Sunday, February 12, 2006

Online Advertising Surpassed 3 billion Yuan, Catches Up Radio

Feb. 13 from Xinhuanet (cited from

China's online advertsing market is in rapid growing phase. Yesterday, iReseach released a new report with data showing the online advertising market reached 3.13 billion Yuan or $390 million dollars. It is increased 77.1% over 2004 and it is 7.6 fold of the size in 2001.

Online advertising also reached 2.3% of overall advertising spending in 2005. The size of the market is already passed that of magazines (1.8 billion Yuan) and is catching up the size of radio advertising(3.4 billion Yuan).

Addtionally, paid search marketing was 1.04 billion or $130 million dollars. Alltogether, the online marketing has reached a scale of 4.17 billion Yuan, growing 78.4% year over year. It is about 3.0% of total advertising market.

Last year, Sina has 21.7% of market share, followed by Sohu with 15.0%, Netease 8.0%, Tencent 3.8%, and 2.2%. The five largest portals weighted in 53.4% which is actually 20% lower than that of 2004.

It is worthy to note that, while the market shares of the traditional web portals such as Sina and Sohu are falling, shares of the search engines represented by Baidu and Google are clearly heading up.

Housing, IT products, Web services are ranked top three in advertisers. Individually, Samsung was the largest online advertiser with spending of 60.35 million Yuan, followed by China Mobile with 41.10 million Yuan and Ebay/Each with 39.13 million Yuan.

Online advertisers totalled 3418 last year, growing 6.6% over 2004. Though the number growing at a slower pace, the budget is showing up strongly. The advertisers with budget surpass one million Yuan reached 474 in number, a growth of 57.5% year over year.

iResearch predicts the overall online marketing scale will reach 9.1 billion Yuan this year, or 65.7% growth over 2005. In 2010, the number could reach as high as 36.7 billion Yuan or $4.6 billion dollars.

Sun Jin


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