2022 China Internet Advertising Data Report released

The 2022 China Internet Advertising Data Report was jointly released by Zhongguancun Interactive Marketing Laboratory, PricewaterhouseCoopers, School of Journalism and Communication, Beijing Normal University and Miaozhen Academy of Marketing Science in Beijing on Jan. 12, 2023.

Source: Zhongguancun Interactive Marketing Laboratory

According to the report, the structural adjustment of the Internet advertising market has entered “deep waters”, and the market scale has experienced a decrease for the first time. The growth rate of industry giants is slowing down and the short-form video remains a dominant form in the industry.

In 2022, the Internet advertising revenue was 508.8 billion yuan in China (excluding Hong Kong, Macao and Taiwan), a decrease of 34.7 billion yuan, or 6.38 percent from the previous year.  The scale of China's Internet marketing is expected to reach about 615 billion yuan, 0.37 percent down from 2021, and the total size of the advertising and marketing market is about 1.12 trillion yuan, a decrease of 3.19 percent from the previous year.　

In terms of media platform types, the video platform market is the second largest advertising platform, and accounted for 23.03 percent of the market share. In terms of advertising forms, the video advertising market was the third largest advertising form, and accounted for 22.19 percent of the market share. Among the video categories, short videos are the only category to show growth in both media platforms and advertising formats, and is also the only category that grew in 2022.

Affected by domestic economic restructuring and policy factors, advertising in the real estate and education and training industries also continued to decline, with a total drop of 20.94 billion yuan, accounting for 60.35 percent of the total industry decline. Transportation, retail logistics, household appliances, clothing and accessories, and tourism and leisure are the five major growth industries for Internet advertising in 2022, which saw a total increase of 19.12 billion yuan in revenue.

The report says the Internet advertising market fluctuates with the developments of the COVID-19 pandemic, and was greatly affected by the pandemic situation throughout the year. In the medium and long term, the fundamentals of economic stability and long-term improvement have not changed. China's Internet advertising industry should seize this adjustment window and continue to optimize resource allocation, which will help it to seize the initiative and market opportunities in the future.