China's Online Advertising Landscape

Ads Proliferate as Web Becomes Main Information Source

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HONG KONG (AdAge.com) -- With 82.6% of China's web users declaring the internet to be their main information channel, according to the China Internet Network Information Center, the country's quasi-government internet overseer, advertisers increasingly are going online to communicate with Chinese consumers.
China's automotive, package-goods, and computer and electronics industries were jointly responsible for almost 60% of online spending May-July 2006.
China's automotive, package-goods, and computer and electronics industries were jointly responsible for almost 60% of online spending May-July 2006.

So far, auto manufacturers, PC makers and consumer-goods marketers are the most committed to online advertising in China, based on the latest results from the Nielsen/NetRatings online-ad tracking service, AdRelevance.

Monitoring China's websites
NetRatings began monitoring China's top websites in May, and initially counted 587 online display advertisers that ran nearly 1,500 campaigns comprising more than 3,700 banner ads. By the end of July, the number of advertisers had grown 39% to 817. The number of campaigns increased 34% to 2,276, and the number of banner ads went up 55% to 5,785.

The company estimates China's total online display advertising for that three-month period totaled $190 million. That figure is closing in on the level of ad spending in China's magazine industry, $240 million for the same period, according to Nielsen Media Research.

China's automotive, package-goods, and computer and electronics industries were jointly responsible for almost 60% of the ad spend during that three-month period. In July, the best-performing online marketer was China Mobile, the country's leading mobile-phone-service provider, with 3.1 billion ad impressions.

Top advertisers
In the auto industry, Nissan Motor Corp. was the top advertiser with 2.5 billion ad impressions. Founder ranked at the top of the computer-and-electrical category (1.6 billion impressions), and Coca-Cola topped the list of online display advertisers in China's package-goods industry (1.5 billion).

EBay, meanwhile, ranked third overall, with 1.8 billion ad impressions. Volkswagen was in sixth place with 1.4 billion, followed by the Chinese PC-maker Lenovo Group (1.3 billion), Mengniu Group dairy (1.2 billion), Intel Corp. (1.1 billion) and Toyota Motor Corp. (1 billion).
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