Overview 1. Online Advertising - Trends - Online advertising in Taiwan 2. Online Shopping

1. Online Advertising

The internet is fast becoming a key advertising channel in Taiwan due to increased internet reach from 54% to 74% between 2003 to 2007 respectively and a rise in internet daily usage from 21% to 35% during the same period. Internet marketing enjoyed strong growth of 21.8% in 2006 amidst the dampening advertising sector. Besides, the internet advertising market was estimated to grow by 30.6 % to NT$4.896 billion following Google’s foray into the Taiwanese market in 2007. In contrast, other forms of media such as newspapers, radio and magazines have seen market share decline.

A 2007 survey conducted by Yahoo! Taiwan revealed that 75.6% of Taiwanese enterprises have decided to invest some of their marketing budgets in internet-based initiatives. However, there is still room for growth as online advertising accounted for slightly over 6% of Taiwan's total advertising market value in 2007.

The table below illustrates the growing trend of businesses favoring the internet as a vital platform for advertisements:

Table 1: Taiwan’s Online Display Advertising Activity – April till June 2008

Source: AdRelevance – 2008/07/30

Table 2: Top 10 Advertisers – June 2008

Source AdRelevance - 2008/07/30

Sources:
1. Taiwan Internet marketing set to expand dramatically
2. Shifting Markets, Going Global
3. Taiwan branch of Yahoo! beats revenue growth of global operations in 2007 - Refer to attachment
4. AdRelevance report in Taiwan, http://www.asiamediajournal.com/pressrelease.php?id=441

Online Advertising in Taiwan

Intel Future Daily

In September 2009, Intel Taiwan launched an Intel Family campaign to deliver a humourous approach to the importance of choosing the right central processing unit (CPU) in computers. IThe Intel Family campaign aimed at educating the public about the importance of selecting a compatible CPU in addition to demonstrating the relevance of Intel in the computer industry.

The Future Daily component of the campaign acts as an e-newspaper for user-generated content. Registered users can produce their own news content revolving around topics such as entertainment, technology, lifestyle and more. Furthermore, Intel awarded points to users for every new piece created and offer the chance to win Intel products.

Sources: Intel | Intel Future Daily | Taiwan, http://www.media.asia/searcharticle/2009_09/Intel--Intel-Future-Daily--Taiwan/36918


2. Online Shopping

Taiwan's e-commerce market was valued at US$4 billion in 2007. More Taiwanese are shopping online due to cheaper prices and easy product searches. Online travel services command 60% market share ($US1.3 billion). Cosmetics and household products occupy 29% of the market (US$540m).

Leveraging on these trends, 2 top portal sites in Taiwan - PCHome Online and Yahoo! Kimo - announced plans to expand e-commerce services in 2006. PCHome setup an online travel service while Yahoo started an online bookshop.

According to Yahoo! Kimo’s managing director, Charlene Hung, web portal operators will begin introducing more technological and operating resources to Internet users and new websites in 2008. There will also be an increase in community websites, blogs and file-sharing platforms, in tandem with a rise in the variety and volume of online services such as news and auctions.

Sources:
1. Online shopping and auctions in Taiwan valued at over US$4 billion
2. Taiwan's top two portal sites expand e-commerce services