With the rapid adoption of mobile and smartphone technology, mobile advertising expenditures are set to jump by 834 percent in China, nearly three times the global growth rate, according to a new study by digital and media consultancy ZenithOptimedia on growth rate trends projected for 2013-2016.
The major categories of growth are beauty, automotive, and luxury.
ZenithOptimedia CEO Steve King said the advertising is most closely associated with the demographic born between 1982 and 1994. These young Chinese mobile users grew up with the technology and are more trusting of it. They also spend more when using mobile.
Next to only North America and Western Europe, China is the third largest smartphone market.
One advantage for Chinese advertisers is their ability to quickly adapt to new technology, far quicker than in many markets. However, they do tend to be hesitant in exchanging digital technologies with their overseas peers, so there is plenty of room for future progress. Additionally, mobile advertising gives Chinese advertisers the ability to more accurately target their ads through the use of localization and keyword targeting.
Though global advertising expenditures hit an all-time low in 2009 due to the global financial crisis, expenditures are expected to grow 5.3 percent this year to $523 billion, growing to $584 billion by 2016, reports China Daily.
Mobile advertising is the key driver for global advertising growth. Between 2013 and 2016, mobile advertising are expected to grow by 244 percent, nearly 10 times the rate of personal computer advertising.
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