The news: China’s ad market ended the year with modest growth in Q4, finishing up 9% YoY ($151.9 billion), per our latest forecast—but its rebound was uneven, with spending concentrated in a narrow set of industries and channels. Q4 spending represented stabilization more than acceleration, with advertisers maintaining tight controls despite year-end promotional activity. The slowdown of the fierce subsidy war between Alibaba, JD.com and Meituan was a large factor as well.

• Consumer-facing sectors tied to near-term demand, including ecommerce, local services, and select retail categories, increased spending late in the year.
• More cyclical or confidence-sensitive categories, such as automotive and property-related advertising, remained restrained, limiting overall momentum.
• Digital formats captured the bulk of incremental Q4 budgets, with performance-oriented placements surging thanks to launches of AI tools for advertisers, such as Tencent’s AI-powered ad optimization tool, AIM+.
• Traditional media saw limited recovery, with linear TV and print continuing to lose share as advertisers prioritized measurable outcomes.

Why it matters: China remains the second-largest ad market in the world, per our forecast.; Despite the US maintaining a large lead, China’s market size has the potential to cause ripple effects.