China’s online display advertising activity reached a peak in September of this year, according to new research from Nielsen//NetRatings.
NetRatings recently launched its online advertising measurement service AdRelevance in Japan, which allows the Chinese market to be compared with the current top three global ad spending markets, the US, Japan and the UK, as well as 18 others.
NetRatings said that in September 2006, online display advertising expenditure in the US reached $771 million, $160 million in Japan and $95 million in the UK, compared with $51 million in China.
In the period from May 2006 to September 2006, China’s online display advertising expenditure came to CNY 2.3 billion ($291 million).
NetRatings says that although this figure is relatively small when compared with China’s TV and newspaper ad expenditure, of CNY 128.8 billion and CNY 25.6 billion respectively over the same period, its is very likely that it will shortly overtake China’s magazine adspend of 3.1 billion.
Forrest Didier, Nielsen//NetRatings’ managing director for Asia Pacific and Latin America, said: “China will soon be one of the top five advertising markets in the world and is very well positioned for advertising growth as many marketers seek to establish or strengthen their brands.
“At the same time, advertisers are challenged with reaching consumers who are spending significantly more time on the internet.”
NetRatings’ managing director for Greater China, Hans Yu, said that China’s online advertising growth is expected to come from a variety of industries: “While the automotive (26%), computer (23%) and FMCG (10%) industries are currently leading China’s online advertising market, we expect to see an accelerated investment by telecommunications, media and real estate players in the near future as these industries are topping the online investment lists in the US, Japan and the UK.”
With regards to the UK online advertising market, recent research from the Internet Advertising Bureau, PricewaterhouseCoopers and the World Advertising Research Centre said that in the first six months of 2006, online advertising expenditure has reached almost £1 billion and looks set to overtake spending on national press advertising before the end of the year (see Ofcom Plans New Public Service Channel To Rival BBC).
Meanwhile, a report released by Initiative in May forecast that global online adspend will increase in 27% this year (see Internet Adspend Likely To Grow For 2006).
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