Month: October 2024

Which Foreign Brands Should Use DSP When Doing Business in China?

Post author By Eric NIU
Post date 2024年 10月 17日

Introduction

As international companies seek to tap into the vast Chinese market, understanding the most effective advertising tools and platforms is crucial. One tool that has gained popularity is demand-side platforms (DSP). However, the digital landscape in China is vastly different from that in international markets, requiring brands to adapt their strategies to local nuances.

DSPs are widely used in global markets for programmatic advertising, allowing advertisers to automate the buying of ad space across various platforms. While this technology exists in China, there are significant differences in how it operates compared to Western counterparts, making it important for foreign brands to carefully assess how to use DSPs in the Chinese market.

This article explores which industries benefit most from DSP advertising in China, identifies key differences between Chinese and international DSP ecosystems, and provides insights on how brands can strategically and practically harness the power of DSPs to drive successful advertising campaigns in China.

Understanding the Chinese DSP Ecosystem

1. Key Differences Between Global and Chinese DSP Markets

Foreign brands accustomed to DSPs like The Trade Desk or Google Display & Video 360 in international markets will quickly discover that China operates with its own unique set of DSPs. Due to China’s regulatory environment and unique internet ecosystem (largely dominated by domestic giants such as Alibaba, Tencent, and Baidu), foreign DSP providers have limited market penetration.

Local DSP Players: China’s DSP market is controlled by local giants like Tencent’s Ad Network, Baidu DSP, Alibaba’s TANX (Taobao Advertising Network Exchange), and ByteDance’s Ocean Engine. These platforms are often integrated with larger ecosystems and touchpoints, such as e-commerce, social media, and mobile apps, allowing for extensive user data aggregation.

Audience Data and Privacy: In contrast to Western markets, where third-party cookies are widely used for tracking, China relies heavily on first-party data, with large tech companies like Tencent and Alibaba accumulating vast amounts of user information from within their closed ecosystems. This creates a highly targeted advertising environment but also requires advertisers to navigate data privacy regulations such as China’s Personal Information Protection Law (PIPL).

Programmatic Landscape: Chinese DSPs also often emphasize full-service offerings, integrating with social platforms (like WeChat), video platforms (like Douyin), and e-commerce ecosystems (like Taobao). This makes DSPs in China highly versatile, but foreign brands need to ensure their content is adapted to these platforms’ unique formats and user behaviors.

2. When Does DSP Make Sense in China?

Not all industries benefit equally from using DSPs in China. The effectiveness of DSP advertising is closely tied to the nature of the product or service, the target audience, and the goals of the brand’s advertising campaigns. Below are the industries best suited for DSP-driven strategies in China:

Industries That Benefit from DSP Advertising in China

1. Luxury and Fashion

China is one of the largest luxury goods markets in the world, with a fast-growing middle and upper class that has a strong appetite for luxury brands. In the fashion and luxury industry, precision targeting and personalized messaging are crucial for reaching affluent consumers. DSPs enable luxury brands to leverage first-party data from platforms like Tmall, WeChat, and Douyin, ensuring that their ads are shown to the right audience segments—whether that’s high-net-worth individuals or trend-following millennials.

Why DSP Works:

Access to premium audiences via closed ecosystems (WeChat, JD.com).
Data-driven targeting that matches affluent consumer profiles.
Ability to integrate with e-commerce touchpoints like live-streaming and direct purchasing.

Example: Dior used a combination of WeChat Ads and programmatic buying through local DSPs to drive sales during key shopping festivals like Singles’ Day. The brand used highly targeted campaigns to reach its core customer base in China’s first-tier cities, achieving significant returns.

2. E-Commerce and Retail

E-commerce dominates China’s online shopping landscape, with platforms like Tmall, Taobao, JD.com, and Pinduoduo playing key roles. DSPs are particularly effective for international brands in the retail and e-commerce space looking to gain visibility on these massive platforms.

