China Online Advertising Industry Growth And Forecast 2016

Executive Summary

China is considered as one of the most exciting and challenging media markets in the world, the reason being the countrys size, diversity and complexity. In 2009, Chinas advertising market performed well and in 2010, the Chinese media market profited from the Shanghai World Expo, Asian Games and economic growth.

Presently, in the country online advertising market is dominated by display and rich media. Mobile advertising segment is also considered as a growing market as it is witnessing improvement in performance every year due to innovations in mobile phone technology and sale of 3G/4G mobile phones in the country. Search advertising segment continues to register growth and in 2010, it was the only segment that grew at a rate higher than the previous year. Video advertising is another segment that has been witnessing an increase in demand per year, the reason being that it is one of the most popular internet applications, particularly among youth. Moreover, the rising consumer interest has made various sectors like toiletries, food & beverage, internet services, entertainment and apparel, etc look at this segment to raise consumer awareness and drive sales.

Among the various industries, apparel sector was the largest contributors to online advertising in terms of ad spend in 2010, followed by computers/electrical, automotive, construction/real estate, FMCG and entertainment. In addition, an increase in ad spends from financial, insurance and food & beverage and health sectors are also being witnessed in the country. At present, the Chinese online advertising market is driven by both domestic and international advertisers. In the search engine category, the market is dominated by Baidu.com, followed by Google.

In the coming years, online advertising in China is expected to surpass advertising revenues generated from print media. Growing popularity of online video, large population, growing e-commerce trade, social networking websites and economic growth is expected to increase online advertising revenues. Moreover, entrance of foreign players in the market through deals and alliances is also expected to increase investment opportunities and market competition, thereby, leading to improved services at low cost.

The report on China Online Advertising Industry includes a detailed study of the Chinese online advertising industry. We have also analyzed the industry and its various categories/ segments and trends prevailing in the market. The report also includes the industry, present performance and forecast of its various segments. Additionally, we have discussed cause and effect relationship of macroeconomic and industry factors on the industry providing the basis for the future outlook.

Key Findings
1Despite the beginning of the slowdown in 2008, the countrys online advertising industry performed well due to the Beijing Olympics and resultant increase in tourism. In terms of QTQ growth, industry grew by 19.17% in 2008 and performance of third quarter was the greatest when compared to other quarters of 2008.
2In 2009, Chinas internet advertising revenue was USD ~ million, the growth rate was low as compared to the previous years. The search engine advertising, online video contributed to the market growth and helped the industry register positive performance.
3In the fourth quarter of 2010, China online ad registered USD 1.10 billion, growth was 25.60% compared to the same quarter in previous year.
4Video and search advertising segments registered the fastest growth while online advertising market was dominated by display and rich media, thereby, accounting for the highest share among all online advertising segments.
5In 2010 the market for search advertising grew 39%, up from 2009. In the first and second quarter of 2011, search advertising registered growth of 33.17% and 37.25%, respectively.
6During 2010, the leading contributors to online display advertising were automobile, apparel, entertainment, food and beverage and electronics sectors.
7In terms of ad spend, before the economic slowdown the online video advertising was witnessing double digit growth. However, in 2009 & 2010 the growth rate was low, during the discussed year.
8In 2010, vertical web site advertising was USD ~ million, up 14.73% from the previous year; however, the growth was low when compared to 2009. In 2009, revenues increased 15.90% and in 2008 it had risen to 17.39%.

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The Effects Of Advertising On Eating Habits

Have you ever wondered why Americans eat so much? Well, the food industry is one reason and an important one I’d like to discuss. The growth of the food industry has made high-fat, inexpensive meals available throughout the world, and bigger size has become a major selling point. McDonald’s sells the Big Mac, Wendy’s offers the Big Classic, and Burger King pushes the Whopper. Do you notice anything similar with the names of these burgers? A large coke at most fast-food restaurants is now 32 ounces and 310 calories and at one time not too long ago was just 12 ounces and 180 calories. If fact 20 years ago kids drank an average of 8 ounces of soda a day; today they drink an average of 24 ounces a day. The food abundance we’re surrounded with has secured a spot in your mind, causing intense cravings and compulsions, and you must do something about it.

Astonishingly, a 12-ounce can of soda contains 8 to 10 teaspoons of sugar and many teenagers consume as many as 7 cans a day, which equals nearly 1000 empty calories and 60 teaspoons of sugar. Try this on for size: kids today drink almost twice the amount of soda as they do milk.

