The WSJ reported today that Publicis Group is hoping to enter the Chinese online ad buying market by launching digital buying units there. This comes over the huge terriority war in China over the online space. WPP have been very aggressive there and have snapped up an array of companies based in China
The total chinese ad market is expected to grow by over 15% in 2010 to approx. 22Bn with 10% of that being spent on digital display media.
‘Publicis has formed a partnership with Shanghai-based technology company Menlo Technologies to develop a system that will allow marketers to buy advertisements from online exchanges that operate auctions to match ad buyers and sellers to ad spaces on websites. Interpublic’s media buying arm Mediabrands is in talks to acquire or establish a partnership with local online advertising companies to launch a similar initiative as Publicis, says Quentin George, chief digital officer at Mediabrands. Interpublic has trailed its rivals in investing in the China ad market.’
From my perspective:
The reality of growth in China is of course dependant on the architecture of broadband penteration and encouraging publishers to think outside of the box and to change content and inventory ad space seemlessly. Currently the ad space is trading in china on a display by time basis not display by action. The largest hurdle is the e-commerce channel in China. Its relatively new and as seen in USA and UK – ecommerce has expanded the growth of online advertising. So lack of an e-commerce channel or a lack of adoption of – is going to affect the growth of the chinese ad market.