China: Mobile advertising expenditure increases 90% in Q1 2017

The mobile advertising market has made significant gains over the last few years and APAC stood out as it leads growth across all regions with a 139% increase in eCPMs. According to the latest Smaato findings, China in particular is on a roll and already the second dominant market in terms of mobile ad spend on the platform.

Global mobile ad expenditure grew 14% in Q1 2017 compared to Q1 2016. Smaato, the mobile advertising company, found that China stood out by almost doubling its mobile ad spend (+90% compared to the previous year). The country’s ad spend increase was also twice that of Australia (+37%), France (+23%) and Canada (+21%).

With total mobile ad spend in the country forecast to increase by 39% in 2017, rapid growth is likely to continue for the next few years. Although China still ranks second to the US in mobile ad expenditure, the entire APAC region is predicted to jump ahead by 2019.

Smaato also found that celebratory events such as the Chinese New Year drove significant increases in mobile device usage as well as retail sales during Q1 2017. Naturally, ad spend went up during this period. Daily ad expenditure exceeded the Q1 mean prior to this holiday and dropped off again after the celebrations. However, ad spend was fairly consistent in non-celebrating countries.

The Chinese New Year resulted in a total 18% increase in mobile ad spend among countries celebrating versus those not celebrating.

The event period also had a strong effect on advertisers reaching unique audiences. Indeed, 13% more unique mobile users were reached during the Chinese New Year celebrations compared to an average day.

These insights may be useful for advertisers and app developers wishing to target Chinese customers during the best time of the year.