CHINA TOPIX

12/22/2024 06:09:51 pm

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Alibaba to Pass Baidu as China’s Biggest Digital Advertising Provider

Alibaba

(Photo : Getty Images) Alibaba has been operating in India since 2007.

Many market experts predict that Chinese e-commerce giant Alibaba will overtake fellow Chinese tech giant Baidu in terms of advertising revenue this year.

Amid the strict online advertising regulation imposed by the Chinese government, many experts foresee that Alibaba will still have the upper hand in the business.

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Experts are convinced that the main driver in the Chinese online advertising market is the mobile platform. Although Baidu has established its brand on the desktop market, the company is making headways on the mobile platform which has seen exponential growth over the past few quarters.

eMarketer, a New York-based market research company, estimated that Alibaba will own 28.9 percent of the entire Chinese digital advertising revenue by the end of 2016, a leap from last year's 24.8 percent.

Alibaba's revenue is expected to close at $12.05 billion by the end of this year, a big chunk of the Chinese digital advertising market of around $41.66 billion.

Meanwhile, Baidu emerged in 2015 as the clear leader of the Chinese online advertising market. Widely held as China's Google, Baidu controls 28 percent of the market with estimated revenue of around $8 billion last year.

According to South China Morning Post, Baidu's decline in the digital advertising market can partly be blamed on a handful of scandals that mired the company's reputation and instigated the Chinese government to stricken its regulation on online contents.

One of the most prominent cases was the death of a college student who allegedly died after taking a medical advice from one of Baidu's online advertisement. Following this incident, Baidu was accused of not properly vetting all of its advertising clients.

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