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Mobile Advertising in China

View the full infographic here or read the full article here

Guohe Ad, China’s largest mobile ad mediation platform, has recently released an infographic on mobile advertising in China.

The most interesting tidbit from the infographic was a comparison of ad impressions between the iOS and Android platforms.  iOS ad impressions accounted for 58% of the mobile market compared to 42% for Android.  Guohe Ad explains the iOS advantage came from having a larger mobile app store which has higher quality apps with the ability to  attract more user interaction.

According to PaidContent, a firm specializing in paid content business models, the market for in-app advertising in China is comparatively small but growing quickly. By the end of 2011, in-app advertising revenue in China should reach almost 50 million dollars, which amounts to approximately 350% growth in only one year.

In stark contrast to the revenues made from in-app advertising via mobile, Chinese mobile ad spending will double in 2011 to nearly $500 million, according to eMarketer, fueled by the trend towards mobile internet in China this year.  According to Bloomberg, ad spending in China will double to $1.16 billion in 2014, matching the U.S.’s current total.

370 million Chinese, half the number of mobile handset owners in China, are expected to access the mobile internet at least once a month by the end of 2011.  Mobile ad spending has followed suit in the areas of mobile search, display and text message ads.

The challenge for mobile app developers is to attract a larger chunk of the advertising spending on mobile web into their mobile apps.  As Chinese are notorious for not paying for mobile software, app developers have already chased freemium business models to procure revenue.  Additional revenue from in-app advertising is a win-win for all parties involved.  Hopefully, advertising experts and mobile specialists working on the Android platform can find a way to catch up and even surpass the iPhone on ad impressions.

In the meantime, all other platforms will try to chip away at the iPad’s control of a ridiculous 98% of ad impressions versus all other tablets on the market.

Technode asserts that as of 2011, there are over 30 mobile ads platforms operating in China. Phone manufacturers or Telecom (Apple, Google, China Telecom), traditional web ads platform (iMocha, AdChina etc), new mobile ads platform (MadHouse, CASEE, Wooboo, AdWo, Domob etc) and ads mediation platforms (Guohead, AdMob etc).