2. Executive Summary
Total Media and Ad spending in China is expected to be USD a bn by 20--
Online Ad market is expected to grow at a phenomenal rate of b% till 20--
Market Market is segmented into c categories
Drivers: Challenges:
E
Growth in internet users Technological constraints
Rise in target industries
Rise in online retail
PL Declining importance of portal websites
M
Drivers & Growing social networking user
A
Challenges base
Emergence of online video
advertising
Under-penetrated market S Players are exploring online
Trends Dominance of Search Engine Ads
IT, Auto Industries largely advertise on portals community advertising
Growth of Vertical Ads
Remodelling of Alliance Network Advertising
Players in the market are adopting diversified business models to generate revenues and make
Competition profits
Major players in the market are listed with the stock exchanges
Major players in the market include Player 1, Player 2, Player 3, Player 4
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT 2
4. Online advertising market has been growing impressively
and the market is forecasted to grow at a rapid pace
Market Overview Market Overview
• Online Advertising Market is expected to grow at an USD bn
impressive rate of b% till 20-- 20
LE
k
• The market has c diversified segments in which 15 +b% j
P
various players dominate 10 i
h
g
M
• Increasing use of the internet coupled with growth in 5 e f
d
A
the target industries is increasing the scope for 0
S
online advertising 20-- 20-- 20-- 20-- 20-- 20--e 20--e 20--e
Market Segments (20--) Sources of Advertisements
4% Segment 1 Source 1
12% 19%
Segment 2 Source 2
3% 36%
Segment 3 Source 3
20% Segment 4 55%
24%
Segment 5
25%
Segmnet 6
Focus Area of the report
Source:
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT 4
5. Drivers & Challenges – Summary
Drivers
Growth in Internet Users
Rise in Target Industries
Challenges
Rise in Online Retail Technological Constraints
Growing Social Networking User Base Declining Importance of Portal
Websites
Emergence of Online Video
Advertising
Under-penetrated Market
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT 5
6. Trends – Summary
Dominance of Search Engine Ads
Players are exploring online IT, Auto Industries largely
community advertising advertise on portals
Key
Trends
Remodelling of Alliance Network
Growth of Vertical Ads
Advertising
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT 6
7. Competition – Summary (1/2)
Key Players in the Market (Revenue and Net Profit)
-500 0 500 1,000 1,500 2,000 2,500 3,000 3,500
USD mn
3,049.2
Player 1 1,250.0
1,239.6
Player 2 552.1
854.8
Player 3 347.0
612.8
Player 4 148.6
402.6
Player 5 -19.1
E
Player 6 224.5
63.1
PL
Player 7
78.9
31.1
Major players in
the market
M
Player 8 -197.6 71.1
SA
Player 9
Player 10
-53.9
57.7
8.5
44.4
Revenue Net Profit
Source: Capital IQ; Company Websites Note: The list is not exhaustive
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT
FOOD RETAIL MARKET IN INDIA 2010.PPT 7
8. Competition – Summary (2/2)
Net Profit
USD mn
1,500
1,400 Size of the Bubble represents Market
1,300 Capitalization (USD mn)
48,448.8
1,200
1,100
1,000
LE
900
800
700
600
500
49,008.5
MP
SA
400
300
6,208.2
200
3,084.5
100
0 6,702.6
Revenue
-100 USD mn
0 500 1,000 1,500 2,000 2,500 3,000 3,500
Player 1 Player 2 Player 3 Player 4 Player 5
Source: Capital IQ; Company Website; Note: Some companies shown here have other businesses segments also
ONLINE ADVERTISING MARKET IN CHINA 2011.PPT 8
9. Thank you for the attention
The Online Advertising Market - China report is a part of Netscribes’ Media and Entertainment
Industry Series.
For more detailed information or customized research requirements please contact:
Gagan Uppal Jitendra Punjabi
Phone: +91 22 4098 7530 Phone: +91 33 4064 6215
E-Mail: gagan.uppal@netscribes.com E-Mail: jitendra.punjabi@netscribes.com
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ONLINE ADVERTISING MARKET IN CHINA 2011.PPT 9
