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RESEARCH, ANALYSIS & TRENDS

Nearly 440 million people in China

watch digital video

Fast growth in video viewing on desktop, laptop PCs, However, a striking aspect of mobile video viewing in
and more recently on mobile devices, has shifted a sig- China is the prevalence of viewing long-form TV con-
nificant share of time spent with video to digital venues. tent.
In China, as in other markets around the world, internet
time appears to be surpassing TV time, as more and The Interactive Advertising Bureau found that 71% of
more people go online and mobile becomes a majority smartphone/tablet owners in China watched full-length
activity, according to a new eMarketer report, “China TV episodes at least weekly on their handsets, and
Time Spent with Media: Digital Activities Fuel a Mul- 27% did this once a day or more—far more than their
tiscreen Market.” counterparts in the US.

Digital video is a key driver of the shift Digital Video Ad Spending to Skyrocket in China

Internet use in China skews sharply toward entertain- To no surprise, Chinese digital video ad spend is fore-
ment, and video is a major part of the mix. TV content casted to reach RMB25.0 billion ($4.07 billion) this
viewed via digital screens is widely popular, in part be- year. In fact, eMarketer estimates that digital ad invest-
cause restrictions on linear TV content have allowed ments in China will hit $48.51 billion in 2017—more
digital publishers leeway to offer more attractive con- than double the $23.70 billion seen in 2014—and will
tent. reach $57.24 in 2018.

A July 2014 A.T. Kearney survey found that internet That’s a big jump from 2010, when advertisers in China
users in China devoted 35% of their time online to had just begun to allocate money from their budgets to
“entertainment,” a far larger percentage than internet digital video, according to a new eMarketer report,
users elsewhere. “Digital Video Advertising in China: A Complex and
Competitive Market.”
Digital video penetration rates are high among in-
ternet users in China “The share of advertising spending on video is not pro-
portionate to the time people in China spend on the
TNS’s “Connected Life” study reported that nearly nine medium,” said Wu Minghui, the founder and CTO of

in 10 internet users in China were digital video viewers. advertising technology provider Miaozhen Systems.
10 Asian eMarketing March 2015 - Video Advertising