Advertising - China

China

Ad spending in the Advertising market in China is forecasted to reach €216.20bn in 2024.
The largest market is TV & Video Advertising with a market volume of €59.82bn in 2024.
When compared globally, the United States is expected to lead in ad spending, reaching €394.90bn in 2024.
In the Advertising market of China, 89% of total ad spending will come from digital sources by 2029.
The average ad spending per capita in the In-App Advertising market is projected to be €85.97 in 2024.
Furthermore, in China's Advertising market, Advertising market of 82% revenue will be generated through programmatic advertising by 2029.
In China, advertisers are increasingly leveraging data analytics and AI technology to personalize advertising content and optimize campaign performance in the competitive market.

Key regions: United States, China, Europe, Asia, Japan

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Analyst Opinion

The Advertising market in China has been experiencing significant growth in recent years, driven by changing consumer preferences and the country's booming economy.

Customer preferences: Chinese consumers have become increasingly receptive to advertising, particularly in the digital space. With the rise of social media platforms and e-commerce, consumers are spending more time online, creating new opportunities for advertisers to reach their target audience. Additionally, Chinese consumers are becoming more brand-conscious and are willing to spend on products and services that align with their values and aspirations. This has led to a greater demand for advertising that promotes brand identity and lifestyle.

Trends in the market: One of the key trends in the advertising market in China is the shift towards digital advertising. As more consumers access the internet through mobile devices, advertisers are investing heavily in mobile advertising to reach their target audience. Mobile advertising offers a range of formats, including display ads, video ads, and native ads, allowing advertisers to deliver their message in a more engaging and personalized way. Another trend in the market is the increasing use of influencer marketing. Influencers, who have a large following on social media platforms, are seen as trusted sources of information and recommendations. Advertisers are leveraging the influence of these individuals to promote their products and services, often through sponsored content or collaborations. This form of advertising allows brands to reach a highly targeted audience and generate authentic engagement.

Local special circumstances: China has a unique digital landscape, with several popular social media platforms that are specific to the country. Platforms such as WeChat, Weibo, and Douyin (known as TikTok outside of China) have millions of active users and offer advertisers a range of advertising options. Advertisers need to understand the specific features and user behavior of these platforms to effectively reach their target audience. Additionally, China has a complex regulatory environment for advertising. Advertisers need to comply with strict guidelines and regulations set by the government, particularly when it comes to sensitive topics such as healthcare, finance, and tobacco. Advertisers need to navigate these regulations to ensure their campaigns are compliant and do not face any penalties.

Underlying macroeconomic factors: China's strong economic growth has played a significant role in the development of the advertising market. As the middle class expands and disposable incomes rise, consumers have more purchasing power and are more willing to spend on products and services. This has created a lucrative market for advertisers to tap into. Furthermore, China's rapid urbanization has also contributed to the growth of the advertising market. As more people move to cities, there is a greater concentration of consumers in urban areas, making it easier for advertisers to reach their target audience. Urban consumers also tend to have higher incomes and a greater appetite for new products and experiences, making them an attractive target market for advertisers. In conclusion, the advertising market in China is experiencing significant growth due to changing consumer preferences, the rise of digital advertising, and the country's strong economic growth. Advertisers need to understand the unique characteristics of the Chinese market and navigate the regulatory environment to effectively reach their target audience.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).