This report provides an overview of the China's advertising industry in 2015. As the amount of traffic has increased dramatically, which sectors that are driving growth. How much does it cost to acquire an iOS or Android user, and what are the best channels to make sure your ads get the attention they deserve?

1. MOBILE
ADVERTISING &
USER ACQUISITION
IN CHINA
2015

2. INTRODUCTION
China is a complex market because the mobile ecosystem is highly fragmented, and
mobile consumption habits and preferences differ greatly from the West. To succeed in
this market, companies need best services, technologies and people available. By
launching the China Knowledge Hub together with Newzoo, we aim to help global
audiences understand the complexities of the Chinese mobile consumer, and how they
can tap into the potential of this vast mobile-first market.
Since the start of our co-operation in 2014, the relationship with TalkingData has
evolved into a strategic one. We share the ambition to be global leaders in the field of
mobile intelligence and analytics services. TalkingData is by far the leading provider of
mobile intelligence on China and it is a great privilege to be able to share their unique
insights to the Western world.
LEO CUI
CEO TalkingData
PETER WARMAN
CEO Newzoo

3. NOTES
DATA SOURCE
• TalkingData Mobile Data Research Center's data uses a combination of its App Analytics, Game Analytics, Ad Tracking, and data exchanged from business partners, such as app
stores, mobile channels and operators. The data in this report is mainly based on monitoring results of TalkingData Ad Tracking. By November 2015, TalkingData Ad Tracking had
tracked over 200 advertising platforms and covered more than 800 million mobile devices. At its peak, it monitors more than 30 million clicks on a daily basis.
DEFINITIONS
• Clicks: The number of times an ad is clicked
• Activations: the number of devices that download and activate the app for the first time
• Advertising volume: the number of ads served on advertising platforms
• Incentivized advertising: reward users with something, such as virtual currency in game, in exchange for them being exposed to an advertisement
• Direct response advertising: invite consumers to click, download and sometimes register for product promotions
• Brand awareness advertising: create brand awareness with consumers through repeated exposure to an advertisement
3
Data source: TalkingData Mobile Data Research Center
2011-2016 © TalkingData.com

4. MOBILE ADVERTISING TRENDS IN 2015
2011-2016 © TalkingData.com4
Data source: TalkingData Mobile Data Research Center
 MOBILE BRAND-AWARENESS ADVERTISING:
Brands are increasing their awareness advertising on
mobile devices, boosting their share of all ads to 36.5%
 MOBILE DIRECT-RESPONSE ADVERTISING:
• For iOS, the number of clicks increased 255% in
2015, while the activation numbers increased 12%.
The growing activation volume is the result of a larger
number of clicks. Advertisers are no longer dependent
on incentivized ads.
• The number of clicks and activations on Android in
2015 has grown 112% and 146%, respectively.
Android ad owners focus on the outcomes of
subcontracting promotions and have increasing
demand for third-party data on monitoring ad
performances.
More
Traffic
 GAMING IS STILL THE KEY SECTOR:
Gaming remains the sector with the most mobile
advertising, with gaming-related clicks taking 59.6% of
total clicks in 2015. However, this is significantly lower
than the 81.1% in the previous year
 RAPID ENTRY OF EMERGING INDUSTRIES:
Advertisers from emerging industries such as financial
services, real estate, and education are increasing their
advertising volume on mobile devices
More
Industries
More
precision
 MORE ADS ON DMP:
Ads placed using a DMP don’t make up a large share of
total ads, but have witnessed rapid growth. In total, the
proportion of incentivized ads on DMP have climbed
200%
 SOME INDUSTRIES ARE MORE AWARE OF DMP:
Advertisers from gaming, e-commerce, and financial
services are more aware of DMP advertising
 A SIGNIFICANT INCREASE IN ADVERTISING EFFECT:
Compared with normal advertising, ads on DMP have
shown a significant increase in both CVR and CTR

