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10 media and marketing trends in China

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GroupM China has issued its latest This Year, Next Year report, showing China’s changing media landscape and predicting the future trends for marketers:1. Internet ad spend is taking nearly half of the total, while mobile advertising will become the most popular online media advertising typeInternet ad spending in China has surpassed television spending for the first time in 2015, and it’s forecasted to take up 49.7% of the total ad spend. Mobile screen has become the first screen of consumers and mobile internet ad is expected to grow twice as fast as that of the overall internet ad spend.2. Programmatic purchase will see deepening developmentDespite their ever increasing budgets on programmatic purchase, big advertisers are focusing not only on efficiency and effectiveness but also the quality of advertising resources and advertising environment. A combo of PDB + RTB purchase of advertisements has become the mainstream model.3. Television continues to play a dominant role in terms of coverage and influence despite lowering market shareThe further development of the new interactive approaches via television such as “WeChat shake” and “watch and shop” is anticipated to accelerate the fusion of new media and traditional media. The organic combination of “Wechat + television” is more of a “new volume entrance” plus a “new advertising platform” than just a mere shaking to obtain free cash red packets. The combination has created added value of television by gradually transforming the latter from content display media to content interactive media.4. More subtle product placements in variety showsIn 2015, the most expensive advertising endorsement in one variety show was as much as CNY 500 million, arriving at a new level. However, recent years have detected a pervasive bottleneck in ad volume and price because of restrictions on advertising. Media and advertising companies started to diversify how they promote brands through more dimensions with more subtlety. There are more interactions with fans and more crossover marketing for the sake of speedy integration of multi-screen interaction and television-Internet linkage.5. Variety shows are one of CCTV’s top priorities in 2016, while dramas and sports event broadcasting rights are unparalleled advantages2016 is surely a big year for sports event. The exclusive television rights and new media broadcasting rights now enjoyed by CCTV in China mainland and Macau have helped CCTV in winning the favour of advertisers. This could be seen in the competition of title sponsorship for the Olympic programs and the Olympic medal tally.6. PSTVs remain a key driver for TV expenditure growth as LTVs group togetherThe ad spend in PSTVs increased 13.8% in 2015, and 6.0% this year. Hunan PSTV, Zhejiang PSTV, Jiangsu PSTV and Dragon TV firmly held the top 4 spots. Meanwhile, LTVs were riding on the advantage of local coverage by ground channels and nationwide coverage of online video network to build up their core competitiveness through alliancing themselves. This innovative model provided new options for advertisers.7. The online video market has increased by 61.2% year-on-yearIn future, online video websites’ current business model of solely relying on advertising revenue will be replaced by a series of eco models. These will range from content investment, big data, systematic purchase, video-based e-commerce, Internet finance and online payment. Brand owners need to understand that brand advertising is to provide premium entertainment content to the audience instead of creating disturbance for them.8. "Scenario will be the king" in OOHThe huge market potential and broad prospects for development indicate that investing extensively in OOH advertising in the third- tier and fourth-tier cities, is a useful proposition. Nowadays as consumers spend an increasing amount of time outdoors, it is critical for outdoor advertisers to strengthen interactions and increase convergence of new technologies. Technologies such as augmented reality, beacons and virtual reality are set to reshape the outlook of outdoor advertising.9. Printed media’s “transformation and upgradation” and media integration elevated to a “national strategy” levelWhile focusing on developing own content and converging media platforms, “transformation and upgradation” have become the new concept in content innovation and value enhancement.10. Growth of radio ad spend entered the negative territory in 2015 for the first timeBut it is expected to be the pioneer media for many advertisers’ advertising channels in lower-tier cities. Despite attracting a large number of listeners last year, the competitiveness of mobile radio stations for a sustainable future will mainly lie in three aspects: enhancement of self-generated content to increase listeners’ adhesiveness, diversification of connections among different end devices to cover more scenarios and improvement in accuracy and localisation of platform advertising through big data + LBS (Location Based Services).

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