In China, Marketers' 2016 Spending Stays Steady Despite Downturn - eMarketer
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In China, Marketers' 2016 Spending Stays Steady Despite Downturn

Executives expect budgets will increase or stay the same this year

April 25, 2016 | Advertising & Marketing

Despite evidence of an increasingly shaky economic climate in China, marketing budgets in the country are predicted to increase or at least hold steady. A January 2016 survey from Kantar Media reveals that although marketers’ outlook is becoming more pessimistic, marketing spend hasn’t yet been impacted. In examining the expected change in spending for 2016, Kantar found that 41% of executives in China expected their marketing budgets to increase, while another 25% predicted they would stay the same. Only 15% thought budgets would decrease, a decline from the number of executives who expected a decrease in 2015.

Expected Change in Marketing Spending According to Marketing Executives in China, 2014-2016 (% of respondents)

When considering the most popular formats for investment for the year to come, most executives predicted they would spend the most on television, representing an average allocation of 37% of marketing budgets. Desktop, laptop internet and mobile internet were the next-highest formats, accounting for 20% and 16% of marketers’ expected 2016 budgets, respectively.

Although Kantar’s analysis suggests TV will account for the largest share of marketers’ 2016 budgets, eMarketer’s own forecasts hint at the importance of digital and mobile ad spending in the years to come. eMarketer estimates digital ad spending will account for $40.4 billion, or more than 50%, of the predicted $78.3 billion in total media ad spending in China for 2016.

Total Media Ad Spending in China, by Media, 2014-2020 (billions)

The discrepancy between the two forecasts is likely due to eMarketer’s assessment of the growing importance of younger, internet-savvy consumers in China, who are likely to push more media dollars away from traditional formats like TV and out-of-home towards digital in the years to come.

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