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China’s programmatic market is forecast to pass $30bn in 2019 as ad spend in short-form video apps, like Douyin (TikTok) drive major growth in the market.
Data from eMarketer reveals programmatic ad spending is predicted to increase by more than 33% to reach $30.86bn in 2019.
The increased spending is putting pressure on China’s BAT companies: Baidu, Alibaba and Tencent, which collectively control about 80% of programmatic ad spend in China. The big three’s dominance is expected to decline over the next few years as other digital companies build out their own services and boost their prominence in the market.
The recent boom in video advertising, which is expected to overtake TV ad spend by 2021, has helped propel growth in programmatic. eMarketer said short-form video, such as the hugely popular Douyin (TikTok) app, has been a major driver of overall programmatic spending in China.
Programmatic is expected to account for half of all video ad spend in China in 2019 which will equate to $6.60bn.