Ragnar Kruse, CEO of Smaato shares insights into the state of mobile advertising in China, and reveals that China may soon overtake the US as the highest spending advertising market. We caught up with Ragnar at GMIC Beijing.

According to the Smaato Global Trends Report, the United States consistently takes the lead as the world’s largest advertising market. However, China’s recent explosive mobile advertising growth rate suggests that the world may soon have a new ad spend leader.

In the last quarter of 2015, Chinese mobile ad spending skyrocketed 1,246% – the highest ad spend increase of all of the countries observed in the Smaato platform to date. eMarketer confirmed similar results, projecting programmatic ad spending in China to reach US$27 billion by the end of 2017.

Mobile Ad Spend Moves In-App

Increasing evidence shows mobile advertisers are shifting their spend from mobile web to in-app ads. Global ad spend data from the Smaato platform supports the finding that apps are dominating mobile websites. APAC in-app spend grew from 51% to 77% in just 12 months. The global total also showed similar gains for in-app ad spend.

E-commerce in China is Propelled by Mobile

Given the rapid development of mobile networks, China’s mobile commerce market is booming. eMarketer estimates that China’s retail e-commerce sales will double between 2015 and 2017, amounting to US$1.2 trillion and accounting for over 23% of the global e-commerce retail sales.

082939aRagnar Kruse

Co-founder & CEO

Smaato

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The majority of the e-commerce boom can be attributed mobile commerce which is also expected to double from 2015 to 2017. Mobile commerce will reach US$737 billion, more than 60% of China’s total retail ecommerce sales, and will break US$1 trillion by 2018.

All in all, the mobile landscape in China is shaping up to a more than promising future. Mobile is fueling ad spending growth and driving e-commerce. Advertisers and app developers use Smaato’s RTB platform to reach more than 1 billion mobile users worldwide every month on more than 90,000 mobile applications.

With all the above positive indicators, the future of programmatic ads in China looks very bright.

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