China DSP market is estimated to reach RMB 23.5 billion (USD 3.47 billion) in 2016 according to iiMedia Research. And, mobile DSP market is to reach RMB 13 billion (USD 1.92 billion).

China DSP market is estimated to reach RMB 47.19 billion (USD 6.97 billion) in 2018 according to iiMedia Research. And, mobile DSP market is to reach RMB 33.56 billion (USD 4.96 billion) in 2018.

The top three categories of DSP advertisers are from e-commerce (19.1%), gaming (17.4%), and finance (12.9%).

Advertisers from Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou account for over 70% of total mobile DSP advertisers. 46.2% mobile DSP advertisers are for branding; 35.1% performance based; and, 18.7% are local advertisers.

By mobile DSP ad spend, the top category is automotive (15.5%), followed by e-commerce (14.3%), gaming (12.6%) and FMCG (12.1%). The top category with the most DSP ads placement is gaming (19.5%), followed by social networking (17.3%), news (14.3%), video (12.6%), women (10.1%), finance (9.2%) and automotive (8.1%).

The DSP (demand-side platform) advertising market of China reached 3.48 billion yuan (US$548.06 million), with YoY growth of 117.6% in 2014. In 2015, it is to reach 6.89 billion yuan (US$1.09 billion), with YoY growth of 97.9% according to a Chinese research company Analysis. As one of the future major digital advertising systems, DSP advertising is favored by more and more advertisers.

The demand-side platform is a system that allows buyers of digital advertising inventory to manage multiple adverting exchange and data exchange accounts through one interface. Real-time bidding and audience targeting technology make up for the system. Marketers can manage their bids for the banners and the data that they are layering on to target their audiences. Much like paid search, using DSPs allows users to optimize based on key performance indicators such as effective cost per click (eCPC), and effective cost per action (eCPA).

The demand-side platform, together with Ad Exchange and RTB, is an emerging online display advertising system. In recent years, the platform has been rapidly developed across the globe, and entered the Asia-Pacific region in 2011.

Currently, companies doing DSP advertising can be divided into five categories basing on their background:

• the independent third party DSP vendors, represented by Ipinyou，Behe Adtech Solution
• DSP from traditional advertising network agencies such as AdChina and MediaV
• transformed mobile advertising networks, represented by Limei and Domob
• traditional internet companies, represented by Youdao Zhixuan
• Foreign companies who expanded into China market with the maturity of the Chinese market, represented by the Vizury, which was founded in India.

The demand-side platform can make the internet display advertising market more transparent, efficient, and controllable, very consistent with the development trend of the future of online advertising. With the accurate advertising delivery method being widely accepted, China’s DSP market and internet advertising market will further develop.

Also read: China Social Media Marketing Trends in 2015