A market that has grown by 500% in 10 years.
The market has almost quintupled in size within in a decade, from 107,000 to 502,000 billion yuan (59 billion euros). Internet advertising totalled € 13 billion. In advertising as well, China is now amongst the biggest in the world. Barely noticeable by the industry leaders 10 years ago, the Chinese market is now the second largest worldwide.
This is part of an announcement released by the head of the National Administration of Industry and Commerce, Zhang Mao, in May.
This announcement was supported by figures to highlight this striking change: the revenue generated by this activity increased between 2003 and 2013, from 107,000 to 502,000 billion yuan. At current exchange rates, the industry is, therefore, equivalent to 59 billion euros.
The annual growth recorded is about 30% YOY.
According to the same official figures, the sector involves 2.6 million people, against less than 1 million a decade ago.
For the second world economy must its development model to boost its households buying power… China official seem to have gotten the message since the country is also catching up in this area.
The same Zhang Mao said that the importance of advertising in GDP in China was less than half of what is generally found in developed countries. True to its planning tradition Planner, Beijing has published in 2012 a five-year plan that includes the development of “clusters”, bringing together the entire ecosystem areas of advertising. There are currently twenty-nine of them in the territory.
Expansion of the web
In this booming landscape, it is the new media that takes the dynamics. Internet advertising, in particular, saw its revenue grow by 46% year on year in 2013 to 110 billion yuan (13 billion euros). Early 2014, the annual growth rates were going through the roof with a 50% increase. A dynamic range from the growing Chinese Web: end of 2013, there were 618 million Internet users in the country. Although slightly smaller, the mobile Internet is also booming, with its 500 million regular users. According to figures by Price water house Coopers (PwC), advertising on these media should weigh 12.5 billion yuan in 2014 and 25.7 billion in 2017.
Digital advertising campaign are very appealing to young consumers
Beyond traditional advertising campaigns, new digital media require developing different communication modes based on collusion with the consumer. This especially appeals to younger hyper-connected generations. The head of a cosmetics brand admits to having “a fully dedicated to the daily entertainment of social networking team.” An advertising said: “In a few years, this area has become one of the main challenges for brands.”Weibo, the” Chinese Twitter “or WeChat, the mobile application on which communicate almost all urban, have become essential battle fields of marketing.
Consumer tolerance to advertisement is one of the greatest advantages of the Chinese market
One of the peculiarities of the Chinese market, which is an asset for professionals, is the tolerance of consumers regarding advertising. The PwC survey, for example, found that 78% of them are willing to click on an advertisement, against an average of 29% in the European Union. Even more amazing, they are a majority (58%) to say that they are willing to share personal information in exchange for payment (gift, free apps …). In Europe, only one third would agree to this practice