Advertising spending in China 2018-2024
The alarming situation of the COVID 19 pandemic has adversely affected the global economy. Lockdown restrictions and a reduced budget for expenditure have taken a toll on various industries including the advertising market. The total media ad spending in China was expected to reach 105 billion U.S. dollars in 2020. This represents a potential loss of about 16 billion U.S. dollars due to the coronavirus pandemic compared to the projection made in October 2019.
How is China performing in global advertising?
China is home to one of the world’s leading advertising markets, second only to the United States. Between 2018 and 2021, the Chinese market was expected to contribute circa 16 billion U.S dollars to global advertising spending. In 2018, China’s advertising market also witnessed a major growth in ad spending by leading advertisers, both domestically and internationally, from companies like Guangzhou Kangchao Pharmaceutical and Estée Lauder.
The growth of the digital ad market
Another significant market trend is the shift from print and TV towards digital, which has grabbed the largest market share in China in terms of media ad spending. Although China’s digital advertising scene has been surging in recent years, the problem of invalid ad traffic, such as clicks generated by bots, is an ongoing issue. Furthermore, regulations on online ads have been further tightened, such as paid ads on search results and ads on social media platforms must be labelled as “advertisement” clearly. Industry experts foresee that mobile advertising would remain the backbone of the sector, with the domestic e-commerce behemoth Alibaba being the major revenue contributor in the post-pandemic period.
How is China performing in global advertising?
China is home to one of the world’s leading advertising markets, second only to the United States. Between 2018 and 2021, the Chinese market was expected to contribute circa 16 billion U.S dollars to global advertising spending. In 2018, China’s advertising market also witnessed a major growth in ad spending by leading advertisers, both domestically and internationally, from companies like Guangzhou Kangchao Pharmaceutical and Estée Lauder.
The growth of the digital ad market
Another significant market trend is the shift from print and TV towards digital, which has grabbed the largest market share in China in terms of media ad spending. Although China’s digital advertising scene has been surging in recent years, the problem of invalid ad traffic, such as clicks generated by bots, is an ongoing issue. Furthermore, regulations on online ads have been further tightened, such as paid ads on search results and ads on social media platforms must be labelled as “advertisement” clearly. Industry experts foresee that mobile advertising would remain the backbone of the sector, with the domestic e-commerce behemoth Alibaba being the major revenue contributor in the post-pandemic period.
