Video, Social Dominate Digital Spending Growth in China - eMarketer
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Video, Social Dominate Digital Spending Growth in China

New research shows that marketers plan on increasing digital spending significantly in 2012

May 22, 2012

The picture for advertising in China is a rosy one, and online spending’s story is most positive of all. eMarketer estimates that online ad spending increased 43.2% in 2011, and forecasts another increase of 39% in 2012, driven by strong growth in both internet penetration and online activities such as online video, social media and search.

According to an April 2012 report from consultancies R3 and Admaster Digital Consulting, more than four-fifths of marketers in China plan on increasing digital media spending during 2012. Drilling down further, 41% of marketers plan to increase spending by at least 20%, and 13% will increase spending by 50% or more.

Change in Percent of Marketing Budget Allocated to Digital Media According to Marketers in China, 2011* & 2012 (% of respondents)

Marketers in China are especially bullish about online video and social media, including weibo microblogs and social networks. According to the report, 23% of the marketers surveyed expected to devote most of the increased spending to online video in 2012, followed by 20% to weibo microblogs and 16% to social networks.

Digital Media on Which Marketers in China Plan to Most Increase Investment in 2012 (% of respondents)

eMarketer estimates online ad spending in China will reach $7.36 billion in 2012, and more than double to $16.48 billion by 2016. R3 and Admaster’s findings suggest that marketers are rushing to place brands where internet users are consuming digital media, hoping that it vaults their clients’ brand values into the atmosphere.

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Check out today’s other articles, “‘Big Data’ Can Be Hard to Harness” and “Is There a Problem with Facebook Advertising?

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