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The market scale of online advertisement in China
Last Updated(Beijing Time):2006-12-18 11:33

Research and Markets has announced the addition of China Online Advertising Development Report, 2005-2006 to their offering.

After introducing online advertising, the report analyses the structure and trends of the online advertising industry in the world and in China. It gives full details about the online advertising leading companies and carries out several analyses about those companies and the competition between them.

Development status of online advertisement industry in China

In 1H 2003, SARS brought a big development opportunity to online advertisement industry. In 2003, China's online advertisement market scale reached RMB1.08 billion, increasing by over 100% compared to RMB490 million in 2002. In 2004, online advertisement market in China (except search engine) has increased from RMB1.08 billion to RMB1.9 billion with a growth rate of 75.9%, indicating that whole online advertisement market maintains a high-speed growth trend.

Online advertisement market scale in China (including search engine advertisement)

Considering the market segmentation of online advertisement, the advertisement of online services, IT products and real estate are taking the major market shares. In 2005, the proportion of online service advertisement kept stable, floating around RMB110 million. Advertisement of IT products showed a fluctuant increase.

In 2005, Web portals are still the main medium for online advertisement. Sina and Sohu together occupied 55% shares of the total online advertisement market.

In 2005, online advertisement supervision has become a hotspot for competition. ChinaRun Technologies Inc, Chinanet and etc all promoted their own supervision system for online advertisement.

Analysis on overseas and Chinese leading online advertisement companies

Due to the wrong market strategies and measures after the consolidation, The Market share for Doubleclick declined in 2004. Although it made profit in Q4 2004, multiplied by 2 compared to the same period in 2003, it was still purchased by Hellman $ Friedman LLC with a fund of USD $1.1 billion.

Valueclick maintained a high growth rate. Media service shared its major revenue.

Except portals, the majority of Chinese online advertisement website owners adopted the mode alliance. The traffic of many medium and small websites converges to considerable larger traffic in order to take more market shares.

Development trends of online advertisement.

The development trends of online advertisement include: various forms, increasing interactivity, stable rise of search engine advertisement market scale, fiercer competition, better industrial chain and reliable supervision system etc.

The market scale of online advertisement in China will reach RMB8.2 billion in 2006 (including search engine advertisement).
[Source: Business Wire] 
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