Programmatic Advertising in China: 2016 Trends and Forecast Update - eMarketer

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Programmatic Advertising in China: 2016 Trends and Forecast Update

eMarketer Report

By: eMarketer

Published: October 20, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Programmatic ad spending in China hasn’t yet peaked. This year alone it will surge by more than 70%. However, the country’s programmatic ad landscape is far from perfect, with many challenges still to overcome.

  • 2016 will be the first year in which programmatic ad spending represents over half of digital display ad investment in China. By 2018, it will grow to more than three-fifths of such spending.
  • Most programmatic ads in China are transacted through three major internet players—Baidu, Alibaba and Tencent (BAT). If these programmatic buys were excluded, programmatic ad spending would represent only about 20.0% of the country’s digital display ad outlays.
  • Powered by demand for premium inventory and concerns about ad fraud, brand safety and viewability, programmatic direct deals will represent 60.0% of China’s programmatic digital display ad spending this year.
  • Mobile programmatic ad spending in China will more than double this year as marketers pursue the country’s rapidly expanding smartphone user base. To engage mobile users, more marketers are employing in-app programmatic native ads.
  • Programmatic video ad spending will also more than double this year. But since advertising in premium video content continues to be placed primarily via nonprogrammatic methods, programmatic will represent just a small part of overall digital video display ad spending in China.
  • Ad fraud, conflict of interest and a lack of common programmatic standards and third-party verification are all issues China’s programmatic ad players need to overcome to ensure healthy growth of the market.

"China will see programmatic ad spending rise to $11.05 billion in 2016, representing 51.0% of the country’s digital display ad outlays. It will be the first time programmatic beats traditional ad buying in market share."

Table of Contents

Programmatic Ad Spending Forecast

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Mobile Programmatic Advertising

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Looking Ahead

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8 charts are included in the full report:

Programmatic Advertising in China: 2016 Trends and Forecast Update

Programmatic Digital Display Ad Spending in China, 2014-2018 (billions, % change and % of total digital display ad spending*)

Programmatic Ad Spending Forecast

Programmatic Digital Display Ad Spending in China, 2014-2018 (billions, % change and % of total digital display ad spending*)

Spending by Transaction Type

Programmatic Digital Display Ad Spending in China, by Transaction Method, 2014-2018 (billions, % change and % of total programmatic digital display ad spending)

Real-Time Bidding (RTB) Digital Display Ad Spending in China, by Segment, 2014-2018 (billions, % change and % of total RTB digital display ad spending)

Spending by Format

Programmatic Digital Display Ad Spending in China, by Format, 2014-2018 (billions, % change and % of total programmatic digital display ad spending)

Programmatic Digital Video Ad Spending in China, 2014-2018 (billions, % change and % of total digital video ad spending)

Mobile Programmatic Advertising

Mobile Programmatic Display Ad Spending in China, 2014-2018 (billions, % change and % of total mobile display ad spending)

Programmatic Digital Display Ad Spending in China, by Device, 2014-2018 (billions, % change and % of total programmatic digital display ad spending)

Real-Time Bidding (RTB) vs. Programmatic Direct Share of Mobile Programmatic Display Ad Spending in China, 2013-2018 (% of total)