While China has been experiencing an economic downturn, it does not seem to have impacted much on digital advertising activity and expenditure.
Here are some interesting facts and stats about the current and predicted state of digital advertising in China.
- Trends are shifting away from traditional methods
The shift is definitely away from TV and print and more towards digital, with mobile and video growth being particularly strong. Market research company eMarketer expects mobile video for example to be as high as $9 billion by 2020 – up from $3 billion in 2016. In addition, according to China Internet Watch, mobile video advertising increased by 195% between 2014 and 2015 in terms of ad revenue.
Other growing trends include internet organic search ads, PPC (pay per click) advertising, social media, email marketing, and online banner ads through e-commerce sites such as Tmall and Taobao.
- Advertising spending is rising and will continue
eMarketer predicts that the digital advertising spend in China will reach more than $40 billion by the end of 2016, and more than double that by 2020.
- Digital use is in a growth phase
According to the same research, the average online time of China’s citizens increased to about three hours per day in 2015, up from 1.8 hours in 2011. This trend is likely to provide greater opportunities for digital advertisers and marketers in China.
- China’s advertising growth rate higher than global
In 2015, the annual growth rate of China’s online advertising at 36% was higher than the global average!
- Search engine advertising dominates
In 2015, search engine ads had a market share of nearly 34%. This was followed by e-commerce ads at 28% and online display banners at 15%.
- China ad market at the world’s pinnacle
By the end of 2015, China’s advertising market was the largest in the world according to a report by media investment company GroupM.
- China’s government is tightening online ad regulations
China’s State Administration of Industry and Commerce recently announced a tightening up of online advertising regulations. These include:
- Paid internet ads should be clearly marked and distinguishable from other content, and must be tagged with the word ‘advertisement’ (rather than just ‘promotion’ or ‘commercial’). This will apply to both search ads and those on social media platforms.
- Online ads should not interrupt normal internet use. This includes that pop-up ads should be easy to close, and that emails should not contain advertising links without recipients’ permission.
Considerations for digital advertisers
Digital advertisers and marketers in China need to be aware of the popular trends. The shift is definitely away from older methods such as television, magazines and newspapers towards digital, although traditional outlets may still have their place for attracting custom. Mobile device use continues to grow, which makes mobile advertising – such as through social media and mobile video – particularly pertinent.
If you would some tips for online advertising and marketing to audiences in China, get in contact with the bilingual China marketing team at Digital Crew. We can guide you towards the best methods for marketing and advertising your brand in China.