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Home >> Business
UPDATED: 10:02, February 14, 2006
2005 China online advertising income exceeds 3 billion yuan
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China's online advertising market is in the high-speed growth. IResearch Inc released on Sunday its latest statistics, showing that 2005 online advertising market reached 3.13 billion yuan, an increase of 77.1 per cent last year compared with that of the previous year and 7.6 times that of 2001.

The proportion of online ads in total ad market increased from 0.5 per cent in 2001 to 2.3 per cent last year. The business surpasses magazine ads (1.8 billion yuan and is close to radio broadcast ads (3.4 billion yuan).

If adding research engine ads of 1.04 billion yuan, in 2005 China online business market revenue was 4.17 billion yuan, a growth of 78.4 per cent year on year, accounting for 3 per cent of the total ads market.

Sina's online ads income was 680 million yuan last year, 21.7 per cent of market share, Sohu 15 per cent, NetEase 8 per cent, QQ 3.8 per cent, and TOM online 2.2 per cent. The online ads of the five portals accounted for 53.4 per cent of total online ads, a decline of 20-percentage points year on year.

It is worth noticing that market proportion of traditional portals led by Sina and Sohu was on decline while research engines by Baidu and Google was on the rise obviously.

Real estate, IT products and online services were ranked the top three sources of clients. Samsung spent the most on online ads, totaling 60.35 million yuan, which was followed by China Mobile and NetEase, 41.1 and 39.13 million yuan respectively.

There were 3,418 online ads clients in China last year, a growth of 6.6 per cent year on year. Although the growth was slowed down, their combined budgets increased evidently. Last year 474 ads clients each spent more than 1 million yuan on ads, an increase of 57.5 per cent year on year. According to iResearch's forecast, China online marketing sector, including the income of channel agents, will reach 9.1 billion yuan, a year-on-year growth of 65.7 per cent this year. By 2010, the figure is expected to come up to 36.7 billion yuan.

By People's Daily Online


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