2017 Native Ads in China

China Native Ads Market

What is native ads?

Native ads is a form of marketing advertisement. Prior to the native ads, advertisers traditionally launch an ad in the following ways:

  • Place a banner ad on a webpage

2017 Native Ads in China

  • Serve an ad before the video plays

2017 Native Ads in China

However, these traditional marketing approaches are not the most effective ones because

  1. This ad serving approach is very intrusive. Ads are displayed at places where consumers are intentionally looking for something else (e.g., content or video).
  2. Most of these ads do not look creditable, and often look fishy. As a result, it inevitably casts a negative experience associated with the brand that is being advertised.
  3. It does not fit to the overall content theme on the site. This destroys the overall usage experience that consumers have on the website.

Native ads was born to mitigate above concerns. In short, native ads is ads but that do not look like ads. Native ads make easier for readers to engage with content (increasing effectiveness), and also make the ad fit well with the overall theme that the website owner wants consumers to remember.

Natives ads started by Facebook and develops rapidly in China

  • In 2006, Facebook first started the native ads in social feed
  • In 2011, Twitter followed with its own version of native ads in daily feeds
  • In 2012, Sina Weibo was the first major platform to start the native ads in China. (Sina is the equivalent to Twitter in China).
  • In 2013, Tencent (the company behind QQ and WeChat) started the native ads in this news feed mobile application.
  • In 2014, Toutiao followed and developed its own native ads platform called Toutiao Native Ads platform
  • In 2015, this is the year in which native ads really picked up its pace and mature in China
    • WeChat moment has started the Native ads feed in the Wechat moment section.
    • Yidian, the leading Chinese publishers, has also started a similar service.
    • Weibo has revamped it’s ad serving platform to version 2.0

Overall the native ads market in China has transformed from following the US publishers approach to developing its own algorithm (based on big data mining and machine learning) to deliver tailored ads to consumers.

For example, if a consumer shows a strong interest in reading photography-related news, the platform will sever photo-related products or services to the user natively.

Native ads market in China.

China’s native ads market is rapidly developing. It’s estimated that by 2017 the overall market size would be 5.5 billion RMB, about 14.3% of the overall advertisement market size. It will continue to have a 50% YOY growth rate in the following three years.

Marcetable China Native Ads Growth

Source iResearchChina.com

Native Ads Effectiveness:

  • 60% of consumers have purchased products/services displayed in the native ads
  • 80% of consumers have learned about new products/services from the native ads

Marcetable Native Ads Effectiveness

source: iResearchChina.com

Blue bar – percentage of users who have purchased products in native ads

Green bar – percentage of users who have seen new products in native ads

Native Ads in Different Platforms Social Platform (%) News Platform (%) Video Platform (%) Search Platform (%)
% Users See New Products in Native Ads 76.2 82.7 72.4 71.8
% Users Purchased Products in Native Ads 29.4 40.6 30.1 33.3

Marcetable Find Opportunities From China

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