The advertising industry as a whole can be divided into different media:Traditional advertisingwithNetwork AdvertisingTwo broad categories. Traditional advertising is mainly passedMagazine ads, newspaper ads, radio ads, and TV adsand other traditional media for publicity and marketing, while online advertising is mainly throughThe internet is used as a medium for marketing
According to the type of delivery, online advertising can be further subdivided into search engine advertising, portal and information advertising, vertical industry advertising, e-commerce advertising, advertising, social advertising, classified information advertising and short advertising. In the above segments, search engine advertising, portal and information advertising are mainly used in early Internet forms such as search engines and portals, while e-commerce advertising, social advertising, and short advertising are also known as new advertisements due to different delivery platforms. At present, China's network infrastructure construction has achieved wide area coverage, and with the continuous progress of technologies such as 5G and gigabit optical fiber, the Internet penetration rate continues to grow.
In August 2022, the China Internet Network Information Center released the 50th "Statistical Report on the Development of China's Internet Network", which shows that as of June 2022, the number of Internet users in China is 105.1 billion, with an internet penetration rate of 744%。According to the "2022 China Martech Market Research Report" released by iResearch, the size of China's online advertising market reached 942.1 billion yuan in 2021, with a year-on-year growth rate of 229%。
As China's Internet penetration rate increases year by year, the network user base continues to grow, and the cost of data traffic continues to decline with the change of 5G technology in recent yearsOnline shopping, online classes, and meetingsAs a result, the information access channels of ordinary people continue to shift to the Internet, while the effect of traditional offline and print media marketing continues to decline.
Therefore, in the future, the marketing channels of mainstream brands are expected to continue to shift to Internet advertising, and at the same time, the marketing budget will be inclined to Internet channels, and China's online advertising market is expected to remain in the fast lane of growth, and the market size is expected to reach 14 trillion yuan. In 2021, e-commerce advertising, short** advertising and social advertising respectively occupied the online advertising market9% and 99% share, with a total scale of more than 470 billion yuan.
Different platforms will be different in the advertising business ecology according to their own characteristics, because e-commerce platforms, social ** and short** platforms occupy the main traffic entrance end, so there will be greater demand for advertising business, which will drive the tilt of digital resources and the application of more innovative tools.
Since 2017, due to the rapid growth of online shopping consumption and the rise of live streaming, the proportion of e-commerce advertising has been far ahead in the online advertising market. With the continuous popularization of mobile devices and the continuous development of information technology, the scale of users of the short platform has developed rapidly, and the short advertising business has also achieved leapfrog development, accounting for 22 percent of the market size in 20219%, second only to the e-commerce advertising business.
Due to the large number of basic user groups, the social platform has grown steadily with the expansion of the overall scale of the online advertising market, and the market share has been stable at about 10%. As of 2021, the total market size of new advertising has reached 731%, and the proportion of other forms of online advertising is declining year by year.
By 2024, the industry scale of new ** advertising is expected to exceed 770 billion yuan, with a compound annual growth rate of more than 17%, and the market size still has a lot of room for growth.