China's Online Advertising to Hit 750 Million Yuan in 2001In 2001, Chinese enterprises' expense in online ad will as shown in a latest survey hit a record of 750 million yuan, and in the coming two years China's net advertising value is estimated to jump by folds.The survey was conducted by Kuanrong Interactive Advertisement Co., Ltd. Mainly engaged in online ad business the company was jointly set up by an outdoor ad company, LuoYang White Horse Group and Lianhe Yuntong Investment & Consultant Company. However, the world renowned Merrill Lynch recently lowered their expectation of China's online ad business from the previous US$120 million to US$ 80 million. Though the Internet stocks have been slumping in NASDAQ since last year, the disappointing situation hasn't affected China's online ad commerce. From 1999 to 2000, China's ad sales increased by 400 million yuan. Xu Jinquan, General manager of Kuanrong Interactive, holds the current situation of most websites seem to tell a pessimistic future for online ad yet contrarily advertising clients are seeking for a larger market. As estimated, advertising expense in overall expenditure of a company will see a rise of five percent in 2003. China's e-advertising will reach 1.8 and 4.5 bn yuan respectively in 2002 and 2003 in terms of market share. China's total amount of advertising business was some 80 bn yuan last year, only half a percent went to online advertising. According to analysis of insiders the unfamiliarity of ad clients' with the Internet is the main obstacle that has affected the online advertising growth. Wang Xiangdong, a research fellow with the Chinese Academy of Social Sciences believes that the potential market in online advertising is very expansive. However, it needs an urgent revolution of the sales model of market players before it can be achieved, he said. By PD Online staff member Yin Zhili |
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