Bright Future for Chinese Online Advertising and E-Commerce
From CHINAdaily: Online ad sector sees steady growth
"Wallace Cheung, an Internet analyst with DBS Vickers Securities in Hong Kong, said in a research report that, among the three major Internet sectors - wireless value-added services, online games and online advertising, the latter is the smallest and has displayed steady, rather than exponential, growth in recent years.
The steady pace of this growth is thanks to higher advertising rates, increased recognition of the importance of the Internet as a channel for publicity, and a boost from the Athens Olympic Games."
"Sina Corp, China's biggest online advertising company, reported a 59 per cent year-on-year rise in its online advertising revenues to US$65.4 million in 2004.
Sina's arch-rival Sohu notched up an even more impressive 89 per cent growth in its online advertising revenue in 2004, hitting US$55.7 million.
NetEase, the other one of China's top three Internet portals, saw its online advertising revenue almost double from 86.18 million yuan (US$10.41 million) in 2003 to 171.05 million yuan (US$20.66 million) last year."
"Jim Sun, an analyst with London-headquartered Evolution Securities, predicted that online advertising - including the use of search engines - should become one of the biggest sources of revenue pools for the Internet industry, alongside e-commerce.
While advertising and e-commerce currently only account for about 20 per cent of the Internet's industry's total revenues, that figure will be a massive 80 per cent by 2008. "