Chinese retailers Baidu and Alibaba take 10% of global digital ad market | M&M Global

Chinese retailers Baidu and Alibaba take 10% of global digital ad market

China’s leading ad sellers Baidu and Alibaba will take an impressive 10% of the worldwide digital market alone this year, ahead of US giants Yahoo and Microsoft, according to new research.

Baidu

Digital advertising worldwide is expected to top $146bn in 2014, according to new figures from eMarketer.

Chinese web services company Baidu and Chinese e-commerce business Alibaba will a take 4.68% and 4.66% share of the worldwide digital ad market this year respectively – representing the third and fourth largest market share among the companies included in the research.

Alibaba saw impressive sales at last month’s ‘Singles’ Day’ – a Chinese event that went global this year – where it managed to make close to $9bn.

Google and Facebook will once again retain their positions as the top ad selling companies globally.

After Facebook, which will gain 2% in share this year on the strength of its mobile revenue growth, Baidu and Alibaba will also have the next highest market share gains, while Google’s share dips from 31.55% to 31.10%.

Market share estimates for Tencent and SINA have also been added to the forecast, which together will take 1.21% of the worldwide digital ad market this year. The total market share for these four leading China-based ad sellers will reach 10.55% this year.

In the growing worldwide mobile internet ad market – estimated to increase to $40.2bn this year – Alibaba and Baidu will have an even larger influence.

Alibaba’s share of mobile internet ad dollars will accelerate from 1.6% in 2013 to 6.2% this year, while Baidu will benefit with the increase of its share from 2.6% to 5.1%.

Google and Facebook continue to dominate the global mobile ad market, collectively taking nearly 60% share, even in light of significant gains from China’s leading ad sellers. While Google is losing some share this year, the search giant is still the leader by far, with more than 40% of the total mobile ad market worldwide. Facebook continues to gain ground, up to 18.4% this year.

Both Alibaba and Baidu have taken advantage of the rapidly growing mobile ecosystem in China, where mobile internet ad spending grew 600% this year to nearly $6.4bn, according to eMarketer, replacing both the UK and Japan to become the second-largest mobile ad market worldwide. The US remains the leading market by far, with advertisers spending nearly $19bn to reach the country’s consumers on mobile devices in 2014.

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