China’s developers outspent their US counterparts on mobile advertising by an estimated 25% during Q3 this year, according to mobile advertising platform AppFlood.
This increase tallies with increases in mobile ad spend on the two major search engines in China during 2013 – Baidu, and Qihoo, who saw a collective 150% increase in mobile ad spend between March and September this year.
One of the key drivers behind the rise in mobile ad spend seems to an increased focus from Chinese developers to target overseas territories, notably India and the Middle east. The AppFlood report shows less than 1% of mobile ad spend being spent on actually acquiring Chinese customers while 7.2% was spent on India, 6.5 percent on Saudi Arabia, 4.9 percent on Indonesia, and 3.8 percent on Thailand.
This trend, according to AppFlood, reflects the use of these territories as pre-launch test beds for Chinese developers, essentially using these markets like the US uses New Zealand and Canada.