Market Insights Advertising & Media Advertising

Direct Messaging Advertising - China

China

China is expected to witness ad spending in the Direct Messaging Advertising market reaching €14.70bn in 2024.
The market is anticipated to display an annual growth rate (CAGR 2024-2029) of 3.47%, leading to a projected market volume of €17.43bn by 2029.
Direct Mail Advertising holds the largest market share in China, with a volume of €10.61bn in 2024.
When compared globally, the United States is forecasted to lead in ad spending with €27,800.00m in 2024.
The average ad spending per capita in the Direct Messaging Advertising market is projected to be €10.26 in China in 2024.
China's Direct Messaging Advertising market is thriving, with a surge in personalized campaigns tailored to the country's diverse consumer base.

Key regions: India, Germany, France, China, Australia

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Analyst Opinion

The Direct Messaging Advertising market in China is experiencing significant growth and development.

Customer preferences: Chinese customers have shown a strong preference for mobile messaging apps, such as WeChat and QQ, which have become an integral part of their daily lives. These apps offer a wide range of features, including messaging, social networking, and e-commerce, making them a popular choice for communication and online shopping. As a result, businesses are increasingly using direct messaging advertising to reach their target audience on these platforms.

Trends in the market: One of the key trends in the Direct Messaging Advertising market in China is the increasing adoption of personalized and interactive advertising strategies. Companies are leveraging the data collected from messaging apps to tailor their advertisements to individual users, ensuring that they are relevant and engaging. This personalized approach has proven to be more effective in capturing the attention of Chinese consumers and driving conversions. Another trend in the market is the integration of e-commerce within messaging apps. Chinese consumers are increasingly using messaging apps not only for communication but also for shopping. Many messaging apps now offer in-app shopping features, allowing users to browse and purchase products without leaving the app. This presents a unique opportunity for businesses to advertise their products directly within these platforms, reaching customers at the point of purchase.

Local special circumstances: China has a large and rapidly growing middle class with increasing disposable income. This has led to a rise in consumer spending and a greater demand for products and services. As a result, businesses are investing more in advertising to capture the attention of this expanding consumer base. Direct messaging advertising provides a cost-effective and targeted way for companies to reach Chinese consumers, making it an attractive option for both large corporations and small businesses.

Underlying macroeconomic factors: China's rapid digitalization and internet penetration have played a significant role in the growth of the Direct Messaging Advertising market. With over 1. 4 billion people, China has the largest online population in the world. The widespread use of smartphones and the availability of affordable mobile internet access have further fueled the adoption of messaging apps and the demand for direct messaging advertising. Furthermore, the Chinese government has been supportive of the digital advertising industry, creating a favorable regulatory environment for businesses. This has encouraged innovation and investment in the sector, driving the development of new advertising technologies and strategies. In conclusion, the Direct Messaging Advertising market in China is experiencing strong growth due to customer preferences for mobile messaging apps, the adoption of personalized and interactive advertising strategies, the integration of e-commerce within messaging apps, the rise of China's middle class, and the country's rapid digitalization. These factors, along with the supportive regulatory environment, are driving the expansion of the market and presenting new opportunities for businesses to reach Chinese consumers.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses via e-mail, SMS, direct mail, messengers, web push, telemarketing, and instant messaging.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, number of smartphone users, internet coverage, and number of urban households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.