Analysys International: China Online Ads Remain Competitive in Q4, 2013

Analysys International: China Online Ads Remain Competitive in Q4, 2013



The statistics from EnfoDesk, the Seasonal Survey of China Online Ads Market in Q4, 2013, released by Analysys International, shows that Baidu, Alibaba and Google China ranked top three of China online ads in Q4, 2013, with market share being 31.4 percent, 17.5 percent and 5.7 percent.



Analysys International holds that the China online ads market structure in Q4, 2013 is mainly characterized by the following features:


Baidu maintain the revenue leader. Advertisers¡¯ acceptance of keyword marketing is relatively stable. Brand and technical innovation makes a strong competitive advantage for Baidu.


The market share of Alibaba has improved. The increase of Alibaba advertising revenue mainly reflects in two aspects. On one hand, the fourth quarter is the major promotional period for celebrating November 11, December 12, New Year and other major festivals. E-commerce advertising is relatively active in this period, which promotes Alibaba¡¯s market revenue. On the other hand, the whole network traffic trading platform, as well as the layout of RTB ads of is improving. With advertisers¡¯s gradually recognition on RTB, Alibaba has a greater competitive advantage in RTB advertising market.


Google China¡¯s prospect of market is worrying. Since Google China exited the Chinese search engine market in 2010, it gets market revenue growth mainly through the provision of overseas marketing channel for advertisers. Its market share is shrinking. With the rapid development of industry and fierce competition, Google China's share was gradually divided up and marginalized in the Chinese market. Today, Google China is gradually adjusting its strategy in China's Internet advertising market to enter the RTB market and mobile market. But there is not much growth in market share at this stage.


Third, portal groups have been transformed to bring steady growth in market share. The five portal groups ---- Tencent, Sohu, Sina, Phoenix New Media and NetEase account for 15.1% of China online ads market share with a rapid growth in 2013 Q4. Integrated portal is no longer confined to traditional forms of advertising, but introducing video, social networking, entertainment, services and other elements. Tencent integrated its social superior resources to exploit marketing value of social networks. Tencent video also began to rely on the overall resource advantages for rapid development. Tencent explore the local market actively in cooperation with local portal. Rely on Sohu video, Sohu obtain a steady growth. Sogou and Soso strategic integration also provide a good profit point for Sogou in the future. Sina Weibo is still actively exploring the commercialization and launch Longyuan advertising platform in September, hoping to achieve accurate advertising through techniques and data mining. Through a multi-screen technology, video services have become the revenue growth pillars of Phoenix New Media.


Vertical media shows the trend of rapid development. At this stage, video, real estate and cars have become mainstream vertical media. For video market, the market shares of Youku and Tudou have been further enhanced, accounting for 3.0 percent of China's online ads market. The market share of SouFun, and other vertical media has slightly improved. In the future, the field of vertical media will be further developed. Vertical fields, such as game media, health care, education, etc. will also be the development opportunities in the future. Diversified media platform has gradually improved. 


Research Statement

The industrial analyses, provided by Analysys International, mainly reflect the current situation, trend, inflection point, commercial law and manufacturers¡¯ situation. The figures and statistics are drawn by adopting a unique industrial analysis model combined with the research and study methods used by market, industry and manufactures. All the data are based on industrial macro and historical data, seasonal end-users¡¯ and business information.


It is believed that data concluded from research into market and trade is within acceptable errors. It can reflect the trend and commercial laws accurately.
Results obtained by the means of professional research methods are for reference. The actual data can be obtained by checking on financial report issued by manufacturers.


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