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Why The Chinese Digital Advertising Market is Sexy

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Happy New Year! The Joinville team hopes you all had a great holiday season and we wish you all the best in 2015!

2014 was a game changing year in many terms, such as the US dollar which got stronger while the oil price fell; Russia suffered from recession along with the economic war against the west, Brazil held the World Cup successfully and its economy boomed after the election, etc. As an insightful marketer, you should see the tremendous change in the digital advertising market as well. One of the major changes is that the Chinese advertising market is becoming too important to ignore for worldwide marketers. We have listed the top 3 secret reasons why the Chinese digital advertising market has become so sexy. Enjoy the read!

No.1: Huge market with large potential

According to the statistics from eMarketer, worldwide digital advertising market is expected to exceed $146 billion in 2014 and China surpassed Japan to become the second largest advertising market in the world, right after the United States. Along with the booming ad market in China (especially in Mobile), China’s leading ad sellers (Baidu, Alibaba, Tencent & Sina) count for more than 10% of the worldwide digital market now. To be mentioned, Baidu and Alibaba (4.68% and 4.66% share of worldwide digital ad market) represent the third and fourth largest ad companies on the globe. After Alibaba got listed at the NYSE in September 2014, which made the history of world biggest IPO by market value of all time, it trails only Google Inc., Apple Inc. and Microsoft Corp. in size among U.S.-traded technology companies.

Net-digital-spend-share-worldwide

The success of the Chinese Ad companies should give credit to the huge audience base and fast growing economy & technology in China. According to the report of CNNIC (July 2014), there were 632 million internet users in China with 527 million mobile internet users until June 2014, with 46.9% internet penetration rate. In our previous articles, we also discussed about the purchasing power & customer behaviour of Chinese online shoppers. Many western brands & companies already realised the importance of Chinese customers and made customised campaigns to promote the brand and generate sales towards them.

No.2: Mobile becomes the most important advertising channel

As we discussed earlier, 527 million mobile users in China means that mobile has become the most important channel for ad spend in China. Based on eMarketer’s research, the mobile internet ad spending in China grew around 600% in 2014 to nearly $6.4 billion and made it the 2nd largest mobile ad market worldwide.

Unlike western countries, online media in China has a shorter history, which makes the Chinese market easier to accomplish the transition from traditional media sales to RTB and the programmatic way. The booming mobile market in China also accelerates this process.

No.3: Relatively isolated market makes localisation the key to success

The Chinese digital market is much more complicated than others due to the absence of global players (Google, Facebook, Twitter and some global internet companies are partly prohibited in China), which makes it a relatively isolated market. To reach Chinese audiences efficiently and achieve your marketing goal, it is important to get access to the local publishers’ premium inventories with good targeting options. Recently Joinville launched a cooperation with Chinese local SSP & Ad Networks, which enabled our advertisers to easily get access to not only the top Chinese Public Ad Exchanges, but also Private Ad Exchanges  and more than 500 direct Chinese publishers, which cover over 5 billion page views daily.

China-online-advertising-landscape

To sum up, the Chinese digital advertising market is sexy because it is an exciting and fast growing market with a huge audience base & great purchasing power. Moreover, the ad industry in China is developing fast to adapt the trend of mobile & relatively young audiences dominating the digital market in China. Besides, it needs the expertise & right ad channels to reach the most valuable Chinese audiences and enter this isolated market. With Joinville’s expertise in multicultural marketing & digital advertising, we already helped DHL, Lyca Mobile, Finnair,  Clinique, Evisu, and other brands to target Chinese audiences online successfully. Sounds interesting? If you want to know more details and test the service, drop us an line and we will be happy to help!

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Written by Magic Man

Joinville is an advertising technology platform for multicultural advertising bought and sold in real-time between buyers and sellers.