Market Insights Advertising & Media Advertising TV & Video Advertising

Digital Video Advertising - China

China

Ad spending in the Digital Video Advertising market in China is forecasted to reach €49.60bn in 2024.
The expected annual growth rate (CAGR 2024-2029) of ad spending is 6.44%, leading to a projected market volume of €67.77bn by 2029.
China is expected to have a projected market volume of €79,180.00m in 2024, with the majority of revenue being generated the United States.
Within the Digital Video Advertising market in China, 81% of total ad spending will come from mobile sources in 2029.
The projected average ad spending per internet user in the Digital Video Advertising market in China is €40.44 in 2024.
Connected TV ad spending in the Digital Video Advertising market in China is anticipated to reach €5.38bn in 2024.
Connected TV is predicted to demonstrate an annual growth rate (CAGR 2024-2029) of 8.82%, resulting in a projected market volume of €8.21bn by 2029.
Ad spending on short-form videos in the Digital Video Advertising market in China is projected to reach €34.65bn in 2024.
The ad spending on short-form videos is expected to show an annual growth rate (CAGR 2024-2029) of 7.45%, resulting in a projected market volume of €49.63bn by 2029.
China's Digital Video Advertising market is booming, fueled by advanced technology, extensive user base, and strategic partnerships with key players in the industry.

Key regions: Australia, Europe, India, China, Asia

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Analyst Opinion

The Digital Video Advertising market in China is experiencing significant growth and development, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Chinese consumers are increasingly turning to digital video platforms for entertainment and information. With the rapid growth of internet penetration and smartphone usage in China, consumers are spending more time watching videos online. This shift in consumer behavior has created a huge demand for digital video advertising, as advertisers aim to reach their target audience through these popular platforms. Additionally, Chinese consumers value personalized and interactive content, which can be effectively delivered through digital video advertising.

Trends in the market: One of the key trends in the Digital Video Advertising market in China is the rise of short video platforms. Short video apps, such as Douyin (known as TikTok outside of China) and Kuaishou, have gained immense popularity among Chinese consumers. These platforms offer a wide range of content, including entertainment, news, and educational videos, and have become an integral part of people's daily lives. Advertisers are increasingly leveraging these platforms to reach their target audience through engaging and creative video ads. Another trend in the market is the integration of e-commerce with digital video advertising. Chinese consumers are highly active in online shopping, and video ads that showcase products and provide a seamless shopping experience have become effective in driving sales. Platforms like Alibaba's Taobao Live and JD. com's Jingxi are examples of how e-commerce and video advertising are being integrated to create a more interactive and immersive shopping experience for consumers.

Local special circumstances: China has a unique digital landscape, with several homegrown tech giants dominating the market. These companies, such as Tencent, Alibaba, and Baidu, have developed their own digital video platforms and advertising ecosystems. They have a deep understanding of the local market and consumer preferences, which gives them a competitive advantage in the Digital Video Advertising market. Additionally, the Chinese government has implemented strict regulations on foreign digital platforms, creating a favorable environment for domestic players to thrive.

Underlying macroeconomic factors: China's strong economic growth and rising middle class have contributed to the development of the Digital Video Advertising market. As disposable incomes increase, consumers have more purchasing power and are more likely to engage with digital video ads. Furthermore, the ongoing urbanization in China has led to the concentration of population in cities, making it easier for advertisers to target specific geographic areas through digital video advertising. In conclusion, the Digital Video Advertising market in China is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are leveraging digital video platforms and integrating e-commerce to reach their target audience and drive sales. With the unique digital landscape and favorable market conditions, the Digital Video Advertising market in China is poised for further expansion in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.