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4 Reasons Digital Advertisers Should Be Targeting China

Written by: Carolyn Berk, Content Marketing Associate

eMarketer predicts big things for digital advertising in China. While the country’s economy is in the midst of a slowdown, China will still experience healthy year-over-year gains because of growing domestic demand for retail, financial services, telecom and other services that naturally contribute to more ad spending. It also doesn’t hurt that China is a major economic force that has helped make Asia-Pacific the home to the majority of the world’s ecommerce market. eMarketer says this especially holds true for social advertising. According to its research, marketers spent $25.14 billion on social network advertising in 2015. Over 30% of that total was spent in Asia-Pacific, and of that, nearly half was spent in China.

eMarketer Social Network Spending China - eMarketer Digital Advertising China

With the country’s social advertising spend poised to grow in the years to come, here’s what digital advertisers need to know:

1. Advertising In China Gets You More Bang For Your Buck

In a 2015 interview, Julia Zhou, Nanigans VP of Sales for APAC shared that China’s economy is growing at 7%. She says that’s because there are hundred of millions of people who are –for the first time– connecting to the Internet, installing their first mobile gaming apps, and making their first eCommerce purchase.

If you’re a global brand coming to Asia, one thing to note is how much cheaper it is to advertise here. Facebook CPMs in Asia are less than a fifth of what they are in North America, Europe, or Australia.

2. China’s Mobile Gaming Market Is Massive

According to video game research firm Eedar, the Asia-Pacific region generates a little over half of the world’s mobile game revenue. One APAC country contributing a large portion of that revenue is China, at around $5.01 billion in mobile gaming revenue this year.

Mobile gaming revenue APAC

With a massive base of 564 million gamers, there are clearly plenty of users to acquire and money to be made by advertising your mobile game to a Chinese audience.

3. Women In China Prefer Online Shopping For Household Purchases

A study from the Economist Intelligence Unit (EIU) reports that Chinese women are in charge of most household purchases like cosmetics, clothing and accessories, home products, electronics, furniture, travel, and leisure-related purchases.

China women purchasing preferences

Not only are women making many purchasing decisions, but many of them are turning to the Internet to buy these products. The EIU study found that 69% of female Internet users in mainland China said they would rather shop digitally than in a brick-and-mortar store. Online retailers looking to boost revenue in 2016 should seriously consider targeting the female demographic in China.

4. Chinese Young Adults Are Mad For Mobile

Mobile activity is high in China, especially among young people. According to research agency TNS, Chinese youth ages 16 to 30 spend 3.9 hours on mobile devices daily, compared to the worldwide average of 3.2 hours for that age group.

Mobile activity in China

>Because the mobile web is hugely popular among young people, targeting mobile ads to that group means you’ll be able to reach the current and future consumers of China.

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