Bao Bean, a partner with SoftBank China & India Holdings with an interest in internet businesses, said advertisers he has surveyed have indicated they want to move to a cost-per-thousand (CPM) model but the necessary platforms aren't available.
Currently, most publishers and portals in China sell their inventory on a per day basis. A CPM model offers advertisers more flexibility and better tracking. Industry observers also believe portals could increase their revenue by as much as 20 per cent by shifting to a CPM pricing model.
China's internet market is not yet mature enough to provide the targeted services advertisers are beginning to demand, said Bao Bean, but that should change soon. "This industry is in the middle of a sea-change," he said. "We think there's going to be a big change in 2008".
