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Digital Ad Spend in China

Posted Nov 27, 2018

Digital ad spend is growing at an alarming rate. The U.S. is only one area where digital is expected to exceed traditional media spend in 2019. But this isn’t just a trend in the states. China is actually a big growth region for digital advertising as well, but we’ll let the numbers speak for themselves.

According to eMarketer, digital ad spend in China is fueled by mobile. By the end of the year, China’s digital ad spend will represent 22.4% of the global digital ad market. From 2017 to 2018, digital ad spend grew 26% to $62.55 billion! This number is only predicted to increase to more than $76 billion in 2019 and $112 billion in 2022! Now that’s something worth noting.

Looking at the big picture, digital will account for almost 65% of China’s total media ad spend. Within digital, mobile will account for at least 80%. But who and what is leading this growth? Tech companies including Baidu, Alibaba, and Tencent make up almost 70% of all the digital ad spend in the region. Of these companies, Baidu holds the largest share — 35% in 2018. This growth is due to several factors including improved artificial intelligence technology for ad targeting.

Digital video ads specifically will continue to grow as well. Time spent with digital video is expected to increase from about 16% to 19% in 2020. From rising app usage to increasing viewership of original content, consumers are getting more and more hooked to their mobile devices. Mcommerce, or mobile commerce, is yet another factor, which will cause digital ad revenues to grow at least 20% annually through 2020.

With more people spending extended periods of time on their mobile devices, advertisers will have even greater opportunities to reach their audience and grow their business.

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