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It’s no surprise that digital ad spend is on the rise globally, but did you know that real-time bidding (RTB) is the fastest growing segment of display worldwide? As we discuss in our latest white paper, IDC projects that over 40% of digital ad inventory will be sold and purchased through RTB by 2017, with Asia Pacific (APAC) leading the pack.
Since APAC can represent 40+ countries depending on who you’re asking, we’ll narrow this conversation to two major opportunities for online marketers. China and Japan have made huge strides in terms of ad spend and revenue in the past couple years, and analysis based on booming Internet and mobile adoption suggests the potential for eCommerce is only going to get bigger. Let’s take a closer look at these two growing economies.
Boston Consulting Group predicts that by 2016, the number of Internet users in China will amount to double the entire US population. And according to eMarketer’s worldwide mobile ad spending forecast, issued last month:
Marketers will spend $6.39 billion on mobile ads in China in 2014, up 600.0% from just $913 million last year; this total will increase another 90.0% to $12.14 billion in 2015. By way of this year’s gain, China will surpass both the UK and Japan to become the second-largest mobile ad market in the world.
Several factors are contributing to this astronomical digital growth in the world’s most populous country, namely:
What are urban consumers in China most likely to purchase? Here’s the current breakdown, and how it will evolve, according to Accenture:
As you can see, dining, retail and electronics are the dominant purchase drivers among China’s most affluent citizens, but travel is making moves toward the top of the list.
When eMarketer projected the top 5 mobile Internet, digital and total media spenders in 2015 by country, Japan came in third after the US and China.
Some digital marketing-related facts about Japan:
This focus on web retail may be explained in part by the popularity of mobile devices in Japan, especially among millennials. According to Exact Target’s Japan Consumer Insights Report, here’s the breakdown of consumer smartphone usage by demographic:
This healthy adoption of smartphones by the younger set indicates that millennials might also be a good demographic target for digital advertisers eyeing Japan.