Analysys International Says China's Online Advertising Market Reached RMB 939 Million In Fourth Quarter 2005

Analysys International, a leading Internet based provider of business information about technology, media and telecom (TMT) industries in China, says China online advertising market reached RMB 939 million in the fourth quarter of 2005 and forecasts the compound annual growth rate (CAGR) of China's online advertising market will reach over 30% in the coming three years.

According to the research report China Online Advertising Market Quarterly Tracker Q4 2005 released by Analysys International, China online advertising market reached RMB 939 million in the fourth quarter of 2005, among which keyword advertising reached RMB 218 million, online Ads reached RMB 646 million, PR advertising reached RMB 76 million and Email advertising reached RMB 5 million. (Figure: China Online Advertising Market Q4 2005 http://english.analysys.com.cn/UserFiles/watered/1664.jpg)

Sina, Sohu, Yahoo! China, Netease and Tom Online are the top 5 vendors leading China's online advertising market. Analysys International says China's online advertising market including brand marketing and paid search advertising will reach over 30% CAGR in the coming three years.

''As China's Internet environment matures, the Internet industry will play an important role in business affairs.'' says Rao Zhan, an analyst from Analysys International, ''Online advertising will play an important role in the Internet market and keep fast growing speed.''

However, Analysys International also says China's online advertising market faces changes and heavy competition in the future. As contents on the Internet become richer, online advertising providers will have to face heavier competition to attract user attention and to provide targeted traffic to advertisers. New business models such as pay-for-performance advertising will occur, in turn challenging the current payment model.

About Analysys International

Analysys International is the leading Internet based provider of business information about technology, media and telecom (TMT) industries in China with the mission to help their clients make better business decisions. They provide data, information and advice to 50,000 clients worldwide, representing 1,500 distinct organizations; they also deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Their clients include executives from companies like technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. For more information, please visit the web site at http://english.analysys.com.cn.

For more information, please contact:

Jessica Wang

Overseas Media Manager

Analysys International

Tel: +86-10-6466-6565 x394

Fax: +86-10-6466-7102/7103

Email: Overseas@analysys.com.cn

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