Robust advertisement spending in the run-up to the Beijing Olympics 0808 has triggered online companies firing on all cylinders, and the lure of digital media continues to drive web usage as China strikes gold in the ongoing internet race..
Display ads are purportedly weak and ‘overhyped’ for relatively mature internet audiences. But online ads can be a cost-effective way to build brand awareness in reaching new markets for the Asian region. And advertisers get to test waters with the fastest growing online user population in the world.
China affirmed her domination of the online world with 253 million Internet users as of end-June, up an astounding 56% from just a year ago, according to the latest report from the China Internet Network Information Center (CNNIC).
Currently internet penetration is a mere 19% in China and netizens are expected to reach 490 million by 2012, vis-a-vis 71% penetration in the saturated U.S. market which had 223.1 million online users in June, according to Nielsen.
China has witnessed remarkable growth in recent times. CNNIC reported that the number of active Chinese internet users was only 111 million by December 2005 and figures almost doubled to 210 million users in 2007.
43 million online users were added in the first half of 2008; a high percentage of these are high school students (39 million) and those below 30 years of age (about 69%) – a promising target segment of China’s ‘one child policy’ with indulgent parents willing to spend; ripe for the picking by online gaming, social networks and ecommerce firms.
China’s ecommerce is lagging as CNNIC reported 63.29 million shopped on the internet while 23.79 mil paid through web transactions. However, the online wave is inexorably taking shape as China’s broadband subscribers have now increased to 214 million, more than 80% of total domestic Internet population.
Fixed-line telcos are jumping on the internet bandwagon vying for a piece of the 600 million mobile users pie, as exemplified by China Telecom adding a record 890,000 new broadband subscribers in June to total 39.95 million users.
