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Olympics fuel China's Internet ads

By Xu Shenglan (chinadaily.com.cn)
Updated: 2008-08-20 11:02

Online advertising income is expected to surge 65 percent in 2008 and 40 percent in 2009 thanks to the Olympics, according to GroupM, an established global media investment management company.

Mobile and LCD advertising spending in China is expected to surpass that of Internet spending, increasing 82 percent in 2008 and 47 percent in 2009, GroupM said.

The emerging field of digital media will eclipse traditional media's market share in the coming years. Technology's rapid development has accelerated the growth of digital media advertising, while the competition between marketing in traditional media and the online media continues to grow.

"Twelve years ago, we got used to traditional one-way marketing, but today, digital marketing, which focuses on clients' needs and interactions between brands and customers, is necessary for marketing executives whether they are in large or small firms," Kent Wertime, president of Ogilvy Asia Pacific, told China Business News. "We see digital media as a renovation of marketing rather than an overhaul of marketing."

Although digital media is developing rapidly, it will continue to share the market with traditional media, said Kent.