• Breakthrough Media Team

5 Key Basics for Marketing in China - Part I

Updated: Apr 4, 2019

Everyone knows that the Chinese market is significant in size, scale and depth – the real question is how do you tackle such an enormous beast? Yet companies, over the world, many small and medium enterprises (SMEs) are leaving their bigger competitors behind with targeted, agile and innovative marketing solutions and digital product placements.

Over the next 5 weeks - I'll share with you five ways companies and SMEs market in China – which one works best for you?

1. Direct mobile marketing:

Examples: Mobile marketing ads, Programmatic ad buying

Platforms: Baidu, Sogou and 360 [combined: 90% of market share]

Target Audience: Specific

Feasibility for SMEs: low

This strategy is perhaps most suitable for band retention/awareness and also for launching a product for service which already has brand recognition. Similar to the 5 YouTube commercials – your ability to communicate a large quantity of information is at best limited.

Despite this fact, China’s mobile marketing advertising spend is expected to top $149.32b (CNY) or $22b (USD)/$30b(AUD) per year. The majority of the spend or roughly 40c in the dollar comes from key word searches on major search engines – such as Baidu.com

It is wise to note that the market share of mobile searches, as a proportion of search, will continue to grow and has reached 79% in 2018. At present the largest player in the market is Baidu, with approximately 80% of market share, in terms of searches – considered to be the Google equivalent which is considered to be a quasi – monopoly over the Chinese market. Sogou and 360 have a combined market share of just under 10%.

For overseas brands wanting to enter the Chinese market – this strategy in generating leads and ultimately sales can be both expensive and ineffective. Unless you already have a well-established presence in China or have an extremely niche market which cannot be fulfilled by local talent and resources, anyone trying to enter the market place in China with this strategy will be left disappointed.

For overseas brand traction – please read my blog on 3 cost effective ways to enter the Chinese market.  

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