Smartphone ‘addiction’ on the rise in China
Market research company eMarketer says smartphone use in China – as well as, more broadly, the entire Southeast Asia region – is on the rise. In 2017, adults in the country are expected to spend 1 hour and 38 minutes on their smartphones daily, driven by trends towards cheaper smartphones in the Chinese market that act as an entry-point for mobile browsing.
Shelleen Shum, a senior forecasting analyst at eMarketer who was involved with the research, said:
“As attention continues to migrate from offline to online formats and from desktop to mobile devices, advertising dollars, too, will shift. Coupled with improvements in targeting and measurability, digital and mobile ad formats will continue to fare better than their counterparts in traditional media.”
TV has been the main focal point for Chinese media consumption over the last few decades, but recent years have seen its dominance – along with that of other traditional media – wane. By 2019, eMarketer expects Chinese daily smartphone time to have risen to 2 hours and 9 minutes – just 25 minutes less than daily TV time. This can be seen as part of a wider trend: China is already highly digitized, with digital media capturing 54.25 of attention against TV’s 40.6%, print media’s 2.1%, and radio’s 3.1%.
“We expect online video platforms like iQiyi, Youku Tudou and Tencent Video to take viewership from traditional TV. Not only are millennials shifting toward online video, middle-age adults and seniors who are usually loyal TV viewers are also making the shift. This is thanks to the quality of original content produced by the various providers and the on-demand nature of these services, which is giving viewers control of how and when they watch content.”
Dominion holds Tencent, Baidu, Alphabet (the parent company of Google), and a number of other companies that stand to benefit from this shift in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.