DIGITAL

Video Adspend to Overtake TV in China by 2021

by

Jenny Chan

|

This is the featured image caption
Credit: This is the featured image credit
Video is the fastest growing ad format within digital in China. eMarketer’s forecasting analyst, Cindy Liu, reports on how digital adpsend will thrive over the coming years. According to eMarketer’s…

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

Video is the fastest growing ad format within digital in China. eMarketer’s forecasting analyst, Cindy Liu, reports on how digital adpsend will thrive over the coming years.

According to eMarketer’s latest forecast, overall digital adspend in China will reach $50.31 billion—of which 72 percent will go to mobile channels. Video is the fastest growing ad format within digital, and by 2021 eMarketer expects it will overtake spending on traditional TV, accounting for 13.4 percent of all media ad expenditure.

“Advertising on video is growing at a faster rate than overall display ads, and strong content is a key driver for this growth as brands are willing to spend more money to appear alongside the most popular content,” said eMarketer forecasting analyst Cindy Liu. Content comes from original productions and exclusive partnerships, she said. "For example, iQiyi, Baidu’s on-demand video streaming service, recently announced a deal with Netflix to license some of their premium content.”

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Thanks to continued innovation in mobile and high-profile partnerships, the BAT companies—Baidu, Alibaba and Tencent—will continue to dominate the digital advertising market in China, according to eMarketer. The BAT combined will take in 64.1 percent of digital ad expenditures in China this year. Within BAT, Alibaba will capture more than 35 percent of China’s digital adspend in 2017, followed by Baidu with an 18.4 percent share and Tencent with a 10.4% slice.

By 2019, Alibaba’s digital ad revenues will reach $28.93 billion, accounting for 38.0 percent of all digital ad spend in China. “Alibaba continues to outperform expectations and is once again the strongest performer in terms of net digital ad revenues in China,” Liu said. “By incorporating social and video elements into its mobile shopping app—Taobao—Alibaba is able to capture more consumer time and thus attract more advertising spend."

Meanwhile, Tencent, which is the fastest growing company in terms of net digital ad revenues, will fall short of Alibaba and Baidu through 2019, as the company errs on the conservative side when it comes to unloading its ad inventory, added Liu.

Article originally published on Campaign Asia. Republished with permission.

Jenny Chan
Jenny Chan

Jenny Chan is a trilingual reporter and panel moderator, focusing on Greater China, with 8 years of business journalism experience in fields as diverse as finance and creativity. Based in Hong Kong, she is currently with Campaign Asia.

DIGITAL

Video Adspend to Overtake TV in China by 2021

by

Jenny Chan

|

This is the featured image caption
Credit : This is the featured image credit
Video is the fastest growing ad format within digital in China. eMarketer’s forecasting analyst, Cindy Liu, reports on how digital adpsend will thrive over the coming years. According to eMarketer’s…

Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.

PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.

In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”

The Fondation Cartier pour l’Art Contemparain building in Paris

Video is the fastest growing ad format within digital in China. eMarketer’s forecasting analyst, Cindy Liu, reports on how digital adpsend will thrive over the coming years.

According to eMarketer’s latest forecast, overall digital adspend in China will reach $50.31 billion—of which 72 percent will go to mobile channels. Video is the fastest growing ad format within digital, and by 2021 eMarketer expects it will overtake spending on traditional TV, accounting for 13.4 percent of all media ad expenditure.

“Advertising on video is growing at a faster rate than overall display ads, and strong content is a key driver for this growth as brands are willing to spend more money to appear alongside the most popular content,” said eMarketer forecasting analyst Cindy Liu. Content comes from original productions and exclusive partnerships, she said. "For example, iQiyi, Baidu’s on-demand video streaming service, recently announced a deal with Netflix to license some of their premium content.”

Join Luxury Society to have more articles like this delivered directly to your inbox

Thanks to continued innovation in mobile and high-profile partnerships, the BAT companies—Baidu, Alibaba and Tencent—will continue to dominate the digital advertising market in China, according to eMarketer. The BAT combined will take in 64.1 percent of digital ad expenditures in China this year. Within BAT, Alibaba will capture more than 35 percent of China’s digital adspend in 2017, followed by Baidu with an 18.4 percent share and Tencent with a 10.4% slice.

By 2019, Alibaba’s digital ad revenues will reach $28.93 billion, accounting for 38.0 percent of all digital ad spend in China. “Alibaba continues to outperform expectations and is once again the strongest performer in terms of net digital ad revenues in China,” Liu said. “By incorporating social and video elements into its mobile shopping app—Taobao—Alibaba is able to capture more consumer time and thus attract more advertising spend."

Meanwhile, Tencent, which is the fastest growing company in terms of net digital ad revenues, will fall short of Alibaba and Baidu through 2019, as the company errs on the conservative side when it comes to unloading its ad inventory, added Liu.

Article originally published on Campaign Asia. Republished with permission.

Jenny Chan

Jenny Chan is a trilingual reporter and panel moderator, focusing on Greater China, with 8 years of business journalism experience in fields as diverse as finance and creativity. Based in Hong Kong, she is currently with Campaign Asia.

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