Good morning.
Vivian Li - Piper Jaffray
You talked about the. Hi. You talked about the China GDP growth and the recovery of the China ad spending which is very encouraging. From what you have seen in your customer profile, the advertisers who are spending money this quarter and during your budgeting process.
Can you share us, with us how much of the recovery of ad market comes from the government stimulus plan and how do you think the ad market will be trending after the government finished spending the stimulus money in the next year or so and if SINA has any initiative to cope with this change? Thank you.
Charles Chao
Vivian, I think that''s a very difficult question to answer, I mean, because I don''t think the government stimulus plan is really related to any or particularly focused on any particular industry. Rather, this is aimed to boost the investment of the economy and also to boost the confidence level of the consumers in China.
And this really worked, I mean, by creating more jobs and more opportunities and really so the China stock market and housing market really rebounded, I mean, very strongly this year. And also that give people a lot of confidence in their consumer spending and so you are seeing people spending money on buying cars, buying a lot of different products.
This is, overall I think has a very positive impact on the confidence of the consumers in China and which in turn, creates a lot of opportunities and more businesses for our advertisers.
And so this is actually more indirect in my assessment. So I think given our current understanding of the economy of China, its direction, it seems like it''s on a very good trend and we''re going to see higher GDP growth and so this all translate into very positive market environment for advertising.
So I think really it''s the environment that''s created by the stimulus plan and the confidence that was created by the stimulus plan that really matters and that will translate into more consumption and more spending by advertisers to promote their brand and products. So this is really overall impact. I cannot really address any particular impact by the stimulus plan basically. Okay. We have more time for one more question.
Operator
All right. And your next question comes from Steve Weinstein with Pacific Crest. Please proceed.
Steve Weinstein - Pacific Crest Securities
Great. Thanks a lot. And so I understand the decision to focus more on margin than growth in the mobile business. I''m wondering if we look at the current quarter, if you think that that''s an appropriate level of margin to consider going forward or if you think there''s still just a general pressure that we should be considering. So any guidance on that front will be helpful. And then I apologize but I think I missed it when Herman called out what the margin structure would have been ex-real estate business. I was wondering if you could…
Charles Chao
Okay. I will try to give you some color on the first question and Herman can repeat the second question. For the mobile business, I think the margin, I mean, has been, I think that this is slightly high than we saw like a couple of quarters ago. And I think as Herman mentioned in his opening remarks that our, over a longer period gross margin and net margin will trend down gradually.
But I don''t think it will trend down too much, I mean, so it will just gradually trend down a little bit, I mean, really depending on the performance of a particular quarter. If we get good returns for promotion, then the margin will be slightly high.
I mean, if in a quarter we have not generated too much good returns from our promotion activities then the margin could be a little bit lower. But I think over the past one or two years our margin has been in the 50s and sometimes will drop slightly below 50s for gross margin.
And so that will be -- it will be in the neighborhood of that area but maybe just slightly down in the future if we have bad quarters. I mean, if we have too low gross margin then it''s not a very good business for us to operate so we try to maintain a reasonable gross margin in order to generate gross -- a net profit from that business.
Herman Yu
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