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Future of TV China Nielsen

YuMe and Nielsen prepare for big changes in China

By Benjamin Lichtman, Contributor

February 3, 2016 | 3 min read

A major development in the entertainment industry in recent years has been an expanding global market. No country has contributed more to that change than China. One of the companies most attuned to those changes has been YuMe, the advertising technology company. The company launched operations in China last year to bring its expertise (especially in Connected TV-CTV) to the rapidly growing market, setting up offices in Beijing and Shanghai.

Recently, YuMe partnered with Nielsen CCData and UPOTV to author a Development Whitepaper, looking at some of the changes in China. What differentiates China from the United States is sheer size. Already the Chinese video audience is 439 million people, which is 100 million more than the entire U.S. population, and that number is only increasing.

For YuMe as well as Nielsen and UPOTV, understanding that market is essential, given that China is the second largest advertising market in the world. As Michael Hudes of YuMe explained, “knowing that China is such a significant player in the global advertising market, we partnered with Nielsen CCData and UPOTV to produce specific insights that uncover key levers in the Chinese digital video marketplace.”

Some key findings of the research were very interesting:

  • In 2015, 60 million TVs were sold in China, with 80% being smart TVs, a growth of nearly 100% over 2014.
  • Chinese consumers are using CTV at a higher rate than traditional TV with an average of 5 times more daily usage across CTV devices.
  • CTV is leading young viewers back to the television screen and Nielsen CCDATA is working to target its reach beyond screens and to individual family members.

The relationship between China and the United States is growing. Already, the ties are significant. Most notably, earlier this year, Chinese conglomerate Dalian Wanda Group bought U.S. film studio, Legendary Pictures (The Dark Knight, Jurassic World) for $3.5 billion. As Reuters noted, “China’s booming movie industry, fueled by the country’s growing urban middle class, saw box office revenue increase 49% last year…”

A recent New Yorker profile on the new studio, STX Entertainment, noted that, “In 1980, the international market contributed less than a quarter of studios’ box-office revenues; by 2018, the Chinese market alone should exceed the North American market.” It is those expectations that have propelled the collaboration. The changes will come. The growth will continue. And American companies are lining up to make sure that they’re ready.

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