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China's Online Advertising Market |
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According to a new report from Analysys International, shows China's Internet advertising market will reach RMB 6.87 billion (US$860 million) in 2008. The China online advertising market size, including brand advertising and search engine advertising, reached RMB 3.229 billion in 2005, increasing 59.83% year over year.
Though the Internet advertising market is expected to grow continuously, as the search engine market faces adjustment in 2007, the market growth would slow down. By 2008, stimulated by the Olympic 2008 in China, the market will face a new initiation and the market size will reach RMB 6.87 billion. Universal McCann' has forecasted that the U.S. Internet ad spend, excluding search, will amount to $9.705 billion this year, or a 25% increase from 2005. (that equates to 77.5 billion RMB). In addition, the population of China (1,306,313,812) compares to the population of the United States (295,734,134) at almost 4 1/2 times as large.)
In 2005, brand advertising market size in China reached RMB 2.302 billion, accounting for 71.3% of the total market and increasing 54.91% Year over Year. The Search engine advertising market reached RMB 927 million in 2005, accounting for 28.7% of the total market, increasing 73.52% year over year. As advertisers increased spending on Internet advertising and improved recognition of the importance of search engine marketing, search engine advertising market developed rapidly in 2005, while China's 2005 Internet advertising market concentration degree further increased. The market share of vendors who have an annual revenue of over RMB 400 million accounted for 59.75% of the total market. With the rapid development of search engine advertising, the market share of brand advertising will decrease to 67.63% in 2006. |
