China is the leader in mobile traffic purchases
Chinese advertisers are leaders in mobile traffic purchases. But, surprise, they don’t spend on promotion in their country. AppFlood company told about this in its report.
Chinese developers have “tight wallets”. Throughout the year, they have been increasing their mobile marketing budgets. Only from March to September 2013, they increased by 151%.
Moreover, it turned out that in the global perspective, Chinese developers now spend 25% more on advertising than American ones. The latter account for a quarter of the global mobile advertising market .
And in Russia – 2%, a little more in Japan – 3%
Editor’s note: there are 173 million gamers in China alone, not to mention ordinary mobile users. The number of active smartphones on iOS and Android in February of this year in China was 246 million, in the USA – 230 million. Considering that a year ago the number of active users of mobile devices in China was growing by 20 million per month, their number may now be more than 400 million.
Moreover, while growth rates have started to fall in the US, China is still experiencing rapid growth.
In the third quarter of this year, Chinese advertisers were the leaders in traffic purchases, responsible for 38% of global traffic. By comparison, the US is responsible for only 22% of global traffic.
But that’s not the most interesting thing. Chinese marketers spend almost nothing on promotion in their home market (0.6% is somehow not serious at all), but they actively buy traffic in other countries. The United States accounts for the most (7.5%), India (7.2%), Saudi Arabia (6.5%) and Russia (4.3%).
Editor’s note: it seems to us that this may be due to four reasons.
- Major Chinese developers have powerful advertising networks. They don’t need to buy traffic;
- Traffic is cheap (AppFlood estimates eCPM at $0.35). Therefore, spending on it in comparison with other countries may seem less, although the volumes may be the same;
- Buying advertising in China is not effective compared to other regions;
- Perhaps AppFlood did not take into account all Chinese markets (there are more than 200 of them, we recall).
By the way, regionally Chinese marketers still prefer to spend on advertising in Asia (33%) and the Middle East (22%).
A source: http://appflood.com
