8 Key facts about china advertising landscape

This is the second post in a series about China. In the previous post, I highlighted 9 key facts about China digital landscape. For today, the focus will be on China advertising industry, across both offline and online.

1. Total media ad spending in China is less than half of the US and about 15% of the world

Total Media Ad Spending in china the us and world wide 2018

This also reflects in the total ad spend per person. In China, that number is about 1/10th of the US so this represents a huge potential to grow.

Total Media Ad Spending, per Person china us uk japan south korea 2018

2. Given the smaller base, it is not surprising to see China total ad spend per person growth rate is double the US and the overall worldwide rate.

Total Media Ad Spending, per Person Growth china us uk india worldwide 2018

3. Digital ad spending is at around 65%+ of the total ad spending and the trend continues to accelerate (expected to be at 75% in 2022)

ad spending in china by medium in 2018 billions dollar

4. Digital ad spending in China = Mobile ad spending

Mobile Ad Spending in china 2018 2022

5. Display ad is the main format for Mobile ad in China

Mobile ad spending by format in China 2018 - 2022 v2

6. Alibaba, Tencent and Baidu takes about 60%+ of the total digital ad revenue in China and the trend continues

Digital Ad Revenue by company in percentage 2018 - 2020 in China

7. Digital Display ad in China is going increasingly to programmatic (70% in 2019)

Programmatic Digital Display Ad Spending in china 2016 - 2020

However, similar to other markets, the majority is done via programmatic direct and not real time bidding

Programmatic Direct Digital Display Ad Spending in china 2018 - 2020

8. Video ad spending is keeping up well with time spent by internet users in China

Time Spent with Digital Video in china 2018 2020
Video Ad Spending in china 2018 - 2022

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