Online adspend continues to rise in China

07 July 2010

HONG KONG: Online adspend levels increased by more than a third in China in the first quarter of this year, during which time over 3,000 products were promoted via this medium.

Nielsen has reported that internet advertising expenditure in the country climbed by 52.7% to $30m (€23.8m; £19.8m) in Q1 year-on-year.

The research firm suggested that this result constituted a "good start" for Chinese web advertising industry in 2010.

As this uptick in revenues compared with the expansion of 39% delivered in the same period in 2009, Nielsen asserted that this positive momentum would "continue for the remainder of the year".

Some 3,600 brands chose to adopt this approach between January and March 2010, a jump of 36.2% measured against the corresponding timeframe in 2009.

Companies in the fashion category held the largest volume share on 17.7%, an improvement of 3.3% on 2009.

In terms of actual revenues, the top ten sectors generated 87.6% of all returns, according to Nielsen's estimates.

Within this, the real estate sector's investment in this channel shrank by 4.7%, with entertainment off by 2.3% and recruitment by 1.6%.

Elsewhere, members of the automotive and media segments both posted modest declines of 0.2%. 

At least partly as a consequence, retailers boosted their market share by 8.3%, a figure that stood at 1.8% for FMCG brands, 1.3% for computers/electronics and 1.2% for financial services. 

Back in May, a Nielsen study showed the dramatic slump in consumer confidence in many areas of the developed word had not been aped by emerging markets.

This was particularly the case in China, where the prolonged boom in the domestic economy has contributed to a broadly optimistic outlook among shoppers.

Such a trend also applies to Chinese corporations, and more businesses are expected to experiment with web advertising going forward, meaning the net's growth is likely to be maintained in the foreseeable future.

Data sourced from Campaign Asia-Pacific; additional content by Warc staff