The internet will remain the fastest-growing advertising medium globally over the next few years, with an 18.1% annual growth rate, reaching $51.6 billion in 2010.
In general, the online advertising industry is being fuelled by the following factors:
- A greater propensity for consumers to purchase online which is influenced by greater understanding of the purchasing process and greater confidence in online security
- A growing number of people having regular online access either through work or from home
- The penetration of broadband and an improved online experience
- The greater sophistication of online advertisers to accurately target audiences and improve the ‘call to action’
Growth opportunities in China
The current and potential future growth in the number of internet users and digital advertising market in China is exciting.
In their July 2010 report “China’s Digital Generation 2.0” the Boston Consulting Group suggested that “To many multinationals, digital China is the mother of all untapped markets” citing the rise of e-commerce as the biggest trend shift in China. 3% of Chinese population shopped online in 2006, up to 8% in 2010 and expected to rise to 19% by 2012. The conclusion of the BCG research was that China is destined to be the world’s most strategic e-commerce market.
This market is already material with reported levels of e-commerce of $39.3 billion in 2009 that rose 97% to $78 billion in 2010 (China E-Commerce Market Statistical Report January 2011).