(Source: https://pltfrm.com.cn)
Introduction
Planning an ad budget in China’s ever-evolving digital environment requires more than just setting a number—it demands strategic precision across audience targeting, platform selection, content localization, and seasonality. For overseas brands aiming to enter or grow in China, mastering budget planning can make or break your market entry. Here’s how to structure your budget for maximum brand impact and measurable returns.
1. Establish a Clear Budget Framework
1.1 Fixed vs. Flexible Allocation
- Approach: Dedicate 60–70% of your budget to fixed campaign goals (e.g., brand awareness), and reserve 30–40% for optimization based on performance.
- Why: This structure enables planning while leaving space to double down on high-performing ads.
1.2 Funnel-Based Budgeting
- Split: Allocate based on marketing funnel stages—awareness, consideration, and conversion.
- Example: Top-funnel platforms like Douyin and Xiaohongshu might take the largest share, while JD Ads or WeChat CRM can handle bottom-funnel conversion pushes.
2. Prioritize Channels with Proven ROI
2.1 Platform Efficiency Assessment
- Douyin: High CPM but strong reach and engagement among Gen Z.
- WeChat: Excellent for CRM, private traffic, and retargeting with high customer lifetime value.
- Baidu: Best for intent-based keyword traffic, though competitive bidding raises costs in saturated sectors.
2.2 Cross-Platform Strategy
- Synergy: Use Douyin to spark discovery, then retarget users on WeChat or drive conversion via JD or Tmall.
- Budgeting Tip: Plan for content repurposing costs when adapting one campaign to multiple platforms.
3. Account for Content Creation and KOL Costs
3.1 Short-Form Video & KOL Budgeting
- Standard Rates: Influencers on Douyin or Xiaohongshu may charge ¥5,000–¥50,000 per post depending on audience size.
- Planning: Allocate 15–30% of your total budget for influencer or creator collaborations.
3.2 Localization & Testing
- Localization: Budget for professional translation, culturally adapted copy, and visuals.
- Testing: Set aside a portion for A/B testing different messages, ad creatives, and CTAs to optimize performance.
4. Factor in Annual and Festival Campaigns
4.1 High-Spend Holidays
- Focus: Singles’ Day (11.11), 6.18, and Lunar New Year campaigns often demand inflated media spend.
- Strategy: Plan peak-season ad reservations up to 2 months early and budget for price surges on premium placements.
4.2 Off-Peak Value Opportunities
- Tactic: Use Q1 or Q3 to test lower-cost strategies, build private traffic pools, and drive CRM engagement on WeChat.
- ROI Play: These quieter months can deliver strong value-per-click and build long-term audiences.
Case Study: Nordic Electronics Brand Reduces CAC by 38% with Off-Peak Budgeting
A Scandinavian smart home brand allocated 70% of its annual China budget around peak seasons. After modest results during 11.11, they experimented with budget reallocation in March and July (off-peak). By emphasizing WeChat campaigns and smaller KOLs on Xiaohongshu, they reduced their customer acquisition cost by 38% year-over-year, while maintaining brand momentum year-round.
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 Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
info@pltfrm.cn
www.pltfrm.cn
