(Source: https://pltfrm.com.cn)
As China’s digital ecosystem evolves at lightning speed, understanding exactly where advertising budgets are flowing in 2025 has become essential for overseas brands planning market entry or expansion. With total digital ad spend projected to exceed RMB 1 trillion this year, the shift toward performance-driven platforms, short video, and livestream e-commerce is reshaping how global companies allocate resources. This article breaks down the latest budget trends and reveals actionable allocation strategies that deliver measurable ROI in today’s China.
1. Short Video Platforms Dominate Budget Allocation
1.1 Douyin (TikTok China) Takes the Largest Share Overseas brands are directing 35-45% of their 2025 digital budgets to Douyin due to its unmatched reach and conversion rates. The combination of information flow ads, Douyin shops, and interest-based e-commerce has turned the platform into a full-funnel solution. Brands that integrate KOL livestreams with paid traffic see ROAS consistently above 4:1.
1.2 Kuaishou Gains Momentum in Lower-Tier Cities Kuaishou now captures 15-20% of many overseas brands’ budgets, especially for consumer goods targeting Tier 3-5 cities. Its family-oriented and trust-based algorithm rewards authentic content over polished production, making it ideal for long-term brand building at lower CPMs than Douyin.
2. Livestream E-commerce Becomes a Must-Have Channel
2.1 Douyin and Taobao Live Lead Conversion Efficiency Livestream channels now account for 25-30% of total digital spend for consumer brands entering China. Real-time interaction and instant purchase options deliver conversion rates 8-12 times higher than traditional e-commerce banners. Brands that train their own hosts or partner with mid-tier KOLs achieve the best cost-to-sales ratio.
2.2 Private Domain Traffic Integration Successful overseas brands combine livestream with WeChat mini-programs and official accounts to retain traffic post-broadcast. This closed-loop approach reduces dependency on platform algorithms and increases customer lifetime value by 40-60% within the first six months.
3. Performance Marketing on Xiaohongshu and Bilibili Rises Fast
3.1 Xiaohongshu Becomes the New “Species Invasion” Platform Xiaohongshu’s notes + search + shop ecosystem now receives 10-18% of beauty, fashion, and health brands’ budgets. Its high-intent user base and organic + paid synergy make it the preferred channel for launching new overseas products to young female consumers.
3.2 Bilibili Targets Gen-Z with Native Content Bilibili’s ad spend share has grown to 8-12% for gaming, anime, and digital-native brands. Sparkle bullet-screen ads and UP main (influencer) collaborations deliver engagement rates 3-5 times higher than traditional display ads on the same platform.
4. Search and Information Flow Still Anchor Brand Safety
4.1 Baidu Maintains Core Position for High-Intent Keywords Despite platform diversification, Baidu SEM still commands 15-25% of budgets for categories requiring trust and consideration (healthcare, finance, education). Brands that combine brand zone + SEM + content marketing achieve the most stable traffic foundation.
4.2 WeChat Channels and Video Accounts as Traffic Stabilizers WeChat’s video accounts now absorb 10-15% of budgets as a “traffic reservoir.” Low-cost, high-frequency content distribution through official accounts and channels helps brands maintain visibility between major campaign waves.
Case Study: Australian Health Supplement Brand Vitabiotics In Q1-Q3 2025, Vitabiotics allocated 42% of its China digital budget to Douyin interest e-commerce, 28% to Xiaohongshu species posts + paid search, 18% to Baidu SEM, and 12% to WeChat private domain maintenance. The result: first-year GMV exceeded RMB 180 million with overall ROAS of 5.8:1, becoming one of the fastest-growing overseas health brands on Tmall International this year.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with overseas brands for over a decade, helping them achieve precise budget allocation and maximum ROI in China’s complex digital landscape. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
