Artificial Intelligence and the Chinese Mobile App Market: Changes on the Horizon

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Kevin Ford

September 1st, 2019

Artificial intelligence (AI) is no longer something to be feared. Instead, machines are going to change how life is in conducted in a very positive manner. According to the experts, the overall global reach of markets utilizing AI programming is due to jump over $191 billion by the end of 2025. In a mere six years, machine learning, as it’s called because that’s how AI functions, is going to alter everything from cybersecurity to healthcare. It will be used in sales and education, and even personal assistants will use it to determine how to better meet the needs of their employers. Of course, the Chinese mobile app market is on this list as well, thanks to efforts currently underway in the country. The ads that people see on their mobile phones will be determined by these machines.

AI Efforts in China

Why is China poised to become one of the leaders in AI technology? The simple reason is due to the fact that the country’s State Council put several AI development plans in place back in 2017. These plans included boosting the industry to make it worth an amazing 1 trillion yuan in approximately 11 years, by 2030.

In order for those plans to work, the industry needs a lot of funding, and efforts have been underway for several years to ensure that it has all the investments needed to grow. Reports from the country’s AI Development group at Tsinghua University estimated that in 2017 alone, over 48% of all global investments have gone into this particular segment of Chinese business. Compare that to the United States, where only 38% of these investments have gone into AI development. In fact, throughout 2017, the AI industry in China is estimated to be worth over 23.74 billion yuan (or $3.55 billion). This is part of the reason why the country has more AI patents than any other country and is putting out plenty of research papers on the topic.

Another reason for the rapid growth is that fact that the State’s Council developed a blueprint for a specialized AI industrial park. Scheduled to be constructed in the Beijing suburbs at a cost of over $2.1 billion, it’s accompanied by a five-year training program. Those who are already talented in the field will be asked to join, and they’ll receive plenty of support as they learn more about how to develop the future of AI for the Chinese mobile app market.

Of course, individual citizens and the Chinese government aren’t the only ones pumping money into the AI or machine learning field. Companies like Google, Tencent, and Apple are funding it as well because they’ll benefit from everything that the engineers in the country are developing. After all, every advance on the Chinese mobile app market helps them as well.

Where Mobile Marketing and AI Meet

One of the main reasons why AI efforts are so strong in China is due to the overwhelming number of people who utilize their app market. There are millions of smartphone users in the country, and according to recent statistics, over 98% of those users access the internet using their smartphones alone. They also prefer apps over everything else and will click on ads that appeal to them in those apps. These users are the best guinea pigs for advances in the Chinese mobile app market, which is why it makes sense that all the new technologies stem from China. They can test out machine learning right there.

AI Improves Advertising

Currently, marketing companies are fighting against the use of ad blockers. These are tools that are downloaded onto browsers, both on computers and mobile phones, in order to remove ads that users find irritating. Of course, this hurts the marketing companies, because they are unable to reach the people that they need to. AI will change all of that.

How does AI machine learning work? It’s similar to the algorithms used by search engines, only much more sophisticated. The algorithms learn what type of content each user wants to see, particularly regarding advertising, and it then shows them ads that are interesting to them. And because AI is a smart technology, it can adapt on the fly to ensure that every person only sees things that appeal to them, even as their tastes change.

And then it goes one step further. For example, a sophisticated program will not just change the particular ad that a person sees, but it will also switch up their content. For example, if the AI has determined that someone likes the color green, as well as nature scenes, then an ad for a company that makes bread will appear in that color with some majestic scenery in the background. The goal is to make advertising analytics stronger, as well as improve the click-through rate that every marketing company covets.

An Example from the Chinese Mobile App Market

Several companies in China have been working towards enhancing their machine learning capabilities. One particular company is Mobyvista. They have developed several large projects focused solely on machine learning AI’s aimed at mobile marketing trends. With their systems, companies can perfectly match advertisers to users, allowing them to increase the number of clicks they receive, as well as the number of people who will actually follow through and make a purchase with those advertisers. Since AI can determine who is interested in a particular item, more so than any other algorithm, this increases the likelihood of success. Conversion metrics will rise.

AI Is Only Growing Larger

Machine learning is the key to a successful Chinese mobile app market. Expect to see those same advances pop up all over the world, wherever mobile phones are prevalent. Marketing companies will start to utilize them more often, especially when those advances allow them to better reach their intended audience, such as mobile phone users who download apps in the marketplace.

Kevin Ford

Marketing Manager

2019-09-01

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