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SMX China – Introduction to China Market

Alex Christie

18 April 2008

Yu Yang from Analysis International gave us an introduction into China’s online marketplace.  He had a wealth of information in his slides, so if anyone can read Chinese I suggest you find a copy.  We will extract the key ones in a later post.  He had a nice graph that showed the correlation between China’s impressive GDP growth and that of its internet usage which is an indicator to how important this technology is to China at the moment.

He was talking about Chinese marketers still focusing their advertising spends offline, with most companies only dedicating 4% of their budgets towards this medium.  The problems are around being used to traditional advertising where spend x get y adspots.  Very easy, the difficulty being where to spend the money.  With SEO there could be months before getting a return so a lot of education is needed – we all know SEO should be one of the cheapest marketing channels.

Still search spend has been increasing rapidly – 5 years ago it was at 1 billion RMB (approx 77 million GBP), is now about 6 billion RMB (462 million GBP) and is expected to grow to 8 billion RMB over the next year or so.

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