Staff Reporters
Aug 27, 2019

China, APAC to lead global social-media adspend

TOP OF THE CHARTS: Forrester predicts China's social ad spend will triple by 2023, leading APAC past North America globally.

China, APAC to lead global social-media adspend

China's social media advertising spending already accounts for 44% of the Asia-Pacific total. Yet Forrester predicts there will be an explosion of social ad spending in China in the coming years, boosting totals from $9.9 billion in 2018 to $27.6 billion in 2023.

While Forrester's latest social media advertising forecast further predicts that global totals will more than double in that same period, from $75 billion in 2018 to $165.6 billion in 2023, Asia-Pacific's share of the pie will soon be the biggest, thanks to China.


APAC owned about 30% of the global share of social spending last year, but that will rise to 35% as early as 2021, Forrester forecasts, when it will catch North America's declining share and then surpass it in subsequent years. 

The report says China's top social players will start aggressively monetizing their huge user bases, and revenue per user will drive China's social ad spend. It notes how highly receptive social media users in metropolitan China are to ads, engaging with them more than peers in other regions.


In the rest of APAC, user growth is largely decelerating, except in India, as you can see from the above chart from the report. As such, Forrester posits key social players are now focusing on boosting revenue per user to bring in capital. The report notes how Twitter's experimentation with larger ad loads have led Japan, Twitter's biggest market outside the US, to grow revenue per user by 35.1% in 2018.

In addition, Forrester predicts social video ad spend will more than triple from $17.6 billion in 2018 to $56.5 billion in 2023. It identifies formats like video as the primary drivers of revenue per user on social platforms, noting the surprise performance of short video apps for social marketers last year. But it notes players like Tencent, Twitter, and Weibo have made big strides to facilitate video creation and sharing on their platforms, making them more conducive to video ads.


This article is filed under...
Top of the Charts: Highlights of recent and relevant research

 

Related Articles

Just Published

5 hours ago

LinkedIn logs out: Is it the end of the road for ...

SOUNDING BOARD: Industry experts weigh in on the future for LinkedIn and other non-native tech platforms in China, as the business-networking site confirms it will shrink to a jobs board in the market.

5 hours ago

Japan continues to witness high ad fraud while ...

Grappling with high CPMs, Japan and Singapore report some of the highest fraud rates for IAS, while local brands pull rates down in Indonesia.

5 hours ago

Digital Media Awards 2022: Call for entries

The DMAs celebrate outstanding ideas, work, agencies, brands and talent in the Greater China region.

6 hours ago

BrandZ China: Tencent overtakes Alibaba; Kuaishou, ...

The top 100 most valuable brands in China gained 57% in brand value year-over-year, reaching $1.56 trillion, according to Kantar's latest ranking.