Overseas investment

China's 162m netizens boost new media growth

1970-01-01 08:33:27


 
Netizens spend more time searching for online music, videos and games compared with Internet-based job-seeking, education, shopping, travel ticketing and bank services, according to China Internet Network Information Center (CNNIC).

The research tracked 5,000 people in every province and collected a total of 21,714 online samples.

Most users are unmarried young people under the age of 25, with a monthly income less than 1,500 yuan (US$197). Netizens are concerned about computer viruses, Trojan programs and fake information, according to the research.

The number of users in China jumped 31.7 percent year-on-year to hit 162 million by the end of June, ranking second in the world, behind the United States' 211 million, according to CNNIC.

China's Internet penetration rate was 12.3 percent in June, rising from 9.4 percent a year ago, but still lags behind the global level of 17.6 percent and more than 60 percent in Japan, South Korea and the United States, according to CNNIC.

"Crossing the 10 percent line, the rate will grow rapidly within three to five years, also fueled by various online applications and improved Internet access networks," CNNIC said in the report.

Industry insiders said the huge base of Netizens bring considerable income to dot.com firms in China.

Chinese-listed Internet companies recorded a 28 percent operating margin on average in 2006, compared with 21 percent of traditional media. The gap between the two groups may widen to over 10 percentage points in future, Morgan Stanley said in a report on Tuesday.

"In the new media sector, leaders may take all (market shares), unlike the old media players," said Morgan Stanley.

Focus Media commands a 95 percent market share in office TV-panel advertising. Tencent attracts 80 percent of instant messaging users while Sina.com and Sohu.com combined to win more than 40 percent of online brand advertising sales.

In comparison, CCTV (China Central Television), took less than 30 percent of TV advertising sales, according to Morgan Stanley.

Online advertising contributed three percent of China's total advertising sales, up from nearly zero five years ago.
 
 
 
 
 
Source:Shanghai Daily