China Advertising

CAPTURING THE HEARTS AND WALLETS OF 1.4 BILLION CONSUMERS.

"Welcome to China's burgeoning 1.4 billion consumers and home to the world's second largest economy."

China presents an unparalleled opportunity for businesses and brands.

The world’s second-largest global economy. China's consumer base is vast, increasingly affluent, and digitally connected. This immense market potential is driven by rapid urbanisation, a growing middle class, and a tech-savvy population eager to engage with brands domestically and internationally.

Chinese consumers are digitally savvy. The rise of e-commerce giants and the ubiquitous use of mobile payment platforms have revolutionised consumer behaviour in China. Online shopping has generated billions in sales, showcasing Chinese consumers' spending power and enthusiasm. The influence of social media is unparalleled anywhere else in the world. These platforms are powerful marketing channels where brands connect with consumers 24/7.

China’s complex digital ecosystem is multi-layered and complex. To succeed in China, businesses must understand and leverage this unique digital ecosystem. With the right approach, businesses can unlock the immense marketing potential of this dynamic and rapidly evolving market, tapping into the hearts and wallets of 1.4 billion potential customers.

TARGETING OUTBOUND TOURISTS.

With over 155 million travelling abroad annually (2019), Chinese tourists represent a lucrative market for Destination Marketing Organisations (DMOs such as tourism boards), Online Travel Agencies (OTA), Accommodation Providers (Hotels), Transport Services (Airlines, Cruises, Trains), Tourism Attractions and Venues (Theme Parks), and many others that form the tourism ecosystem.

To capture this audience, marketing strategies must resonate with their travel preferences, understand their media consumption habits, and leverage the digital platforms they trust.

Key Facts

International outbound tourists: 155 million (2019)
International outbound tourists: 101 million (2023)
International tourist expenditure: USD 1,350 per person on average
Biggest outbound tourist cities: Shanghai, Beijing, Guangzhou, Shenzhen, and Chongqing.
Top destinations: Thailand, Japan, South Korea, Singapore, Malaysia.

TARGETING KEY BUSINESS DECISION-MAKERS.

China is the world’s second-largest economy, boasting a GDP of USD 17.7 trillion (2023) and a growth rate of 5.2%. It is a powerhouse of technological innovation, leading advancements in Artificial Intelligence (AI), Robotics, Electric Vehicles (EVs), Chemicals, Biotechnology, and Aerospace, to name a few. With an impressive R&D expenditure exceeding USD 420 billion, China is at the forefront of global innovation. Additionally, it is a significant player in the worldwide banking and financial sector, home to the world’s largest stock market exchanges. As the leading manufacturing, export, and logistics hub, China's economic influence is unparalleled.

A comprehensive approach is essential to effectively targeting key business decision-makers (BDM) in China. This includes a nuanced content strategy demonstrating thought leadership and advanced analytics for precise targeting. Delivering your value proposition through tailored digital media campaigns ensures resonance with this critical audience. By understanding and leveraging China's unique digital landscape, businesses can build trust, engage effectively, and drive successful outcomes in this dynamic market.

Key Facts

Gross domestic product: USD 17.7 trillion (2023)
Banking and financial sector: USD 58.7 trillion (2023)
Exports: USD 3.38 trillion (2023)
Outward FDI: USD 148 billion (2023)
Total market cap of US-listed tech stocks: USD 848 billion (2023).

TARGETING CONSUMERS.

In 2023, China's consumer spending reached approximately USD 6.65 trillion, driven by a growing middle class, increased urbanisation, and a tech-savvy population. This substantial spending highlights the country's strong domestic consumption, making China one of the most dynamic and lucrative consumer markets globally.

Chinese consumers heavily engage with digital media, favouring social media platforms, entertainment Apps, and trusted news sources. They prefer content in short video, live streaming, and interactive formats. Mobile devices dominate media consumption and strongly prefer social media, e-commerce, and mobile payment integrations.

Key Facts

Total annual consumer spending: USD 6.65 trillion (2023).
Median national disposable income: USD 4,557 per capita (2023).
Total e-commerce GMV: USD 2.1 trillion (2023)
Biggest cities by population: Shanghai, Beijing, Chongqing, Tianjin, Guangzhou.
Biggest cities by GDP: Shanghai, Beijing, Shenzhen, Chongqing, Guangzhou.

INTRODUCING
YOYI TECH.

China's Largest Premium Publisher and Audience Network.

Multiverse Partners is proud to announce its strategic partnership with YOYI TECH, China's largest and leading premium publisher and audience network.

YOYI TECH offers an advanced intelligent marketing platform that excels in tracking and precisely targeting users across the entire marketing funnel, from initial brand awareness to click-throughs and final conversions.

APAC Business Development Partner and Representative.

"AI-Powered omnichannel intelligent marketing platform for precision targeting."

