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Despite a downgrade to our forecast, digital ad spending in China will still grow 5.0% this year. But there will be a power swap among the major platforms, as Tencent displaces Baidu and becomes the No. 2 publisher. And Alibaba will remain No. 1, but with lowered expectations.
BAT Performance
Alibaba's ad revenues are almost three times that of Tencent's, but its growth story will not be as rosy in 2020. In recent years, Alibaba has successfully leveraged its ecommerce platforms to generate a new line of search ad revenues, akin to the Amazon model in the US. In 2016 and 2017, Alibaba saw at least 40% growth rates in digital ad revenues across its various properties, and last year that rate was a still sizable 24.3%.
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See the rest of the story at Business Insider
See Also:
- What Facebook, Google and Amazon's earnings mean for our 2020 ad spend outlook
- Peacock said it signed up 10 million users, but what marketers should watch for is time spent
- The big tech hearing showed that Congress is divided over market dominance implications
from Business Insider https://ift.tt/2OaDTWY
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