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China to Reach $7.36 Billion in Online Ad Spending


While the advertising sector's market outlook still looks bleak in many nations, some emerging countries offer an upbeat perspective. As an example, the outlook for advertising as a whole within China is a very promising one, and marketer spending for online ads in particular is perhaps the most positive of all.

eMarketer estimates that online ad spending increased by 43.2 percent in 2011, and they forecast another increase of 39 percent in 2012. Growth will be driven by the increased adoption in both internet penetration and online activities -- such as online video, social media and search.

According to an April 2012 report from consultancies R3 and Admaster Digital Consulting, more than four-fifths of marketers in China plan on increasing digital media spending during 2012.

Moreover, 41 percent of surveyed marketers plan to increase their spending by at least 20 percent, and 13 percent will increase spending by 50 percent or more in China.

Marketers in China are especially bullish about the upside potential for online video and social media -- including weibo microblogs and social networks.

According to the report, 23 percent of the marketers surveyed expected to devote most of the increased spending to online video in 2012, followed by 20 percent to weibo microblogs and 16 percent to social networks.

eMarketer estimates that online ad spending in China will reach $7.36 billion in 2012, and more than double to $16.48 billion by 2016.

R3 and Admaster’s findings suggest that marketers are rushing to place brands where internet users are consuming digital media, hoping that it vaults their clients’ brand values to the top of their product or service category.

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