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  • [Internet Ad] Taiwan's Internet Ad Market to Triple by 2000
  • November 16, 1998 (TAIPEI) -- Spending on Internet advertisements in Taiwan is likely to triple annually over the next two years.
    YamWeb Co., a Taipei-based Web site in Chinese and English, estimates that Taiwan's Internet advertisement market will enjoy an expansion from US$3 million in 1998 to US$27 million in 2000.

    Total expenditures on Internet advertisements exceeded US$1 million in 1997, according to a survey conducted earlier this year by the Market Intelligence Center (MIC) of the semi-governmental Institute for Information Industry (III).

    Almost 90 percent of the spending was directed to the top five local entry-point Web sites.

    With more than 2.4 million people in Taiwan having access to cyberspace -- more than 10 percent of Taiwan's population of 21 million -- the Internet reaches a readership as large as many well-known Chinese-language publications and electronic media.

    A few years ago, people with a passageway to the Net tended to be white-collar professionals with higher-than-average incomes, said J.J. Chen, chief executive officer of YamWeb. The spectrum of users is widening to include college and high-school students, retirees and small-business owners, Chen also noted.

    With more entry-point Web sites entering the fray, "the Internet medium is likely to secure 1 percent of the total US$2.7 billion ad spending in Taiwan in 2000," Chen said.

    The top two Web-ad carrier Web sites in Taiwan are PC Home Net Family and China Times Electronics Daily. The former enjoys an estimated 1998 Web-ad revenue of US$800,000.

    Recently, advertising clients are putting more attention on the quality of Internet advertising and scope of reach, Chen said.

    Manufacturers of electronic products have found e-commerce convenient and cost-effective. While Taiwan accounts for about 80 percent of PC motherboards made worldwide, local board manufacturers are also courting individual DIY customers.

    As Taiwan's Internet population is expanding rapidly, "such DIY buyers know all about computers, and the Internet is a very efficient way to reach them at an affordable cost," said T.S. Wang, marketing manager at Taipei-based Giga-Byte Technologies Co.

    Giga-Byte Technologies is only one of many local vendors that are extending their product exposure channels from conventional press and electronic media to the Internet.

    However, Y.S. Liu, general manager of China Times Electronics Daily, holds a more conservative view than Chen.

    Because many Chinese-language entry-point sites have their servers or headquarters in the United States, the sales revenue does not really belong to Taiwan-based firms. "If we deduct that income, Taiwan's 1998 revenue will barely reach the US$3 million mark," Liu said.

    More consumer product vendors are pushing their advertising agencies to produce Web ads for the first time, and many securities firms are opening new Internet windows for electronic transactions due to popular demand, Chen noted.

    According to an MIC report, Web ad revenue in 1998 will come primarily from the financial industry, especially vendors of mutual funds and providers of stock market-related services.

    (Charlene Huang, Asia BizTech Correspondent)

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    Updated: Sat Nov 14 17:26:07 1998 PDT