If by "type" you mean medium, then offline advertising still accounts for most of the ad spend in China (e.g. TV, newspaper, outdoor, Mag. etc). Online advertising has been growing fast in China over the past 5 years. Baidu dominates China's search advertising market with more than 65% market share. Google has had a harder time that it initially anticipated cracking this market.

In China, traditionally the 4 large portal sites (think Yahoo), Netease/Sina/Sohu/QQ, have dominated the display ad market. This was largely due to the fact that these portal sites accounted for the majority of traffice/pageviews from Chinese Internet users. The display ad market in China last year was around $1B. The portal domination of the online display market in China is starting to shift. More vertical sites are popping up that are attracting large amounts of traffic. In addition, traditionally the online display ad market in China was priced on a Cost Per Day (CPD) basis. This is quite different from the CPM model in the US. Again, this is starting to change because the portals don't have quite the publisher clout they once did (clearly, a publisher would rather receive a fixed fee per day instead of being responsible for delivering performance from the ads on their site). Another driver of this shift is that Chinese advertisers are becoming more sophisticated and demanding more of a performance based pricing model from publisher sites. This change is happening but it is slow at first because it takes time to really educate the market about these new pricing models.

The search advertising market in China was around $600M in China in 2008. Combined with the display ad market, Chinese online advertising was roughly a $1.6B market in 2008. This is still a small fraction of the $25B online ad market in the US. The Chinese online ad market has been growing faster than in the US (~30-40

Asker's Rating:

Permalink | Report