Ding Lei: Netease Seek Breakthrough Advertising Content

Netease was the first time the content gap in the overall strategic height, and the Olympic Games will become a breakthrough. Yesterday, the last two years have not seen the Netease CEO Ding Lei suddenly appeared in Netease Olympics strategy conference. He told a reporter that will invest nearly 100 million for the Olympics strategy, as an indispensable building has become an important part of Netease, and online games, product technology, has become the company's development of the two legs. In his view, an independent website Netease daily average volume of user access up to 91.3 percent, far faster than any Internet company in the industry, the potential of advertising income that would then be given full expression.

Reporter: Statistics show that Netease content of the advertising revenue accounted for only about 10%, this deserves?

Ding Lei: As a portal, which is a very important component of the products and technologies is equally important, is to develop one of the two legs. As you know Netease beginning of the China Internet Association survey, the contents of users arrived rate reached 51.3 percent, second only in the portal Sina. October AC Nielsen survey data also showed that average daily website Netease independent of user access up to 91.3 percent, far exceeding all the portals.

Reporter: Why Netease flow growth in advertising revenue has not been a corresponding expression?

Ding Lei: Netease second quarter of this year, advertising revenue growth of 16.2%, although the second half of last year, there were short-term decline, but then has been rapid growth, in general, very healthy, the current growth has been synchronized with the market. Of course, advertising revenue growth compared flow growth will lag period, I believe that smart advertisers will find that Netease advertising value. The opportunity of using the Olympic Games, will make Netease on the quantitative change in the flow, into the advertising revenue on a qualitative change.

Reporter: Netease attach so much importance to content, whether it is because the second quarter, online games revenues fell slightly again, but in the face of Shanda in the market, and a new opponent Giant of increased competition?

Ding Lei: the development of our online games has been very healthy. We attach importance to the content, because we have to do in this area very well. Moreover, Morgan Stanley had expected to benefit from the Beijing Olympics boosted effect, China's advertising market will be in 2008 usher in a peak growth, China's Internet advertising market GDP will be in 2008 reached 2.4 billion US dollars over the 2007 growth of about 45 %. Netease will not miss such opportunities.

Source: 金羊网-新快报 Min Hua Oct. 25, 2007