China’s digital advertising market has been rapidly evolving every year. If you’re a marketer and wondering what the digital marketing landscape looks like in 2022, this post will guide you. It has all the relevant insights from the recent key statistics to the factors that determine the changes that the market goes through.
China Digital Advertising Market in 2022 – Key Statistics
- China’s digital ad market is forecast to grow by 11.5% year-over-year in 2022 to more than US$135 billion. Globally, digital ad spend is projected to reach US$565.8 billion in 2022.
- Ecommerce and social ad spending will continue to drive overall digital ad growth—together they make up 66% of total digital in 2022.
- In 2022, 81.5% of total media ad spending in China will go to digital. No other country in the world focuses on digital to such an extent (the UK will be No. 2 in this regard, at 77.2%).
- China market’s largest segment is Video Advertising with a market volume of US$51.26bn in 2022.
- In the Digital Advertising market, 80% of total ad spending will be generated through mobile in 2026.
- The average ad spending per user in the Social Media Advertising segment is projected to amount to US$76.90 in 2022.
- Advertisers of large enterprises with a budget of 500 million yuan or more are more confident in digital marketing spending in China. In 2022, 52.4% of advertisers are expected to increase spending in digital marketing.
- The top online advertising medium in China is e-commerce, accounting for 46.5%, followed by short video (16.6%) and News (16.6%), according to data from QuestMobile. Short video advertising still saw fast growth of over 31% in 2021.
- Among the different types of resources on the internet, the short video, social media and e-commerce media will receive the most attention in the future, with 79%, 77%, and 57% of advertisers focussing on them respectively
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- Social marketing in China is expected to grow by 18% in 2022. 76% of mature and 79% of emerging brand advertisers expect to increase their social marketing investment.
- According to a survey on social marketing in China conducted in late 2021, 67 percent of surveyed advertisers stated that KOL promotion was a key focus of their companies’ social marketing strategy. In 2022, KOLs and short videos will still be the focus of advertisers’ social marketing.
- Year 2022 will be the last in which the country’s digital ad spending will increase YoY by double digits, as growth will drop below 10% through 2026.
- People in China are the most likely to feel represented in ads, with over 1 in 4 (26.8 percent) answering in the affirmative. For any forgein brand looking to advertise in China, this is important as they need to align with these expectations when they run their campaigns.
Factors Determining China’s Digital Advertising Marketing in 2022
Did you know estimated that by 2026, the size of China’s Internet advertising market will reach a whopping US$185.3bn? Apart from the enormous market size of China, new forms of advertising such as short video and livestream have brought fresh growth streams to internet advertising.
Let’s look at some factors that determine the growth of China’s Digital Advertising Market –
1. Regulations In China
Last year, China’s State Administration for Market Regulation, revised advertising guidelines to impose tighter scrutiny. The new marketing regulations cover areas from data collection to prohibition of showing only positive reviews, while hiding negative ones.
Chinese authorities have also started tackling anti-competitive practices of big tech platforms, such as forcing exclusivity arrangements. With new regulations, advertisers will have to constantly pay attention to the most recent rules and compliance requirements.
2. Comprehensive Information
Chinese consumers are very comfortable shopping online as long as they have access to all the relevant information – product’s price, specification, technical standard, warranty information, method of application – to make a purchase decision.
Through digital advertising, all the information and the answers to the customers common questions can be made available and easily accessible.
3. Integrated System To Drive Conversions
Digital advertising, when done well, can provide a seamless integrated experience to customers pre-sales interaction to transaction and then to after-sales services. In traditional advertising, there’s always an action that the buyer needs to take to express interest in a product or purchase it (visit a store or call the company to make a reservation).
Pre-sales advertising, transaction, and after-sales services are all integrated into one digital marketing chain, allowing clients to get the most out of the services given by the company. In the past, if a consumer was interested in a product after seeing it advertised on TV or on a billboard, the quickest method to buy it was to call the company and make a reservation, then pay on delivery.
Conversions are easier and more convenient with digital marketing as making a transaction for a customer is as easy as clicking a tab on his or her phone or laptop.
4. Huge Geographic Reach
One of the biggest advantages of digital marketing advertisements is that they are not bound by geographical restrictions. This has led to the quick adoption of the advertising method by marketers who want to test advertising at various locations at once to identify the right target audience.
5. Cost-Efficient
With digital advertising, businesses are able to choose their campaign goals and constantly optimize the advertisements so that they perform the best. This leads to lowered costs of advertising.
Digital marketing also allows enterprises to sell their items directly to customers. This helps them save the money on payments to local distributors.
When the appropriate methods of targeting are used, digital advertising is very effective in reaching customers that are interested in a business’s product/services. This further helps in reducing costs.
6. Measurable Results
Digitial advertising allows businesses to leverage analytics to measure results and the number of conversion from a campaign. The insights from analytics also help organizations adapt their digital marketing approach in response to current market trends and customer feedback.
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