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12 activities . The Internet has become an indispensable marketing and promotional channel utilized by enterprises, playing a key role in accelerating the integration of traditional media and new media. Marketing & Promotional Channels Used by Companies 70% 65.1% 60% 52.8% including: 50% 40% 38.7% 33.8% 30% 28.7% 23.5% 17.6% 21.7% 18.5% 20% 15.1% 13.3% 10.5% 11.4% 11.1% 10.6% 10% 6.5% 0.8% 0.3% 0% conducting TV news paper Internet outdoor ads magazine radio station mobile phone others marketing & promotion 2015 2016 Source: Statistical Survey on Internet Application in Chinese Enterprises 2016.12 13 Figure 17 Marketing & Promotional Channels Used by Companies In 2016, the proportion of enterprises conducting Internet-based marketing and promotion increased by nearly 5 percentage points compared with 2015, having maintained a growth momentum since 2013. Enterprises raise their awareness of brand promotion, e-commerce is becoming more popular, and China's Internet advertising market is being gradually standardized. However, there is still a lot of room for the Internet marketing market to grow. 12 It refers to using the Internet to carry out marketing and/or promotion activities such as advertisements put or promotions carried out by enterprises themselves or via their agents/ advertisement companies, including paid and free promotions. 13 24 Mobile phone-based promotion employs short messages and calls, excluding those via mobile Internet. The 39th Statistical Report on Internet Development in China

Statistical Report on Internet Development in China - Page 34 Statistical Report on Internet Development in China Page 33 Page 35