To make matters worse, the fast-food industry makes promotional links with leading toy makers, giving away simple toys with their kids’ meals and selling higher profile toys at a discount. It’s a clever way to target kids, and a successful toy promotion can double or triple the weekly sales volume of children’s meals. Did you know that the second most recognized fictional character is Ronald McDonald, second only to Santa Claus? Ninety-six percent of American school children can identify Ronald McDonald before they can recognize their own name! Doesn’t that tell you something?

The fast-food industry spends about 33 billion dollars a year on advertising and most of it is done subliminally, meaning that the messages affect you without your conscious awareness; without you knowing it. You may notice the contents of a commercial, but they go right over your head and infect your subconscious with a “virus.” The purpose of advertising is to hit you where it hurts — emotionally. Recently, I watched a particular fast-food commercial showing a mom and young daughter eating burgers and fries. It seemed innocent enough, but here’s what the real message was: The mother was dressed in a business suit with her briefcase, and the young girl told her mom that she appreciated spending quality time like this with her. The mom guiltily looked at her daughter while both of them smiled and ate their French fries. A working mother watching this commercial would have subconsciously absorbed this message, felt guilty without even realizing it, and perhaps paid a visit to the fast food restaurant without consciously knowing the real reason.

Advertising on Craigslist

Advertising on Craigslist is worthwhile for just about any business offering products or services. Whether these products are offered through ecommerce websites or physical stores, the business owners can see financial gains through advertising on Craigslist. Firstly unlike other advertising opportunities there is very little risk involved in posting on Craigslist. With the exception of job postings and housing postings in specific markets, advertising is free on Craigslist. Users are asked to agree to the terms of service of the community and are expected to follow specific guidelines when posting advertisements but there are no financial obligations to those placing advertisements on Craigslist. This means those who post advertisements do not have to be concerned with whether or not the advertisement they place will meet their expectations in terms of sales generated.

Reaching Potential Customers on Craigslist

Another reason why posting advertisements for products or services on Craigslist is so worthwhile is the likelihood of reaching a large audience of potential customers. A review of the Craigslist fact sheet reveals pertinent information regarding the amount of traffic the website receives. According to this information Craigslist receives approximately four billion page views each month with ten million people using Craigslist each month. From these statistics it is clear that advertisements placed on Craiglist are likely to receive at least some attention from potential clients.

With so many visitors using Craigslist each month the advertising possibilities are limitless, however, there are no guarantee any of these visitors will be interested in your products or services. Like any marketing campaign, your advertisements on Craigslist must be intriguing, informative and in a location where you will reach your target audience.

Finding Your Target Audience on Craigslist

Weve already discussed the number of visitors using Craigslist each month but the key to taking advantage of these numbers is to target your advertising in a way aimed at reaching your target audience as opposed to a wide audience of individuals who have no specific interest in your products or services. It is much more worthwhile to reach a small audience of those with a keen interest in your products or services than to reach a much larger audience of those who are not interested. Those who have an interest in your products or services are your target audience.

The key to reaching your target audience on Craigslist is placing your advertisement in the most appropriate locations. Craigslist has a specific section for businesses to advertise their services. This section is broken down into a number of categories. Those who are in the business of computer repair would be wise to place their advertisement in the computer section as opposed to the automotive section because individuals looking for computer help will naturally migrate to the computer section. It may sometimes be appropriate to place an advertisement in more than one section. This is acceptable as long as it does not cross the line to spamming the section.

If there is not a specific section for the products or services offered by your business there are a couple of options. Business owners can place an advertisement in the section for small business advertisements where it might be found by those doing a search in this section. Alternately the business owner can contact Craigslist to suggest the addition of a new category. They might be willing to oblige if they believe this category warrants an addition.

The Difference between Advertising and Spamming

Advertising on Craigslist is one thing but spamming is quite another. Placing an advertisement in an appropriate section of Craigslist is acceptable; however, placing the same advertisement in nearly every section of Craigslist websites for a number of different geographical regions is considered spam. Spam is ineffective for a number of reasons. First of all potential customers who see a particular advertisement in a number of different locations are likely to recognize the spamming techniques and be less inclined to patronize this business. Also, if Craigslist detects the practice of spamming they may delete all of the postings and could potentially ban advertisements from the individual in the future.

