The report titled “Taiwan Online Advertisement Outlook To 2023 – By Medium (Desktop and Mobile), Type (Display, Video, Search, Buzz / Content and Others), By Sectors (FMCG, Healthcare, Entertainment & Media, Finance and Financial Insurance, E-Commerce and Others), and By Cost Model (CPC, CPM and CPA)” provides a comprehensive analysis on Taiwan Online Advertisement Industry. The report covers introduction, value chain, market size by advertisement expenditure, market segmentation by medium (desktop and mobile), by type (display, video, search, buzz / content and others) Medium wise (Desktop and Mobile), by Type on the basis of Platform (Facebook, Instagram, Goggle, YouTube and others), by sectors (FMCG, Healthcare, Entertainment and Media, Finance and Financial Insurance, E-commerce and others), by cost models (CPC, CPM and CPA), comparative landscape, growth drivers, trends and developments, growth restraints, issues and challenges and the regulatory framework. The report concludes with market projections for future and analyst recommendations highlighting the major opportunities and cautions.
Taiwan Online Advertisement Market Overview and Size
Taiwan Online Advertisement Market is mounting and currently placed in growth phase witnessing fragmented market competition faced by advertising agencies. The market is well regulated and the consumers are well versed and updated with the ongoing trends. Taiwan has been considered as the link joining the developed countries of the west with the developing markets of the East. TV ads had held the top most channel rank in terms of reaching out to the consumer masses. Within Taiwan, television ads have been long associated with imprecise targeting. Advertisement firms and organizations have been trying to find a sustainable replacement of the TV medium. At the same time, the masses started to move from the unappealing and low-quality TV content to the digital platforms. It has been estimated that approximately 95% of Taiwanese used Facebook during the year 2018 which stands to prove the reach of the social media platforms in the country. Online activities have become one of the favorite past-time of the population. Online advertisement market in Taiwan was observed to showcase rapid year on year growth in terms of ad expenditure during the review period 2013-2018. The consistent double digit growth was majorly due to the fact that internet and digital advertising started outstripping the traditional medium of advertising in terms of better customer penetration ratio or customer conversion than traditional methods with an added advantage of better monetization and ad reach measurement tools. Hence, the market grew at a strong CAGR of close to 23% during 2013-2018.
Taiwan Online Advertisement Market Segmentation
By Medium (Desktop and Mobile): Desktop has a better screen size & resolution and facilitates easier viewing of the advertisements. The advertisements over a desktop were more impactful and displayed the information more accurately due to its size advantage. However, mobile medium was observed to dominate the space majorly due rising mobile penetration in the country along with a widespread presence of people over social media. Additionally, factors such as cost effectiveness and increasing conversion rates also propelled the mobile medium in preference.
By Type (Display, Video, Search, Buzz / Content and Others): Taiwanese population prefers to watch video ads over mobile devices in terms of advertising spend over the mobile medium during 2018. YouTube ads are currently the leading solution for all brands and marketers in Taiwan, given its non-intrusive in-stream system as well as the stable CPV performance. The marketers prefer to produce their own video with an essence of Taiwanese culture which increases the overall advertising budget and may prove to be a hindrance for the companies to choose this form of advertising. Display ads dominated the market followed by video, search, buzz / content and other ad types during 2018. In Taiwan all the platforms are majorly advertised over mobile owing to the ubiquitous use of the device. Taiwanese use mobile for every kind of task be it search, watching a video, social media, texting and others. Since mobile is more accessible as compared to laptops or desktops, it remains with the owner most of the times and this gives the advertisers advantage to reach their target customers faster as compared to desktop or laptop.
By Sectors (FMCG, Healthcare, Entertainment & Media, Finance & Financial Insurance, E-Commerce and Others): FMCG sector dominated the online advertisement space in Taiwan in terms of online advertisement expenditure. The E-commerce market has grown at a rapid pace over the past few years. People appreciate online entertainment and media on their phones/ desktops; hence this sector becomes a crucial aspect for the market. Healthcare is coming up with innovative medical services and devices which need to raise awareness among consumers. Other sectors such as banking and insurance and others captured the remaining market in 2018.
By Cost Model (CPM, CPC and CPA): CPM i.e. Cost per Mile segment dominated the Taiwan online advertisement market in terms of online advertising expenditure during the year 2018. Publishers prefer CPM model because of the low financial risk for them. Both CPC and CPA models collectively grabbed the remaining market share in 2018. The cost per click model is being preferred by small businesses/start-ups to understand the customer feedback in the market.
Comparative Landscape in Taiwan Online Advertisement Market: Competition within Taiwan online advertisement market was observed to be highly fragmented for advertising agencies with many start ups recently entering into the space. On the other hand, the market is highly concentrated within the hands of size players namely, Facebook, Google, Instagram, YouTube, Yahoo and Line constituting for more than 70% market share in 2018. These new companies are introducing innovative methods of capturing their target audience while the old firms are expanding their foothold into this space with the help of the existing data they possess. Some of the well known ad agencies in Taiwan are Growth Hackers, Gremlin Works, Fimmick, Carat and Lion and others. These companies are competing on parameters such as pricing of the services offered (average hourly rate), minimum project size and service portfolio. Whereas on the other hand, competition within online platforms was observed to be concentrated as it includes big players such as Google and YouTube, Facebook and Instagram.
Taiwan Online Advertisement Market Future Outlook and Projections: The Taiwan online advertisement market is estimated to grow at a positive double digit CAGR during the forecast period 2019-2023. Expenditure on online advertising by major companies is further expected to increase due to improvement in business environment and growing market for start-ups. The E-commerce market in Taiwan is also expected to rise thus, giving the companies another platform to reach out to their target customers. Apart from that, the government of Taiwan is also working towards improving the internet infrastructure and promoting mobile payments in the country which is further anticipated to give a boost to this market in Taiwan.