Leveraging extensive data sources and advanced analytics, YOYI TECH uses artificial intelligence to optimise every aspect of marketing campaigns.

This technology allows for sophisticated targeting and retargeting strategies that ensure advertisements reach the most relevant audiences at the right times. The platform's ability to analyse and interpret vast amounts of data in real-time enables dynamic adjustments, maximising the effectiveness of each campaign. YOYI TECH's comprehensive approach consistently delivers impressive Marketing ROI and exceptional Return on Ad Spend (ROAS).

Delivering Real-Time Crossmedia Marketing Performance and Marketing ROI.

Integrated Adtech Platform trusted by Global Brands and Agencies.

The award-winning integrated four-in-one digital programmatic Adtech platform (DSP, SSP, DMP, and CDP) serves and is trusted by international agencies, over 600 global brands, and Fortune 500 companies that demand uncompromising low-latency and high-precision performance in digital advertising.

A.I. Real-Time Full-Funnel Campaign Optimisation.

YOYI TECH’s proven Artificial Intelligence provides audience insights, real-time optimisation, and predictive analytics to deliver high-precision targeting and advertisements in full-funnel marketing campaigns. This maximises campaign effectiveness and minimises wastage, resulting in a high Marketing ROI and ROAS.

Omnichannel, Cross-Media, and Multi-Publisher.

YOYI TECH’s partnerships extend to wide-ranging and diverse premium publishers, including Smart TV manufacturers for Connected TV, Video OTT and Social Media Apps, News, Factual, Sports, Movies, General Entertainment publishers, and Digital Out-of-Home (DOOH) media owners.

Precision Analytics and Insights.

Access to over 50 diverse data sources (mobile devices, Smart TV, social, location data, e-commerce, OTA etc). This allows for deep insights, precise user tracking and targeting, consistently optimizing campaign performance, and improving Marketing ROI and ROAS by efficiently managing campaign budgets and overdelivering results.

Premium Publishers and Advertising Inventory.

As China's single largest premium publisher and audience network of over 10,000 premium publishers, YOYI TECH provides advertisers access to over 80% of China’s publisher media inventory, including over 40 billion daily page views.

Dashboard and Reporting.

YOYI TECH provides its near real-time dashboard and reporting to monitor campaigns and optimise for performance and results.

Household and Device IDs.

Its DMP tracks over 240 million household IDs (nearly half of China’s total households) and 2 billion unique device IDs (of a population of 1.4 billion people). It is mapped to demographics, purchase intent signals, and target audience personas.

Verification and Accountability.

YOYI TECH supports all major third-party pre-bid protection, ad tracking, brand safety, and Ad verification platforms, including Miaozhen.

Client Partnership and Success.

Multiverse Partners is YOYI TECH's official APAC business development partner and representative. In partnership with YOYI TECH, Multiverse Partners provides client advisory and managed services for advertising in China.

CHINA DIGITAL ADVERTISING 101

Digital advertising can be confusing and overwhelming. Here, you will find the frequently asked questions and explanations of some commonly used jargon and terms.

What is digital programmatic advertising?

Digital programmatic advertising uses software to automate the buying and selling of online ad space through real-time bidding. It leverages algorithms and data insights to target specific audiences, optimise ad placements, and maximise ad performance. By reaching users at the right time, digital programmatic advertising ensures efficient and cost-effective marketing.

Why is digital programmatic advertising important in China?

Digital programmatic advertising is vital in China due to its large and tech-savvy population. With the world's largest number of internet users, it offers a vast audience for targeted advertising. High mobile penetration ensures that ads reach users on their preferred devices. The precision targeting capabilities of programmatic advertising are crucial in China's diverse market, allowing for customised messaging based on demographics, behaviours, and preferences.

Additionally, it offers efficiency and scalability by automating the ad-buying process. Data-driven insights and real-time adjustments optimise campaign performance, while integration with popular platforms like WeChat, Weibo, and Alibaba further enhances reach and effectiveness.

What is Adtech?

Adtech, or advertising technology, is the software and tools used to manage, deliver, and analyse digital advertising campaigns. It includes platforms for programmatic buying, ad exchanges, data management, and analytics, enabling advertisers to target audiences precisely, optimise ad spend, and measure campaign effectiveness in real time.

What is the advantage of Adtech over traditional media planning?

Adtech offers significant advantages over traditional media planning, especially in China, by leveraging technology to enhance advertising efficiency and effectiveness. It provides real-time data, allowing immediate campaign adjustments based on performance insights. Precise audience targeting is achieved through data analysis, ensuring ads reach the right users. Automation streamlines the ad buying process, reducing manual effort and increasing speed. Real-time bidding optimises ad spend, ensuring cost efficiency.

Furthermore, Adtech delivers measurable results with detailed analytics, enabling advertisers to track return on investment (ROI) and make data-driven decisions to optimise future campaigns, ultimately improving overall ad performance and effectiveness.

