Dawn of Change - Mobile Internet Marketing Industry Pattern in China

Dec 24, 2015, 01:18 ET from emarketer

BEIJING, Dec. 24, 2015 /PRNewswire/ -- In 2014, Mobile Internet ad spending in China almost tripled compared to the previous year and reached $8.21 billion, according to eMarketer's latest estimates of ad spending around the world. Mobile ad spending in China is expected to rise to $14.77 billion with an increase of 80% from 2014. Mobile advertising market size in China is exceeding the size of the PC Internet advertising market, and the growth rate will reach 55% by year 2016. The dawn of the era of mobile internet is showing, does it mean China's marketing sector is ready to enter a new era?

Mobile advertising market in China is not the only market showing the rapid growth, the advertising industry around the world is also showing the trend.  Meanwhile, China's Mobile Internet advertising in 2014 accounted for 11.7% of the total media advertising around the world and was higher than all of the other countries measured except the United Kingdom, Norway and Denmark. By 2016, shares of China Mobile Internet advertising will reach 27.3%, and will score the highest in total spending.

Mobile Internet Ad Spending Share of Total Media Ad Spending Worldwide, by Country, 2013-2019

% of total media ad spending










2013

2014

2015

2016

2017

2018

2019

UK          

8.3%

14.7%

20.1%

25.6%

30.8%

35.8%

39.6%

China        

1.7%

11.7%

19.6%

27.3%

34.3%

40.3%

44.7%

Norway      

4.1%

12.6%

18.8%

25.0%

31.3%

37.5%

41.6%

Denmark     

5.1%

12.7%

18.2%

23.4%

28.9%

34.4%

37.8%

South Korea   

4.6%

9.9%

15.4%

19.6%

22.9%

26.4%

29.5%

US          

6.2%

10.6%

15.2%

20.2%

23.8%

26.2%

28.5%

Australia     

3.3%

8.0%

12.6%

19.0%

26.1%

33.3%

37.6%

Netherlands  

3.1%

8.5%

12.6%

17.6%

22.7%

28.2%

31.2%

Sweden      

3.9%

8.0%

11.9%

15.8%

20.2%

23.9%

25.9%

Canada

3.5%

7.4%

11.7%

17.6%

22.2%

27.6%

30.1%

Japan        

5.0%

7.5%

10.4%

13.4%

16.7%

19.8%

21.7%

Worldwide   

3.7%

7.8%

11.9%

16.5%

20.5%

24.1%

26.8%









Note: includes display(banners, video and rich media) and search; excludes SMS, MMS and P2P messaging-based advertising; ad spending on tablets is included;






Source: eMarketer, March 2015

As the largest developing country, China has grown into the world's second largest economy in the last 30 years, Chinese people are familiar with a social phenomenon called "revolution", and Mobile Internet is the most radical change in China. The revolution changed the media industry, affecting the marketing field, and ultimately influences the entire social economic development.

'Internet Plus', a new term, was proposed by government leaders. The PC era of monopoly in China after entering the mobile era will become irrelevant, based on a large number of vertical mobile social networks, while deriving Internet banking, transportation, travel, shopping, entertainment, online education and other applications services. Mobile Internet has penetrated into every aspect of Chinese society.

As the world's most promising Mobile Internet market, China is driving companies to continue to increase investment in the industry, and the fastest response has been from the advertising industry. As the advertising industry and the media are closely related to the development of Mobile Internet, it has completely changed the media environment, and affected Mobile Internet advertising companies.

The development of the Internet in China is at the same level with the United States and other developed countries. The rapid development of the entire China Mobile Internet, especially the mobile advertising business is showing a rapid development trend. Mobile Internet marketing should not just be advertising, which in this case is buying traffic and doing promotions. As practitioners, it should be about how to do some of the creative and marketing- combination of mobile devices in different scenes, time and technology advantages, also the implementation and creation of creative audio, video, interactive and consumer communication etc.

"With the continuous extension of the Mobile Internet and progress of intelligent terminal, the Mobile Internet will change people's existing lifestyle. The O2O field will be more differentiated, and with Mobile Internet marketing, people will be even more interested in both a convenient online and offline experience," said Adwo CEO Guo Wei.

CEO of Fractalist Chris Chen also expressed the same view. "With the continuous development of technology innovation, and development of mobile internet marketing, the need to use innovative thinking to find new ways to communicate directly with the user is getting stronger. No matter how technology innovates, innovative art will still play a leading role, and the users are the fundamental," he said.

By integrating brand owners, advertising companies and professional data and surveys, the final analysis of the competitiveness of the selective companies are listed below. Here is a ranking of China's top ten Mobile Internet marketing companies in 2015:

Ranking  

Company   

Technology 40%

Resource 40%

Creative 20%

 Overall

1

Fractalist   

97.8

98.2

97.3

97.9

2

Admob      

97.2

96.5

95.5

96.6

3

AdChina     

96.5

97.2

94.2

96.3

4

WQMobile  

95.2

96.2

92

95

5

Limei       

94.8

95.5

92.6

94.6

6

adSage      

93.5

92.3

92.5

92.8

7

hdtMEDIA  

92.7

93.5

91.7

92.8

8

Adwo       

91.9

90.8

91.3

91.3

9

adsame     

91.5

91

90.8

91.2

10

htdMobile  

91.2

90.8

90.2

90.8











Source: eMarketer

SOURCE emarketer