Chinese online ad market will grow 14.3 percent in 2017, driven by a
strong growth of online video
Company Website:
http://www.ihsmarkit.com
LONDON -- (Business Wire)
By 2020, more than three-quarters of all online display advertising
revenue will come from mobile, according to new
analysis released today by IHS Markit (Nasdaq: INFO), a world leader
in critical information, analytics and solutions.
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“Mobile advertising has grown stronger than any other medium in the last
four years, and now accounts for a significant proportion of online
advertising revenue,” said Qingzhen
Chen, senior analyst at IHS Markit.
Global trends
Global mobile display advertising surged 72 percent in 2015 compared to
the previous year, and accounted for 45 percent of all online display
advertising revenue, with a total of €29 billion.
In 2016, worldwide mobile advertising will grow 42 percent, to $41
billion and for the first time will generate more than half—55
percent—of all online display advertising revenue, said the latest IHS
Markit white paper.
Regional highlights: China
China has maintained its growth momentum despite economic restructuring,
but the real growth engine comes from online. With roughly $33 billion
in revenue for 2016, the Chinese online advertising market is the second
largest in the world. Online grew 17.5 percent in 2016 and will grow 14
percent in 2017, driven by a strong growth of online video (51 percent
and 32 percent growth, respectively).
“In 2016, the Chinese online ad market went through some turbulence and
reshuffling,” Chen said. “China introduced its first set of online
advertising regulations, which in the short term had reduced online
advertising revenue, but in the long term, we expect to see a more
sustainable online ad ecosystem from this development.”
On the other hand, after a period of rapid growth, TV has entered a
third year of consecutive decline with a single-digit contraction. Many
people are switching to online for content consumption and seeking wider
range of content, from foreign content to user-generated content by
popular vloggers. TV in China declined 2.7 percent in 2016, and IHS
Markit expects a 3 percent drop in 2017.
Baidu, Alibaba and Tencent -- known collectively as the B.A.T. in China
--own 36.5 percent of the total ad market with a total of CNY 160
billion ($24 billion) in 2016. “The trio has absorbed large TV brand
budgets and online ad budgets, and continues to expand aggressively into
digital,” Chen said.
The trio made a total of 262 investments, 27 acquisitions and one joint
venture between 2009 and 2016. Mobile app companies received most
investments from the trio for that period.
“As Chinese companies go global, investments in nearby countries will
increase,” Chen said. “Regions like Southeast Asia are benefiting from
the rise of a middle class, consumerism, and a mobile-first young
population. The emerging Asian markets present a huge business
opportunity for the trio to export its video content, games and
e-commerce abroad.”
Meet IHS Markit at Mobile World Congress
Meet IHS Markit analysts at Mobile World Congress from 26 February to 2
March 2017 in Barcelona.
The analysts will be on hand throughout MWC to provide journalists with
commentary on the new products and innovations and leading independent
insights and analysis on the global mobile industry.
Request a
complimentary analyst briefing at MWC.
About IHS Markit(www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information,
analytics and solutions for the major industries and markets that drive
economies worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and
government, improving their operational efficiency and providing deep
insights that lead to well-informed, confident decisions. IHS Markit has
more than 50,000 key business and government customers, including 85
percent of the Fortune Global 500 and the world’s leading financial
institutions. Headquartered in London, IHS Markit is committed to
sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. All other
company and product names may be trademarks of their respective owners ©
2017 IHS Markit Ltd. All rights reserved.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170225005012/en/
Contacts:
IHS Markit
Amanda Russo, +44 208 544 7827
Amanda.Russo@ihsmarkit.com
or
Press
Team
+1 303 305 8021
press@ihs.com
Source: IHS Markit
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