E-commerce marketplace Alibaba is set to claim the top spot for largest share of mobile internet ad revenues in China, ranking ahead of Baidu, the Chinese web services company. Research by eMarketer finds that Alibaba is to double revenue to $4.75 billion in 2015 to spend on display and search advertising on mobile devices. In comparison, Baidu took in $2.53 billion in 2014 and increased revenue to $4.53 billion this year.
Mobile internet ad revenues in China 2013-2016
Alibaba’s active monthly user base reached 265 million in December 2014, a jump of 95% from 2013. The company has been focussed on its mobile expansion plans and invested $590 million into mobile smartphone maker Meizu Technology Corp in February 2015.
Mobile ad spending in China is to reach $13.98 billion this year, proving the country’s rapid growth in a population of smartphone and tablet users. Alibaba and Baidu are to make up a third each of that revenue. Meanwhile, digital ad spending in the country is to grow by 30% this year. Mobile ads are likely to see a jump up by 90%.
Wang Haxia, VP, eMarketer, told the South China Morning Post:
“Mobile commerce, location-based search, mobile messaging, social networking and mobile video services are the biggest drivers of this market.”
When compared to the US, eMarketer forecasts total media ad spending to jump by 5.1% from the year before to $189.38. Google accounts for over 10% of ad spending and together with Facebook the companies are forecasted to take 15% of the market in 2016.