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Alibaba’s slice of the mobile ad market to rise this year

Dan Gendro | October 27, 2016

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.

Diwali m-commerce will be a bright light this year

JT | October 25, 2016

As a growing number of consumers look to their smartphones while shopping, this week may break records.

A recent Criteo report has predicted that the Diwali m-commerce figures will be higher than ever before. In fact, this may represent the first time mobile shopping will overtake web browsers for this holiday.

Last year at this time, 40 percent of online traffic to major retail websites was generated by mobile devices.

This rapid increase in Diwali m-commerce use is a direct reflection of the expansion of use in India. A statement from Criteo said “Customers prefer buying new brands from upcoming shopping websites, where they are offered best prices as well as discounts. With the ease of m-commerce, they get the option to explore thousands of brands at the click of a button.”

Diwali m-commerce - candle This shift in consumer behaviors has greatly altered the nature of competition among companies in the country. At no time is this competition more fierce as the festive season provides the leading opportunity for Indian retailers to draw consumers.

Many online retailers took the chance to target Diwali m-commerce shoppers even before the season began.

There were a number of mega sales launched even before the festive period got started. This generated somewhat of a war between brands as massive marketing campaigns were launched. In this last week leading up to Diwali, consumers are being inundated with offers for products and services.

Last year’s peak season ran from October 8 to November 8 and the pre-Diwali shopping season saw a notable increase in traffic to Indian retail websites. Last year, there was an average increase of 35 percent to retail website traffic in India. During that same span of time, there was an increase of up to 87 percent in sales on those sites. This year, Diwali starts on October 30 and runs to November 3, which means that the season began earlier in the year and the leading trends are already becoming clear.

This year, consumers are even more tech savvy and are looking to Diwali m-commerce opportunities to allow them to save money and shop more conveniently for holiday gifts.