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The Second Largest Mobile Ad Market

Posted by: Jack | 2016-12-09 14:53:01

With the promotion both by rapid development of internet industry and increasing smartphone users, China will replace UK and Japan to be the world's second largest mobile advertising market.
Reported by South China Morning Post in HK, according to assess report issued by American e-commence market research company on December 15, it was predicted that mobile advertising spending in China will increase sharply by 276% reaching $7.11 billion.
As of the end of December, China will account for 15.9% of the total expenditure of global mobile internet advertising after America which for 46.6%.
In a related report, eMarketer, a market research company, claimed according to its latest prediction that Baidu and Alibaba will surpass most American counterparts closing to Google and Facebook this year on the share of global net digital advertising revenue in market.
eMarketer predicted that expenditure on digital advertisement of global marketers this year will reach $146 billion. The revenue share of global net digital advertising will reach 4.68% of Baidu and 4.66% of Alibaba. eMarketer only calculated capital investment on desktop and mobile advertisement by global advertisers, not be exclusive to traffic acquisition cost.
Though eMarketer predicted the revenue share of global net digital advertising of Baidu and Alibaba for the first time, both of them did not surpass most American companies for the first time. Last year, Baidu and Ali ranked the third and the fourth after Google and Facebook.
Wang Haixia, manager of prediction affairs department of e-commence market research company, said "Some factors in Chinese market facilitate such obvious growth. Income of mobile internet advertisement in Alibaba and Baidu accounts for 11.3% of total and 70% of domestic market."
The data of e-commence market research company shows that China will account for 22.2% of expenditure of global mobile advertisement to 2018. At that time, 34% of total advertising expenditure will be used in mobile stage. "All domestic Internet portals are expanding impact on mobile stage which is good for contacting with more clients for advertisers who are encouraged to increase marketing investment." said Li Bojian, an analyst of Guotai Junan International Holdings Limited.
Take Baidu, a giant of Internet search, as an example, the statistic of Baidu demonstrated that income of mobile terminal accounted for 36% of a total revenue of 13.52 billion yuan in third quarter; the number of network marketing clients were about 516,000 which was 11.2% higher than that of the same period last year. Baidu obtained average revenue of 25,900 yuan from each network marketing client rising by 35.6% over the same period last year.
The statistic reported by e-commence marketing research company showed that this year the total income of Chinese digital advertising including desktop Internet and mobile terminal is $23.7 billion which increases by 45% over the same period last year.
It estimated that the digital advertising will account for 37.2% of the total expenditure of media advertisement which surpass the proportion of television advertisement for the first time. According to the prediction, the share of Chinese television advertisement will be reduced to 33.1% from 36.3% last year.

Tags: mobile, advertising, market

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