Market Insights Advertising & Media Media TV & Video OTT Video

OTT Video Advertising - China

China

In China, ad spending in the OTT Video Advertising market market is projected to reach US$53.48bn in 2024.
The country is expected to experience an annual growth rate (CAGR 2024-2029) of 6.22%, leading to a projected market volume of US$72.31bn by 2029.
While most revenue in the OTT Video Advertising market market will be generated the United States, in China will also contribute significantly.
In 2029, [revenuesplit_currentlayer_yearend_advertisingsplitmobile] of total ad spending will be generated through mobile in the OTT Video Advertising market market withChina.
Additionally, the average ad spending per internet user in this sector is projected to amount to US$56.87 in 2024.
China's OTT Video Advertising market is experiencing rapid growth as consumers increasingly favor digital content over traditional media, prompting innovative ad strategies.

Key regions: South Korea, Japan, France, Germany, United States

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Analyst Opinion

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

Customer preferences: Chinese consumers have shown a strong preference for online video content, leading to a surge in demand for OTT video platforms. With the increasing popularity of smartphones and affordable internet access, more and more people are turning to online streaming services for their entertainment needs. This shift in consumer behavior has created a lucrative market for advertisers to reach their target audience through OTT video advertising.

Trends in the market: One of the key trends in the OTT Video Advertising market in China is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory in real-time, optimizing the targeting and delivery of ads. This technology has gained traction in China, as advertisers seek more efficient ways to reach their desired audience and maximize their return on investment. Another trend in the market is the increasing adoption of native advertising. Native ads blend seamlessly with the content of the OTT video platform, providing a non-disruptive and engaging user experience. Advertisers are leveraging this format to deliver their brand messages in a more organic and subtle manner, resonating better with the audience.

Local special circumstances: China has a unique digital landscape, with several homegrown OTT video platforms dominating the market. Platforms such as iQiyi, Tencent Video, and Youku Tudou have a massive user base and offer a wide range of content, including movies, TV shows, and original productions. These platforms have developed sophisticated advertising solutions to cater to the needs of both advertisers and viewers, creating a thriving ecosystem for OTT video advertising in China.

Underlying macroeconomic factors: China's strong economic growth and rising disposable incomes have contributed to the expansion of the OTT Video Advertising market. As more people have access to internet-enabled devices and higher purchasing power, advertisers see the potential to reach a larger audience through OTT video platforms. Additionally, the Chinese government's push for digital transformation and the development of the internet industry has created a favorable environment for the growth of the OTT Video Advertising market. In conclusion, the OTT Video Advertising market in China is witnessing remarkable growth driven by customer preferences for online video content, the adoption of programmatic and native advertising, the dominance of local OTT video platforms, and the country's favorable macroeconomic factors. Advertisers are leveraging these trends and circumstances to effectively reach their target audience and capitalize on the expanding market opportunities.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on OTT video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Subsegment size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the segment. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.