China's Online Advertising Sector Data in 2017

Source:iResearch January 30,20187:00 PM
In 2017, China's  online advertising revenue is expected to approximate 400 billion Yuan with a share larger than 50% in China’s advertising market. Pushed by the growth of internet users, digital media using time and online video & audio business,  online advertising revenue is forecasted to maintain its fast development in the following years while the revenue of traditional media such as newspapers, magazines and TV advertising probably further decline.
The keywords of online advertising are “intellectualization” and “originality”. Advertisers are more familiar with online advertising forms, which are continuously evolving along with the development of native advertisements. The border between content and advertisement is increasingly vague as well. Meanwhile, as the online environment has improved much, video has become a content carrier that are more widely accepted and welcomed by the public and thus video-based advertising had fast development as well. Besides, online marketing will soon be placed in the fast developing AI. Currently, intelligent marketing has become the most popular topic in the market and is believed to bring new chances to the industry.  

In China’s online advertising industry, e-commerce advertising occupied 29.8%, almost the same as that in the previous year; news feed advertisements had a growth rate and accounted for  over  14%; and search advertising experienced a share shrink and is expected to have a share around 20% in 2020. 

In the future, news feed advertising with original information will have more display forms and its revenue will further rise and become a most important driver for development of online advertising industry. 
Seen from all the forms of internet media in China, e-commerce platforms, social media, news & information media and e-commerce media had all witnessed a share expansion in advertising in 2017 compared with that in the previous year. Thanks to the driving effect of news feed advertisements, share of social media advertising increased 1.2% compared with 2016, and share of advertising on portal website advertising and news & information media increased 0.6%.

It is expected that in 2020 e-commerce-based media advertising will took the commanding lead with the largest share in China’s online advertising market, while social media and video-based media is assumed to have great development potential in the market. 
Native advertising, as one advertising form more audience friendly, enjoys huge development potential in the future. The form of native advertising has expanded from search advertising only to richer varieties blending more interesting forms and content. iResearch forecasts that China’s native advertising will reach 163.85 billion Yuan in 2017 with a share of approximate 40% in general online advertising industry and even will took a half of the online advertising market by 2022. 





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