Advertising Career Overview

Students with degrees in advertising will find a competitive job market. Competition for jobs in advertising is tough because this industry customarily attracts more jobseekers than there are job openings. The draw towards this industry is the multimillion-dollar campaigns, and the glamour surrounding the promotion of products and the clients it represents. According to the Bureau of Labor Statistics ( http://www.bls.gov/ ), non-supervisory workers in advertising and public relations services made $633 a week on average in 2004. Companies in the advertising and public relations industry arrange advertisements for other companies and organizations and propose campaigns to encourage the interests and image of their clients. This industry also includes media representatives, radio, television, and the Internet. It also includes display ads, direct mail, billboards and other tangible media. The demand for educated advertising professionals is on the rise as technological advances give advertisers more options for the media on which they advertise.

You can earn an advertising degree at public and private colleges and universities, as well dedicated technical schools that offer career specific programs. Specialty schools often offer two-year degree or certificate programs in advertising. Traditional four-year college and university programs offer advertising programs within other majors such as communications, business or art programs. Most people starting out in an advertising career will be required to hold a bachelor’s degree with a liberal arts background. Bachelor’s degrees are not required for entry-level positions in the creative department. Assistant art directors, for example usually need at least a 2-year degree from an art or design school. Although assistant copywriters do not need a degree, obtaining one helps to develop the superior communication skills and abilities required for this job. Entry-level positions in the industry include account management, media coordinator, or market research. Internships, in conjunction with your education, will help you get a job when you graduate. Completion of an internship is often a necessary requirement for many advertising firms. In addition to an internship, course work in marketing, design, statistics and accounting can help get you ready for employment in this field.

Myths Of Airport Advertising India

Airport Advertising India is a prominent Advertising Platform that has always been adopted by the top brands for various promotional campaigns. However, there are still a few myths that circulate in the industry circles about this medium. These ill-researched notions are the top reasons why some of the brands are still hesitant in contacting Airport Advertising Agencies in India. This article discusses these myths and points out the reasons as to why they are nothing but highly inaccurate conjectures cooked by sources that chose to be unmindful of the facts.

High Cost

This is the first factor that comes into question. Brands opting out of the medium due to its high costs are common occurrences. Though it is true that Airport Advertising does cost higher than most other mediums, it is only the first half of the tale. What the myth propagators conveniently overlook are the High Returns on Investment (RoI) that the medium offers. The RoI from the airport medium is, in fact, way higher than even the media that cost more. Looking at only the investment part of the platform without considering the returns part at all is either a short sightedness or reeks of an intention to create myths. The brands, that have become royal patrons, know that the high returns, commanded by the medium, make the cost a worthwhile investment.

Only Selective Audiences

A reason why the relatively smaller brands do not include the discussed platform in their media spend is that they have formed an opinion that it is for those looking for an affluent audience only. It is true that affluent audiences form the cream of an Airport Audience, but with the surging popularity of low cost airlines, the upper middle class has also become an integral part of the audience. This new opportunity is only likely to grow with the Tier II and Tier III cities in India set to gain their own airports. With their number to reach 400 by the year 2030, there are whole new dimensions to the audience types that will be incorporated into the medium. One of the reasons why such a decision received a boost is the encouraging response received by the low cost carriers.

Time Consuming

Another impression, doing the rounds, is that due to the nature of the medium, a campaign would take much time in getting launched. Considering the large sizes of airports, this viewpoint is understandable. However, the reverse is true; as such a big transit point requires functioning at a highly organized fashion. Contrary to the stated myth, installing displays at the airports take much lesser time. The record time for complete installation at 4 airports in India and client intimidation, as set by TDI International India (P) Limited, is merely 13 hours from the signing of the contract.

Hassles

Airports are some of the most heavily guarded civilian places in the world. The impression that attaining the necessary clearances might involve hassle-filled procedures is understandable in this regard. However, the AAI ensures that the Advertising Licenses are given only to the agencies that have the requisite resources and experience to run campaigns in the prescribed manner. Due to this stringent selection, operational hassles are only at the bare minimum at the later stages. In fact, if the agency holds exclusive rights on the airport, these hassles do not exist at all.

The Airport Medium is often referred to as the king of OOH in India. Brands that have benefitted and are benefitting from the medium will second that reference. It is tragic that, due to the above myths that float in the market, some of the brands stay away from the rich benefits of the platform that has been accorded the highest position in Advertising in India.

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