China's online advertising market reached 2.095 billion RMB (Renminbi ["people's money"], or Yuan; roughly, $1=8 Yuan) in the first half of 2006, according to research firm Analysis International's recently released report "China Online Advertising Market Quarterly Tracker Q2 2006." Banner advertising reached RMB 1.259 billion, accounting for 60.1 percent of the total market; search engine advertising market reached RMB 679 million, accounting for 32.4 percent of the market.

In the second quarter, China's online advertising market reached 1.118 billion RMB, increasing 14.36 percent quarter over quarter, according to Analysys. The keyword advertising market size reached RMB 376 million, accounting for 33.63 percent of total online advertising; banner advertising reached RMB 661 million, accounting for 59.11 percent of the market; and other online advertising reached RMB 81 million, accounting for 7.27 percent of the total.

Baidu continues to lead China's market, with keyword advertising revenue reaching RMB 189 million and exceeding the sum of Google China and Yahoo China's keyword advertising revenues. Sina and Sohu are the top 2 vendors in China's banner advertising space.