Important Changes in Chinese Mobile App Market Development

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Kevin Ford

July 24th, 2019

Although mobile app markets are indeed a global phenomenon, China is leading the way with crucial changes in how they are advertised. According to statistics, there are over 2.3 billion people utilizing this market worldwide as of 2013, with that number hitting 6 billion by 2022. This is clearly proof that this market is growing rapidly, with China at the forefront of these changes, making Chinese mobile app market development extremely important.

Along with this quick-paced general market growth, another prominent field has emerged – mobile advertising revenues. In 2013, mobile ad revenues were valued at an impressive $9 billion. Look at this in comparison with the 2017 numbers, which place it at $89 billion. By 2022, they are expected to reach $219 billion, more than double what they currently are. In order to take advantage of this revenue, companies enmeshed in the Chinese mobile app market are taking the lead.

Why Are Chinese Companies Taking the Lead?

Why have members of the Chinese mobile app market become so important when it comes to setting trends in this manner? The answer is simple: residents of the country have jumped onto mobile communications in a way that few other populations have. For example, the rate of overall mobile penetration in China is over 96% with many of those users taking advantage of communications apps, such as WeChat. They essentially behave like “mobile first” users are expected to.

Companies with a Huge Share of the Advertising Market

Three China-based companies have become extremely dominant in the advertising market. Combined, they take over around 60% of it. Those companies, Tencent, Alibaba, and Baidu, are fueling the 22% growth of the industry. However, another company, called Bytedance, is right on their heels. It’s important to watch what these companies are doing in order to emulate them in the future.

One Issue with Chinese Mobile App Market Traffic

Of course, all this growth doesn’t come without its issues. One common problem that many users are coming across is that of invalid traffic. The statistics state that advertisers in the country have lost over $3.8 billion dollars due to this invalid traffic. Invalid traffic is often caused by bots that are either programmed into or hacked into advertising networks. According to a recent report, up to 40% of this traffic to the various mobile advertisements consisted of bots. This means that the clicks that those ads received were invalid because an actual human wasn’t doing the clicking. Getting around the problem can be tricky, but as long as the companies work with those who have good reputations, it’s possible to avoid this bot issue.

Chinese Companies with Global Plans

Another reason why China is so important in the mobile advertising department is due to the fact that many of the companies placing those ads have plans for global domination. Since so much of the marketplace is taken up by the large conglomerates, any newer companies in the field need to reach outside of the country in order to succeed. In addition to those large conglomerates, government restrictions and large media corporations are utilizing the available ad space, which also forces these smaller companies to look overseas. As a result, Chinese brands are becoming infinitely more popular all over the world, where they set trends for local businesses attempting to do the same thing.

The Rise of Casual Gaming and Its Effects on China

Many people around the world enjoy what’s referred to as hyper-casual gaming. Residents of China have also embraced these games. Hyper-casual games are the ones that can be played in small amounts, here and there, without leaving the user attached to their mobile device for hours at a time. One of the best things about these games, as far as the advertisers are concerned, is the number of ads that can be built into them. Every time a user completes a level, he or she is asked to sit through a short ad. Banner ads and pop-ups are prevalent as well. These ads make it easier for the companies that produce them to monetize their efforts, and in many cases, allow them to sell those games for free. Since these games are extremely popular in China, it’s no wonder that companies targeting those users are developing new advertising trends.

Artificial Intelligence Developments in China

Artificial intelligence is currently being developed in both the United States and China. Although other countries are working towards this goal as well, those are the main two that have come up with some breakthrough developments. However, China currently isn’t sharing its AI data with researchers in the United States. Since China has some powerful data that could move AI in an entirely new direction, when the two countries do work together, some major steps forward could take place.

It’s clear that China is at the forefront of mobile global advertising. As a result, people in other countries will be looking to Chinese mobile app market companies in order to determine what their next actions should be. China has a large number of mobile users, as well as a large enough segment of the marketplace to shape these trends.

Kevin Ford

Marketing Manager

2019-07-24

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