10 online advertising trends in China in 2010

china online marketing trends 2The economy just recovered from recession, the growth rate is much lower than past few years. However, for Chinese online advertising market, 2009 is a good year.

Traditionally, companies in the industries of electronics, real estate, gaming and ecommerce are big advertisers in online advertising. While in 2009, we have seen advertisers from more industries, such as agricultural and manufacturing industries.

Search engine is the major online advertising platform in China, the search engine advertising market has reached 6.9 billion Chinese Yuan, while the comprehensive portal websites earned 5.0 billion from advertisers. Video sharing websites are the black horse, with 120% growth rate in 2009. so what will 2010 be like?

The top 10 trends for Chinese online advertising market in 2010
1) Huge potential for search engine market
Chinese search query accounts for 20% of global total search query, exceeding 17% of United states. However, the search engine market value of China only has 3% market share, while United states nearly get 50% market share. This fact suggest the potential of Chinese search market. Google’s withdrawal leaves a big question mark to future competition in Chinese search market. Big portal websites, vertical search websites plan to eat up google’s market share, that is a challenge to Baidu.com.

2) Vertical search medias grow fast
Vertical websites are more professional in certain area or industry, so they will bring a superior user experience than general portal websites. The vertical search websites will perform better than portal websites, in areas like fashion, finance, automobile, IT, travel etc. We will witness a significant market segmentation in online advertising market of China this year.

3) Video sites still hot
Video sites has a record high 120% growth in 2009, video sites were hot in the past few years, and it will stay hot. 80% Chinese netizens visit video sites, video sites have the user stickness that no other online medias can compete.

4) Community is especially hot in China
Chinese people like to use communities such forum, bbs, social networking site etc. According to the research, community ranks No.1 in term of user number, user stickness, page views compared with other online medias. Community is ideal for word of mouth marketing.

5) Online advertising go mobile
The integration of internet, telecom and CATV is an obvious trend for 3G era. 233 million Chinese use mobile to surf internet, while mobile advertising only occupy a small percentage of the total online advertising market. Seemingly advertisers have realized the opportunity.

6) Online advertising go long tail
Advertisers continue to look for ways of identify and accessing to long tail user group, on in another word, the niche market.The ROI is much better from these sites, but there is a higher overhead managing sales to smaller sites. The industry is coming up with solutions though to address this market in a cost effective way.

7) Application development
advertisers use application or software used for security, video player and download manager to attract users and their stickness, those software also will be used to track users behavior.

8)  Advertising for ecommerce
In 2009, China ecommerce advertising market reached 5.1 billion, it is expected to exceed 10 billion this year.

9) Traditional media embrace internet
Traditional medias like TV, radio, newspaper has seen the power of internet. And they decided to be part of the revolution. With the resources they bring, the money in pocket, the competition of online advertising is going to be tough.

10) Event advertising
We will have Shanghai Expo 2010, Asia game in Guangzhou, football world cup and other major events. Online media will tailor make advertising package for these events, and advertisers are excited to impress the public with their event advertising strategies.

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