Digital ad spend in China on the up
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By EJ Ward

The internet is available to more people around the world than ever before. China in particular has been developing a strong internet infrastructure.

Despite an economic slowdown, China's internet sector is growing at an impressive rate. According to a research by eMarketer, a market research company that provides insights and trends related to digital marketing, China's digital ad spend will reach $40.42 billion in 2016 - a 30% increase comparing to last year. The research also predicts this number to double by 2020, at which point it will reach $83.59 billion.

According to the data, China's shift from traditional media to digital is no temporary trend. There is evidence that spending on TV and print for advertising purposes is declining. In 2016, TV spend will account for 24.2% of total media ad spending, or $18.92 billion, which represents less than half of spending on digital ads. eMarketer forecasting analyst Shelleen Shum explained, "This is driven by a growing share of young internet-savvy consumers who are spending more than the older generation. The slower economic growth has also caused advertisers to look more closely at ad budgets, with some preferring to spend more on targeted digital formats."

A smaller company making noise among its larger peers with recent corporate developments, Moxian, Inc. (NASDAQ: MOXC) is an offline-to-online (O2O) integrated platform operator. The Company's "Moxian+" mobile App platform connects Users to Merchant Clients through games, rewards and social events that they enjoy and in return, Users provide valuable information that Merchant Clients can use to effectively promote products and services offered at their brick and mortar stores. Recently the company announced that intensified cooperation with Xinhua New Media Culture Communication Co., Ltd., an affiliate of State-owned Xinhua News Agency, with the launch of a game channel on the Xinhua New Media Mobile App platform.

The Xinhua New Media Platform, with accumulated over 110 million downloads and approximately 10 million daily active users, and is one of the most visited national authoritative mobile platforms in the world. Moxian is expected to benefit from the Game Channel in multiple ways, including revenue streams from game downloads and advertisement banner sales. In addition the company is expecting to attract new users and downloads for its Moxian+ App.

James Tan, Chairman and Chief Executive Officer of Moxian, Inc. commented, "We view Xinhua New Media Platform as cornerstone partner as Moxian begins a new chapter following the official launch of our Moxian+ App and Nasdaq listing our stock in recent months.

Today's announcement marks another milestone for the ever-growing partnership between Moxian and Xinhua New Media. With Xinhua New Media Platform's vast user base and Moxian's powerful social media-driven marketing tools, the Game Channel is poised for success, in my view."

Alibaba Group Holding Ltd (NYSE: BABA) continues expansion outside of the company's main e-commerce business by recently signing new streaming and cloud partnerships. Alibaba entered the Japanese market through a local data center presented by SB Cloud Corporation that is in a joint venture with SoftBank Group Corporation. The company also revealed that they had agreed to a three-year licensing partnership with Oriental DreamWorks to bring animated movies to Chinese viewers through online streaming sites owned by Alibaba, Youku.com and Tudou.com. "Alibaba is expanding beyond its core e-commerce marketplace business into both media and cloud hosting, following the game plan that has generated great success for Amazon," said director of research at financial service and investment firm Wedbush Securities, Gil Luria.

Chinese language Internet search provider, Baidu Inc. (NASDAQ: BIDU), enables users to find information online, including Webpages, news, images, documents and multimedia files, through links provided on its Website. Furthermore to helping individual Internet search users, the Company delivers a platform for companies to reach customers that consists of three segments: search services, transaction services and iQiyi. Search services are keyword-based marketing services targeted at and generated by Internet users' search queries that mainly include its pay-for- e-formance services and other online marketing services.

Online social entertainment platform, YY Inc. (NASDAQ: YY) allows consumers to engage via audio, video and text in a wide range of online group activities, like music shows, live video streaming and multi-player gaming. With a capacity to support over one million participants alongside, YY offers users a more immersive, interactive, enriching and engaging entertainment experience through its large social community. User behavior evolves and new trends emerge over time. Many users use YY to socialize and make friends, while some have turned YY into a virtual stage to showcase their talent or share their knowledge and expertise. To address frequently evolving user needs, the company developed several products that help grouping users and channels according to their share interests.

SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Social media platform, Weibo is for people to create, distribute and discover Chinese-language content.

Author： 　　　Source：CRI　　　 Editor：Yang Fan