Online advertising in China is expected to rebound in the second half of the year as ad spend shifts from traditional media to the internet with search engine Baidu, video site Youku and web portal Sina likely to benefit the most from this expected increase, say analysts at Barclays.
"We believe demand for online advertising in the second half of the year should trend better than in the first half for most (internet) companies," Barclays Equity Research analysts led by Alicia Yap wrote in a report on Thursday. "Although ad demand from the real estate and IT sectors remains sluggish, demand from the auto sector has picked up nicely since the second quarter, rising 10-15 percent year on year."
The auto sector was the top online advertiser in 2011, contributing about 20 percent to overall web advertising in China, followed by internet companies at 16 percent and the real estate sector at 13 percent, according to Barclays' data. It estimates overall online advertising to touch almost 50 billion yuan ($7.8 billion) in 2012, a 32 percent expansion over 2011.
According to the report, big sporting events like the Euro 2012 soccer tournament and the upcoming summer Olympic Games in London will drive more traffic to the web and advertisers want to tap that. Sina, which owns the micro blogging site Weibo with 300 million registered users, is in a good position to benefit from that.Page 1 of 2 | Next Page