5. PART 1 MOBILE BRAND-AWARENESS
ADVERTISING

6. MOBILE BRAND AWARENESS VS. DIRECT RESPONSE ADS
6
The share of mobile brand-
awareness ads showed a
strong Y-o-Y increase
Compared to PC advertising, mobile
advertising offers the opportunity to
target audiences more precisely. In
2015, a significant higher share of
mobile advertising were brand-
awareness campaigns, now
accounting for 36.5% of all ads.
MOBILE BRAND-AWARENESS ADS VS. DIRECT-RESPONSE ADS
(BASED ON TOTAL NUMBER OF MOBILE ADS SERVED)
Data source: enterprise interviews, public data compiled by TalkingData Mobile Data Research Center
74%
26%
63%
37%
20152014
2011-2016 © TalkingData.com

7. MOBILE BRAND-AWARENESS ADS: POPULARITY OF ADS FORMATS
7
Mobile brand-awareness
advertisers prefer videos
and information streams
Video and information streams are
the major ad formats employed for
mobile brand-awareness ads.
Combined they take up more than
50% of the total ads that are served,
followed by splash screen ads and
search engine ads.
POPULARITY OF MOBILE BRAND-AWARENESS AD FORMATS
(BASED ON TOTAL NUMBER OF MOBILE ADS SERVED)
Data source: TalkingData Mobile Data Research Center
2011-2016 © TalkingData.com

8. PART 2 MOBILE DIRECT-RESPONSE
ADVERTISING

9. CLICK & ACTIVATION TRENDS FOR DIRECT-RESPONSE ADS (IOS)
2011-2016 © TalkingData.com9
iOS witnessed a rapid
growth in the number of
clicks while the growth in
number of activations
slowed down in 2015.
The number activations of mobile
direct response ads climbed only
12% in 2015, much lower than the
growth in number of clicks.
Data source: TalkingData Mobile Data Research Center
Notes: activation refers to the volume triggered by promotion, excluding natural activation.
GROWTH IN NUMBER OF CLICKS OF MOBILE DIRECT-RESPONSE ADS
GROWTH IN NUMBER OF ACTIVATIONS OF MOBILE DIRECT-RESPONSE ADS

10. CLICK & ACTIVATION TRENDS FOR DIRECT-RESPONSE ADS (ANDROID)
2011-2016 © TalkingData.com10
Both clicks & activations
saw rapid growth on
Android
Android advertisers mainly rely on
third party app stores to launch ads,
and use ad platforms as an
alternative solution. In 2015, the
number of ad clicks on Android grew
by112%, while activation volume
climbed 146%. Android advertisers
appear to have shifted from the
traditional approach to using more
ad platforms for precise targeting.
Data source: TalkingData Mobile Data Research Center
Notes: activation refers to the volume triggered by promotion, excluding natural activation.
GROWTH NUMBER OF CLICKS OF MOBILE DIRECT-RESPONSE ADS
GROWTH NUMBER OF ACTIVATIONS OF MOBILE DIRECT-RESPONSE ADS

11. CLICK RATES ON IOS VS. ANDROID
2011-2016 © TalkingData.com11
iOS takes the highest share of
clicks
Chinese Android traffic has been
monopolized by the biggest Android app
stores, which are the first choice when you
want to release an app in China. iOS is a
different story because the traffic is directed
to the AppStore from ad platforms.
Therefore, iOS relies more on ad platforms
than Android. From the second half of
2014 to the first half of 2015, the rise of
incentivized ads has triggered a decline in
the share of iOS, but it climbed back to
87.7% in the second half of 2015.
MOBILE AD CLICKS 2014-2015
(AS PERCENTAGE OF TOTAL NUMBER OF MOBILE ADS CLICKED)
Data source: TalkingData Mobile Data Research Center

12. ACTIVATION ON IOS VS. ANDROID
2011-2016 © TalkingData.com12
In terms of activation, the
two platforms have
become more balanced
From 2014 to 2015, activation
volume on the two platforms has
grown to a more balanced level. By
the second half of 2015, activation
volume on the Android platform
accounted for 43.3% of the total vs.
just 12% on the first half of 2014.
SHARE OF ACTIVATION VOLUME FOR IOS AND ANDROID
(AS PERCENTAGE OF TOTAL NUMBER OF MOBILE ADS ACTIVATED)
Data source: TalkingData Mobile Data Research Center

