Jenny Chan 陳詠欣
Aug 7, 2013

China's online advertising market surges 27.4%: iResearch

MAINLAND CHINA - Online advertising revenue reached US$3.8 billion (RMB23.26 billion) in Q2 2013, up 17.4 per cent compared with Q1 and 27.4 per cent versus Q2 2012, according to iResearch.

Baidu leads in online advertising revenue.
Baidu leads in online advertising revenue.

The volume increase in online advertising in Q2 2013 was mainly due to a rise in unique visitors (UVs) of major internet services such as search, video and news.

For instance, UVs of NetEase and Taobao increased more than 10 per cent over Q1 this year, while UVs to Sina, Sohu and iFeng rose 7 per cent compared with Q1.

The market share of search engine advertising grew to 36.4 per cent of total online advertising. Vertical search slightly decreased to 22.4 per cent, while online video advertising maintained growth with a 6.7 per cent share.

Leading search services companies such as Baidu, Google China and Sogou are expected to maintain the expansion of search engine advertising, together with new player Qihoo 360.

Qihoo 360 experienced a phenomenal growth rate of 65.1 per cent year-on-year—the highest among the top 10 internet companies—in terms of online advertising revenue, which mainly came from its navigation services.

Baidu is still the leader with Taobao in second place. Their revenues increased to RMB7.56 billion and RMB5.61 billion, respectively.

Taobao’s own 10th anniversary in May, as well as mid-year promotions from e-commerce companies, generated more advertising for Taobao.

The online advertising industry is closely correlated with the economic environment in China. The domestic economy has moved from a high-growth stage into a moderate-growth stage, so as a whole, stability in online advertising is also projected in the near future, according to iResearch analysis.

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