The value of online advertising in Q3 reached Rmb2.6 billion - a 14 per cent increase over the previous quarter. According to Nielsen chiefs, the major drivers for the growth include initiatives by the Chinese Government, which is pushing the development of culture and creativity online as more local animators, musicians, artists and writers step on to the global stage, along with rapid internet adoption in China.
Additionally, the consolidations and acquisitions of multinational agencies in China is said to have contributed to rise of the advertising industry.
The automobile, IT, electronics, FMCG and finance industries currently account for over 60 per cent of the total ad value. These industries’ accumulative spend totalled more than Rmb100 million for the first three quarters of this year.
The study also found that when it comes to new campaigns, the top 50 advertisers on the mainland accounted for more than 30 per cent of the new initiatives.
While online spend lags that of traditional media, such as television or print, it is accelerating and is expected to hit Rmb10 billion by year end.
Sail Ma, analytic and research director at Nielsen Online, Greater China and Southeast Asia, said the number of online advertisements will increase during next year, thanks largely to the Beijing Olympics. Ma also said that Nielsen forecasts that online advertising sales will continue to surge as the year draws to an end with Christmas and New Year.
“We believe the current value of online ad space is significantly under estimated. We expect there will be quantitative as well as qualitative growth of internet advertising with the increasing number of advertisers, campaigns, scales as well as spending.”
