SMS Advertising - China

  • China
  • Ad spending in the SMS Advertising market in China is forecasted to reach €150.40m in 2024.
  • The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.94%, leading to a projected market volume of €182.50m by 2029.
  • When compared globally, the United States is anticipated to have the highest ad spending (€287.80m in 2024).
  • The projected average ad spending per capita in the SMS Advertising market in China is €0.11 in 2024.
  • China's SMS Advertising market is flourishing due to its vast mobile user base and innovative marketing strategies tailored to local preferences.

Key regions: India, Germany, China, United Kingdom, Australia

 
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Analyst Opinion

The SMS Advertising market in China has been experiencing significant growth in recent years, driven by changing customer preferences and the unique local special circumstances.

Customer preferences:
Chinese consumers have increasingly adopted mobile phones as their primary means of communication and accessing the internet. This has created a large and growing market for SMS Advertising, as companies seek to reach consumers through their preferred channel. Additionally, Chinese consumers are generally receptive to SMS Advertising, as it offers a convenient and non-intrusive way for them to receive promotional messages and discounts.

Trends in the market:
One of the key trends in the SMS Advertising market in China is the increasing use of personalized and targeted messages. Companies are utilizing customer data and analytics to tailor their SMS Advertising campaigns to individual preferences and behaviors. This personalized approach helps to increase the effectiveness of SMS Advertising and improve customer engagement. Another trend in the market is the integration of SMS Advertising with other marketing channels. Companies are leveraging SMS Advertising as part of multi-channel marketing campaigns, combining it with social media, email marketing, and other digital channels. This integration allows for a more holistic and coordinated approach to reaching and engaging customers.

Local special circumstances:
China has a large population and a high mobile phone penetration rate, making it an attractive market for SMS Advertising. Furthermore, the Chinese government has implemented strict regulations on telemarketing and spam messages, which has helped to create a more favorable environment for legitimate SMS Advertising campaigns. This has increased consumer trust and acceptance of SMS Advertising messages.

Underlying macroeconomic factors:
China's strong economic growth and rising middle class have contributed to the expansion of the SMS Advertising market. As disposable incomes increase, consumers are becoming more receptive to SMS Advertising messages and are more likely to make purchases based on these promotions. Additionally, the rapid development of e-commerce in China has created opportunities for SMS Advertising, as companies seek to drive traffic to their online platforms and increase sales. In conclusion, the SMS Advertising market in China is experiencing growth due to changing customer preferences, such as the increasing use of mobile phones and receptiveness to SMS Advertising. The market is also influenced by trends such as personalized and targeted messaging, as well as the integration of SMS Advertising with other marketing channels. Furthermore, local special circumstances, such as the strict regulations on telemarketing and spam messages, have created a favorable environment for legitimate SMS Advertising campaigns. Overall, the market is supported by underlying macroeconomic factors, including China's strong economic growth and the rapid development of e-commerce.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on SMS Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers the advertising budget used for creating and sending SMS advertisements.

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, and internet coverage. 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 internet 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.

Vue d’ensemble

  • Ad Spending
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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