Internet advertising refers to commercial advertisements that directly or indirectly promote goods or provide services through Internet media such as web pages, Internet applications, etc., in text, audio, or other forms. Internet advertising comes in many forms, including banner ads, pop-up ads, search engine ads, social ads, and more. These advertisements can be displayed through various internet** platforms, such as web pages, emails, blogs, forums, etc. Its strength lies in its precision and interactivity. Through data analysis and technical means, Internet advertising can accurately locate the target audience and achieve accurate advertising and personalized recommendations. At the same time, Internet advertising is also interactive, and the audience can learn more or participate in activities by clicking on the ad or interacting with it, improving the advertising effect and user engagement.
In 2022, the size of China's online advertising market will reach 10,065400 million yuan, although it has broken through the trillion level, the year-on-year growth rate compared with 2021 is only 68%, the first year-on-year growth rate in recent years fell below 100%。In 2023, with the gradual recovery of the macro economy, the return to normalization of production and life, and the rapid development of emerging technologies such as artificial intelligence, brand marketing has gained fresh soil for development. China's online advertising market may rebound, and the scale is expected to reach 11,368 in 2023600 million yuan, the year-on-year growth rate may increase to 129%。In the next three years, China's online advertising market will gradually stabilize its growth after passing the dividend period brought by the Internet.
In 2022, the share of e-commerce advertising ranked first, reaching 408%, followed by short ** advertising, accounting for 253%。In the next few years, the share of e-commerce and short** advertising will show a year-on-year upward trend, and it is expected that the total proportion of the two will reach 70% in 2025. Compared to other ad categories, e-commerce ads are closer to conversions and get more budget from advertisers. From the perspective of growth rate, the subcategory with the highest growth rate in 2022 is short ** advertising, as one of the most popular content carriers at the moment, short ** has gradually become the main form of communication favored by most advertisers.
After the structural adjustment of the global economy and the Internet industry in 2022, the scale of Internet advertising will begin to rise again in 2023: the revenue scale will increase by 12% from RMB508.8 billion last year66% to RMB573.2 billion, a growth rate higher than that in 2021, indicating that the Internet market has emerged from the impact of the pandemic and global black swan events. On the other hand, the scale of Internet marketing has also climbed to RMB675 billion, and the total size of the advertising and marketing market has exceeded RMB1,248.2 billion, with an annual growth of 1107%。
The concentration of the advertising market in 2023 will remain at the same level as in 2022: the top 10 companies in the industry will account for 96% of the market share20%, and the market share of the top four giant companies in the industry is 7554%。
At present, there are still only 4 companies in the industry with advertising revenue of more than 60 billion yuan, and among the top 4 companies in the industry, ByteDance still maintains a strong growth momentum and relies on 23 for the whole yearWith a growth rate of 76%, the revenue scale reached 144.8 billion yuan, surpassing Alibaba in one fell swoop. At the same time, ByteDance is also the second company with an advertising revenue of more than 100 billion yuan in the past 8 years; Affected by the adjustment of the economic structure and the change of customer consumption habits, Alibaba's advertising business revenue has shown a downward trend in growth for six consecutive years, from the double-digit growth in 2018 to the basic maintenance of revenue scale this year, but due to the large business base and wide customer coverage, Alibaba's advertising business revenue is still fundamental, and after experiencing a nearly double-digit decline in 2022, it has suppressed the downward trend this year.
Similar to Alibaba's situation, it reversed its momentum and resumed growth in 2023 after several years of sluggish growth in advertising revenue and a decline in revenue in 2022. This year, Tencent reversed the double-digit decline trend in 2022 and achieved double-digit growth, with an increase of 1757%, exceeding the growth rate of the overall market size of Internet advertising revenue, and the growth rate outperformed**.
From 2021 to 2023, the number of mobile Internet users on the whole network will be 117.4 billion, 120.3 billion and 122.4 billion, and the overall growth of the number of users has almost stagnated. In the context of the stock war, the upgrading of consumer demand has also posed greater challenges to marketing cost reduction and efficiency increase, and the opportunity to leverage a large number of users with a small amount of investment has gone forever. Advertisers' cautious mindset will also continue to impact the marketing industry in 2024.
On budget allocationAt this stage, in the quality and efficiency allocation of online advertising budgets, advertisers prefer performance advertising. 76.7% of advertisers' performance advertising amount is the same as or higher than the brand advertising amount, and in the 2024 plan, 467% of advertisers chose to invest in performance ads. Brand advertising is still valuable to most advertisers, with 85% of advertisers agreeing on the importance of brand advertising at this stage, believing that brands can bring long-term value to their businesses. Staying focused on long-term goals in the face of short-term contingencies makes brands more sustainable.
The importance of KOL marketing in the minds of advertisers is increasing, 86 in 20237% of advertisers carry out KOL marketing, 917% of advertisers expect to engage in KOL marketing. Content quality and fan stickiness give KOLs marketing value, and advertisers use the content produced by KOLs to deliver brand messages and reach the fan base behind them. The influence of KOLs deepens the link between the brand and the target consumers, and greatly improves the marketing efficiency.
In terms of specific cooperation, the head talent has a huge coverage volume, and the middle and waist talent is scattered in many circles, deeply cultivating a certain vertical group of people or a certain vertical content field. 98.1% of advertisers have cooperation with middle-waist influencers, and in the cooperation with middle-waist influencers, few advertisers only cooperate with comprehensive influencers. The top influencers are better at relying on their huge influence to help brands achieve rapid transformation, and the middle and waist influencers subtly cultivate the user's mind in the daily content dissemination and interaction process.
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