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8 key facts about China
Digital Marketing Landscape
www.chandlernguyen.com
Feb 2016
1. China has 3X more Mobile
Internet users than the US
Mobile Internet users (in Millions)
0
175
350
525
700
2015 2016 2017 2018
691
653
618
589
232223210194
US China
Source: eMarketer Aug 2015 report
2. Daily, users in China spend roughly 50% of their total time spent
with media on Digital devices, including Mobile (non voice, 120
mins) and Desktop/Laptop surfing the internet (64 mins)
Timespentperday
0
50
100
150
200
2014 2015
121
110
6464
Desktop/laptop internet: time spent per day (Minutes)
Mobile (nonvoice): time spent per day (Minutes)
49%
50%
Source: eMarketer Jul 2015 report
3. China is the second biggest market in the world
behind the US in terms of digital ad spend with
roughly 49.1% of total media spend on digital
Digital Ad Spend (in billions)
$0
$25
$50
$75
$100
2015 2016 2017 2018 2019
$65
$58
$49
$40
$31
$94
$84
$75
$67
$58
US China
Source: eMarketer Sep 2015 report
4. More than 50% of digital ad spend
is on mobile in China, similar to the US
Mobile ad spend (in Billions)
$0.0
$15.0
$30.0
$45.0
$60.0
2015 2016 2017 2018
$43.3
$34.0
$25.0
$15.8
$57.9
$50.8
$42.0
$30.4
US China
Source: eMarketer Oct 2015 report
Mobile Ad Spend as % of digital ad spend
2015 2016 2017 2018
US 52% 63% 67% 69%
China 51% 63% 70% 75%
5. SEM ad still commands about 50% of
the total digital ad spend in China,
followed by Video Ad at around 24%
Source: eMarketer Oct 2015 report
Ad Spend by Format as % of Total Digital Ad Spend
0.00%
12.50%
25.00%
37.50%
50.00%
SEM Social Network Ads Video Ads Rest of Display Ads
12%
26.5%
12.5%
49%
14.5%
25%
12%
48.5%
17.00%
24.00%
11.00%
48.00%
2015 2016 2017
6. Programmatic Display is forecasted to
be more than 50% of Digital Display Ad
Spend in 2016
Display Ad Spend (in Billions) and % of Programmatic Display
0%
15%
30%
45%
60%
$0.0
$6.5
$13.0
$19.5
$26.0
2014 2015 2016 2017
Display Ad Spend % Programmatic Display
57%
51%
44%
38%
$24.9
$20.4
$16.1
$12.6
38%
44%
51%
57%
Source: eMarketer Oct 2015 report
7. Baidu, Alibaba and Tencent (BAT)
command more than 50% of all Digital Ad
Revenue in China in 2015
Ad Revenue by Major Publishers/Search Engines in China
0.0%
10.0%
20.0%
30.0%
40.0%
Alibaba Baidu Tencent sohu.com Youku Tudou SINA The rest
40%
2%
3%3%
10%
31%
12%
34%
2%2%
3%
5%
29%
25%
2014 2015 2016 2017
Source: eMarketer Oct 2015 report
Digitalbuyers(inmillions)
0
150
300
450
600
Retaile-commercesales(inBillions)
$0
$400
$800
$1,200
$1,600
2014 2015 2016 2017 2018
US China US China
557
514
468
419
373
191186179172165
$1,568$1,208$911$672$473 $482$432$385$341$298
373
419
468
514
557
165 172 179 186 191
8. China Retail e-commerce sales and number of digital
buyers are 2.5X more than those in the US in 2016
Source: eMarketer Sept 2015 report
Note: Retail e-commerce sales includes products or services ordered using the internet, regardless of the method of payment or fulfilment;
excludes travel and event tickets
Digital buyers: ages 14+; internet users who have made at least one purchase via any digital channel during the calendar year, including
desktop/laptop, mobile and tablet purchases; excludes Hong Kong

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8 key facts about china digital marketing landscape (data from eMarketer)

