KDS aims to tap online traffic as real income

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KDS, Shanghai's biggest online forum with 7.5 million users, started a service which will review restaurants and shops as the website seeks to tap the online traffic into real income.

Launched at the weekend, the new shop review service, along with online coupons and a forum service to offer feedback, may help the website generate income from shoppers through commissions and promotion fees, industry insiders said.

Different from other online review service providers, KDS offers users in Shanghai, its main focus, an interactive communication platform, according to the firm.

KDS, a subsidiary of CBS Interactive, has more than 7.5 million registered users or one-third of the city's population.

In the first quarter, China's online advertising market grew 43 percent to 8.5 billion yuan (US$1.3 billion). The market has great potential as most advertisers are spending more in the online sector, according to iResearch Inc, a Shanghai-based Internet research firm.

Motorola will lift its digital promotion spending to 30 percent of its total media spending this year from 20 percent last year because young Chinese are spending more time with computers or cell phones, according to Bill Ogle, its senior vice president and chief marketing officer, recently.

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