13. TOP 5 PROVINCES IN AD CLICKS
2011-2016 © TalkingData.com13
Users from Beijing,
Shanghai, Guangzhou and
other coastal provinces
tend to click more mobile
ads
Ad clicks are relatively higher in
Beijing, Shanghai, Guangzhou and
coastal provinces like Jiangsu and
Zhejiang. This reflects the
geographical distribution of mobile
devices.
TOP 5 PROVINCES IN AD CLICKS ON IOS AND ANDROID
(AS PERCENTAGE OF TOTAL NUMBER OF MOBILE ADS CLICKED)
Data source: TalkingData Mobile Data Research Center

14. TOP 5 PROVINCES IN ACTIVATION
2011-2016 © TalkingData.com14
Guangdong and coastal
provinces have the highest
mobile ad activation
volume
In terms of activation, Guangdong
tops both platforms. On iOS,
Zhejiang, Jiangsu and Fujian take
relatively large shares. On Android,
aside from Guangdong and Jiangsu,
Beijing, Shandong and Henan also
rate highly.
TOP 5 PROVINCES IN ACTIVATION ON IOS AND ANDROID
(AS PERCENTAGE OF TOTAL NUMBER OF ACTIVATIONS)
Data source: TalkingData Mobile Data Research Center

15. ADVERTISING SHARE OF VARIOUS SECTORS
2011-2016 © TalkingData.com15
New sectors strongly
increase mobile advertising
efforts
In 2014, the established mobile
advertising sectors such as gaming
and social networking took up more
than 90% of all mobile ads. In 2015,
the shares of these two sectors
dropped dramatically to 62.4%.
Sectors that are relatively new to
mobile advertising (“emerging
sectors”), like new media and e-
commerce, are rapidly taking a
larger share of the market.
MOBILE ADVERTISING SPLIT PER SECTOR
(AS PERCENTAGE OF TOTAL NUMBER OF MOBILE ADS SERVED)
Data source: TalkingData Mobile Data Research Center
Notes: New media refers to video, music, broadcasting, news and other mobile end apps.

16. AD CLICKS OF SECTORS RELATIVELY NEW TO MOBILE ADVERTISING
2011-2016 © TalkingData.com16
Sectors relatively new to
mobile advertising, like
finance, real estate and
medical care, see rapid
growth in ad clicks
In 2015, mobile ad clicks of new
“emerging” sectors witnessed rapid
growth. The finance, real estate,
education, and medical care sectors
have seen the fastest growth. Mobile
ads are becoming increasingly
diversified in terms of industries.
GROWTH OF MOBILE AD CLICKS IN EMERGING SECTORS
Data source: TalkingData Mobile Data Research Center
E-commerce Finance + Real Estate +
Education + Healthcare
New media Travel and
transportation

17. USER ACQUISITION COSTS ACROSS SECTORS
2011-2016 © TalkingData.com17
iOS users are more
expensive to acquire
The cost of customer acquisition is
generally higher on the iOS platform
than on Android. It is also more
costly for the financial sector to earn
customers than for gaming and e-
commerce.
Data source: enterprise interviews, public data compiled by TalkingData Mobile Data Research Center
COST OF USER ACQUISITION PER VERTICAL | IOS & ANDROID

18. TRENDS IN ABNORMAL CLICKS
2011-2016 © TalkingData.com18
Abnormal* clicks account
for 11.6% of total clicks on
average
In 2015, abnormal clicks on mobile
ads took an average of 11.6% of
total clicks. This was much lower at
the beginning of the year, around
5%, and peaked in July when the
share reached 19.7%. Rise of
abnormal clicks should be alarming
and might be caused by click fraud.
TalkingData can help you closely
monitor abnormal clicks.
ABNORMAL CLICKS ON MOBILE ADS
(BASED ON MOBILE AD VOLUME IN ABSOLUTE NUMBERS)
Data source: TalkingData Mobile Data Research Center
*Rules to decide abnormality include the discreteness of IPs, abnormal time
span and abnormal activation requests.

19. TRENDS IN ABNORMAL ACTIVATION
2011-2016 © TalkingData.com19
Abnormal* activation
grows significantly in
promotional seasons
On average, abnormal activation
accounts for 6.1% of the total
monthly activations. This share surges
in the promotional periods of the
year, reaching an average of 11% in
August, September and December.
TalkingData can help you closely
monitor abnormal clicks.
ABNORMAL ACTIVATION OF MOBILE ADS
(BASED ON MOBILE AD VOLUME IN ABSOLUTE NUMBERS)
Data source: TalkingData Mobile Data Research Center
*Rules to decide abnormality include the discreteness of IPs, abnormal time
span and abnormal activation requests.

