Large numbers of  advertisers around the globe are rapidly expanding their move from traditional ads to digital ones. Worldwide, average spending on digital ads is expected to be nearly one-third of all ad spending in 2016. And China is one of the countries leading the way.

As discussed by Angela Doland for Advertising Age:

A report from GroupM shows just how fast China’s advertisers are moving into the digital space. Five years ago, the Internet accounted for only 14.8% of the total ad spend; this year it’s expected to take 49.7%. China is well ahead of the global average on that front. WPP’s GroupM has forecast that 31% of worldwide ad budgets this year will go to online. Advertisers in China are taking cues from how quickly consumers have embraced the online world, especially mobile phones, for streaming videos and movies online, shopping from Alibaba’s E-commerce empire, and using all-purpose app WeChat to communicate, book services, and pay household bills.”

“Internet spending in China is set to grow 30% this year, after gaining an estimated 35.9% last year. Mobile online advertising is growing at about twice the rate of general online spending. Meanwhile, budgets for traditional formats are being slashed. Newspaper spending plummeted an estimated 30.5% last year and is set to fall 30% in 2016. The budget for TV ads is expected to drop 4.5% this year, after dipping 4% last year. The share of ad spend devoted to TV is expected to be just 35.7%, down from 56.8% five years ago. That’s a striking decline. One factor hurting TV spending this year was a new regulation limiting how many provincial satellite stations can show a hit drama during prime time, and how many episodes of the same show a channel can play in a row.”

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Women in Zhuhai, Guangdong province. China. Credit: Brent Lewin/Bloomberg


9 Replies to “Chinese Advertising Ups the Digital Spend”

  1. The reason why mobile online advertising is now much more popular in China, is because the convenience of smart phone, and the improvement of 4G network. For the new generations, the status of TV and computers are substituted by smart phone and tablet. TV is now just a screen and computer is just for work. During the private times or for entertainment, smart phone is the first choice because we can do everything with it, such as read the news, check the mails, communicate with friends and shopping, since credit or debit card can be banned with our phone. Not only advertising, more and more services will change its format and can easily get with phone, just like shopping in today, and bank service in future.

  2. Absolutely right ! The Chinese have been very familiar with Internet to do everything. The most regular ones are shopping online, watching through internet and communicating by software. Convenience and Cheap price are the most important reason why Chinese people so like to use these internet products and service. Although firms have known how to effectively influence Chinese people by internet information, the Chinese also have become more and more cautious to deal with these electrical marketing. Maybe the simple and real advertisements are the next step to focus on.

  3. Advertising took huge success in China, the digital spend has no doubt to become larger under this circumstance. Considering majority of the population are easily accessed to the Internet, online advertisements become new favorites in the marketing communication channels. The viewers on the video websites and followers of popular bloggers account for the basement of the advertising audience to a large extent.

  4. It does not surprise me to read that a large number of advertisers are switching from traditional ads to digital ones. And I was not shocked when I read that China is well ahead other’s in this move. As stated in the article I was surprised to read that, “Internet spending in China is set to grow 30% this year, after gaining an estimated 35.9% last year.” This is very interesting.

  5. It is not surprising to read that a large number of advertisers are switching from traditional ads to digital ones. This is because the number of phone users is on ever increase and the companies find this as a good opportunity to advertise their product or services.

  6. For roughly three decades, China’s booming economy has offered consumer product companies some of the world’s greatest growth opportunities. The Chinese consumer market, moreover, is in the midst of a transformation that offers tremendous new opportunities. The successful advertising offer us the convient way to surf the Internet, and simplify the unneccessary steps in our lives.

  7. China is also a past paced country when it comes to the technology so it does not surprise me that they are transitioning more towards digital advertisements and media than traditional. With the TV usage and China declining having advertisements on TV would not be great thing to do anymore. By shifting to digital media hopefully these ads can be successful and possibly appeal to new demographics

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