2016 China Market Overview – Internet
English
The number of Chinese netizens as well as the popularity of Internet have continued to show an upward trend, but the growth rates see a decline. Along with various Internet access devices, 90% of netizens choose mobile terminals to get access to the Internet. Users who connect internet by TV increased rapidly in 2015. Two main purposes for netizens to get online are being social and acquiring information.
Summary
- The number of Chinese netizens as well as the popularity of Internet have continued to show an upward trend, but the growth rates see a decline. Now netizens have covered a wider range of age. Internet is well penetrated in urban area and among population with lower education.
- Along with various Internet access devices, 90% of netizens choose mobile terminals to get access to the Internet. Users who connect internet by TV increased rapidly in 2015. Homes and workplaces are the major places for people to surf online.
- The time Chinese internet users spent on internet continued to increase. Two main purposes for netizens to get online are being social and acquiring information.
- The enforcement of the ‘Internet Ad Interim Measures’ had certain impact on Internet ads market. However, the development of China's online advertising market showed no sign of slowing down. Keyword ad market have shown a shrink since 2014 Q3. Video ads continued to rise, and the scale of programmatic ad market increased rapidly.
- In June 2016, the number of search engine users has reached 593 million. In terms of market share, Baidu, 360 and Sogou held 90% of the total market. However, in terms of revenue, Baidu shared 75% of total revenue to become the market monopolist.
- In the coming three years, Internet segmented markets, such as online video, education, payment, medical, tourism and music will continue to grow, yet with lower growth rate.
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