BEIJING, May 13, 2016 /PRNewswire/ -- As of December 2015, online active intelligent terminals on China's mobile Internet amounted to 899 million and China Internet users reached 688 million, 620 million of them being mobile phone users. A global professional market research institution predicts that Chinese advertisers will spend USD $22.1 billion on mobile advertising in 2016, exceeding those of European and Southeast Asian countries and second only to the United States. China is then considered as a promoter of global growth in the mobile advertising industry. With the sustained boom of China's network environment, mobile Internet technology and employee quality and other factors, the impact on mobile social life will continue to attract global attention.
Mobile Internet advertisement - the most profitable way in China's mobile Internet industry.
The popularization and utilization of smart phones and other mobile intelligent terminals in China has laid the foundation for mobile Internet hardware; simultaneously, the business model derived from mobile Internet has been perfected. Nevertheless, the stable and core profit model of China's mobile Internet market lies not on the landmark innovation of hardware or technology, but on the derivation from the business model of mobile terminals. The greatest profitability comes from mobile advertisement, mobile e-commerce suppliers, mobile video and mobile payment, with mobile Internet advertisement being the most primitive, stable and core one.
China mobile advertising servicer - a championship among the strong
The development of mobile Internet advertisement in China can be traced back to the birth of the first portable phone, but the flourish started in 2011 when, with the rapid popularization of smartphones, a large number of companies, including Beijing Yiqilian Technology Co., Ltd, began to enter the mobile Internet advertising market. After experiencing a respective exploration in 2012 and a large-scale reshuffle in 2013, China's mobile advertising service industry experienced explosive growth in 2014. The industrial competition and cooperation was accelerated in 2015, with globalization and the RTB phenomenon being the evidence of increasing development of China's mobile Internet advertising business.
At present, China's mobile Internet advertising service is featured as follows:
- Internet giants. A large number of users, flow and data are accumulated, and the quality and nature of these data will determine the value and difficulty of available exhumed advertisement. Mobile Internet advertisement, to the Internet giants, still needs a high threshold.
- Professional mobile advertising service. The upstream integrates media and channels and utilizes free technology platforms and professionals, and the downstream is in charge of providing marketing services for advertisers. For example, Yiqilian Technology provides efficient advertisement, marketing and promoting services for advertisers according to precise advertisement matching through its accumulated access to high-quality partners and channels including Google, Facebook, Twitter, Inmobi, Baidu, Tencent and more, covering a service scope of more than 180 countries and regions in addition to China.
- The e-commerce supplier/local life service Internet business. There is a huge marketing demand in the mobile terminal arena. It will form a perfect closed loop based on the consumer scene and gain additional revenue if a self-owned mobile advertising service platform is built.
- Traditional media company/4A/agent. They begin to stride to mobile terminals through cross-screen cooperation.
It is worth mentioning that professional mobile advertising services, as one of the first batch of platforms engaging in mobile Internet advertising service and experiencing market tests, is more advantageous in terms of professionalism, size and stability.
App advertisements are the main battlefield of China's mobile Internet advertisement market.
In China, the rise of App advertising benefits from the popularity of its carrier – the App. It is understood that the number of existing Apps in China has reached 1 million, with a daily increase of 100-300. To App developers, a way is required to create cash flow, while for brand enterprises, advertising service should be subject to the consumer's attention. Therefore, App advertisement demand is rising year by year.
Because of the uniqueness of mobile phone users, App advertisements can be simply and precisely categorized as per prices to achieve a directional delivery. At present, App programs that have mainly profited from mobile advertisements include mobile phone tools, videos and audio tools, news, mobile games, socialization applications, life and leisure and more. The advertisement forms vary from image banner ads, full screen/table plaque image ads, video ads, native ads, rich media ads, incentive slogan ads and more, continuously meeting more diverse needs of advertisers.
An analysis of China's mobile Internet advertisers
Advertisers are the driving force for the development of the mobile Internet advertising industry. China mobile advertisers are mainly from the Internet industry, mobile games and brand advertising, according to different industries and marketing purposes. The Internet industry and mobile game advertisers with more mature awareness were the first loyal customers of mobile ads; since 2013, a large number of brand advertisers accelerated the layout of the mobile advertising business, furthering China's mobile advertisement.
According to research results from the Dianru Mobile team of China market service providers under Yiqilian Technology, in China's mobile advertising market the promotion demands for current advertisers mainly includes five categories:
- Brand exposure
- App downloads, enterprise layout of mobile terminal entrances
- Application market ranking
- Online interaction and registration to involve user's offline practice and participation
- Promotion activities, special page of projects (making use of M station, H5 and other resources)
In addition, different delivery demands are used, varying from advertisers, and more of them prefer a combination mode, which leads to different charging modes. For now, the main charging modes used by China's advertisers include CPA, CPC, CPV, CPM, CPT and others.
From product design to release and overseas sales, mobile games will be a constant value.
Mobile games are similar to mobile advertisements in that they rely on mobile devices; thus, it has become an industry consensus that mobile games are promoted and monetized by mobile advertisements. With the further improvement of user retention in China's smartphone market, mobile gamers play more frequently and stably. Meanwhile, the sustainable development of the entire mobile marketing industry chain from product to release, as well as overseas sales by major researchers and developers, publishers and channel partners, is rising increasingly, and China's mobile game market will reach RMB 64 billion in 2016.
In spite of the huge market scale, it is still difficult to move forward. There are at least dozens or as many as a hundred of mobile games put into the market every day. Regardless of the varying qualities of these games, without the accumulation of popularity and attention, even the best game may be overwhelmed by such a fiercely competitive market. Since 2015, the threshold for mobile games is rising higher, and the demand for effective channels of new products is becoming increasingly urgent. The advertising services with a large user base who can make a precise delivery play a more important role in marketing.
In addition, the global distribution threshold for games has sharply declined, so Chinese game companies have emerged at a right time. As mobile advertising servicers accelerate the layout of China's mobile games distribution services both at home and abroad, such as the Dianru Games under Yiqilian Technology, their advantages in capital reserves, product research and development, operation, data analysis, channel distribution and resources integration will help mobile game developers seek new profit growth in overseas markets.
China's mobile Internet advertisement enters the era of full programmatic buying.
In 2015, China's mobile Internet advertisement entered the era of full programmatic buying. RTB ads are no longer complementarily delivered, but are a preferred mode of advertisers who are buying digital advertisements, which enable mobile advertisements to become much finer, precise, cost-effective and efficient. Many front-line mobile advertising services have joined the program trading group, and the butt threshold with major media channel partners has became more strict. Some small and middle platforms, if they continue to use extensive operation modes, will be further squeezed.
As an old Chinese saying goes, a person's world is as big as his heart. On the one hand, China's mobile Internet advertisement market will be developed into a huge industry across communication, IT, trade, finance, logistics and other industries. On the other hand, the exploration of overseas or emerging market by China's mobile Internet advertisers will bring more imagination to global mobile Internet patterns.
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SOURCE Yiqilian Technology