Online Advertising in China – Where to Place Your Bets
According to iResearch in 2011 Q3 China’s online advertising market reached RMB 13.7 billion – an increase of 23% year-over-year. Search engine advertising has steadily been increasing; however the area to watch is online video. Online video in particular increased 139% year-over-year, highlighting its growing importance.
Television advertising has been the number one way to reach China’s mass market in recent years. However, given the Chinese government’s new regulations targeted at television advertising, online media’s influence should grow stronger. Starting next year television dramas will be aired without any commercial interruption – only allowing for commercial spots in between television programs. These regulations come after China Central Television (CCTV) made RMB14.3 billion from companies such as Procter & Gamble, Alibaba and Unilever during this past November’s television-advertising auction.
With increased limitations on traditional advertising, companies will continue to reallocate more of their budgets in the Middle Kingdom to online advertising where they are already witnessing a return on their investment in the world’s most populous Internet market.