 15 15 23 12
Banner ads 7 19 19 22 18 11 4
Text links 7 19 17 23 18 11 3
Sponsored ads on the log-in page 7 18 17 23 19 12 4
Base: (Total) (2000)
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Q35. Which best describes how you feel about these forms of advertising?

14. Title of Presentation
Social Media Provide Opportunities for
Brand to Get Closer to Consumers
Date 2009
14
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15. SNS users do follow brands on social networks, which provides the
opportunity for brands to establish a closer relationship with their
consumers.
• Information or People Follow on Social Networks
%
Friends 87
Family 65
Co-workers 58
Television shows/Movies 56
Political figures 43
Celebrities 39
Newspapers/Magazine 39
Companies or brands 37
News organizations 34
Music bands or artists 22
Radio programs 19
Base (those who actively (1015)
participate in Social
Networking)
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Q22. Who do you follow or keep up with on social networking sites?

16. Presence on SNS would make a brand more appealing to consumers
•Do people feel a brand is more appealing if it has a presence in Social Media?
Why?
Much more appealing Increase familiarity / Can know more 34%
34%
Brand image is good 19 %
Ad effect/ strong impact of PR 9%
77% Due to site impact 9%
Preference of the brand 7%
Somewhat more appealing 43% Other people's comment 4%
Others 6%
No specific 8%
Base (who fine it’s more appealing) (782)
The same 21%
1% Because I could be
Somewhat less appealing
more familiar with
1%
Much less appealing product
That means more people become
Base (those who actively participate (1015) familiar with the brand, and they can
It makes the brand see others’ comments
in social networking) much closer to life
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Q26. How would your opinion of a brand change if it were to have a presence on a social network? My opinion of the brand would be…

17. Exposure to brand ads on social media increases search interest and
likeability of brand engagement among visitors
•Response Taken after Seeing Ads in Social Media?
Search for more about the brand 55%
Interact with the ad/brand 45%
Help the brand go viral 26%
Purchased the brand 14%
Details
Became a fan of the brand 9% Search for more about the brand:
Search for the brand on the Internet/in the store;
Visit the brand site; Search for more ads of the brand
Visited a site for a similar brand 18%
Interact with the ad/brand:
Click on/interact with the ad; Look at the brand’s
Take no action 25% profile; Send a message/comment to the brand
Help the brand go viral:
Base (those who actively participate
in social networking) (1015) Posted on my blog/profile; Recommend/send to
friend/family
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Q41. Which of the following actions have you taken as a result of seeing an ad on a social networking site? (Check all that apply)

18. Title of Presentation
What’s getting popular?
Date 2009
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19. Local social media sites are much more prominent than the global players
in China. QQ Zone is the most popular one in China, while Kaixin 001 and
Kaixin are rising stars.
Site Tenure
<6 Months 6 Month - 11 months 1+ years(s)
30%
58% 59%
7% 70% 72%
15% 14%
68%
19% 19%
38% 39%
23% 21%
Base
(1811) (1322) (1303) (1257) (1235)
(site visitor)
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Q10. How long have you been visiting the following site(s)? Q14. Which one of the following is the site that you visit most often currently?

20. QQ zone and Renren lead, fueled by established large member base; Kaixin 001
and Kaixin stand out with high popularity; inaccessibility obviously hurdles the
global players (due to the Great Fire Wall )
•Brand Image Profiles Among Those Visit of Site
Is innovative and forward thinking -6 1 3 -1 -1 3 -1 -1
Listens to member feedback -7 0 -2 -4 0 -1 3 1
I can trust this site with my personal information -5 -2 -1 -6 1 2 1 8
Has a lot of technical errors/is not always accessible -13 -3 -2 -2 0 7 3 4
Makes me feel connected with people 11 2 1 9 -3 -2 3 -3
Offers something different -9 1 0 -2 -1 1 0 -1
Gives me access to a wealth of information -2 -8 -5 3 3 -2 0 2
Is easy to use 10 -1 -1 1 1 -4 -3 0
Is cool -4 1 3 -4 0 5 0 0
Is a site for someone like me 7 1 -1 0 2 -4 -1 -1
Is becoming more popular 5 6 7 3 -3 -1 -3 -5
Has most of my friends as members 18 6 2 8 2 -4 -4 -4
Base (site visitors) (1811) (1257) (1235) (1322) (1303) (598) (786) (971)
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Q19. For each of the following statements below, choose which site the statement best describes.

21. QQ zone & 51.com most often users skew to younger consumers with lower income,
while Renren more caters for university students and newly graduates. As to Kaixin
and Kaixin001, their loyal user are more mature and with higher incomes.
Correspondent Axis X & Y (93%)
15
Senior high school
10
51.com
QQ zone
5
Male Under Junior
Below RMB 3000 35-44
Middle school
Axis Y (35%)
17 and under
0
45+ Kaixin
18-24 25-34
RMB 3000-4999 Kaixin001
-5
Above RMB 5000
Female
Renren.com
College, University and
-10
above
-15
-20 -15 -10 -5 0 5 10 15
Axis X (58%)
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22. 2/3 of China netizens are also using their mobile phone/PDA to social
networking, mainly to communicate with contacts, add new contacts,
read blogs, update status and share information.
Access via computer Access via mobile
% %
Social Networking via… 100
67
Base: Social networking (1015) (1015)
active participants
Watching videos 96 19
Adding friends/contacts 95 48
Uploading content to share with friends 94 37
Updating my current status 94 35
Editing or updating profile information 94 23
Reading or commenting on blogs 93 41
Chat or send message on SNS 93 32
Uploading photos 92 25
Playing online games 86 18
Writing blogs 85 22
Comment on status 84 32
Communicating with family/friends online 82 70
Writing recommendations for friends or products 80 23
Uploading videos 79 11
Business networking 65 32
Average Number of Activities: 13.11 4.68
Base: (1013) (682)
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Q6. Please indicate how involved you are in the following online activities?

23. Mobile SNS users visit Renren, Kaixin001, Kaixxin much more often,
thanks to the mobile widget/WAP sites developed
•Social Media Sites Visit Frequency Per Week among active participants
Total Visitor Visitors Via Mobile
18.13
16.92
15.81
14.5
13.82
9.58
8.86
7.79
7.15
5.77
QQ zone Renren Kaixin001 51.com Kaixin
Base (site visitor) (188) (961) (112) (790) (65) (799) (36*) (758) (41*) (777)
*Caution: Low base
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Q11. How often do you visit the following site(s)?