Cambridge Business Association
Newsfeed Advertisement is the Cash Cow China's Big Tech Companies are All Fighting Over
Article

Newsfeed Advertisement is the Cash Cow China's Big Tech Companies are All Fighting Over

Wang Leibai and Yan Hao
36Kr, 2017
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Newsfeed ads – like those sponsored posts in your Facebook feed – have become popular for advertisers because, compared with other forms of digital advertisement such as side-bar or banner ads, they are more visible to readers. Wang Leibai and Yan Hao, reporters at the tech media site 36Kr, take a look at the Chinese Internet companies that are rushing into the news feed advertisement business and sometimes create content for the sole purpose of sandwiching these ads. The article is a little short on practical advice, but getAbstract recommends it to social media professionals, advertising and public relations agencies, and digital marketing experts.

Summary

Western media gave Chinese companies a taste of how effective news feed ads can be. A video ad Huawei placed in Twitter’s feed resulted in a user interaction rate that exceeded Huawei’s expectations and increased the number of Huawei’s Twitter followers by 3.5%. When Baidu advertised its photo-editing app Motu on Twitter, Baidu followers instantly increased by 27,000 – with an app download rate of 1%.

While news feed advertisement has been trending in the United States for years, the market has only recently exploded in China. Experts predict that news feed ads will make up 65% of the digital advertising market by 2018. With the rising popularity of mobile Internet and an increasing amount of online ads, Internet companies have begun attracting customers with their own content...

About the Authors

Wang Leibai and Yan Hao are staff writers for 36Kr.com, a leading tech media site in China that reports on businesses and start-ups. Yan focuses on technology, media and telecommunications, while Wang writes about marketing and advertising.

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