Chinese Internet portal Sina.com (SINA) has announced impressive unaudited financial results for the quarter ended March 31, 2007. Sina reported total revenues of US$51.3 million, compared to US$46.7 million in the same period in fiscal 2006 and US$56.4 million for the fourth quarter of 2006.Advertising revenues for the first quarter of 2007 totaled US$31.8 million, representing a 43% increase from the same period last year.
Impressive results and increased in the online advertising revenues of Sina.com by 43% from the previous period is a sign of that more money are been poured into online advertising in China.
Currently online advertising revenues in China accounts less than 2% of the total US$50 billion advertising market revenues in China. In comparison to the US, online advertising revenues account for slightly more than 10% of the total US$150 billion advertising market revenues of the US.
There are still tremendous upside and growth in online advertising revenues in China in view of the low online advertising penetration. Most of the current advertising budgets are focused mainly on TV but this should gradually change to reflect the real internet penetration in China.
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