Just last month, eMarketer reported on an R3 and Admaster Digital Consulting survey which revealed that 82% of marketers in China increased their digital marketing budgets in 2011, and another 81% are expected to increase their digital ad spending in 2012. It stated further that 23% of marketers surveyed believe digital video to take the largest share of increased spending in 2012.
Analysys International, a local research firm in China just proved that all wasn’t just talk by showing in their report that online video ad revenues more than tripled from RMB660 million ($102.2 million) in Q1 2011 to RMB2.1 billion ($325 million) in Q1 2012.
According to the Chinese research firm, cumulative online video spending in 2011 was RMB4.83 billion ($747.7 million). As the market matures and consolidates, including the merging of the two largest video platforms Youku and Tudou, online video ad revenue will be hard pressed to maintain such considerable growth for the entire year.
In general, Internet advertising spending in China increased as seen on the graph below. According to data from iResearch by more than 50 % last year, demonstrating how dominant the Internet has become in the country, with more than half a billion users, but still space for growth.
As seen here, iResearch’s forecast predicts that Internet ad spending will continue to grow strongly as it is a more-effective way to reach consumers. Same as eMarketer that is expecting a huge increase as well with online ad spending in China to reach $7.4 billion in 2012, which means a growth of 39% compared to 2011. Emarketer’s report states further that online video will still be dwarfed by search and display ad spending in the country since it is starting from a smaller base.
By Daniela La Marca
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