20. PART 3 MOBILE PRECISION
MARKETING

21. SHARE OF ADVERTISERS USING MOBILE DMP IS RISING
2011-2016 © TalkingData.com21
Share of advertising via
DMP climbs by around
200%.
In 2015, mobile ads on DMP
accounted for 11.8% of the total, up
from 3.9% in the previous year. This
represents a growth of about 200%.
Advertisers that prefer DMP come
mostly from the gaming, e-commerce
and financial sectors.
Data source: TalkingData Mobile Data Research Center

22. EFFECT OF ADS SERVED VIA A DMP
2011-2016 © TalkingData.com22
Ads served via a DMP are
more effective
Compared with non-DMP delivery,
ads served via DMP see a significant
improvement on both CVR and CTR
with the effect most pronounced on
CVR.
MOBILE DIRECT-RESPONSE ADS: A COMPARISON BETWEEN EFFECTS OF
DMP ADS AND NORMAL ONES ON CTR & CVR
Data source: TalkingData Mobile Data Research Center

23. 移动广告网络-点击量TOP20
glispa InMobi 百度联盟
Tencent Social
Ads adSage Mobvista Chartboost AdWords Chance Ad Toutiao.com
DOMOB Baidu Search Adwo Youmi.net Appcoach Unity Ads Avazu Private
Exchange
Youku Guohead.com MobPartner
4 5 6 7 8 9 10
11 12 13 14 15 16 17 18 19 20
321
TOP 20 MOBILE ADVERTISING NETWORKS BY NUMBER OF CLICKS
Data source: TalkingData Mobile Data Research Center
Notes: The ranking is based on the total annual clicks of advertising networks in 2015 provided by TalkingData Ad Tracking
23 2011-2016 © TalkingData.com

24. TOP 20 MOBILE ADVERTISING NETWORKS BY NUMBER OF ACTIVATIONS
24
Data source: TalkingData Mobile Data Research Center
Notes: The ranking is based on the total annual activation volume of advertising networks in 2015 provided by TalkingData Ad Tracking.
Tencent Social Ads
2011-2016 © TalkingData.com

25. TOP 20 MOST POPULAR MOBILE ADVERTISING NETWORKS
2011-2016 © TalkingData.com25
Data source: TalkingData Mobile Data Research Center
Notes: The ranking is based on the total annual promotions of advertising networks in 2015 provided by TalkingData Ad Tracking.
Tencent Social Ads

26. TOP 20 MOBILE ADVERTISING NETWORKS BY OVERALL STRENGTH
2011-2016 © TalkingData.com26
Data source: TalkingData Mobile Data Research Center
Notes: The ranking is based on a comprehensive calculation of user coverage, clicks, media quality and other indexes of advertising networks in 2015
Tencent Social Ads
Adwo

27. TOP 10 DISTRIBUTION CHANNELS
2011-2016 © TalkingData.com27
Data source: TalkingData Mobile Data Research Center
Notes: The ranking is based on the monitoring results provided by TalkingData Ad Tracking in 2015
Tencent Social Ads

28. ABOUT TALKINGDATA
TalkingData is China’s largest, independent Big Data service platform that focuses on the
mobile app marketplace. TalkingData provides best-in-class Big Data products and
services, such as mobile app analytics, mobile ad tracking, mobile game analytics, mobile
market intelligence, DMP (Data Management Platform), and industry consulting. Today,
80% of the Top 50 app developers in China utilize TalkingData to track their app metrics,
analyze user data points, and optimize monetization. Industry giants such as China
Merchants Bank, Citic Bank, Ping An Group also rely on TalkingData’s enterprise Big
Data solution to build their core data infrastructure towards a new mobile era.
BIG DATA
FOR SMARTER
BUSINESS
DECISIONS
AND BETTER
SOCIETY

29. CONTACT
THANK YOU
BUSINESS DEVELOPMENT
Yuanyuan Meng (Grace)
Yuanyuan.meng@tendcloud.com
MARKETING COLLABORATION
Furui Wang (Freedom)
Furui.wang@tendcloud.com