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Online Advertising Market China

September 2011

Executive Summary
Total Media and Ad spending in China is expected to be USD a bn by 20-Online Ad market is expected to grow at a phenomenal rate of b% till 20-Market is segmented into c categories Drivers: Growth in internet users Rise in target industries Rise in online retail Growing social networking user base Emergence of online video advertising Under-penetrated market

Market

Drivers & Challenges

E L P M A S

Challenges: Technological constraints Declining importance of portal websites

Trends

Players are exploring online Dominance of Search Engine Ads IT, Auto Industries largely advertise on portals community advertising Growth of Vertical Ads Remodelling of Alliance Network Advertising Players in the market are adopting diversified business models to generate revenues and make profits Major players in the market are listed with the stock exchanges Major players in the market include Player 1, Player 2, Player 3, Player 4
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT

Competition

Advertising Market Market Overview Market Segments Business Models Drivers & Challenges Trends Government Regulations Competition Key Takeaways
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT

Online advertising market has been growing impressively and the market is forecasted to grow at a rapid pace
Market Overview
Online Advertising Market is expected to grow at an impressive rate of b% till 20- The market has c diversified segments in which various players dominate

Market Overview
USD bn

Increasing use of the internet coupled with growth in the target industries is increasing the scope for online advertising

Market Segments (20--)

LE P M A S
15 10 5 0
d

20

k +b% e f g h i j

20-- 20-- 20-- 20-- 20-- 20--e 20--e 20--e

Sources of Advertisements

4% 12% 20% 25% 3% 36%

Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 Segmnet 6

19% 24% 55%

Source 1 Source 2 Source 3

Focus Area of the report Source: ONLINE ADVERTISING MARKET IN CHINA 2011.PPT

Drivers & Challenges Summary

Drivers
Growth in Internet Users Rise in Target Industries Rise in Online Retail Growing Social Networking User Base Emergence of Online Video Advertising Under-penetrated Market

Challenges
Technological Constraints Declining Importance of Portal Websites

ONLINE ADVERTISING MARKET IN CHINA 2011.PPT

Trends Summary
Dominance of Search Engine Ads

Players are exploring online community advertising

Key Trends

IT, Auto Industries largely advertise on portals

Remodelling of Alliance Network Advertising

Growth of Vertical Ads

ONLINE ADVERTISING MARKET IN CHINA 2011.PPT

Competition Summary (1/2)


Key Players in the Market (Revenue and Net Profit)
-500 0 500 1,000 1,500 1,250.0 1,239.6 552.1 854.8 347.0 612.8 148.6 402.6 -19.1 224.5 63.1 2,000 2,500 3,000 3,500 3,049.2

USD mn

Player 1 Player 2 Player 3 Player 4 Player 5 Player 6 Player 7

Player 8 -197.6 Player 9

Player 10

E L P M A S
78.9 31.1 71.1 57.7 8.5 44.4 -53.9

Major players in the market

Revenue
Source: Capital IQ; Company Websites

Net Profit
Note: The list is not exhaustive

ONLINE ADVERTISING MARKET IN CHINA 2011.PPT FOOD RETAIL MARKET IN INDIA 2010.PPT

Competition Summary (2/2)


Net Profit USD mn

1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0 -100 0 500 1,000 1,500 2,000 2,500 3,000 3,500 6,702.6
Revenue USD mn

Size of the Bubble represents Market Capitalization (USD mn)


48,448.8

49,008.5

6,208.2 3,084.5

LE P M SA
Player 3 Player 4 Player 5 Note: Some companies shown here have other businesses segments also

Player 1

Player 2

Source: Capital IQ; Company Website;

ONLINE ADVERTISING MARKET IN CHINA 2011.PPT

Thank you for the attention


The Online Advertising Market - China report is a part of Netscribes Media and Entertainment Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal
Phone: E-Mail: +91 22 4098 7530 gagan.uppal@netscribes.com

Jitendra Punjabi
Phone: E-Mail: +91 33 4064 6215 jitendra.punjabi@netscribes.com

About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The companys expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT