Baidu to Grab Nearly One-Third of Digital Ad Revenues in China This Year - eMarketer

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Baidu to Grab Nearly One-Third of Digital Ad Revenues in China This Year

Baidu's mobile ad revenues more than quadrupled last year

February 10, 2015

Based on eMarketer’s December 2014 estimates of ad revenues at major publishers around the world, Baidu took in 4.68% of worldwide digital ad revenues last year. That was up from 3.74% of the market in 2013—and the second-highest gain of any company except Facebook.

Net Digital Ad Revenue Growth Worldwide, by Company, 2013 & 2014 (% change)

That gain in share translated to revenue growth of 51.0% in 2014—faster than 2013’s 38.3% rate and the fifth-fastest revenue growth in the worldwide digital ad market.

Baidu’s mobile internet ad revenues more than quadrupled in 2014, to $2.06 billion, or 5.1% of the mobile internet ad market, according to our estimates. In 2013, the company took in $500 million in mobile internet ad revenues.

Within China, where Baidu is based, the firm accounted for 28.9% of all digital ad revenues last year and will grab 32.2% this year, with its share expected to rise to 34.6% by 2016. eMarketer expects revenues from Baidu’s core search business and expanding mobile services to drive growth in coming years.

Search spending is on a strong growth trajectory in China, according to eMarketer estimates. The overall digital search ad market in the country will rise from $10.05 billion in 2014 to $16.95 billion in 2018. Search engines were the fifth most popular website category among internet users in China, according to May 2014 research from Miaozhen Systems, and 19% of those polled said using search engines was one of their leading digital activities.

eMarketer bases all of its forecasts on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

In addition, every element of each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.

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