From the second fiscal quarter reports issued by various domestic major websites, it can seen that whether it is a portal website or a search engine, its rapidly growing revenues from online advertisements are eye-catching, which has become the vital source of profits for website operations.

In the fiscal quarter ending June 30, earned its business revenues of US$53.70 million, among which US$29.50 million comes out of advertisement with a month-on-month growth margin of 33%, thus making that fiscal quarter the one with the rapid growth of advertisement revenues since was founded. Some time earlier, and baidu.come also published their second-quarter fiscal reports.'s sales value in the second quarter hit US$34.10 million, and its advertisement revenue increased by 35 percent year on year. Despite investors or analysts feeling disappointed with the revenue increase expectation for, still posted a second-quarter revenue of US$24 million, twice more than that of the same period of last year, and most of which come from online advertisements.

When commenting on the rapid development of online advertisement business, Charles Zhang,' board chairman & CEO, said that for portal websites, making profits through online advertisement will become their main business model in the future. New moves taken by international giants have also proven such a trend. On August 2, Times-Warner officially announced an overall transformation of its subsidiary, AOL, its previous pay services including software and e-mail services will be provided to users for free. This move means that AOL, which processes world’s the fourth largest group of online users, is gradually replacing its business model of relying on customer ordering pay services for profits and marching definitely towards the business model of relying on online advertisements for profits.

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