How does China's digital advertising differ?

China's digital advertising landscape differs significantly from the global market due to its unique ecosystem and regulatory environment. The dominance of local tech giants like Tencent, Alibaba, and Baidu shapes a distinct ad ecosystem, unlike the global reliance on platforms like Google and Facebook. Strict government regulations, including content censorship and data privacy laws, impact ad strategies. Chinese consumers heavily use super apps like WeChat, which integrate social, e-commerce, and payment functionalities, offering unique advertising opportunities.

Additionally, the rapid adoption of mobile payments and the popularity of live streaming and short video platforms create distinct advertising formats and consumer engagement methods unique to China.

What role does AI in Adtech?

Artificial Intelligence enhances Adtech by intelligently automating ad placements, optimises bidding strategies, and personalises content. It analyses vast datasets to identify patterns, predict trends, and more accurately target audiences. AI-driven insights improve ad performance, reduce costs, and enable real-time adjustments, making advertising campaigns more efficient and effective.

What is the difference between brand and performance marketing?

Brand marketing focuses on building and maintaining a company's overall image, values, and identity in the long term. It aims to increase brand awareness, loyalty, and positive consumer perception through consistent messaging and storytelling across various media channels. Conversely, performance marketing is centred on driving specific actions and measurable results, such as clicks, conversions, or sales. It involves data-driven strategies and tactics like click-throughs to achieve short-term goals and maximise return on investment (ROI).

Both approaches are essential. Brand marketing lays the foundation for long-term trust and recognition, while performance marketing drives immediate outcomes.

What are the ROI metrics in digital marketing?

Marketing ROI (Return on Investment) measures the profitability of marketing activities by comparing net profit to the cost of the investment.

ROAS (Return on Ad Spend) specifically assesses the revenue generated for every dollar spent on advertising, indicating the effectiveness of ad expenditures in driving sales.

How does China regulate digital advertising?

China regulates digital advertising through a comprehensive framework involving multiple governmental bodies. The Cyberspace Administration of China (CAC) oversees online content to ensure it aligns with national security and public interest. The State Administration for Market Regulation (SAMR) enforces advertising standards, combating false advertising and unfair competition. The Ministry of Industry and Information Technology (MIIT) monitors telecommunications and internet services, ensuring compliance with industry regulations. The China Advertising Association (CAA) collaborates with the government to develop and enforce standards. Additionally, the Ministry of Culture and Tourism regulates content related to culture and tourism.

These organisations ensure that digital advertising adheres to strict national guidelines and ethical standards.

What is China’s Great Firewall?

China's Great Firewall combines legislative actions and technologies enforced by the government to regulate the Internet domestically. It blocks access to foreign websites and regulates specific content, including most foreign publishers, social media sites, and Apps.

Who are the key stakeholders in an Adtech ecosystem?

Demand-Side Platform (DSP) is software advertisers and their managed service providers use to purchase digital ad inventory automatically from the publishers. It allows for real-time bidding on multiple ad exchanges, enabling advertisers to target specific audiences, optimise campaigns, and manage budgets efficiently, improving the overall effectiveness of digital advertising efforts.

Supply-Side Platform (SSP) is software publishers and media owners use to manage, sell, and optimise ad inventory. It enables real-time bidding by connecting to multiple ad exchanges and networks, allowing publishers to maximise revenue by selling ad space to the highest bidders in an automated and efficient manner.

Data Management Platform (DMP) collect, organise, and analyse large volumes of data from various sources. Integrating online, offline, and third-party data enables advertisers and marketers to create detailed audience segments for targeted campaigns, improve ad performance, and personalise marketing strategies.

Customer Data Platform (CDP) software consolidates and manages customer data from various sources into a unified, accessible database. It provides a comprehensive view of each customer, enabling personalized marketing, improved customer experience, and data-driven decision-making across different marketing and sales channels.

Ad Server is a technology platform that stores, delivers, and tracks digital advertisements. It manages ad placement across websites, apps, and other digital channels, ensuring ads are displayed to the right audience at the right time while collecting performance data to optimise future campaigns.

Ad Exchange is a digital marketplace where advertisers and publishers buy and sell ad space through real-time bidding. It facilitates automated, auction-based transactions, allowing advertisers to target specific audiences and publishers to maximise revenue by efficiently selling their inventory to the highest bidders.

What is brand safety and Ad verification?

Brand safety refers to measures taken to ensure digital ads do not appear in inappropriate or harmful contexts that could damage a brand's reputation. This includes avoiding content related to violence, hate speech, or illegal activities, thus protecting the brand's image and maintaining consumer trust.

Ad verification is a process that ensures digital ads appear in the intended locations and contexts. It involves checking ad placement for viewability, fraud, brand safety, and compliance with campaign terms. This helps advertisers confirm their ads are effective, reaching the right audience and safeguarding brand integrity.