If you ever shed a tear for print or TV advertising executives on Western markets, spare a thought for those in China. While the Internet has been eating in traditional advertising spending in the world, the trend in China has been particularly despairing for the old and should be revealing for whiskey-swilling males from developed markets. Internet outlets took the majority of Chinese advertising budgets last year with 58.1 percent and that will climb to 81.3 percent by 2020, according to estimates from Jefferies and iResearch. TV will fall to 14.4 percent and the advertising share of advertising costs is expected to decline by 90 percent compared to 2010, estimate.
the Rise of Digital Advertising
China Internet by 2020
81.3% This upheaval is driven by the ” Rapid adoption smartphone, with more than 90 Percentage of Internet users of the country connecting via mobile.
Advertising buyers in China now spend more money on the Internet than all other media combined, with the online share expected to continue to rise
Advertising in China
The New York Times made the point yesterday with a star at the head of China, not Silicon Valley, is on the cutting edge in Mobile Tech. For all charges that the Baidu, Alibaba and Tencent Internet titans are mere copies of their American counterparts, what the Western advertising and technology executives do not see is the pace of innovation, Adaptation and adoption in the Chinese market. Social are all now dominated by practical and cutting-edge mobile applications that literally put the Internet in the hands of consumers. The result is that not only users spend more time online, especially via mobile, but both internal and agency advertising executives are realizing and moving budgets accordingly. In its annual report Trends Internet, Kleiner Perkins Caufield & The disconnect between where US users spend their time and where advertisers spend their money. The lag is particularly difficult for printing, where companies are spending too much, and mobile, where they are under-spending. source Wikipedia
China a huge Market
US buyers last year bought overprinted prints and TVs compared to those where users spent their time when they did not rely on mobile
Reliable data on time spent by users are difficult to follow for China but the fact that the Internet now earns more than half of the country’s advertising revenue indicates that executives are much more informed about where to find eyeballs .
Advertising in China
Gentlemen marketing agency points out that China’s growing adoption of programmatic buying – where the ad’s location is automated in a process similar to flash trading – means that advertisers will benefit from a more efficient use of their budgets, Which will spur even more online spending. As western advertisers learn from their Chinese counterparts, expect vendors of traditional media advertising to follow the path of jukeboxes and sellers encyclopedia