  • 1. 8 key facts about China Digital Marketing Landscape www.chandlernguyen.com Feb 2016
  • 2. 1. China has 3X more Mobile Internet users than the US Mobile Internet users (in Millions) 0 175 350 525 700 2015 2016 2017 2018 691 653 618 589 232223210194 US China Source: eMarketer Aug 2015 report
  • 3. 2. Daily, users in China spend roughly 50% of their total time spent with media on Digital devices, including Mobile (non voice, 120 mins) and Desktop/Laptop surfing the internet (64 mins) Timespentperday 0 50 100 150 200 2014 2015 121 110 6464 Desktop/laptop internet: time spent per day (Minutes) Mobile (nonvoice): time spent per day (Minutes) 49% 50% Source: eMarketer Jul 2015 report
  • 4. 3. China is the second biggest market in the world behind the US in terms of digital ad spend with roughly 49.1% of total media spend on digital Digital Ad Spend (in billions) $0 $25 $50 $75 $100 2015 2016 2017 2018 2019 $65 $58 $49 $40 $31 $94 $84 $75 $67 $58 US China Source: eMarketer Sep 2015 report
  • 5. 4. More than 50% of digital ad spend is on mobile in China, similar to the US Mobile ad spend (in Billions) $0.0 $15.0 $30.0 $45.0 $60.0 2015 2016 2017 2018 $43.3 $34.0 $25.0 $15.8 $57.9 $50.8 $42.0 $30.4 US China Source: eMarketer Oct 2015 report Mobile Ad Spend as % of digital ad spend 2015 2016 2017 2018 US 52% 63% 67% 69% China 51% 63% 70% 75%
  • 6. 5. SEM ad still commands about 50% of the total digital ad spend in China, followed by Video Ad at around 24% Source: eMarketer Oct 2015 report Ad Spend by Format as % of Total Digital Ad Spend 0.00% 12.50% 25.00% 37.50% 50.00% SEM Social Network Ads Video Ads Rest of Display Ads 12% 26.5% 12.5% 49% 14.5% 25% 12% 48.5% 17.00% 24.00% 11.00% 48.00% 2015 2016 2017
  • 7. 6. Programmatic Display is forecasted to be more than 50% of Digital Display Ad Spend in 2016 Display Ad Spend (in Billions) and % of Programmatic Display 0% 15% 30% 45% 60% $0.0 $6.5 $13.0 $19.5 $26.0 2014 2015 2016 2017 Display Ad Spend % Programmatic Display 57% 51% 44% 38% $24.9 $20.4 $16.1 $12.6 38% 44% 51% 57% Source: eMarketer Oct 2015 report
  • 8. 7. Baidu, Alibaba and Tencent (BAT) command more than 50% of all Digital Ad Revenue in China in 2015 Ad Revenue by Major Publishers/Search Engines in China 0.0% 10.0% 20.0% 30.0% 40.0% Alibaba Baidu Tencent sohu.com Youku Tudou SINA The rest 40% 2% 3%3% 10% 31% 12% 34% 2%2% 3% 5% 29% 25% 2014 2015 2016 2017 Source: eMarketer Oct 2015 report
  • 9. Digitalbuyers(inmillions) 0 150 300 450 600 Retaile-commercesales(inBillions) $0 $400 $800 $1,200 $1,600 2014 2015 2016 2017 2018 US China US China 557 514 468 419 373 191186179172165 $1,568$1,208$911$672$473 $482$432$385$341$298 373 419 468 514 557 165 172 179 186 191 8. China Retail e-commerce sales and number of digital buyers are 2.5X more than those in the US in 2016 Source: eMarketer Sept 2015 report Note: Retail e-commerce sales includes products or services ordered using the internet, regardless of the method of payment or fulfilment; excludes travel and event tickets Digital buyers: ages 14+; internet users who have made at least one purchase via any digital channel during the calendar year, including desktop/laptop, mobile and tablet purchases; excludes Hong Kong