The nation's online advertising boom will continue over the next few years, as Web-based shopping has become one of the most popular local online activities, a report released yesterday by the Market Intelligence Center (MIC,
"Online spending has grown significantly [in recent years], boosting the online advertising sector," MIC analyst Hung Chuen-huei (
The report, "2004 Internet User Behavior Analysis," was conducted by MIC based on an online poll posted on the front pages of Yahoo-Kimo Inc (雅虎奇摩), MSN Taiwan and Mobihome Co (摩比家) from Feb. 16 to March 1. The poll received 5,017 valid responses.
The report shows that Internet portals remain the most popular destinations when local users log on to the Internet, followed by online shopping sites, company Web sites, news media and sites that provide software downloads.
The 35-page report predicts that Taiwanese online users would each spend an average of NT$9,845 on purchasing goods and services via the Internet this year, up from NT$2,413 in 2001. The frequency with which users do online shopping also increased from 2.27 times to 3.95 times per person per year, the report added.
Top sellers in cyberspace were those who sold consumer electronics, computers, books and cosmetics, the report said, adding that mobile phone ring tones, e-mail account space, music files and online games were also hot online paid services among users.
"The rising popularity of online shopping helps to fuel the online advertising business [here]," said Geena Lin (
The market size for global online advertising was US$7.6 billion last year and the figure is expected to reach US$19.8 billion in 2008, Lin said, citing company statistics.
As for Microsoft's advertising income in Taiwan, Lin said the sector has seen a stunning 90 percent growth from the last fiscal year ended in June, and is expected to increase by above 50 percent this year.
Rival Yahoo-Kimo also saw its advertising income jump 50 percent this year, said Joann Chen (
Chen said compared to the skepticism about online marketing when the Internet bubble burst a few years ago, advertisers now have more trust in this form of marketing as the Internet has emerged as a mainstream medium.
Currently, the nation has 9 million Internet users, of which 3 million access to the Web through a broadband connection, according to the MIC.
According to statistics from AC Nielsen, the Internet reaches 55 percent of the market audience, while major TV stations such as ETTV and TVBS only reach 39.2 percent and 33 percent respectively, Chen said.
Besides banner ads and animated ads on Web pages, Internet-derived communication devices will also be employed by advertisers, Lin said. Instant messaging software, mobile phones and PDAs (personal digital assistants), which contain more personalized settings, can help advertisers to more precisely target potential customers, she said.
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