The development of China’s digital marketing industry is the result of an ever-changing digital media landscape and constantly evolving technologies. The past year has seen the meteoric rise of IoT, blockchain, and short-form videos and continued development of AI, digital transformation, and social marketing. China’s unique consumers, media, and technology landscape have given birth to an equally unique digital marketing industry.
China’s leading independent third-party marketing data technology companyAdMaster aims to help brands and advertisers accurately evaluate marketing trends and maximize ROI every year. Over the past three years, AdMaster has conducted annual surveys of advertisers and digital marketers in order to monitor next year’s marketing trends.
Dec 7, AdMaster released its China Digital Marketing Trends 2019 report in conjunction with TopMarketing at its GDMS data summit “Intelligent Growth in 2019”.The report provides a comprehensive forecast of China’s digital marketing landscape in 2019.
Wilson Chen, COO, AdMaster presents the China Digital Marketing Trends 2019 report.
Digital marketing spending to increase
by 20% on average in 2019
Despite predictions that 2019 would be a difficult year for China’s economy, AdMaster’s data shows that as many as 79% of advertisers in China will be spending more on digital marketing in the next year. Nearly 30% of them will be increasing their budget by 30% or more. The average budget increase is 20%, a significant growth compared to 18% and 17% in the past two years respectively.
81% of advertisers to increase
mobile advertising budget
Mobile remains the most favored device to advertise on. 81% of advertisers will increase their mobile advertising spending next year. However, PC advertising is almost at a standstill as only 11% of advertisers will increase their PC advertising budget.
CTV is seeing a steady increase in both penetration and activation rate. As in 2018,advertisers remain polarized towards CTV advertising: 28% will increase CTV marketing budget while 27% will not advertise on CTV at all. However, the amount of advertisers who will reduce their CTV budget or not advertise on CTV has decreased by 10% since last year, suggesting that CTV advertising is growing.
Media fragmentation continues as IoT technology (particularly smart voice-controlled devices) matures. 26% of advertisers intend to increase spending on smart devices other than mobile, PC, and CTV.
Social marketing budget to grow by 21% on average ，focusing on KOL, short-form video, and livestreaming
The popularity of social short-form video and social e-commerce apps has made social marketing increasingly important in digital marketing, which has directly impacted advertising budgets. AdMaster’s data shows that 81% of advertisers will spend more on social marketing in 2019, on average by 21%, continuing the high rate of growth seen last year.
Over 50% of advertisers will employ KOLs, short-form videos/livestreaming, or official WeChat accounts as channels for social marketing. KOL promotion is the most popular, signifying that the brand exposure and sales a KOL spokesperson contributes is extremely important to marketers.
Douyin, Kuaishou, and other short-form video-based social media strongly attract users and provide high conversion. Despite livestreaming being slightly less popular than before, it and short-form videos remain social marketing hotspots.
Search engines will be the most popular
PC advertising format
AdMaster’s data shows that search engines,social media,video websites remain the top 3 popular formats for PC advertising; however, their relative popularity has changed compared to 2018. Search engines are now the top choice of advertisers as video websites cede ground. 22% fewer advertisers will choose to advertise on video websites compared to the last year.
Social and video platforms most popular
On mobile, social and video platforms retain their edge. Over half of advertisers will make them the focus of their mobile advertising campaigns. Vertical media and e-commerce platforms are tied for third place with 37% of advertisers choosing each.
Content marketing to focus on web variety, original video content/short films & reality shows
The skyrocketing popularity of web variety last year has not been lost on the digital marketing industry. AdMaster’s data indicates that 39% of advertisers will invest their content marketing budget in web variety shows, making them the top choice for content marketing. Original video content and short films come in second, surpassing both web and TV dramas, thanks to a shift in video consumer habits and the rise of short-form video. Reality shows also remain quite popular.
Automated marketing/marketing cloud the most popular marketing technology of 2019
According to AdMaster’s data, as many as 60% of digital marketers think that big-data driven automated marketing/marketing cloud will be the most popular marketing technology in 2019.
Revolutionary AI technology and DMP, the “brain” of enterprise data management and decision-making, are also highly regarded. Voice recognition technology has been the most widely-used AI application over the past year as internet companies raced to develop voice assistants. AI has also been instrumental in self-driving cars, medical image recognition, and smart retail technology. Meanwhile, DMP plays a key role in enterprise digital transformation as a central hub for data integration, management, and application.
In analyzing the China Digital Marketing Trends 2019 report, Wilson Chen, COO, AdMaster says: “Big data and AI are reshaping the digital marketing landscape. Media fragmentation will continue as IoT becomes more widespread, but what drives marketing remains the same — innovative data technology and innovative content. Data, intelligence, and content are the three forces behind every enterprise’s growth in quality and efficiency. AdMaster’s data technology ensures brands maximize their digital marketing ROI and helps brand build online data and closed-loop AI operations.”
To get the full version of China Digital Marketing Trends 2019, click original article.