Future of mobile advertising in China
Mobile advertising is a promising venture to dwell into as it remains noninvasive and less out of context. The noninvasive nature and interest relevant ad make consumers more persuasive towards the mobile ad, thus helping advertisers to reach more consumers in their targeted market segments. Mobile advertising has recently occupied a significant chunk of ad spend budget worldwide. USA has the highest projected ad spend with $57k million, followed by China ($40k) and the UK ($11k) for the year 2018. eMarketer estimates that between 2016 and 2019, the mobile ad spend will nearly double by hitting $195.55 billion and accounting for 70.1 percent total digital ad spend and more than 25 percent of total media ad spend.
There lies a big difference between Chinese and the US market where China has the highly fragmented mobile ecosystem with different consumption habits and preferences. The share of mobile brand- awareness ads in China is on the rise with a recent 11 percent increase in share from the year 2014 to 2015; the share of direct-response ads is steadily declining.
Mobile advertising occupies a big chunk of ad spend in China and gaming dominates the ad spend share followed by social media. In 2014 gaming and social media occupied 90 percent of all mobile ads, though in 2015 it dropped to 63 percent of all mobile ads. In 2015 new media and E- commerce has gained more share of all mobile ads with 24 percent, while as gaming and social media has come down to 63 percent.
The mobile ad click rate of 2015 for E- commerce grew 18.1 times that of 2014, followed by new media where the rate was 9.9 times. The combined rate for emerging sectors like finance, real estate, education, and healthcare was 29.6 times that of 2014.
PwC China reports that 78 percent audience in China is more likely to click a mobile ad if the content remains relevant to them, which is more than the UK (33 percent) and USA (29 percent). When it comes to mobile advertising formats, Video ads dominate the popularity of mobile brand-awareness Ad formats followed by information streams and splash screens. Mobile advertisers’ audience targeting techniques in China are no different from other countries; targeting metrics include interest, purchase history, current location, types of sites visited on mobile phones, PCs, And tablets, online purchase history, etc.
PwC China also reported that the best time to target audience in China is when they are on their way to work followed by over the weekend. Morning, at work, and evening were very marginal (less than 10 percent) in the survey. Mobile user’s report that their biggest concerns with mobile ads were that they found the ads to be very intrusive and they consumed lots of personal space at the same time they were too many and hard to turn off.
China has grown into a huge market and its forecasted ad spend value is very high, keeping this into their minds advertisers have to find ways to build an audience and keep the audience engaged in their ads. The planning for this requires multiple steps starting from selecting the right mobile advertising format, then targeting the right audience based on their interest, search history, and location, and finally choosing the time when those ads should be displayed. John Dalton once said “It’s the right idea, but not the right time” and this quote is very relevant to the mobile ad industry. With right ad format and ad relevancy, time also plays an important role to keep the audience engaged in the relevant ad.
There lies a big difference between Chinese and the US market where China has the highly fragmented mobile ecosystem with different consumption habits and preferences. The share of mobile brand- awareness ads in China is on the rise with a recent 11 percent increase in share from the year 2014 to 2015; the share of direct-response ads is steadily declining.
Mobile advertising occupies a big chunk of ad spend in China and gaming dominates the ad spend share followed by social media. In 2014 gaming and social media occupied 90 percent of all mobile ads, though in 2015 it dropped to 63 percent of all mobile ads. In 2015 new media and E- commerce has gained more share of all mobile ads with 24 percent, while as gaming and social media has come down to 63 percent.
The mobile ad click rate of 2015 for E- commerce grew 18.1 times that of 2014, followed by new media where the rate was 9.9 times. The combined rate for emerging sectors like finance, real estate, education, and healthcare was 29.6 times that of 2014.
PwC China reports that 78 percent audience in China is more likely to click a mobile ad if the content remains relevant to them, which is more than the UK (33 percent) and USA (29 percent). When it comes to mobile advertising formats, Video ads dominate the popularity of mobile brand-awareness Ad formats followed by information streams and splash screens. Mobile advertisers’ audience targeting techniques in China are no different from other countries; targeting metrics include interest, purchase history, current location, types of sites visited on mobile phones, PCs, And tablets, online purchase history, etc.
PwC China also reported that the best time to target audience in China is when they are on their way to work followed by over the weekend. Morning, at work, and evening were very marginal (less than 10 percent) in the survey. Mobile user’s report that their biggest concerns with mobile ads were that they found the ads to be very intrusive and they consumed lots of personal space at the same time they were too many and hard to turn off.
China has grown into a huge market and its forecasted ad spend value is very high, keeping this into their minds advertisers have to find ways to build an audience and keep the audience engaged in their ads. The planning for this requires multiple steps starting from selecting the right mobile advertising format, then targeting the right audience based on their interest, search history, and location, and finally choosing the time when those ads should be displayed. John Dalton once said “It’s the right idea, but not the right time” and this quote is very relevant to the mobile ad industry. With right ad format and ad relevancy, time also plays an important role to keep the audience engaged in the relevant ad.
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