China’s Digital Video Advertising Spending Projected to Surpass TV by 2021


New research by eMarketer says that video advertising in China will account for 13.4% of all ad expenditure by 2021, putting it ahead of traditional TV spend. Video is currently the fastest growing ad format in the Middle Kingdom.

eMarketer projects overall digital ad spend this year in China will reach $50.31 billion— 72.0% of which goes to mobile channels.

Graphic: eMarketer


 

“Advertising on digital video is growing at a faster rate than overall display ads, and strong content is a key driver for this growth as brands are willing to spend more money to appear alongside the most popular content,” said Cindy Liu, forecasting analyst at eMarketer.

“As well as investing in original content, video platforms are looking to establish exclusive partnerships. For example, iQiyi, Baidu’s on-demand video streaming service, recently announced a deal with Netflix to license some of their premium content,” added Liu.

eMarketer reports:

Thanks to their continued innovations in mobile and high-profile partnerships, the BAT companies—Baidu, Alibaba and Tencent—will continue to dominate the digital ad market in China. According to eMarketer’s latest forecast, the BAT companies combined will take in 64.1% of digital ad expenditures in China this year. Within the BAT companies, Alibaba will capture more than 35% of China’s digital ad spending in 2017, followed by Baidu with an 18.4% share and Tencent with a 10.4% slice.


 

“Alibaba continues to outperform expectations and is once again the strongest performer in terms of net digital ad revenues in China. By incorporating social and video elements into its mobile shopping app—Taobao—Alibaba is able to capture more consumer time and thus attract more advertising spend,” Liu said.

 

 

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