XIBAO BUSINESS OVERVIEW - macquarie.com · Tianhai Business Building D, Dongcheng District, Beijing, CHINA/ P. 010-84030059/ Largest and fastest growing digital ad spend 2011-2017

© XIBAO

XIBAO BUSINESS OVERVIEW

Contact UsTianhai Building D, Dongcheng District, Beijing, CHINA/ P. 010-84030059/ [email protected]

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LEVERAGING TREMENDOUS OPPORTUNITIES BEHIND CHINESE E-COMMERCE

Platform Merchants Consumers

1

© XIBAOContact UsTianhai Business Building D, Dongcheng District, Beijing, CHINA/ P. 010-84030059/

In 2013 we helped

40,000 shops spend

200M USD in ads & sell

2B USD on Taobao/Tmall

TOPICS

2


China ecommerce

China ecommerce advertisement

Dominance of Alibaba

Taobao/Tmall advertisement

Ecommerce shops challenges

Xibao Solutions

Future directions

E-COMMERCE IN CHINA

3


2013 – China became #1 e-commerce market in the world $282 billion online sales (35% growth)

US in 2013 - $264 billion (17% growth)

The World’s Next E-commerce Superpower

Source: IDC, iResearch, Redtech, GroupM

TOPICS

4


China ecommerce





Xibao Solutions

Future directions

CHINA ONLINE ADVERTISEMENT

5


Largest and fastest growing digital ad spend

Online AD Market (100 mil) Y/Y Online AD Market (100 mil) Mobile AD Market (100 mil)

2010-2017 China Online AD Market & Forecast2010-2017 China Online/Mobile AD Market & Forecast


CHINA E-COMMERCE ADVERTISEMENT

6



2011-2017 China Online AD Spending on sector

EC SEM Portal Video Vertical Yellow Page Community


In 2014 Ecommerce advertisement will surpass search and will keep increasing share

CHINA E-COMMERCE ADVERTISEMENT

7



Search Engine E-commerce Portal Video Others

Others

Others


TOPICS

8


China ecommerce





Xibao Solutions

Future directions

9


80% market share in China (Amazon 15% in US)

~4% of China GDP

3+ million merchants ; 300+ million buyers

Largest e-Commerce player in the world ; bigger than Amazon + eBay

Dominance of TAOBAOThe World’s Next E-commerce Superpower

10


11.11 “Singles Day” 2013The World’s Next E-commerce Superpower

$5.7 billion sales in one day($1.46 billion in 2012 US “cyber Monday”)

402 million unique visitors(213 million last year)


13

Chinese postal workers dealing with 323 million deliveries from online sales on 11.11

TOPICS

12


China ecommerce





Xibao Solutions

Future directions

Taobao/Tmall Advertisement

13


USD 5 billion Ad income in 2013, catching up

with Baidu

10 times growth between 2010 - 2013

500,000 merchants advertise in Taobao

Main Ad channel: CPC (Zhitongche), CPM

(Zuanzhan), CPS (Taobaoke)

“Traditional” advertisers with limited know-

how

0

1,000

2,000

3,000

4,000

5,000

2010 2011 2012 2013

Taobao/Tmall Revenue2010-2013 (mil usd)

ZTC CPM Total

TOPICS

14


China ecommerce





Xibao Solutions

Future directions

CHALLENGES

15


65% of shops say increasing advertisement costs on Taobao/Tmall is their key challenge.

More than 55% of shops expect no growth in 2014.

B2C Advertisement is much less effective.


TOPICS

16


China ecommerce





Xibao Solutions

Future directions

17


XIBAO MODEL

Ad Agency/DSP

XIBAO

Optimize: Conversions, ROI, Revenue, Profit, Based on: Customers and Products

DSP SHOPTraffic

Sources

Traffic

Optimize: CTR, CPCBased on: Audiences, Locations, Retargeting

Xibao SHOPTraffic Sources

Traffic

Backend Data

18


XIBAO MODEL

XIBAO

15+ DATA ANALYTICS AND OPTIMIZATION PRODUCTS

Traffic sources Shops Backend Data

19


XIBAO PRODUCTS & SERVICES

SEM service SEM service SEM service SEM serviceSEM service

SEM technology SEM technology SEM technology SEM technology

Non-SEM tools Non-SEM tools Non-SEM tools

Large Brand Clients

Large Brand Clients

Large Brand Clients

Traffic DSP Traffic DSP

Affiliate Platform

Affiliate Platform

International Expansion

Video Advertisement

O2O Platform

2011 2012 2013 2014 2015

Video Advertisement

O2O Platform

XIBAO VALUE20

• FOR TAOBAO (2013)

• USD$200M+ AD spend

• USD$600M+ direct sales

• USD$2B+ total sales

• 2M+ products promoted

• FOR MERCHANTS (2013)

• 40,000+ customers

• 56% CPC decrease

(from 0.17usd to 0.11usd)

• 16% ROI increase

(from 2.55 to 2.96)

• 38+ Million men-hours saved

Contact UsTianhai Business Building D, Dongcheng District, Beijing, CHINA/ P. 010-84030059/© XIBAO

XIBAO CLIENTS21


22

33

0.32

1.23

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2012 2013

0

5

10

15

20

25

30

35

ONLY showcase （million US$)

Transaction AD spending

Before

After

XIBAO TEAM22


• HQ in Beijing

• Shanghai Office

• Shenzhen JV

10+ years of Internet related experience,

Search Engine Marketing expert Certified

by Google

CTO ALEX

10+ years experience from investment and

management, particularly in data mining,

analysis and optimization

COO HONG10+ years SEM, event marketing and

integrated marketing, TV advertisement

experience

CEO TOM

President JERRYAngel & Adviser, 10+ years internet and

media experiences

TOPICS

23


China ecommerce





Xibao Solutions

Future directions

FUTURE DIRECTIONS / TRENDS

24


RTB/RETARGETING: will grow 100 times next 5 years

O2O

CROSS-DEVICE

VIDEO

CROSS-BORDER

PROGRAMMATIC ADS

25


From Millions to Billions within next 4-5 years

2014 – USD 4.6 MILLION2018 – USD 4.8 BILLION


ECOMMERCE TARGETING

26


US CHINA

B2C WEBSITE

COOKIE

RETARGETING/ RTB/…

BRAND

B2C WEBSITE

COOKIE

TMALL

COOKIE


Very few customers, transactions

Can’t mark users

CHINA FUTURE MODEL27


CLOUD CRM

OFFLINE SHOP TMALL


B2C WEBSITE

MAC addressesPhone numbersCookies

TransactionsPhone numbers

TransactionsPhone numbersCookies

Thank you…

© XIBAOContact Us

Tianhai Building D, Dongcheng District, Beijing, CHINA/ P. 010-84030059/ [email protected]

Platform Merchants Consumers

Documents

XIBAO BUSINESS OVERVIEW - macquarie.com · Tianhai Business Building D, Dongcheng District, Beijing, CHINA/ P. 010-84030059/ Largest and fastest growing digital ad spend 2011-2017