China Online Advertising Industry Growth And Forecast 2016

Executive Summary

China is considered as one of the most exciting and challenging media markets in the world, the reason being the countrys size, diversity and complexity. In 2009, Chinas advertising market performed well and in 2010, the Chinese media market profited from the Shanghai World Expo, Asian Games and economic growth.

Presently, in the country online advertising market is dominated by display and rich media. Mobile advertising segment is also considered as a growing market as it is witnessing improvement in performance every year due to innovations in mobile phone technology and sale of 3G/4G mobile phones in the country. Search advertising segment continues to register growth and in 2010, it was the only segment that grew at a rate higher than the previous year. Video advertising is another segment that has been witnessing an increase in demand per year, the reason being that it is one of the most popular internet applications, particularly among youth. Moreover, the rising consumer interest has made various sectors like toiletries, food & beverage, internet services, entertainment and apparel, etc look at this segment to raise consumer awareness and drive sales.

Among the various industries, apparel sector was the largest contributors to online advertising in terms of ad spend in 2010, followed by computers/electrical, automotive, construction/real estate, FMCG and entertainment. In addition, an increase in ad spends from financial, insurance and food & beverage and health sectors are also being witnessed in the country. At present, the Chinese online advertising market is driven by both domestic and international advertisers. In the search engine category, the market is dominated by Baidu.com, followed by Google.

In the coming years, online advertising in China is expected to surpass advertising revenues generated from print media. Growing popularity of online video, large population, growing e-commerce trade, social networking websites and economic growth is expected to increase online advertising revenues. Moreover, entrance of foreign players in the market through deals and alliances is also expected to increase investment opportunities and market competition, thereby, leading to improved services at low cost.

The report on China Online Advertising Industry includes a detailed study of the Chinese online advertising industry. We have also analyzed the industry and its various categories/ segments and trends prevailing in the market. The report also includes the industry, present performance and forecast of its various segments. Additionally, we have discussed cause and effect relationship of macroeconomic and industry factors on the industry providing the basis for the future outlook.

Key Findings
1Despite the beginning of the slowdown in 2008, the countrys online advertising industry performed well due to the Beijing Olympics and resultant increase in tourism. In terms of QTQ growth, industry grew by 19.17% in 2008 and performance of third quarter was the greatest when compared to other quarters of 2008.
2In 2009, Chinas internet advertising revenue was USD ~ million, the growth rate was low as compared to the previous years. The search engine advertising, online video contributed to the market growth and helped the industry register positive performance.
3In the fourth quarter of 2010, China online ad registered USD 1.10 billion, growth was 25.60% compared to the same quarter in previous year.
4Video and search advertising segments registered the fastest growth while online advertising market was dominated by display and rich media, thereby, accounting for the highest share among all online advertising segments.
5In 2010 the market for search advertising grew 39%, up from 2009. In the first and second quarter of 2011, search advertising registered growth of 33.17% and 37.25%, respectively.
6During 2010, the leading contributors to online display advertising were automobile, apparel, entertainment, food and beverage and electronics sectors.
7In terms of ad spend, before the economic slowdown the online video advertising was witnessing double digit growth. However, in 2009 & 2010 the growth rate was low, during the discussed year.
8In 2010, vertical web site advertising was USD ~ million, up 14.73% from the previous year; however, the growth was low when compared to 2009. In 2009, revenues increased 15.90% and in 2008 it had risen to 17.39%.

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Detailed Information On How B2b Websites Work

B2B websites can offer huge opportunities for international traders. This article offers detailed information on how these business to business websites work.

A B2B website serves two parties – the buyer and the seller. These are also known as leads. The main function of this website is to enable visitors to find the leads they want in the shortest possible time. A buyer may be looking for seller leads, and a seller may be looking for buyer leads.

By using the search function, one can easily locate the right type of leads on a B2B website. The search tool will allow a visitor to search by country, and to view only buyer or seller leads. The search starts when the visitor enters a few keywords (likely to be keywords for some product or service), select the required options, and click on the search button. The website will then make a query to the database and return the search results.

Alternatively, a visitor may choose to browse the leads in the business directory. Similarly, he can choose to see leads from a certain country, or only buyer or seller leads. These two simple functions will help the visitor locate the leads that he wants quickly.

To serve the needs of international traders, the better B2B websites even allow freight forwarders to list their services for free. This is important for any import export business. With the information, an online visitor can easily check the charges for using these services when importing from various countries. In addition, you may also expect to see information for trade show events that are posted for free by trade event organizers.

Given the numerous benefits offered by B2B websites, one would expect a listing to be pricey. However, contrary to popular believe, a listing in a B2B website can cost as little as 25 USD a year. Often, B2B also allow businesses to sign up for free. They do so because they want businesses to try out their services, and also because they want to attract as many leads as possible. Active B2B directories with many active business listings are certainly more valuable to international traders.

Sometimes, when visiting a B2B website, you may come across a special feature called “Keyword Auction”. Keyword auction allows businesses to bid for higher positions in the B2B directory. For example, when a user searches using a keyword phrase “phone”, your contact details may be listed at the bottom of the page. As such, the user didn’t have a chance to contact you. For more exposure, you may want to consider using this feature to bid for a higher position. This gives you greater visibility, and will allow you to receive more leads.

Finally, for maximum exposure, you can always buy banner advertising on a B2B website. This is more costly than listing services or keyword auction, but it will attract attention more easily. If the products and services you offer have a more general appeal, this advertising channel may work well for you.

As you can see, there are many ways to advertise your services on a B2B website. Be sure to choose those that will give you the maximum return on investment.