According to research from IPinYou, mobile devices are driving China’s programmatic ad expenditure. Ad marketplaces such as Alibaba, Baidu and Tencent are particularly popular in the country. The mobile share of programmatic display impressions grew from 12.2% in the first quarter of 2015 to 39.2% in Q4 2015. That’s quite a significant growth.
Mobile programmatic on the rise in China
Programmatic ad formats increased 350% during the second quarter 2015, at a growth rate of 40% during the following quarters.
According to eMarketer, much of the dramatic rise can be attributed to ad platforms Baidu, Alibaba and Tencent, which are the dominant advertising platforms in China and account for 95% of mobile programmatic spending. The research firm estimates that spending is to reach $7.06bn this year, up 97% from 2015.
Grace Huang, CEO, IPinYou, explains:
“I think it is going to be a premium year for mobile advertising. […] But mobile advertising is at a very early stage. It’s the equivalent to 2005 for PC in terms of revenue and ad spend. [With mobile,] inventory is less than PC, so there is a need for much more targeted adverts. The whole ID system is much more personally stable. Mobile is all about mobile traffic and mobile data. We have the best access to inventory and data in China. We can do the magic of matching more relevant adverts to the consumer.”