iResearch: New Advertisers Give new Impetus to Sina Online Advertising Service
According to Sina's financial results for Q4, 2007, the total income reached 246 million dollars in 2007, that's an increase of 16% YOY, three times as much as in 2002. Sina's total income keeps steady growth between Q1, 2006 and Q4, 2007. iResearch thinks that online advertising service is the main factor for the increase of total income.
Sina's income from online advertising increased 43.2% YOY to 50.1 million dollars. Meanwhile, online advertising income occupies 70.9%, instead of 47.5% in Q1, 2006, of Sina's total income, which pushed Sina's online advertising income increased 41.5% to 169 million dollars in 2007.
Income from wireless value-added business decreased slightly with the impact of change of mobile operators' polices and increase of marketing cost for IVR.
Looking over Sina's structure of total income, it's easy to see that online advertising is the main reason for its growth of total income. According to iResearch, the development of Sina's online advertising business mainly due to following two reasons:
Increase of advertiser amounts
According to latest data from iAdTracker, an online ads monitoring system from iResearch, Sina's advertiser amount increased significantly, which directly promotes the performance of Sina's online advertising business.
iAdTracker data shows that Sina's advertisers mostly concentrated in real estate, automobile and IT product industries. Advertisers from these three industries accounts for 64.1% of all Sina's advertisers and in keeping growing. Besides, advertisers from financial service, food and decoration industries are increasing rapidly.
Increase of traffic and user stickiness
iResearch believes that the large amount of loyal and sticky users is one of the main reason for the growth of Sina's advertiser amount. The latest from iUserTracker shows that main channels', especially blog's, financial news's and IT news's, viewing duration is increasing steadily. iResearch believes that the increase of viewing duration reflects the increase of user stickiness. Increase of traffic and user stickiness provided a solid foundation for Sina's online advertising business.
Source : Chinatechnews - Authorization duplication : iResearch
