Domestically-successful Chinese internet companies have reportedly hit a wall building revenues abroad, discovering that growing user bases do not necessarily mean growing revenues in developing markets. "The truth is users in some markets are worth much more than users in other markets," said one mobile games developer. For instance, India's annual digital advertising spend is expected to exceed $1bn in 2017; this year, China's will reach $72.1bn and the US' will hit $40.4bn, according to eMarketer. It is suggested that the Chinese firms could look to grow revenues through either overseas acquisitions or by focussing on established markets in the UK, US, and Japan.
Domestically-successful Chinese internet companies have reportedly hit a wall building revenues abroad, discovering that growing user bases do not necessarily mean growing revenues in developing markets. "The truth is users in some markets are worth much more than users in other markets," said one mobile games developer. For instance, India's annual digital advertising spend is expected to exceed $1bn in 2017; this year, China's will reach $40.4bn and the US' will hit $72.1bn, according to eMarketer. It is suggested that the Chinese firms could look to grow revenues through either overseas acquisitions or by focussing on established markets in the UK, US, and Japan.