Online advertising in China grows 35%

China’s online advertising market reached RMB 3.23 billion in 2005, ($40 millionUSD) and is expected to reach RMB 4.39 billion ($55 million USD) in 2006 according to Analysys International. Search engine advertising is fueling this growth. Baidu, Sina, Sohu, and Yahoo! China, account for nearly 60% of of the market. Baidu and Google increased their market share of online spending, while Yahoo and Neatease market share dropped.

“Affected by policy adjustment from mobile operators and the government, Internet firms whose revenues mainly came from mobile value-added services (VAS), including Sina, Sohu, Tom Online, etc., will all increase spending on online advertising as an important business growth point. Analysys International forecasts China’s online advertising market will reach RMB 4.39 billion for the full year 2006, representing an increase of 35.9 percent year over year. Search engine advertising will account for 32.37 percent of the total advertising market in 2006.”

David Temple

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