Study Findings: - U.S. Internet advertising market revenues exceeded $12.5 billion in 2005, a 30% increase over the all-time high of $9.6 billion in 2004.At $3.6 billion, Internet advertising revenues in the fourth quarter of 2005 stayed above $3 billion for the second consecutive quarter, and were the highest sales quarter in the market. Compared to the fourth quarter of 2004, Internet advertising revenues increased 35% in the fourth quarter of 2005 and 17% over the third quarter of 2005. - Internet advertising spending in France, Germany, Italy, Spain, and the United Kingdom reached 1.863 billion euros in 2005, equivalent to approximately $2.2 billion, an increase of 38.2% over 2004. In addition, eMarketer believes that the online advertising market in Europe is about two years behind the United States. - In 2005, all advertising revenues in Japan's national media amounted to 5,962.5 billion yen. The four traditional media, including TV, newspapers, magazines, and radio, which account for more than 60% of advertising revenue, saw a decrease in advertising revenue*** totaling 3,651.1 billion yen, a decrease of 0.7% from the previous year, while Internet advertising, outdoor billboard advertising, advertisements embedded in newspapers, trade show advertisements, and transportation advertisement fees continued to grow. - The size of China's online advertising market amounted to 3.13 billion yuan in 2005, an increase of 77.1% over 2004 and 7.6 times the 2001 figure. Broken down by online advertising presentation, branded graphics accounted for 65.2% of the 3.13 billion yuan online advertising market size, down 8 percentage points from 2004, while multimedia advertising doubled its market share from 1.7% in 2004 to 3.6% in 2005. - China's Internet users had reached 111 million by the end of 2005, up 18.1% from 2004. Although the number of Internet users in China has been rising, the growth rate has been on a downward trend since 2002, and remained around 18% in both 2004 and 2005. Among the online advertisements that users have ever viewed, the largest number of online advertisements is in the category of digital products, followed by software/games and cell phone online advertisements. - More and more advertisers are losing faith in the effectiveness of traditional advertising, with investment in online advertising reaching $14.7 billion in 2005, an increase of 23% from 2004. Nearly all advertisers surveyed said they plan to reduce their investment in traditional advertising channels such as print media and direct mail and increase their investment in online advertising. Nearly 78% of advertisers surveyed said they believe search engine marketing will be more effective than traditional advertising over the next three years; 53% of advertisers surveyed said the effectiveness of television advertising will decline. The study concludes that: - Internet marketing is divided into online advertising content producers, channel distributors, technology providers, etc., and will be further refined in the future, such as content producers subdivided into different content producers specializing in data, images, and rich media; and channel distributors subdivided into portal advertising distributors, search engine channel providers, etc. At present, the online advertising industry chain is mainly composed of advertisers, agents, online media, online advertising technology providers and online advertising platform operators. - Since 2000, the three major portals of Sina, Sohu and NetEase have been facing great competitive pressure. After the challenges of Yahoo and China.com, the three major portals have ushered in powerful rivals, and in recent years, the strengths of strong professional websites and advertising alliances in online advertising have threatened the position of the three major portals. Therefore, the most likely application of the three major portals is to merge and compete with other websites through the merged website. - China's online advertising market size will maintain a continuous growth trend, and is expected to grow by 69.7% in 2006, reaching a market size of 5.3 billion yuan. It is expected to develop at a relatively high growth rate in 2008, reaching a market size of 15.1 billion yuan. Thereafter, the growth trend of online advertising will gradually slow down, maintaining a more balanced market size. According to this law, online advertising will have a market size of 29.5 billion dollars in 2010. - After 2005, online advertising model innovation will continue to develop y. In terms of online advertising placement and management mode, self-service placement and self-management by advertising users has become a trend, which greatly improves the efficiency of online advertising placement and management; in terms of online advertising media selection, it will not only be limited to a few pre-selected websites, but also every website with relevant content and services may become online advertising media; in terms of the form of online advertising information delivery, voice advertising, video advertising and so on will be presented in a variety of forms. In terms of the form of information delivered by online advertisements, voice advertisements, video advertisements and so on will be presented in various forms. - To make advertisements more effective, there are currently two approaches: one is to find "people who want to see advertisements" and place advertisements on them, and the most important characteristic of these people is that they click on the advertisements on their own initiative; the second approach is to place advertisements on web pages related to the advertisements. Around these two responses, a new model of online advertising has emerged.

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