Chinese online advertising market will reach 4.4 billion yuan in 2006

According to Analysys, Chinese online advertising market was 3.229 billion yuan in 2005, growing 59.83% year over year. Sina, Sohu, Baidu, and Yahoo ranked top four.

In the first half of 2006, Chinese online marketing reached to 2.095 billion yuan. Though the top four are still the same, the market shares numbers have changed quite dramatically.

In the first half, Baidu rapidly expanded market share to 15.37% from last year's 9.51%. At the same time, Google and Tencent also gained market shares.

Google increased it's market share by 1.1% to reach 4.82%. Tencent share increased to 4.25%.

Yahoo's share slides to 8.08% from 9.48%. Netease also saw it's share drop to 6.2% from 7.41%.

For the whole year of 2006, the market is predicted to reach 4.387 billion yuan or about $540 million dollars. Search engine market will reach 32.37% of the total online advertising market.





sources of data and figure were from Analysys.

Google's Gaining in China Posts Major Threat to Baidu?

The second quarter earning report from Baidu was outstanding. Revenue growth was up 43% quarter over quarter.

Google's gain was even more dramatic. From Analysys data, Google's China revenue was up a wopping 75% quarter over quarter.

The question is does Google's gain post major threat to Baidu?

The answer is not really, at least not now.

Looking into details, Google's second quarter revenue in China was about 30.6 million yuan, up from 17.4 million yuan of last quarter. Converting into dollars, that was a mere $3.8 million. And that was up from first quarter in which Google had lost market share slightly.

Baidu Took More Than Half Of Search Market

According to the latest report from top Chinese consulting firm Analysys, the total search market in the second quarter reached 376 million yuan.

Excluding channel fees, Baidu earned 189 million yuan. Baidu's market share jumped over 50%. Baidu's share was 50.3%, up from 43.9% from first quarter.

Google also gained shares. In the second quarter, Google's share was 16.2%, up from first quarter's 13.2%.

Yahoo continued to lose shares in China. Yahoo's second quarter market share was only 15.7%, down from 21.3%. Yahoo was dominant player in China only three quarters ago.

Fig from Analysys showes search market revenue from all the search engines in China. All figures are in 100 million yuan( or $12.5 million Dollar unit)

Keyword Pricing Updates(7)

Huatong Index came in at 5.0388 on August 15.

It is slightly up from four weeks ago at 4.9961.