Internet advertising in China

Internet advertising in China

Internet advertising in China

Advertising grows generally in China at high speed. Indeed, the advertising market is expected to grow 10.7% this year to 430 billion yuan (53 billion euros) . Television should represent 51 % of advertising spending; mobile advertising is expected to grow rapidly, given that this year the number of users of smartphones grew by 81%, reaching 230 million users.
But the sector that interests us today is internet advertising, whose investments are expected to grow this year. Internet advertising is expected to take market share in the television industry, especially because of the online presence of most television programs, and because of the partnerships between the TV channels and some video sites.(more information  here)

 

The place of China in the world

According to a study by Go- Globe, digital ad spend in China should grow from 30% of total ad spend in 2013 to 33% in 2017. In addition, digital ad spend in China represents 11.25% of worldwide digital ad spend for this year, with 13.23 billion dollars. In 2017 these figures are expected to reach 11.7% of worldwide ad spend, with 20.25 billion dollars.
In Asia, China is the largest spender in digital advertising with 40% of expenditure, followed by Japan, which spend 8.83 billion dollars for 2013 , Australia, South Korea , India and Indonesia.

Types of advertising

The most widely used digital ads are banners with 30.2% market share , while keywords search ads represent only 28.5% of the total, unlike the United States where these ads represent 47 1% market share.

display advertising market share

The biggest digital publishers

The most common ads are the search engines ads with 55 % in 2013 and 57.7 % expected in 2017. Indeed, in the top 10 online publishers in China, we find Baidu, which is the leader with 22.25 billion yuan revenue, but also Google, Sogou and Qihoo 360.
But after Baidu , the second biggest advertiser is Taobao, the largest C2C e-commerce platform in the country, which belongs to Alibaba, with 17.22 billion Yuan revenue.
Baidu and Taobao together represent 52.4 % of the revenue of online advertising.

 online publishers

The biggest advertisers

In the top 10 largest online advertisers in China, we first find PingAn with 472.3 million Yuan spent, which is a Chinese bank and insurance, and Volkswagen with 405.54 million Yuan, but also P & G, Taobao , Unilever, China Mobile, and finally L’Oreal with 234,270,000 Yuan spent.
The biggest spenders sectors for online advertising are transport, online services and real estate.

Conclusion

We observe that advertising is growing in China in general, but also online advertising, which is becoming increasingly important, due to the growing number of Chinese internet users : it has already reached 591 million users and will continue to grow .
We also observe that among online advertisers, there are Chinese brands but also some foreign brand. This confirms that when a brand wants to sell in China, it must not only be present online, it should also work on its image, with banners or SEO for example. The brands should anyway be active on the Chinese web.
For example, you can read the article on how to boost sales of cosmetics in China here .

 

Marketing China

Written by Olivier

Olivier, Passionnated about Marketing and Chine. Already 30 years old and 6 years spending in China. I share my analysis about China, for almost 4 years via my french Blog marketing-chine.com.

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