The current situation and trends of Internet advertising!

Since the second half of 2018, the saying that digital marketing has entered the "second half" has been frequently mentioned. Over the past decade, China’s digital marketing ecosystem has experienced a period of rapid development, with an annual market growth rate of nearly 30%. By 2018, China’s total Internet advertising revenue reached RMB 369.4 billion.

However, under the dual influence of macroeconomic structural adjustments and the reduction of traffic dividends, digital marketing is truly entering the "second half". The growth rate of advertising volume in the second half of 2018 declined significantly, and even the total advertising volume in Q4 decreased significantly compared with the same period last year.

2019 is already halfway through, what is the current status of Internet advertising ? What new trends are emerging?

Miaozhen Systems used its own audience advertising exposure analysis system to conduct in-depth research and statistical analysis on the advertising activities monitored in the first half of 2019, in order to clarify the current situation and trends of Internet advertising traffic and provide reference and reference for advertisers and the industry.

With the continuous strengthening of data security supervision and the influence of the macroeconomic environment, advertisers have higher requirements for marketing and are more cautious in allocating marketing budgets and placing Internet advertisements.

Data from Miaozhen System’s audience advertising exposure analysis system shows that compared with the same period in 2018, Internet advertising exposure in the first half of 2019 fell by 6% .

Since Q4 of 2018, Internet advertising exposure has shown varying degrees of decline year-on-year. However, with the continuous maturity of 5G technology, the diversity of marketing scenarios and methods will usher in new developments, and there may be a rebound in the second half of 2019.

Although the overall traffic has declined, from the perspective of industry distribution, there is a more significant head effect. Food and beverage, transportation, beauty and personal care, retail and services , and IT products ranked among the top five industries , accounting for 78.4% of the market share in the first half of 2019, an increase of 5.4 percentage points year-on-year.

Except for a decline in food and beverages and IT products, transportation, beauty and personal care, retail and services showed a growth trend, among which the retail and service industry surged by 28.5% .

The main growth of the transportation industry comes from information media and automotive vertical media on the Mobile side, the beauty and personal care industry comes from online video media on the NEW TV side, and the significant growth of the retail and service industries mainly comes from news information, short videos, music audio and other media on the Mobile side.

From the perspective of terminals, the internal traffic structure has undergone major changes. The rise of NEW TV has continuously eroded the advertising traffic and market share of PC. Compared with the same period in 2018, the exposure share of NEW TV in H1 2019 increased to 14.2% , and the exposure volume increased by 18%; the share of PC dropped to 15.6%, and the exposure volume decreased by as much as 32% . The Mobile side was relatively flat, with an increase in share, but a decrease in exposure volume of 2%.

NEW TV has become a blue ocean for Internet advertising traffic and will continue to grow. In the second half of 2019, it is expected to surpass the PC side and become the second largest entrance for Internet advertising traffic.

In addition, except for the transportation and financial management industries, the investment in the top 10 industries on NEW TV continued to increase and showed a significant increase. The food and beverage and beauty and personal care industries ranked first and second in terms of advertising share, with exposure increases of 30% and 72% respectively in the first half of 2019.

Among the advertising media on NEW TV, online video is the main one, with TV manufacturers growing rapidly, and the two together account for more than 90% of the total.

In terms of advertising format, video patch ads account for more than 50% of exposure and still have an absolute advantage. The proportion of video patch advertising exposure has decreased, mainly due to PC and Mobile ends. The NEW TV end has increased, but the slowdown in growth is difficult to offset the declines on the other two ends.

The exposure share of information flow and startup/splash screen ads has increased significantly , exceeding 20% ​​in total, continuously squeezing out other forms, and advertising placement has gradually converged towards mainstream advertising forms. Among them, the growth of information flow and startup/splash screen ads mainly comes from the Mobile side.

As the growth rate of Internet advertising continues to slow down, advertisers will pay more attention to the effectiveness of marketing, which will not only put higher demands on digital marketing, but also on the advertisers' refined operations.

However, the decline in Internet advertising traffic in the first half of 2019 does not mean that the winter of digital marketing has arrived. We can still see the rapid growth of NEW TV, information flow advertising, and startup/splash screen advertising. Perhaps what we need is a little more patience and sedimentation, as well as more refined operations and management.

I believe that with the continuous maturity of 5G and a series of supporting technologies (including edge computing, Internet of Things, artificial intelligence, etc.), the methods of digital marketing, the forms of digital advertising, the forms of content delivered, and the degree of interaction with consumers will undergo drastic changes. At that time, digital marketing will burst into new vitality.

Author: Miaozhen System

Source: Miaozhen System