China online advertising market totaled RMB42.22bn in 3Q2014, for growth of 37.9% YoY and 10.9% QoQ, representing a slight slowdown compared to the previous quarter (+48.7% YoY and +29.2% QoQ).
Major factors driving growth were: 1) Search engine-based advertising, which ramped up steadily with a growing share being mobile search, 2) Verticalsites, which seem to have grabbed share from China's portals 3) online video sites, which greatly benefited from popular TV shows and sports matches.
Negative factors included: 1) a weak real estate market, which served to depress spend in this area as ads spending from China's developers kept declining, 2) conservative spending patterns across the e-commerce industry.
In terms of format, search engine maintained a dominant position both on PC and mobile (driven by growing online marketing demand by China's SMEs), representing 34.1% of total share.
