Inflection point and breakthrough point of online advertising in China

Online advertising surpassed magazine advertising revenue and became the mainstream advertising media. It took 10 years in the United States, while 8 years in China. In 2005, China's online advertisement officially ushered in its adult ceremony.
According to the iResearch survey, China's online advertising spending in 2005 reached 3.13 billion yuan, an increase of 77.1%, exceeding 2.49 billion yuan of magazine advertising. In the past five years, the network has grown by nearly seven times. It is no longer appropriate to use new media or auxiliary media to define the network. The figure is expected to expand to 2010 yuan by 15.7 billion (Figure 1 ).
The next five years will be an important period of revolution in the maturity of online advertising. How can we grasp the future development direction and continue to make new breakthroughs?

Seven inflection points in China's online advertising market


The changes in the online advertising market in 2005 not only change the original model and pattern, but also have a profound impact on the future. From the perspective of a large development process, we can mark these changes as the turning point of the online advertising market into a comprehensive maturity.
The first turning point: China's Internet has entered the broadband network era. Currently, China already has 0.111 billion million Internet users, although the penetration rate for the population is less than 10%, however, the number of Internet users on broadband has reached 64.3 million (CNNIC's 17th report statistics), accounting for 58% of the total (Figure 2 ). From the country's experience in the development of online advertising, more than half of broadband users are a very important milestone. It will bring significant changes to the strategies and application forms of online marketing, for example, customers can make richer rich media ads on their websites and send large-capacity streaming media.
In China, the "broadband effect" has begun to emerge. In 2005, the proportion of brand graphics ads fell by more than 8 percentage points in 2004, while the market share of rich media ads doubled, from 2004 in 1.7% to 2005 in 3.6%, various innovative and rich media forms are constantly developed.



Second inflection point: more advertisers set up an interactive marketing department more and more advertisers began to set up an interactive marketing department, or added an interactive marketing function under the marketing department, and seek more interactive marketing solutions from agents. In 2005, the number of online advertisers in China continued to increase, especially the number of advertisers serving more than 1 million yuan, reaching 474, an increase of 2004 from 173, an increase of 57.5% (figure 3 ).
The Third Turning point: advertising agencies are involved in the strong interactive marketing demands of online marketing advertisers and the increase in the number of online advertisers, which leads to the growth of advertising agency companies, many traditional advertising agencies have also begun to set up interactive departments. The interactive agency team is growing. Currently, there are more than 100 advertising companies engaged in online advertising agencies in China, and more than 20 advertising companies focusing on online advertising agencies, in addition, due to the attractive development prospects, some outstanding interactive agents are gradually favored by international advertising groups to discuss the possibility of strategic cooperation and mergers and acquisitions.