2021 China’s MarTech Market Report

Source:iresearchAugust 22,20217:55 PM Overview

Analysis of the Relationship between Application Scenarios in China's MarTech Market
These five scenarios empower each other, and effectively complete the realization links of enterprises’ marketing demands.
Five scenarios, data and strategy, content and creativity, advertising, channel operation and conversion, customer and process management, constitute the core service ability directions of China’s MarTech service providers. These five scenarios empower each other, and effectively complete the realization links covering data analysis and management, marketing strategy formulation, customer acquisition, sales conversion, customer operation, marketing effect analysis, and so on. (1) Data & Strategy Scenarios is the basis for the intelligent operation of other scenarios; (2) content and creativity scenario provide material for advertising; (3) Advertising scenarios guide traffic to sales conversion and customer operation; (4) Channel operation and conversion scenarios are important conversion carriers and expand advertising channels; (5) customer and process management scenarios improve the efficiency of advertising and channel operation and contribute to efficient customer operation.

Demand and Service Value of the Data & Strategy Scenario
Data processing technology and product function operation optimization are critical to scenarios services
The data and strategy scenario covers data analysis and testing, management, visual presentation, monitoring and secure computing services. The functions and services are involved before, during and after the marketing activities of the demand side. The core demanders in the data and strategy scenario are brand owners, advertising agencies, and media platforms. Among them, the demands of advertising agencies and media platforms center on providing better marketing services. The brand owners’ demands mainly include customer data management, marketing activity planning, and effect analysis, etc. (1) Since this scenario is very close to data processing, technology stability and reliability and the guarantee of data security are extremely important and are the foundation for service providers’ products and services. (2) Data and strategy scenarios can be the basis of other MarTech scenario services. Service providers need to optimize product operation and make products more user friendly so that demanders can quickly understand the product's abilities and make a quick layout.
Business Models of the Content and Creativity Scenario
Business Models of the Content and Creativity Scenario
Keep improving content creation service capabilities in differentiated scenarios, focusing on strengthening commercialization capabilities.
Because of the competition for traffic, the industry has higher requirements for the number and quality of ads. Now, in the content and creativity scenario, MarTech marketing service providers mainly provide enterprises with differentiated content and creativity services through creative templates, programmatic creativity platforms, creative and content trading platforms. 1) Programmatic creativity platforms are more suitable for clients with high per customer transaction, and usually charge service fees monthly or annually; 2) Creative template model is suitable for individuals or small business owners since the fee is low. The main business models include software subscription fees and one-time payments. 3) The platform transaction model mainly earns service fees or price spread through matching transactions. MarTech services providers in this scenario are now able to serve the diversified content forms and creativity scenarios. However, the profitability still needs improvement. Service providers need to keep cultivating the market's willingness to pay for new technology services. The attribution ability of digital technology for content creativity is expected to improve, which can increase the profitability of enterprises. 

Service Value of Programmatic Outdoor Advertising 
Innovate digital applications to realize product-efficiency linkage and increase the advantages of outdoor advertising scenes
Traditional outdoor advertising has many pain points. The brands can‘t track the effect of ads, and are facing Low advertising accuracy and high trial and error costs of advertising placement. The agencies are facing difficulties such as low advertising placement efficiency, high labor costs , etc. Outdoor media’s main problems are low utilization and unit price of advertising space, and lack of advertising space capacity, etc. With the continuous development of 5G new infrastructure and IoT technology, through connected hardware equipment, digital construction of management system, and improvement of data accumulation, the outdoor service providers can improve the programmatic application of outdoor ads, gradually create a closed data loop and achieve unified brand and performance marketing. However, outdoor advertising doesn‘t have a whole digital chain of marketing. The core issue lies in how to accumulate data of enough dimensions. In the future, through technical methods, innovat ive means, and data resource cooperation between industries, it is possible to increase the interactivity of outdoor advertising, accumulate multi-dimensional data of users to connect the data of user life cycle and the whole marketing chain, complete a closed outdoor advertising loop, enhance the unified brand and performance marketing ability of outdoor advertising. 



The Chinese MarTech companies' valuation and profitability are much lower than American MarTech companies. The fast iteration of the mobile Internet and the Internet giants' MarTech ecology layout make the development of Chinese MarTech enterprises more difficult.
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