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China's Mobile Advertising Market: Sales-Oriented Ads First, Brand Ads Second
In-Stat/MDR, June 2008, Pages: 37
In 2007, China’s mobile advertising market grew 97% over the previous year. Currently, SMS advertising is the type of mobile advertising most widely used and represented an estimated 40%–50% of China’s mobile advertising revenue in 2007. However, SMS is widely considered spam and is, therefore, likely to decline significantly during the next few years. WAP advertising, especially sales-oriented advertising, will grow rapidly in the same period. Interactive marketing is also gaining interest from brand advertisers, providing the next area of growth.
Consumer acceptance of mobile advertising is lower than with other advertising methods; however, ads that are related to topics of interest to consumers are likely to be very successful. Spam and traffic costs are the primary barriers for consumer acceptance of mobile advertising.
Most mobile Internet users in China are young and tech-savvy, with low- to mid-level personal income but high purchasing power. As such, we think that fashionable, interesting, leading-edge products or advertising campaigns may appeal to them more.
This report covers China’s mobile advertising market with an analysis of features, market size, types of mobile advertising, value chain structures, business models, pricing models, market drivers and barriers, and forecasts. It also includes the results of a survey of Chinese mobile Internet users that sheds light on the attitudes of Chinese consumers with regard to mobile advertising.
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