China's Mobile Advertising Is Expected to Surpass Online Advertising Via PC at the End of 2016

Source:iResearch July 18,20169:41 AM
Compared with advertising on the traditional media such as TV, radio, newspaper and magazine, online advertising industry had a faster development.In 2015, China’s online advertising attained 209.37 billion Yuan with a YoY growth of 36.0%, flat with the growth in 2014. Although the growth rate of online advertising has been admiring for many years, it is expected to decelerate in the near future. Meanwhile, online advertising revenue is estimated to exceed 400 billion Yuan in 2018. 

Among all the online advertising forms, mobile advertising had the most rapid growth. The monthly effective viewing duration of mobile apps has exceeded 30 billion hours, 3 times of that on PC, indicating that internet users now spend more time on mobile devices than on PCs. The fast development of mobile advertising can be attributed to the following factors. Firstly, the penetration rate of smart devices and easy access to Internet such as Wi-Fi and 4G pushed the mobile advertising market forward and set foundation for the further development of mobile advertising. Secondly, internet users had high loyalty for mobile and they more frequently used mobile devices than PCs. Especially, video apps, social & instant messaging apps and news apps has become the most important way for them to entertain, acquire information and communicate in daily life. Also, core media companies devoted much in mobile business, which enhanced the monetization of mobile advertising. What’s more, more and more marketing companies shifted their focus to mobile advertising, which accelerated the development of small- and medium-sized mobile media companies. Finally, advertisers have realized the importance of mobile marketing and began to invest more in mobile advertising.  
In recent three years, China’s mobile advertising maintained a growth higher than 160%. China’s mobile advertising revenue totaled 90.13 billion Yuan with an unbelievable YoY growth of 178.3% in 2015, and it’s expected to continue its fast growth in the future and is estimated to exceed 300 billion Yuan in 2018 with a penetration rate of 80% in online advertising market. Under the circumstance of the fast development of mobile Internet, mobile advertising has huge development potential. After several years’ exploration, China’s mobile advertising sector has stepped into its new era.

Seen from China’s mobile advertising market segments, mobile searching ads grabbed a market share of 40.5% in 2015,the biggest share in mobile advertising market. However, its share has been shrinking in recent two years. Meanwhile, mobile e-commerce ads and mobile portal and news website ads ranked the second and the third, capturing a share of 19.7% and 15.9% respectively in 2015. iResearch forecasted that mobile e-commerce ads and mobile video ads will expand in 2016 and take larger share in mobile advertising market. What’s more, share of other mobile advertising forms will increase as well, and the mobile marketing structure will remain unchanged in the near future. 

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