China mobile advertising
China has become the third most powerful advertising market with more than €500,000M of Internet users and 28.5% of smartphone penetration. China has almost overtaken the supremacy of United States in terms of search advertising, so it is a good market to be explored, not only because of the plethora of people, but rather because a large percentage of people (25%) spend more than 4 fours surfing the Internet.
Advertisers have started to consider smartphones as a way to access clients and communicate with them, leaving aside the conception of a device for marketing campaigns. It consists of a personal use medium with which the brand can get really useful information about necessities, likes and consumption habits of its target client. For this purpose, companies have to manage and value several tools to redirect their strategy and to get more clients.
For this reason, marketers have decided to invest more in advertising marketing instead of continuing to stir up the television advertising. From 2013, more and more money has been invested in digital marketing: $722M was invested in 2014 and over $1,450M in 2014; according to EMarketer, an investment of $2,210M is expected for this year. In this country, the top 5 advertisers are P&G, China Mobile, Volkswagen, L’Oreal and 360Buy, which have known how to take advantage of this stark shift in the advertising field.
That supposes a large quantity of earning, since this rate does not include the advertising through SMS or MMS and the mobile advertising is the most common in China (almost 55% of inversion).
However, that kind of advertising is giving way to mobile apps. According to AdChina, in 2014, 88% of users owning a smartphone installed mobile apps on their devices and more than 51% spend so much time using them. In addition, due to the prohibition of social networks such as Facebook, Youtube or Twitter, homegrown platforms like Qzone, WeChat or Sina Weibo are gaining popularity and the publicity included on them is increasing.
In this sense, advertising in the Chinese social media will increase by 67.6% by 2018, and mobile social networking will grow up to 100%, which means 10% of the total digital marketing in this country and 3.5% of the total earnings.
Finally, according to the consultant company PricewaterhouseCoopers (PwC), 71% of the Chinese population purchase online using their smartphones, which means that they make a purchase almost once a week. This is a big difference with regard to the 32% of Americans who use their smartphones to buy. This is why the main brands are aware of the importance of investing large amounts of money and therefore why they include ads in their ecommerce websites.