China Digital Ad Spending 2021: Tech Giants Keep On Cashing In

In 2020, China was the one main financial system to supply financial progress. It’s not stunning, then, that it was additionally the one main nationwide market to see a rise in whole media advert spending. Girded by this financial energy, China’s digital advert market hardly missed a beat, rising by 16.2% yr over yr (YoY) in 2020. We forecast that digital ad spending will preserve proper on climbing in 2021, rising by 17.5% YoY to succeed in RMB 728.74 billion ($105.58 billion).

Final yr, spending on promoting general—together with all nondigital codecs—elevated by simply 7.4% YoY to RMB 819.07 billion ($118.67 billion). This was a considerable deceleration relative to 2019’s 15.2% progress, however one which nonetheless surpassed many dire mid-pandemic projections, ours included. In 2021, pushed by China’s macroeconomic reacceleration, total media ad spending will bounce again with 13.6% YoY progress, a charge nearer to the pre-pandemic norm for China. Whole media advert outlays ought to attain RMB 930.55 billion ($134.82 billion) in 2021.

This rebound will manifest primarily by way of a return to stability for China’s TV and out-of-home (OOH) advert spending, and by way of a reacceleration in digital advert spending.

Conventional media advert spending had a really difficult 2020, as irregular socioeconomic circumstances, pushed by the pandemic, modified client habits to the detriment of TV, radio, newspaper, journal, and OOH promoting. Conventional advert spending contracted by 13.1% YoY final yr, and though it should rebound barely in 2021—to a modest 1.5% annual enhance—we forecast it should by no means once more attain its pre-pandemic highs.

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