Brands globally are planning to invest more heavily in China driven by programmatic digital ads. According to a survey of 300 senior marketers in North America, APAC and EMEA by The Trade Desk, 53% of brands in the UK, France and Germany consider China to be a significant opportunity for growth whilst 34% extend that sentiment to East Asia.
A whopping 92% of global marketing leaders believe China represents a significant opportunity for growth with 51% expected to spend over $100 million in 2019.
The country currently has 829 million Internet users with an eCommerce penetration of 35%, marking the highest worldwide.
Meanwhile, digital ad spend in China stood at $80 billion in 2018, rising 22% in 2019. Interestingly, 67% of Chinese consumers have previously been found to be willing to share their data in exchange for personalised services.
“The Asia-Pacific region is set to be the largest advertising region in the world in just a few short years, and China will be a huge part of this,” explained Anna Forbes, UK general manager at The Trade Desk.
“Marketers know that eCommerce and social are huge players in the Chinese digital market, and so are planning to pump investment into these channels. But there’s no doubt that China is a complex market that presents unique challenges for brands, and marketers need the reassurance that their spend is efficiently used.”
Programmatic is still the most effective way to reach Chinese customers (55%), but it also offers increased reach/scale and revenue (50%) and a better customer experience (48%).
Social media (74%) and eCommerce (70%) ads represent the main types of media global marketing leaders are planning to buy in 2019 in China as marketers are taking a clear mobile-first approach. Indeed, 98% of Chinese Internet users are mobile users.
Although brands have strong expectations for China, 22% do not believe that they are maximising their digital media opportunities just yet. Therefore, 76% plan to move their media investments to a global partner operating in China.
A whopping 89% believe that it will be important for their DSP partner to work with major media partners in the country.