Despite its declining hold on the global digital ad marketplace as a whole, smaller screen marketing is up.
Online commerce giant, Alibaba Group Holding Inc., may find its global mobile ad market share climbing higher this year. This, despite the fact that the company’s grip on the digital advertising space is starting to slide.
eMarketer’s data shows the Chinese ecommerce giant will have a smaller portion of global digital ad spend.
The research firm’s prediction is that the digital ad spend drop will be around 0.9 percent to 4.6 percent in 2016 compared to the figures from 2015. That said, the mobile ad market share will be climbing at the same time. That increase will be significant, as its share will rise to 10.9 percent. Last year, that figure had been 8.7 percent.
In the Chinese market, Alibaba will continue to be the leading player in both those markets. The massive company will hold onto 39.7 percent of the tremendous $27.9 billion Chinese market for mobile advertising. Furthermore, it will boost its share of digital ad spend to 28.9 percent. That is an increase of nearly 4 percent compared to 2015.
The strength in the mobile ad market share growth is due to the company’s customer retention strategy.
Andria Chen, an eMarketer analyst, explained that the company’s strategy to hold consumers within its entertainment and online ecosystem explain its mobile ad success. The company has been acquiring several different companies within those spaces.
For instance, Alibaba purchased the Youku Tudou video streaming platform in 2016. According to eMarketer, that particular purchase may “aid sales growth” for Alibaba during this quarter. It may also help the company to assemble more complete user profiles.
Furthermore, the ecommerce giant has also made investments in a number of other areas supporting growth. For example, it has raised capital for an affiliate platform for local services called Koubei. The funds came from international investors. Equally, it invested more in building out logistics operations within locations such as villages and towns that are not yet easily accessible. It’s easy to see that the company is seeking to amp up its share in more than just the mobile ad market.