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China Online Ad Spending

More Internet users than any other country, still low spending.

April 2, 2009

According to MAGNA, ZenithOptimedia and Bernstein Research, Internet ad spending in China will reach $1.7 billion in 2009.

Online Advertising Spending in China, by Format, 2007-2012 (millions)

In 2012, ad revenues are expected to generate $3.5 billion, a 24% compound annual growth rate from 2007.

China’s online ad market pales in comparison to more developed countries, however. In the US, eMarketer estimates that $25.7 billion will be spent online in 2009, and $37 billion in 2012.

Digital ad spending in China is almost evenly split between search and traditional display and rich media ads, with other channels such as video, classifieds and e-mail making up a steady 6%. By 2012, however, search will overtake display and rich media.

Online Advertising Spending Share in China, by Format, 2007-2012 (% of total)

The Bernstein projections closely resemble eMarketer’s in the short term. (eMarketer predicted that online spending reached $1.4 billion in 2008 and will hit $1.95 billion in 2009.) But the similarities end after that, as the firm expects online ads in China to generate nearly $5 billion in revenues in 2012.

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