In the latest episode of our podcast Ad Tech Today, we discuss how both publishers and advertisers can reach audiences outside of China. For many publishers and advertisers in China, this is an ambitious, new goal in their advertising and monetization efforts. China is the second-largest economy worldwide, and it’s also the world’s biggest market in terms of outbound tourism. This is why it’s so important for both sides to gain access to a Chinese population that is heavily on the move.
In this episode, I spoke with Delynn Ho, Vice President, Supply – APAC, who is a 20+ year veteran of the in-app and ad tech industry. Her background in managing business development, international partnerships, and marketing and product strategies in APAC give her unique insight into the current state of mobile advertising in China.
On the Current Outbound Potential of the Chinese Market
There are approximately 810 million Chinese internet users, which accounts for nearly 60% of the population. But more impressive is the fact that there are 714 million smartphone users in China. And while only 8.7% of the Chinese population held a passport last year, there will be 166 million outbound trips in 2019. This is expected to grow to 240 million in 2020. It’s clear that publishers and advertisers alike see the outbound potential of the Chinese market.
Many Chinese brands are already pushing outbound advertising campaigns, including some of the top industries such as consumer electronics, mobile gaming, home appliances, e-commerce, and airlines. Emerging markets are also massive opportunities for Chinese brands, especially coming from certain industries like automotive in the Middle East, e-commerce in India, and consumer electronics in Indonesia.
Requirements for Going Beyond China
There are multiple factors to consider when reaching out to the Chinese smartphone population inside and outside of China. Looking into a region’s broadband infrastructure versus content consumption is an essential factor. In general, APAC audiences consume a lot of video content. That being said, publishers and advertisers will have to consider the broadband infrastructure that is required to handle the massive usage and supporting ad formats.
Privacy will also be an important topic. Local regulations have strict compliance requirements in place around user privacy, so user permissions, data collection, storage and usage, and accountability should all be looked into.
Lastly, hyperconnectivity is a trademark of this region, as users are supplied with a myriad of app alternatives. Depending on their own preferences and where their friends are, they will navigate dynamically through the in-app environment — giving advertisers a challenging task in reaching them.
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