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APAC, programmatic ad tech, China
Growing Chinese programmatic market 'unique'
Tuesday, August 30, 2016

TubeMogul is pushing into the Chinese video market, looking to take advantage of growing programmatic ad tech adoption.

The Chinese market is expected to spend nearly $9.3 billion in 2016 on programmatic advertising, according to eMarketer. Much of that spending will be on mobile devices, which have achieved high penetration in the massive market, estimated to be nearly 87%. And, nearly 86% of all mobile phones are smartphones, according to Statista. China has been the world’s largest smartphone market since 2012, and counts more than 1.3 billion users as of Q2 2016.

Calling China “a unique market,” as it has more than half of media inventory is concentrated on several major video platforms, TubeMogul MD of Greater China Jeffery Zheng told industry publication Marketing that, “Advertisers need a unified platform where they can establish a stable and efficient co-operation with all these platforms at the same time to buy a fixed media placement and exposure at a fixed price as well as getting the integrated real-time result.”

Zheng said the Chinese market increasingly is looking toward programmatic direct buy, and is moving away from its near total commitment to real-time bidding (RTB).

“The China market is really fragmented and there are so many third-party agencies,” Zheng said.

As elsewhere across the globe, the successful adoption of programmatic in China will rely on educating advertisers, publishers and agencies.

Stay tuned.                                                             

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Jim O'Neill

An award-winning industry expert and futurist who specializes in the convergence of traditional TV and the Internet. My focus includes pay TV, Cloud TV, OTT, multiplatform media delivery, the ecosystem that surrounds it and consumer trends. A frequent speaker at CES, NAB, Digital Hollywood, Park’s Associates Connections events, Streaming Media and Digital Entertainment World, among others. I'm the Editor of Videomind, which in the past year has won awards from Editor & Publisher and Digiday. I'm also the Principal Analyst at Ooyala. I'm based in Michigan. I formerly was an analyst at Parks Associates and editor of FierceOnlineVideo and FierceIPTV. 

You can follow on Twitter @JimONeillMedia and on Linkedin