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China's search engine market tipped to reach RMB4.521 billion in 2010

01/06/2007| 5:06:00 PM| 中文

China’s search engine providers’ revenue will reach RMB 4.521 billion in 2010. From 2006 to 2010, the compound annual growth rate of the revenue is expected to be 30.31 percent. (1/4/2007)<br>

China’s search engine providers’ revenue will reach RMB 4.521 billion in 2010. From 2006 to 2010, the compound annual growth rate of the revenue is expected to be 30.31 percent. (1/4/2007)

According to Analysys International’s recently released report China Search Engine Market Forecast 2006 – 2010, the first main factor that promotes the development of China’s search engine market is the increasing number of the netizens, especially netizens who use search engine. Moreover, a large number of the small and medium sized enterprises have come to realise the marketing value of the search engine market, according to the report.

It is expected that in the next five years, the number of companies who launch their advertisements through search engine will increase at an annual rate of 17 percent.

In addition, the more specialised divisions of the industries in the search engine and the large-scale innovative application of the search engine in the specialised fields will lead to the integrated contents of the information, which will in turn attract more potential users and bring about more advertisement opportunities. This will be especially true during the Beijing Olympics of 2008, when there will be a great searching need for the information in such areas as sports, entertainment and tourism.

According to Analysys, the obstacles that hinder the development of China’s search engine include the unsatisfactory effect assessment of the search engine, the inconsistent effect of promoting the key word advertisement, the unorganised management of the agents, lack of effective restraining measures, insufficient discovery of the value of the netizen database and the advertisers and the unsatisfactory effect of marketing the database etc.

Due to the single profiting mode of the search engine advertisement, many companies have provided the products of the similar quality. The increasingly intensive competition will affect the development of the search engine market.

 (1US$ = 7.81 China Yuan Renminbi)

TAGS: Analysys International | Search Engine
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