ZO: What’s next for China online

Online advertising expenditure will grow to more than RMB100 billion by 2015, ZenithOptimedia predicts.

The agency released its new global report on new media adoption among advertisers and highlighted its findings for the China market.

Average cost per mille (CPM) for online banner ads in China is around RMB10, ZenithOptimedia wrote, but the number could change considerably with the ad’s position, size and creative.

For online video, the agency estimated the average CPM at around RMB60 to RMB100.

“This may increase slightly over the next year, but certainly no faster than it did last year as the market is more stable at the moment in terms of how quickly it is developing,” ZenithOptimedia wrote.

Advertising spend on mobile in 2012 totalled RMB5.5 billion, an 83.4% increase from the year before.

The agency also expects the upward trend of online shopping to continue – if slightly slower – over the next few years as more and more people get used to the idea.

“Credit card fraud and counterfeiting have plagued the market, and although some attempts are being made to address shoppers’ concerns – such as the introduction and spread of secure online payment services – trust remains an issue.”

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