China internet advertising spending jumps 54% in Q2

Year-on-year surge as revenue hits 17.6b yuan in the second quarter, led by the big search engines

PUBLISHED : Saturday, 25 August, 2012, 12:00am
UPDATED : Saturday, 25 August, 2012, 2:10am

Spending on online advertising on the mainland reached 17.6 billion yuan (HK$21.5 billion) in the second quarter, up 54.2 per cent on the same quarter last year, according to a survey released this week.

The spending was up 25.4 per cent on the first quarter of this year, according to the survey by EnfoDesk, a unit of mainland research house Analysys International.

"The first quarter is always a bleak period for the advertising industry due to many factors including the [Lunar] New Year," said Dong Xu, an analyst with Analysys.

By contrast, the second quarter was usually the best period for the industry, Dong said, and even though the third quarter of this year has seen major advertising drawcards such as the London Olympics, she did not expect growth to exceed that in the second term.

"As for the whole of this year, I think growth will not be as robust as in 2011, but there will be steady growth boosted by sports events, including the Olympics and the European football championships," she said.

The EnfoDesk survey data showed that online portals and search engines Baidu, Alibaba and Google China continued to attract most of the online advertising spending in the second quarter, with their combined market share about 50 per cent of total online advertising spending.

Baidu, the leading internet search services provider on the mainland, commanded a market share of 31.2 per cent of advertising spending in the quarter, up 0.3 of a percentage point from the previous quarter. E-commerce giant Alibaba followed Baidu with a market share of 15.7 per cent.

Top portals such as Tencent, Sohu, Sina and Netease took 13.8 per cent of market share, up from 12 per cent during the first quarter, and Tencent, the country's biggest internet company, saw its market share grow from 3.2 per cent in the first quarter to 5.2 per cent in the second quarter.