Online Display Advertsing Expected to Hit RMB 10 Billion by End 2007
November 1, 2007, Hong Kong —— Online advertising in China recorded a healthy double-digit growth in 2007, according to the latest AdRelevance report from Nielsen Online, a division of The Nielsen Company.
Nielsen AdRelevance tracks and analyzes online advertising, industry trends, advertiser activities and campaigns. As The Nielsen Company’s latest AdRelevance report shows, the value of online display advertising in China reached RMB 2.6 billion in Q3, 2007, an increase of 14 percent over the previous quarter. Total online ad for the year to date is worth RMB 6.6 billion.
The value of online display ads for each of the first three quarters of 2007 was RMB 1.7 billion, RMB 2.3 billion and 2.6 billion respectively (See chart 1), The peak for online display advertising in China occurred in September, with RMB 1 billion recorded, the highest in the past nine months.
“The online advertising market in China is booming and catching up fast with advertising in traditional media. Judging by its current growth rate, we anticipate that the year will finish not only achieving double-digit growth in online advertising, but also reaching the RMB10billion mark in value terms,” commented Sail Ma, Analytic & Research Director, Nielsen Online, Greater China and Southeast Asia.
The cumulative number of advertisers and campaigns for the year to date was 2,661 and 19,049 respectively. Automobile, IT/Electronics, FMCG and Finance were the top four sectors contributing to overall growth and accounted for over 60 percent of total ad value in the China online market.
The Top Online Advertisers in China
In the past nine months, the ad value of the top 50 advertisers accounted for 47 percent of total online advertising market, and 31 percent of the total number of campaigns. Online advertising by big spenders Faw-Mazda, ING Group, Eachnet, Lenovo, Samsung, China Mobile and Nissan, contributed to an online ad value exceeding RMB 100 million for the past three quarters combined.
Expecting growth in Q4, 2007
According to Nielsen Online, China’s online display advertising market is growing in the midst of some very positive trends:
More integrated marketing, as recent case studies prove the efficiency of cross-media marketing.
Holiday and new-year consumption are growing extremely fast, driving more online ads for related products
The lead up to the 2008 Beijing Olympics
According to Mr Ma, “The market will continue to grow, with estimated ad value increasing close to RMB 3 billion as we enter the last quarter of the year, and contributing to an estimated full year spending of RMB10Billion”.