Digital Marketing Spend in China. What’s Realistic?

Many brands new to China expect high returns in their first advertising venture when entering this foreign market. However, budgets are usually totally underestimated for marketing strategies to be effective, leading to poor campaign performance.

There is a false belief that “China equals cheap”. What people forget is that the country is immense, with many individual consumer types. Costs are either on a par with, or more expensive than Europe or US markets. Even KOL’s (Chinese influencers) can charge up to USD $50,000 or more for a post, which can shock some brands.

Companies need to understand that applying western standards will not work when advertising to the Chinese market. It is much more expensive and competitive with lower ROI, so marketing spend will need to increase in order to capture market share.

What should brands expect to pay?

A monthly investment of AU$10,000 would be considered the absolute minimum amount of spend for campaigns to have a chance in China.

Experts at Jing Daily gave these points of consideration;

  • A one-size fits all model will not work in China as it is far too large and complex
  • Highly individualized marketing is best – depending on what the brands wants to achieve, sometimes a KOL is required and other campaigns may need a mass advertising strategy
  • A vastly different strategy is required for lesser known brands vs popular brands as the Chinese market prefers awareness and credibility

China Social Solutions is a Melbourne-based leading digital performance marketing agency. Specialising in Chinese social media, its team of experts have unrivalled experience in the AU-China market. Connect with us for enquiries, world-class Chinese marketing solutions and everything in between. www.chinasocialsolutions.com or 1300 469 667.