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
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.
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.
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)
4. Digital ad spending in China = Mobile ad spending
5. Display ad is the main format for Mobile ad in China
6. Alibaba, Tencent and Baidu takes about 60%+ of the total digital ad revenue in China and the trend continues
7. Digital Display ad in China is going increasingly to programmatic (70% in 2019)
However, similar to other markets, the majority is done via programmatic direct and not real time bidding