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Alibaba to surpass Baidu’s mobile ad revenue in China

Chinese e-commerce website Alibaba will have the greatest share of mobile internet ad revenues in China for the first time this year. Alibaba will take in USD 4.75 billion from paid placements such as net revenues from mobile search and display ads this year and overtake Baidu, eMarketer’s latest study forecasted.

These latest figures show that Alibaba’s net mobile internet ad revenues have doubled since 2014, as it made USD 2.19 billion from mobile search and display ads. Baidu’s revenues in 2014 stood at USD 2.53 billion, the highest in the market. This year, Baidu is forecasted to increase net mobile ad revenues to USD 4.53 billion this year, reflecting a growth of nearly 80 per cent.

eMarketer forecasted that Alibaba and Baidu will each take in about one-third of all net mobile internet ad revenues in China this year. However, in 2016, the gap between the companies will widen, and smaller players will gain some share. Tencent will approach USD 1 billion in mobile internet revenues next year.

Baidu will maintain its lead in the wider digital space. eMarketer expects that net digital ad revenues for Baidu will reach USD 9.43 billion in 2015, showing an increase of 37.7 per cent over 2014 revenues. That will account for over 30 per cent of the Chinese digital ad market. Alibaba will account for almost 25 per cent of the market.

According to the report China’s overall digital ad spending will increase by 30 per cent in 2015, and mobile internet ad spending will grow by 90 per cent. Search will be the fastest growing format and will rise by nearly 33 per cent.

Tencent will take 5.2 per cent of revenues in 2015, increasing from 4.6 per cent in 2014. It has been the fastest company to grow its digital revenues since 2014, according to the report.

Sohu will account for 3.4 per cent of revenues, while Youku Tudou and SINA will have a share of less than three per cent each.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.
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