Retail Platform Advertising - China

In China, ad spending in the Retail Platform Advertising market is projected to reach US$71.22bn in 2025.
The ad spending in this market is expected to show an annual growth rate (CAGR 2025-2030) of 14.93%, which would result in a projected market volume of US$142.79bn by 2030.
The average ad spending per user in the Retail Platform Advertising market in China is projected to amount to US$68.46 in 2025.
In a global comparison, most ad spending will be generated the China, with an expected figure of US$71.22bn in 2025.
In China, the retail platform advertising market is witnessing a rapid evolution, driven by the integration of AI technologies and consumer behavior insights.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

Retail Platform Advertising: market data & analysis

The Retail Platform Advertising Market in China is witnessing considerable growth, fueled by factors such as the rapid increase in e-commerce activities, heightened consumer engagement on digital platforms, and advancements in targeted advertising technologies.

Customer preferences: Consumers in China are increasingly gravitating towards personalized shopping experiences on retail platforms, a trend bolstered by the proliferation of AI-driven recommendation systems. This shift is influenced by the rise of younger, tech-savvy demographics who favor seamless, interactive shopping experiences that align with their lifestyle values. Furthermore, the cultural emphasis on convenience and efficiency is propelling the demand for integrated shopping solutions, as consumers seek instant access to products and tailored promotions that resonate with their unique preferences.

Trends in the market: In China, the Retail Platform Advertising Market is experiencing a significant shift towards data-driven personalization, as brands increasingly leverage advanced analytics to tailor advertisements to individual consumer behaviors. This trend is being fueled by the growing influence of short-video and live-streaming platforms, where interactive content enhances consumer engagement. Additionally, the rise of social commerce enables seamless integration of shopping and social media, creating new avenues for targeted advertising. As these trends evolve, stakeholders must adapt their strategies to remain competitive, harnessing technology to enhance customer experiences and drive conversions.

Local special circumstances: In China, the Retail Platform Advertising Market is shaped by a unique blend of cultural and regulatory factors. The country's emphasis on collectivism fosters community-driven shopping experiences, where recommendations from peers are highly valued. Additionally, stringent regulations on data privacy compel brands to navigate consumer consent carefully, influencing how data-driven personalization is implemented. Geographically, urban centers witness rapid digital adoption, while rural areas are catching up, creating diverse targeting strategies. These local nuances significantly impact advertising dynamics, driving innovation and adaptability in the market.

Underlying macroeconomic factors: The evolution of the Retail Platform Advertising Market in China is significantly influenced by macroeconomic factors such as consumer spending patterns, e-commerce growth, and digital infrastructure investment. As China’s economy continues to expand, a rising middle class with increasing disposable income fuels the demand for personalized advertising. Moreover, government initiatives promoting digital literacy and smart city developments enhance access to online platforms, fostering innovative advertising strategies. Concurrently, fluctuating trade relations and global supply chain disruptions may impact brand strategies and consumer confidence, necessitating agility in campaign execution to maintain market relevance.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for 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. 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). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, 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).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Retail Platform Advertising - China

Ad Spending

Analyst Opinion

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Demographics

Global Comparison

Methodology

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