(Source: https://pltfrm.com.cn)
Introduction
As China’s digital economy surges, online ad spend trends are accelerating toward $143 billion in 2025, signaling a pivotal moment for overseas brands to recalibrate budgets amid economic resilience and tech booms. Understanding these trajectories—from retail media dominance to AI-fueled efficiencies—unlocks smarter allocations that maximize ROI in a landscape where every yuan counts. This analysis decodes the forces at play, arming you with insights for strategic dominance.
1. Retail Media Network Expansion
1.1 Platform-Specific Allocations
E-Commerce Prioritization: Direct 40% of budgets to Tmall and JD.com integrations, where shoppable ads thrive on first-party data. Strategy: SaaS retail media managers optimize bids for high-intent traffic, blending search and display. Trend: China and the US command 80.9% of global retail spend, with China’s share growing 12% YoY.
1.2 Offsite Amplification
External Reach: Extend retail budgets to off-platform programmatic buys, targeting lookalikes via Douyin feeds. Execution: Use SaaS cross-channel planners to sync messaging, avoiding silos. Impact: This hybrid approach lifts overall conversions by 25%, broadening funnel tops.
Transition Tip: With retail fortified, pivot to video’s explosive growth for mid-funnel momentum.
2. Video and Streaming Investments
2.1 Short-Form Dominance
Budget Reallocation: Shift 30% to Douyin and Kuaishou, where micro-dramas and lives fuel impulse buys. Tactics: SaaS video optimizers forecast virality, adjusting for peak hours. Projection: Streaming TV sees net 55% advertiser increases, outpacing traditional by 20%.
2.2 Connected TV Uptick
Premium Placements: Allocate 15% to CTV on iQiyi, capitalizing on household viewership surges. Method: SaaS addressable TV tools enable household targeting, enhancing precision. Gain: CTV delivers 2x ROAS versus linear, aligning with 7.4% global digital boom.
3. AI and Automation Efficiencies
3.1 Programmatic Spend Optimization
Dynamic Adjustments: Dedicate 25% to AI-bid platforms that self-correct based on real-time performance. Integration: SaaS automation hubs reduce manual tweaks, focusing on strategy. Efficiency: This trims waste by 18%, with APAC growth at 5.8% underscoring tech’s role.
3.2 Personalization Budgets
Targeted Enhancements: Boost 10% for AI-personalized creatives, prioritizing high-value segments. Approach: SaaS personalization engines track uplift, refining allocations quarterly. Value: Personalized ads command 22% higher spends, driving 16.6% CAGR through 2030.
4. Emerging Channel Diversification
4.1 Social Commerce Surge
Livestream Focus: Carve 20% for WeChat lives, where interactive sales eclipse static posts. Planning: SaaS commerce trackers measure live ROI, scaling winners. Outlook: Social drives 28.8% of product discoveries, fueling spend shifts.
4.2 Metaverse and Web3 Trials
Experimental Pots: Reserve 5% for virtual ad spaces, testing NFT integrations. Exploration: SaaS metaverse analytics gauge engagement, informing scale-up. Potential: Early trends hint at 10% reallocation as immersion matures.
Case Study: A German Automotive Supplier’s Retail Media Pivot
A German auto parts supplier, navigating China’s EV boom, reallocated 35% of its ad budget to JD.com’s retail media network, using SaaS tools for AI-optimized shoppable banners. This shift, informed by localization partners, capitalized on first-party data for targeted upgrades. Results included a 45% sales increase, 28% cost savings, and market share gains, proving retail trends’ power for industrial brands.
Conclusion
Online ad spend trends in China herald a future of targeted, tech-savvy investments that reward agility for overseas brands. By leaning into retail, video, AI, and diversification, you can harness this $1 trillion global tide— with China at its crest—for resilient, high-yield growth.
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. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
