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DCCI: Q1 2009 China Online Ad Market Reaches RMB 3 Bln

Netease, 4/30/09

The Data Center of the Chinese Internet (DCCI) released the results of its Q1 2009 Survey of Chinese Internet Marketing today. The survey found that during Q1 of this year, online advertising revenues totaled RMB 3.03 bln, slightly higher - 5.9% - than Q1 2008's RMB 2.86 bln, and essentially the same as Q4 2008.

Among the major factors limiting the growth of online advertising placement were the unfavorable economic environment and the corresponding pressure placed on corporate budgets, unfamiliarity with online advertising operations, low trust in operator services and problems with ad blocking, the limited coverage and operating power of online media, and the lack of standards for online advertising operations - all of which were among the top factors listed by respondents to the survey.

DCCI also undertook a follow-up survey of advertisers, finding that although there is a trend showing small, targeted ad placements shifting from outdoor and print media to online media, shrinking ad budgets are causing more and more advertising clients to either scale back or delay traditional and online ad payments.

Based on the overall market environment for Q1, which was not up to expectations, DCCI has lowered its growth rate prediction for online advertising in 2009 to 25%.

Keywords: statistics market size DCCI growth rate Internet online advertising online media Q1 2009

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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