| Corporate clients are maximizing the marketing power on
the Sohu matrix of web properties through online brand advertising and sponsored
search products. In brand advertising Sohu enjoys a strong competitive advantage
as one of the top portals in China. Our media platform is one of the most
influential mainstream online media and our growing client base and revenues
are testament to that. Online advertising includes banners, links, logos
and buttons placed on our Web sites and sponsorship of a particular Web
site area. We charge advertisers daily rates for banners, links, logos
and buttons. Sponsorship contracts for a particular area of the Web site
may require fixed payments over the contract period. Our standard advertising
charges vary depending on the terms of the contract and the advertisement's
location within our portal. Discounts from standard rates are typically
provided for higher volume, longer-term advertising contracts, and may
be provided for promotional purposes.
Brand advertising will be a long-term area of growth as about 2% of all
advertising spending is allocated online at present. Online marketing
is expected to grow faster than the advertising market for several years
to come.
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Brand Advertising