VR Advertising - China

China

Highlights

In China, revenue in the VR Advertising market market is projected to reach US$33.5m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 1.40%, resulting in a projected market volume of US$35.9m by 2029.
While a projected market volume of US$47.4m in 2024 indicates significant revenue generation, it is important to note that most of this revenue is generated the United States.
China's rapidly evolving VR advertising landscape reflects a profound cultural shift towards immersive digital experiences, significantly influencing consumer engagement strategies among local brands.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The VR Advertising market in China is experiencing significant growth and development.

Customer preferences: Chinese consumers are increasingly embracing virtual reality (VR) technology, leading to a growing demand for VR advertising. VR provides an immersive and interactive experience, allowing advertisers to engage with consumers in a more captivating and memorable way. This appeals to Chinese consumers who are highly receptive to new technologies and enjoy exploring innovative experiences. Additionally, VR advertising offers a unique opportunity for brands to stand out in a crowded market and differentiate themselves from competitors.

Trends in the market: One of the key trends in the VR Advertising market in China is the integration of VR technology with e-commerce platforms. Chinese consumers are avid online shoppers, and by combining VR with e-commerce, brands can create virtual shopping experiences that allow consumers to try products before making a purchase. This not only enhances the shopping experience but also increases consumer confidence and reduces the likelihood of returns. As a result, more brands are incorporating VR advertising into their e-commerce strategies to drive sales and build brand loyalty. Another trend in the market is the use of VR in the entertainment industry. China has a booming entertainment market, with a growing number of theme parks, cinemas, and gaming centers. VR technology is being integrated into these venues to provide immersive experiences for visitors. Advertisers are leveraging this trend by partnering with entertainment companies to create branded VR experiences within these venues. This allows brands to reach a captive audience and create memorable brand interactions.

Local special circumstances: China has a vast and diverse consumer market, with a strong emphasis on mobile technology. Mobile VR devices, such as VR headsets and smartphones, are widely accessible and affordable, making VR advertising more accessible to a larger population. Additionally, the Chinese government has shown support for the development of VR technology, providing incentives and subsidies to VR companies. This has created a favorable environment for the growth of the VR Advertising market in China.

Underlying macroeconomic factors: China's growing middle class and increasing disposable income are driving the demand for innovative and immersive experiences. As consumers become more affluent, they are willing to spend on unique and engaging products and services, including VR advertising. Furthermore, China's digital ecosystem is highly developed, with a large internet-savvy population. This provides a strong foundation for the adoption of VR technology and the growth of the VR Advertising market. In conclusion, the VR Advertising market in China is experiencing rapid growth due to customer preferences for immersive experiences, the integration of VR technology with e-commerce platforms, the use of VR in the entertainment industry, favorable local circumstances, and underlying macroeconomic factors. This presents significant opportunities for brands and advertisers to engage with Chinese consumers in a more impactful and memorable way.

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).