Mobile Internet in Asia is the Next Big Thing 1 The China in addition, they also live in much more crowded cities where they have relatively less time and space in social activities than their western counterparts, where they mostly socialize and receive entertainment from their cell phones. China/AsiaUS Transit Socialize Entertainment Understand the Mobile Internet Market in Asia 10 A Comparative Look at the Application Consumption Pattern of Users in China and the US China contributes to 18% of the downloads in App Store in Q2 2012, however, in revenue terms, China contributed only 3.1%. Chinese users have a much lower preference in paid apps, they tend to use more free apps, and their per app spending is only 11% of the US users. ROW 54.9 US 42 China 3.1 ROW 47 US 28 China 18 Japan 7 Percentage of Total Downloads by Country (Q2/2012) App Store Revenue (Q2/2012) Source: Stenvall Skoeld the level of mobile usage in China is measured by the average usage days per month 1. Notes Understand the Mobile Internet Market in Asia 12 How Chinese Users View the Browser ? Based on UCWebs observation on millions of users in China and further verified by UCWebs practice with the UC Browser, Chinese users tend to use the browser as a gateway to internet services, i.e. use navigation services to find websites they want to visit, use browser to download apps and games. It is partly due to the fact that internet addresses are not in their native language and it is often problematic inputting them, partly due to China has a collectivist culture, whereas Chinese people tend to select the mainstream or the popular ones. In contrast, the empty start page on a mobile Safari most Americans would see on their iPhones present the browser more as a tool. The same difference can also be found on QQ Tencent IM clients interface and MSNs interface. The former is the dominant IM client in China, it carries service entry points in its most prominent positions while MSN offers basic menus. The Startup Page of UC Browser, Chinese Version Users click the icons or links in the personalized startup page to access the services - Recommend sites & more The Home Screen of Mobile Safari User enter URL or Search to start using Top Segment of QQ - Tencent IMs Interface Top Segment of MSNs Main Interface Understand the Mobile Internet Market in Asia 13 UCWebs Perspective on A Typical User of Mobile Browser As explained in page 11, a lot of user activities take place in the browser, for many, the mobile browser is the only entry point to the internet, and the users activities are reflected in the usage of the browser. Based on the usage statistics of the 300 million (QAU) users that UCWeb has across the world, mostly in Asia, more than 95% of the users use UC Browser to read news, blogs and novels on a monthly basis, and its worth pointing out that over 90% of the users conduct their internet searches in the search box on the UC Browser. Mobile gamers Pages of content consumed 95%+ 90%+ 70%+ 20%+ 700+ Read news, blog and novels with mobile browser Access search engine with search box on the browser Download apps with mobile browser Source: UCWebs internal data About UCWeb 14 Key Facts & Numbers UCWeb Inc. (UCWeb) is a leading provider of mobile internet software technology and application services. Since its inception in 2004, UCWebs mission has been to provide better mobile internet experience to billions of users around the world. Users across 150+ countries 40X growth in 4 years （2） （1） More than 10% market share in Vietnam More than 10% market share in Indonesia More than 50% market share in China More than 20% market share in India 40% market share in Asia Monthly PV 160 billion More than 800 R&D engineers Source: StatCounter, Sep 2012 According to ADMAs Digital Marketing Yearbook report for 2012, Asia has 623 million mobile internet users. Between March 2007 and March 2011 1. 2. Notes 200+million MAU, second largest user community by traffic in China. 50+million users for mobile gaming alone. 100+million Smartphone MAU. UC Browser is the most used mobile application by monthly effective usage time in China, reported by Arbitron. UC Mobile Internet Research Center by UCWeb