China’s online advertising revenue has reached $396 million (3.19 billion yuan) in 2005, a 77% growth compared to 2004. The online advertising revenue accounted for 2.3% of China’s total advertising revenues.


China’s online advertising revenue has reached $396 million (3.19 billion yuan) in 2005, a 77% growth compared to 2004, according to iResearch.

The online advertising revenue accounted for 2.3% of China’s total advertising revenues, compared to 0.5% in 2001.

Advertising spending in magazines accounted for 1.8 billion yuan and broadcastes accounted for 3.4 billion yuan.

iResearch predicted that online ad spending will reach 15.7 billion yuan by 2010.

Tom Bowman, regional sales director for MSN International, said: “We see a big market opportunity (for online ad spending) here, a country with more than 100 million Internet users and an online advertising market that’s still in the startup stage.” [Source]

Internet portals accounted for 75% of the market share of internet-related ad spending. Search engine firms accounted for 25% of the market share.

Hou Tao, an iResearch analyst, said: “The trend is that online spending will flood to search engines from portals. The search engines attract small and-medium sized firms with limited investment but considerable numbers.” [Source]

iResearch predicted that by 2010, internet portals will account for 60% of the market and search engines will account for 40% of the market share.

The top 3 advertisers in China in 2005, according to iResearch, were Samsung, China Mobile and Eachnet (eBay China).

The top 3 online applications in 2005 were searches, e-mail and Internet portals.

 

 

 

 

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