Digital Media Market Share In China Predicted To Expand To 80% by 2024

A new report by dentsu China has predicted that China’s digital media market share will continue to expand, with 80% of local advertising spending expected to come from digital media by 2024. The report, which focuses on the media industry’s opportunities and challenges, also highlights the potential impacts of emerging technologies on media and advertising.

According to the report, China’s advertising market size in 2022 slightly increased compared to the previous year. As the country further eases and optimizes epidemic preventive and control measures, as well as recovers economically and in business, China’s domestic consumer demand will gradually improve, leading to an increase in the growth rate of local ad spending over the next three years.

Also read: American Shoppers Predicted To Spend 70 Million Hours On Mobile During 2022 Amazon Prime Day Holiday

The report also predicted that Bytedance, Meituan, and Bilibili would replace Baidu, Alibaba, and Tencent as the new oligarchs. Bytedance has 1.9 billion monthly active users, and its gross merchandise value is 236.6 billion. Meituan has recorded 477 million monthly active users and 114.8 billion in gross merchandise value, while Bilibili has recorded 190 million monthly active users and 12 billion in gross merchandise value.

Regarding over-the-top (OTT) media, the report showed that OTT activation terminals are concentrated in second, third, and fourth-tier cities, accounting for 74% of the total. Second-tier cities have the largest activation scale, reaching 71.6 million units, followed by fourth-tier cities, reaching 61.89 million units.

The report emphasized the importance of staying informed about the latest trends and developments to succeed in the advertising space, which is very sensitive to cyclicality. Deric Wong, CEO of dentsu China, stated that businesses, marketers, and advertisers must continue to innovate, adapt to new formats, and redefine strategies and resources to reach target audiences.

Finally, the report identified four media trends in 2024: data and tech will empower precise marketing, full-chain solutions will be prevalent, short videos will shift from being a trend to a new norm, and KOL will reshape the rules of content seeding. With these trends in mind, brands must stay ahead of the curve to achieve their marketing objectives in the evolving and complex media environment.