According to IHS Markit, the online advertising market in China will grow 14.3% in 2017 mainly due to a strong growth in online video. IHS Markit also predicts that more than 75% of online display advertising revenue will come from mobile by 2020.
The Chinese online advertising market is believed to be the second largest in the world, with revenues of approximately $33 billion in 2016. There was a 17.5% growth in online in 2016 and will grow 14% in 2017, driven by a strong growth of online video.
After a period of rapid growth, TV in China declined 2.7% in 2016. This is mainly due to people switching to online for content and looking for such things as foreign content to user-generated content by popular vloggers. IHS Markit predicts a further 3% drop in 2017 for TV.
Analyst Comment
IHS has been making the important point for some time that the big Chinese technology giants have wide ranging business models and plans and the kinds of revenues that are going to come in via advertising are only going to make them stronger. (BR)
Mobile advertising revenue is a huge share of the market.
