China’s Online Ad Boom

Business Week writes:

Online ad spending has been growing by more than 75% annually for the past three years. It’s expected to reach $812 million this year and top $1 billion in 2007, according to Shanghai-based IResearch. While Net advertising today represents just 2.3% of the total ad market in China, the balance is changing fast. “New Media’s advertising revenues are starting to catch up” and will surpass traditional media’s within 10 years, says Cui Baoguo, director of the Center for Media Management Studies at Beijing’s Tsinghua University. “There is huge space for growth.”

China’s youth has already changed, which makes the Net a good way to reach them. P&G created a site to launch a new youth-oriented Crest sub-brand called “Whitening Expression,” which comes in unusual flavors such as “Icy Mountain Spring” and “Morning Lotus Fragrance.” P&G is asking young people to post videos of themselves dancing with a tube of Crest in hand, and visitors to the site will vote on the best act. The winners — 250 of them — will get free tickets to pop concerts in July. “Our online objective is to increase our interaction with consumers,” says Arun Kumar, strategic planning director at Starcom Worldwide, P&G’s media planning and buying agency. “The Internet allows you to do things that other media can’t do.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.