In Q3 2014, total transaction value of China online advertising market was RMB42.22 billion ($6.87 billion) with increase of 37.9% year on year and 10.6% quarter on quarter. Influenced by overall economy status in China, the growth of China online advertising market slowed in Q3 according to data from iResearch.
Specifically, several factors for China online advertising market’s increase in Q3 2014:
- China search engine ads kept stable increase and market share of mobile search continuously increased.
- China web portals were in differential development; key marketing service and products contributed to ads revenue increase.
- Sports matches and hot variety drove brought ads revenue increase on video websites.
Meanwhile, real estate market, which was influenced by China’s new policy, reduced investment in Q3 2014. So there was decrease in real estate ads placement in Q3 2014. Besides, China e-commerce industry remained conservative about marketing cost in Q3. All these led to slow growth of China online advertising market in Q3 2014.
In Q3 2014, China search engine ads accounted for 34.1% market share, ranking top, followed by e-commerce ads (24.6%), banner ads (22.9%) and video ads (8.2%).
Driven by small and medium-sized advertisers’ marketing demands in China, search engine market kept stable growth. Baidu, Sogou and other search engines are making efforts on mobile market which can further promote mobile search ads market. Baidu mobile traffic surpassed PC traffic in Q3 2014 and mobile revenue contributed 36% of our total revenue. Sogou Search mobile traffic was also up 20% in Q3 2014.
Wechat and other social network can provide sustained demand for Tencent social ads. Tencent’s Wechat launched Wechat advertising platform in late June 2014 and started with text link ads, connecting Wechat Official Accounts with advertisers. Besides, Wechat advertisers can use official accounts platform to drive fan growth of their own official accounts directly after users click on the ad; or, drive direct mobile app downloads.
China e-commerce ads will show its great potential in the last quarter. Double 11 (on 11 November) on Tmall is a big event in China which bring many opportunities for advertising market in China.
Also read: China Online Advertising Market, Top Online Advertisers in Q3 2014