In its latest forecast of ad spending around the world, eMarketer has made upward revisions to both its total and digital ad spend forecast for Asia-Pacific, thanks to recent reports showing strong digital advertising activity in China. This year, China will be home to more than a fifth of all digital ad spending worldwide, amounting to $41.66 billion.
Within China, the BAT companies—Baidu, Alibaba and Tencent—continue to be the key players benefiting from the ad spend uptick. Thanks in part to its increased revenues from display ads, Alibaba now enjoys the largest share of China’s digital ad market—this year, more than a quarter of the total, equating to $12.05 billion.
Ad spending in China continues to shift rapidly toward digital formats and in particular mobile formats as more time is spent on mobile devices. We think that this trend will persist in the coming years, especially as more offline services become integrated online via mobile applications.