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Online ads more likely to sway Chinese consumers, report says

By Ding Yining | May 21, 2014, Wednesday | Online Edition

Chinese consumers are more than twice as likely to click online adverts compared to those in other countries because of a higher level of engagement with mobile devices and willingness to download new applications, a report said.

Seventy-eight percent of Chinese consumers are willing to view ads if the content is relevant to them, higher than the 33 percent in the UK and 29 percent in the US, PricewaterhouseCoopers said today in its Mobile Advertising Report.

The PwC study was based on a survey of 3,800 consumers with 1,001 respondents from China's mainland.

PwC said in its Entertainment and Media Outlook last year that mobile advertising is expected to see an annual compound growth rate of 27 percent through 2017 to reach 165 billion yuan (26.4 billion) , making it the fastest growing sector among all digital advertising categories.

Chinese respondents downloaded an average of 42 applications in the past 12 months, compared to 36 in Brazil and 20 in the US.

"Chinese mobile users spend more time shopping and watching videos," said PwC China TMT partner William Lam.

Companies that use customer data to drive brand awareness have a better chance to influence buying decisions in China, he added.

Most Chinese consumers showed a preference for digital coupons and online videos as mobile advertising formats instead of online search, in-app advertising and text ads.

A total of 30 percent of respondents said they are concerned that mobile advertising is too intrusive and 22 percent feared they would cross into personal space.

PwC recommended companies respect privacy in order to maintain consumer trust.

 

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