The overall growth of online advertising in 2019 H1 has entered the adjustment period of slowing down. The market scale of 2019 Q1 and 2019 Q2 are 113.91 billion yuan and 145.29 billion yuan respectively, and the proportion of information flow advertising in a single quarter exceeds 28%. The scale of search advertising market in 2019 H1 reached 42.01 billion yuan, and Q2 had a significant recovery compared with Q1.

The year-on-year growth rate showed a certain decline, reflecting the trend of search advertising inclined to information flow advertising.

In 2019 H1, the quarterly market scale of China's online advertising was 259.21 billion yuan, of which Q1 was 113.92 billion yuan and Q2 was 145.29 billion yuan, an increase of 23.5% compared with the first half of last year. From the perspective of quarterly data, the growth rate of online advertising market showed a slowdown trend. Compared with the year-on-year growth rate of 37.6% in 2018 Q2, the growth rate of 2019 Q2 decreased by more than 15% points, with a large decline. There are two main reasons for the slowdown: on the one hand, the instability and intensified competition of advertisers' market have a great impact on marketing; on the other hand, under the premise of limited budget, advertisers are more focused on the advertising cycle and media, and the quarterly fluctuation is more obvious. 

Revenue scale of Chinese search engine enterprises

In 2019 H1, the revenue scale reached 64.34 billion yuan, and AI helped to explore the future growth space

The revenue scale of China's search engine enterprises in 2019 H1 was 64.34 billion yuan, of which the revenue scale of 2019 Q2 was 33.76 billion yuan, which was basically the same as the same period last year, with a year-on-year growth rate of 1.1% and a month-on-month growth rate of 10.4%. Although the growth rate of search advertising, the main business of search engine enterprises, is affected by the overall market environment and new media forms, with the maturity of AI landing application technology, its enabling effect in the field of advertising marketing is constantly enhanced, which is reflected in a more precise and wide range of personalization Advertising and higher cash flow efficiency AI further release the potential of information flow advertising. At the same time, the continuous development of search engine enterprises in the field of AI also opens a wider commercial space for other application scenarios.


(Revenue scale of Chinese search engine enterprises from 2017Q3 to 2019Q2)

The scale of search advertising market in Q2 of 2019 reached 22.3 billion yuan, which was significantly increased compared with Q1 data, but the year-on-year growth rate has declined to some extent, reflecting the trend of search advertising inclining to information flow advertising. In 2018, the revenue contribution of information flow advertising to search enterprises has exceeded that of alliance advertising, becoming the second largest revenue source of search enterprises. In recent years, search engine enterprises continue to increase the layout of content ecology. The underlying logic of search is that users expect to quickly obtain high-quality content that meets the expectations. It is very important for search engines to complete the accumulation of high-quality content and break the information isolation.

(2017Q3-2019Q2 China search advertising market size)

Scale of social advertising revenue in China

Social advertising revenue recovered quarterly in the second quarter

In 2019 H1, China's social advertising revenue was 27.41 billion yuan. In the second quarter, China's social advertising revenue reached 14.9 billion yuan, an increase of 23.6% over the same period last year. Although the macro-economic environment is in a downward cycle, and the growth of the overall online advertising market has slowed down. Social advertising market still delivered a relatively excellent "report card" in the second quarter: after the decline of 17% month-on-month in the first quarter, major platforms actively seize the opportunities of video and KOL social marketing and actively open up. As a result, it achieved a good commercial performance growth in the second quarter, with an increase of 19.1% compared with the first quarter.

China mobile social advertising revenue scale

The proportion of social advertising increased further

In 2019 H1, the scale of social advertising revenue of China mobile terminal was 23.09 billion yuan. Among them, the revenue scale in the second quarter reached 12.59 billion yuan, accounting for 84.5% of the total social advertising revenue, which further expanded. As the overall social media continues to tilt towards the mobile end, the mobile social media has established greater advantages in the timely delivery of content information, cross platform diversion and linkage, the accumulation of user data and the accurate delivery of advertising. Therefore, advertisers' marketing investment in mobile social media continues to increase. In the future, the advent of 5G may further change the user's social mode. Both media and advertisers can develop more ways to play in the mobile terminal, which makes the development prospect of social advertising on mobile terminal more possbility.