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.
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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