China’s Online Advertising DNA. Automotive, Computer and FMCG Industries Drive China’s Online Advertising

Nielsen//NetRatonline advertising tracking serviceings: in China, revealing a strong commitment

of the computer, automotive and FMCG industries to online advertising.

China’s Online Advertising Landscape

With 82.6% of China’s internet users declaring the internet as their main information

channel, the advertising potential of the Chinese internet has never been clearer

and the demand for in-depth insights in China’s online advertising landscape never greater.

Responding to this strong market demand, NetRatings started to monitor China’s top

websites in May 2006 and the technology-based AdRelevance service currently scans over

200 sites and creates instantly available reports, 24 hours a day, 365 days a year.

After a very successful introduction of AdRelevance in the Asia Pacific region

earlier this year in Australia, we are confident that the launch of this service in China will

provide online players in and outside the country with the information needed to plan and

evaluate their online ad sales and investments. We are strongly committed to growing this

standard throughout the region and will announce the launch of AdRelevance in Japan

shortly.

Online Display Advertising Activity and Expenditure – May to July 2006

Over the period May to July 2006, China’s online space saw a strong and steady growth of

online advertising activity. 587 online display

advertisers ran nearly 1500 campaigns consisting of over 3700 banners in May. By July, the

number of advertisers grew by 39% to 817, while the number of campaigns and banners

increased respectively 34% and 55% to 2276 and 5785.

The AdRelevance service estimates China’s total online display advertising expenditure

between May and July 2006 at CNY 1.5 billion (US$ 190 million). This number is closely

approaching China’s Magazine advertising expenditure, which is projected at CNY 1.9 billion

for the same period by Nielsen Media Research. The big online advertising spenders were in

the automotive, computer and electronics and FMCG industries, jointly responsible for

almost 60% of the quarter’s ad spend.

Chart 1 – Estimated Online Display Advertising Spend, China, May – July 2006

Source: Nielsen//NetRatings AdRelevance, China

China’s Online Display Advertising Leaders

In July 2006, the overall best performing advertiser by number of ad impressions and ad

spend was China Mobile.

In the automotive industry, Nissan was the number 1 advertiser, while Founder ranked at

the top in the computer and electrical category and Coca-Cola topped the list of online

display advertisers in China’s FMCG industry.

Chart 2 – Top 10 Online Display Advertisers, July 2006

Rank Advertiser

Ad impressions

(in billions)

1 中国移动通信集团公司 - China Mobile 3.1

2 日产汽车有限公司 - Nissan 2.5

3 易趣 - eBay 1.8

4 方正集团 - Founder 1.6

5 可口可乐 - Coca-Cola 1.5

6 大众- Volkswagen 1.4

7 联想控股 - Lenovo 1.3

8 内蒙古蒙牛乳业集团有限公司 - Mengniu Group 1.2

9 英特尔 - Intel 1.1

10 丰田 - Toyota 1.0

Source: Nielsen//NetRatings AdRelevance, China

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