Media Inflation Forecast

R3 CHINA 2014 MEDIA INFLATION FORECAST NET MEDIA INFLATION 2014 vs 2013 VS +7% +11% +14% +22% PRINT DIGITAL TV RADIO 014 media costs forecast to Marketers remain optimistic and INCREASE AT SLOWER RATE vs last year ARE CONTINUING TO INVEST IN CHINA MEDIA INFLATION DRIVERS 13% O 2013 12% 12% O 2014 8% 7.5% 8% 3.5% 4% 2.6% AD PLANNING BUDGET GROWTH GDP CPI High quality media inventory DIGITAL AD SPENDING GROWING WILL COMMAND EVER HIGHER PRICES fast especially On-line video. Secondary media: Radio, Mobile and Movies ALL BENEFITTING FOR SEARCH FOR BETTER MEDIA VALUE. TV 2014 NET MEDIA INFLATION CCTV 1 CCTV OTHERS CCTV 5 9% 5% 9.5% OTHERS PSTV 9.8% CCTV 3 40% HUNAN STV 10% TV AVERAGE +14% BEIJING TV ANHUI STV 29.6% 11.5% TIANJING STV ZHEJIANG STV DRAGON TV 11.7% 11.6% 13.6% DIGITAL 2014 NET MEDIA INFLATION NETWORK COMMUNITY 8% SNS 8% AD ALLIANCE WEIBO NETWORK 5% 10% IM VIDEO 10% 18% DIGITAL AVERAGE +11% VERTICAL SITE 11% WEBPORTALS SEARCH ENGINE 13% 12.8% METHODOLOGY R3 surveyed more than 50 marketers and agencies in May 2014, in order to get the best possible benchmark on Inflation in the China media market Fourth annual R3 inflation survey R3 consulted 16 top Marketers and Media agencies. Forecasts aggregated into an overall media inflation. www.rthree.com y @R3W