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Beijing moves to clean up online ad ecosystem in first-of-its-kind campaign

Market watchdog flags AI abuse and traffic-driven tactics as it launches first campaign to overhaul online advertising

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China’s top market regulator is set to launch a six-month crackdown on the country’s internet advertising sector. Photo: Shutterstock
Ben Jiangin Beijing

China’s top market regulator will launch a six-month crackdown on the country’s internet advertising sector, targeting malpractices including the misuse of artificial intelligence, in what it described as its first campaign to clean up the broader online advertising ecosystem.

The State Administration for Market Regulation (SAMR) said on Thursday that the campaign comes as new risks – from AI misuse to traffic-driven marketing tactics – emerge alongside long-standing issues, even as data and technology continue to drive rapid growth in the sector.

China’s online advertising market was expected to reach 793 billion yuan (US$116 billion) in 2025, according to estimates by consultancy QuestMobile.

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“There is an urgent need to carry out a systematic and comprehensive clean-up,” the regulator said.

Three tech giants – ByteDance, Tencent Holdings and Alibaba Group Holding – together account for more than half of China’s online advertising market. Photo: Reuters
Three tech giants – ByteDance, Tencent Holdings and Alibaba Group Holding – together account for more than half of China’s online advertising market. Photo: Reuters

As part of the campaign, SAMR said it would, for the first time, frame enforcement around the concept of the “internet advertising ecosystem”, focusing on five key areas: tightening regulation; strengthening platform accountability; overseeing new advertising formats; upgrading monitoring technology; and reinforcing content standards.

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