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Chinese Search Engine Market to Slow
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Beijing, China - (Cheap Web Hosting Directory) - March 29, 2006 - Analysys International, an Internet-based provider of business information about technology, believes that due to increasing
dissatisfaction from small and midsize enterprise advertisers of search engines, China is expecting a sharp slowdown in the growth
of its search engine market in the coming 18 months.
According to Analysys International, about 100 million Internet surfers use search engines at least once a week in China, accounting for 84% of the total Chinese Internet user base. Search engine users and Internet surfers are both growing rapidly. Analysys International says, in 2005, advertising revenues from search engines reached RMB 950 million in China, accounting for 32.2% of the total online advertising market and increasing by 79% over the year 2004.
However, despite search engine user and Internet surfer growth, according to Analysys International's business life cycle model, the search engine industry in China is still in the initiation stage. This is characterized by high and fast growing market expectations. Search engines still can't understand exactly what users want and the search results are usually not satisfying.
Analysys International believes that, most importantly, their research shows that some small and midsize businesses that advertise on search engines are not satisfied with the advertising results. The dissatisfaction is still increasing and search engines haven't brought the value they had expected to consumers.
Edward Yu, CEO of Analysys International explained, ''China's search engine industry will face a sharp slowdown in the coming 18 months. The actual performance of search engines is far from people's high expectations. Poor user experience, unstable advertising effects, and some irregular channel operations make the small and midsize enterprise customers of search engines suspicious of this new kind of advertising, which will lead to a slowdown in the growth of the search engine industry, '' explained Mr. Yu at the Search Engine Symposium held in Nanjing, China, on March 17, 2006.
Mr. Yu continued, ''The user experience is not satisfying. When a user types in a word to a search engine, it is likely the user doesn't get what he or she exactly wants, which leads to low brand loyalty.'' Analysys International says that over 46% users turn to other search engines or portal websites when they don't get what they want in a search engine.
According to Analysys International's research of 1500 samples, only 20% search engine advertisers obtained results that exceeded their expectations, while about 29% didn't get the results they had expected and were considering reducing or suspending their search engine marketing expenses.
Despite evidence of user dissatisfaction, however, Analysys International also believes that as the industry chain improves and the business model gets clearer, the search engine sector will finally enter a stable growth stage.
To learn more,
please visit the website at: http://english.analysys.com.cn.
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