E-Commerce in China is 41 billion MarketE-Commerce behemoth Alibaba will top market for digital advertising in China in 2016, surpassing the current leader Baidu amid tighter regulation of internet advertising that will likely put a dent in the total income. Growth "robust" mobile advertising Alibaba is expected to increase digital advertising revenues of the company, according to a report from eMarketer
He estimates Alibaba will take a share of 28.9 percent by digital advertising revenues in China in 2016, compared with 24.8 percent the previous year, and predicted from Albaba turnover to US $ 12.05 billion, in a national expenditure of US $ 41660000000. Baidu, the leader of last year with a market share of 28 percent, is expected to see its revenue grow by 0.3 percent to $ 8.87 billion, giving it a 21.3 percent of the market. difficult in recent months of Baidu are blamed in part on the high-profile death of a student with cancer who attempted an experimental therapy on cancer, he found advertised on Baidu. Baidu is under fire for selling lists bidders without adequately verify their claims. Tighter Internet advertising rules issued which came into force in early September by the Chinese government in the wake of the incident would have a negative impact on Baidu, said eMarketer analyst Miss Shum.
Advertising in ChinaThey now require Internet advertising to be clearly identified as such, with risk warnings attached to the paid results. Advertising on search engines should also make up 30 percent of the results presented on a page. "The increased regulations on Internet advertising should weigh heavily on Baidu's search revenue in the short term as they roll out higher standards for all advertisers," said grateful Shum.While companies such as Alibaba are also likely be affected by the stricter rules, Shum said revenue from its mobile advertising business, however, "shows no sign of reflux," as mobile usage continues to grow. Alibaba, which owns the South China Morning Post, was made to a mobile concerted effort, and last month revealed that the earnings of mobile orders has now exceeded those of PCs. "The expenses of advertisement in China continues to move quickly to digital formats including mobile formats such as more time is spent on mobile devices," said Shum, a trend that should continue in the coming years, as the services are available online through mobile applications.
"We see more dollars to offset announcements of traditional media, such as television and print, mobile and digital to," said eMarketer analyst forecasts Shelleen Shum. "This is driven by an increasing share of young consumers Internet-savvy spending more than the older generation. Slower economic growth also caused advertisers to look more closely at advertising budgets, some preferring to spend more on targeted digital uses. "
Collectively, Baidu, Alibaba and Tencent will take 72.8% of mobile ad Internet market in China in 2016. eMarketer predicts Alibaba will continue to claim the largest share of advertising revenues of the mobile Internet in China, 9160000000 taking $ million in 2016, for growth of 54.8% last year.
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