03052018 In China Alibaba Dominates Digital Ad Landscape - eMarketer

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Article by eMarketer Editors Mar 20 2018

In China Alibaba Dominates Digital Ad LandscapeAlibabarsquos revenues will outpace TV ad spending for the first time this year

DIGITAL AD SPENDING TV AD SPENDING CHINA

A libaba will continue its hold over the digital ad market in China according to

eMarketerrsquos latest advertising spending forecast for the country The

homegrown internet company is expected to claim more than a third of all digital

ad revenues this year amounting to more than $20 billion

In addition Alibabarsquos revenues will outpace TV ad spending for the first time this

year TV spend has slowed in recent years growing just 05 By comparison

Alibabarsquos revenues are expected to increase by a third In total Alibaba will reap

more than a fifth of all advertising outlays in China this yearmdashwhile TV will take a

175 share

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A perfect storm of more mobile users and a growing number of merchants and

technological improvements have helped solidify Alibabarsquos dominance in China

While competitors Baidu and Tencent are both expected to grow significantly this

year their combined revenues are less and will account for 19 of all advertising

spend in China

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ldquoAlibaba repeatedly uses the word lsquorelevantrsquo when explaining their success with

advertisingrdquo said Chris Bendtsen senior forecasting analyst at eMarketer

ldquoPersonalization technology has succeeded in delivering relevant content search

results and ads to mobile users on Taobao and Tmall and this will only improve in

the future Relevance is the key for Alibaba advertisers merchants and consumers

to all winrdquo

ldquoTV will always be an important medium because of the countryrsquos massive

audience size But this is the first year we expect more ad dollars to go to one

internet company Alibaba And the improving relevance and growing mobile

audience are two major reasons for thatrdquo he added

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