“By the Numbers – A blast of market data on the Chinese market by the app stat experts”

• Market Overview• Monetization• Market Breakdown by City Tier• Overview of ‘Diaosi’

Source: KPCB

Source: iResearch

Source: iResearch

Source: KPCB

Source: Super Data

Source: Super Data

Source: Super Data

Source: Super Data

Source: iResearch

Know Who Your Customer Is

Population: 1.36 billion

Mobile internet users: 500 million

Mobile gamers: 266 million MAU

All these 266 million gamers are pretty much the same profile, right? NO

Classify Users by the 6 Tiers of Cities in China

• Population• Provincial GDP• Cities with strong economic growth• Geography vicinity to other powerful cities• Advanced transportation infrastructure• Historical and cultural significance

American Chamber of Commerce

Let’s Break it Down

1st Tier cities only have 10% of China’s population

1st Tier Cities: Beijing, Shanghai, Guangzhou, Shenzhen

Source: umeng

Source: umeng

Source: umeng

Source: umeng

Source: umeng

I see the significance of focusing on lower tiered cities…but what do the users look like?

• Game Preferences• Game Preference Trends• User Behavior

19Source: Maopao appstore

Diaosi Game Preference

20

Diaosi Game Preference Trend

Most Diaosi start with casual games, and then gradually come to various types of games

Casual

Action

纸牌Card

Racing

RPG

Adventure

Time

Source: Maopao appstore

21

Diaosi Prefer Small-Sized Games

Source: Maopao appstore

22

Diaosi Prefer Small-Sized Games

23

Diaosi’s Handset Performance Increasing, but yet Relatively Low End

• 2014 Q1, Diaosi’s phone AVG.ROM an increase of 158%, AVG.RAM an increase of 126%, but is still at a low level;

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14

238 251

271

316

377

282 298 303

323

354

AVG.RAM AVG.ROM

Source: Maopao appstore

24Source: Maopao appstore

Diaosi’s Most Responsive Time Periods to Promotions

Games Are Most Important to 3rd Tier and Below

Source: umeng