The Quarterly Monitoring Report on Online Advertising Market in China for Q1 2016 published by the Analysys industry database shows that the market size of the online advertising service operators in China for Q1 2016 reached RMB 54.25 billion, an increase of 35.6% compared with the same period of last year, and a decrease of 12.6% compared with last period.
In terms of advertising form structure, in Q1 2016, keywords advertising accounted for 32.9%, an obvious decrease compared with previous quarter, while video advertising, brand photo advertising and other advertising respectively accounted for 27.4%, 25.9% and 13.1%; and email advertising accounted for 0.7% (basically stable).
The Quarterly Monitoring Report on Online Advertising Market in China for Q1 2016 published by the Analysys industry database shows that among the incomes of the market of online advertising service operators for Q1 2016, Baidu, Alibaba and Tencent respectively accounted for 26.3%, 22.2% and 10%, ranking among top 3 in the market.
Analysys analysis shows that the market of online advertising service operators in china in Q1 2016 has the following features:
I. Video advertising remains popular due to well-designed medial contents guaranteeing the traffic
The marketability of online video is widely considered promising in the market. In Q1 2016, video media giants made preparation and expansion in terms of contents one after another, and began to carry out planning for the vertical video field. The Descendant of The Sun with a copyright which was introduced by iQIYI ranks first in online video playing; Baidu Video prepared for independent operation with an aim toward the vertical direction of PGC; LETV continued to make efforts to produce contents by itself, planning to offer over 30 series in 2016; Youku Tudou carried out the cartoon “Innovation Plan”, comprehensively planning for the midstream and the downstream of the animation industry, and announced an annual investment of RMB 0.5 billion for supporting the animation industry and continuously creating high-quality China-made cartoon products, and obtained the right of broadcasting over 20 foreign variety shows including American Idol. Analysys analysis shows that, greater investment by video media into contents help supplement high-quality advertisement resources; copyrighted contents with a large number of loyal users are more conducive to meeting the demand of an advertiser for brand communication, while the self-made contents are free from limitation on advertisement space resources, meanwhile, the number of users and advertising traffic increase with contents, thus promoting media income increase.
II. Optimized platform functions and innovated advertising forms help improve the marketing accuracy.
For Q1 2016, the main participants in the online advertising market made efforts to create a big data marketing platform, with the competitive factors still being data, media and technology. On March 18, Alimama published the “universal gravitation” plan to make open to relevant media, contents, capacity, rights and interests, data and commerce, and became the commercial data operation advisor for media and advertisers on the media platform; with a large user group and abundant data resources, Sina Weibo was committed to improving user experience of its mobile Apps, and continued to undertake “social topics” and socialized marketing activities; Tencent Social Advertising provided the Lookalike function which enables the advertiser to find more high-potential consumer groups among seed users. Analysys analysis shows that, manufacturers in the online advertising market realized platform-based development by open strategic planning and product function optimization, with focus on demands of audiences and advertisers, while improving the marketing accuracy.
III. Cross-media cooperation for industry chain integration and increase in market resource occupation
Analysys analysis shows that, e-commerce, search, video, social, information and other media begun to seek for cooperation, so as to increase user traffic and advertisement resource occupation, thus realizing whole-chain marketing. iQIYI established an online mall and hot TV plays synchronously, to integrate entertainment services and accelerate realization; Baidu cooperated with Mgtv and LETV. Combination of the huge entertainment search traffic and powerful entertainment IP of video media, providing a way for high entertainment traffic of Baidu engine, thus increasing the advertising traffic of the video media platform and realizing the whole-chain marketing from search to interaction and entertainment; Alibaba Group will cooperate with Baidu, Youku Tudou, Weibo and Sina Sports in establishing cross-media resource cooperation during the Games period, which covers relevant advertising resources during such period. Alimama will establish a co-marketing merchant service team to comprehensively serve brand advertisers.
IV. Social marketing is targeted towards “small and beautiful” advertisers
In January 2016, Alimama APP was implemented to create scenarios for small and medium-sized sellers to carry out promotion at any time in any place; as the collecting and distributing center where small and medium-sized advertisers make efforts to market, Sina Weibo continued to improve the mobile product matrix; WeChat Friend Circle Advertising offered the self-service launch function to optimize the launch process from query, scheme implementation, top-up, data statistics, etc. Optimization of social advertisement and functional upgrade provide Tencent with more small and medium-sized advertisers. Analysys analysis shows that marketing forms supported by the social media platform and featuring professional content pushing, social interpersonal communication, convenient introduction and purchase emerge one after another; the cooperation mode of “social communication” plus “e-commerce” is further deepened.
Analysys analysis shows that, as big data marketing become increasingly mainstreaming, the technical gap between manufacturers will be narrowed gradually; technical homogenization certainly causes online advertising market participants to make efforts in terms of the service ability in the vertical field, market resource occupation, industry chain integration, innovation ability, etc.
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