The eleventh edition of R3’s China Media Inflation report covers 2021 actual inflation and 2022 inflation forecasts. For this report, R3 referred to the public rate card of 700+ media and buying policies of 20+ media agency holding groups and local media agencies.
Key Takeaways
- Digital advertising revenue is estimated to increase 22% in 2021 with OOH investment experiencing a 42% increase in the period of Q1 to Q3 2021.
- Inflation in digital media will grow in tandem with the size of China’s consumer data pools. Omnia network estimates that China will become the largest source of consumer data in the world in 2022, enabling marketers to unlock real opportunity and further drive digital investment. This is reflected in the inflation rates (6-9%) of OTV and OTT ad formats which provide advertisers with greater geo-targeting.
- Within the BAT media group, short video apps and personalized content platforms like Douyin, Toutiao, and Tencent Flash Screen will have the highest inflation as algorithms tailor content to each user. Further integration of entertainment, livestreaming, social media, and commerce will strengthen advertiser preference.
- Apps in Automobile, Sports and News categories are projected to have slight inflation, while apps in already crowded verticals like Mom & Baby and Beauty will maintain a flat price.
