Online video in China is flourishing, but the benefits to marketers are not equally distributed. Chinese consumer media habits are shifting to a mobile first environment and, mobile video in particular is touted to be a significant growth driver and will take 55.0% of all digital video spend, or US$3.09 billion, in 2016. By 2020, mobile video will account for 73.0% of all digital video ad spend in China, representing US$9.15 billion.1
The phenomenal projected growth of online video and ad revenue does not however mean that the rising tide lifts all boats.2 Bluntly said, just because video platform operators are pocketing larger media fees does not necessarily mean that marketers are getting the same quantum lift in ROI. So, educate yourself to avoid at least the most common pitfalls.
The ad tech that powers mobile and video advertising is highly disruptive and has changed content distribution formats, ad pricing, and buyer behavior in China, perhaps even more so than globally. As more and more ad budgets are shifted from traditional media to digital, video, and mobile, it’s imperative for marketers to be smart about how and what they buy. By 2020, digital ad spend will be more than double that of TV.3
Digital video advertising in China is complex, fragmented and competitive (see previous blog Opportunities in Fragmentation). The leading players – Youku Toudou (Alibaba), iQiyi (Baidu), Tencent, and Sohu, have market shares of 21.7%, 19.6%, 14.1%, and 12.6% respectively (as of Oct 2015).4 That represents 68% of the total market share.
So how can brands and agencies in China be sure they are getting the best value for their online video budgets? Or, more cynically, how can they avoid getting ripped off?
Our upcoming blogs will be covering four essential realities on how to create effective video campaigns. Subscribe now to ensure you receive our regular insights into online video marketing in China.