Why DSP Works:

Direct integration with major Chinese e-commerce platforms.
Real-time optimization of ads based on sales data.
Ability to retarget customers with personalized offers based on browsing and purchasing behavior.

Example: Nike China leveraged Alibaba’s DSP to promote new product lines during major shopping events. By using data-driven targeting, Nike was able to segment its audience based on browsing and purchasing history, leading to a significant uplift in sales during campaigns.

3. Automotive Industry

The automotive industry has seen exponential growth in China, especially in the electric vehicle (EV) sector. DSPs provide car brands with the ability to target potential customers based on their online behavior, whether they are researching vehicles, watching automotive-related content on Douyin, or engaging with car enthusiast communities on WeChat.

Why DSP Works:

Ability to reach consumers across multiple platforms, from video to social to search.
Geo-targeting capabilities to focus on consumers in cities with high car ownership rates.
Integration with video platforms to showcase ads in premium automotive content.

Example: Tesla used Baidu’s DSP to run programmatic campaigns that targeted high-income urban dwellers interested in sustainable vehicles. By leveraging Baidu’s search data, Tesla was able to reach consumers who were actively researching electric vehicles and drive them to the company’s local stores.

4. Tourism and Travel

China’s growing middle class and increasing disposable income have fueled a booming domestic and outbound tourism market. For foreign brands in the travel and hospitality industry, DSP advertising is a powerful tool to capture Chinese travelers looking for international experiences.

Why DSP Works:

Ability to target specific consumer segments, such as affluent travelers, adventure seekers, or family vacation planners.
Geo-targeting to promote international destinations to Chinese travelers.
Dynamic ad formats that can display personalized offers based on the user’s previous travel searches or bookings.

Example: Marriott International used programmatic buying through Tencent’s DSP to target Chinese tourists planning vacations abroad. The campaign included personalized recommendations based on users’ travel preferences and previous searches, significantly increasing hotel bookings from Chinese travelers.

5. Tech and Electronics

The technology and electronics industry thrives on innovation and early adoption, making it essential for brands to reach tech-savvy consumers in China. DSPs allow these companies to showcase their latest products to a young, digital-native audience that frequently interacts with tech-related content across multiple platforms.

Why DSP Works:

High-level targeting capabilities to reach digital natives interested in the latest technology trends.
Retargeting potential customers who have engaged with product ads or visited e-commerce stores.
Integration with video platforms to showcase product demos and reviews.

Example: Huawei used ByteDance’s Ocean Engine DSP to promote its new line of smartphones to younger audiences. The campaign included video ads on Douyin, interactive product demos, and personalized offers, leading to a significant boost in sales.

Key Strategies for Foreign Brands Using DSP in China

1. Adapt Content to Local Platforms

While DSPs automate the process of buying ad space, foreign brands must tailor their content to align with the unique user experience of Chinese platforms. For example, video content on Douyin (China’s TikTok) requires shorter, more dynamic storytelling, while WeChat’s feed ads benefit from a more interactive approach.

2. Leverage Data from Closed Ecosystems

The closed nature of platforms like Tencent and Alibaba provides a wealth of first-party data. Brands should collaborate with local DSPs to tap into these data streams and target consumers based on precise behavioral and transactional data. This will help foreign companies avoid the pitfalls of cookie-based tracking that is more common in international DSP markets.

3. Maximize Mobile-First Advertising

China’s digital environment is mobile-first, with over 98% of internet users accessing content via smartphones. DSP campaigns must prioritize mobile ad formats, such as interactive video and in-feed ads that are optimized for mobile consumption.

4. Align with Local Shopping Festivals

To drive conversions, foreign brands should align their DSP campaigns with China’s major shopping festivals, such as Singles’ Day (11.11), 618, and Chinese New Year. By strategically timing DSP campaigns around these high-traffic periods, brands can maximize reach and engagement.

Conclusion

The advertising landscape in China presents unique opportunities and challenges for foreign brands. DSP advertising, while effective, requires a localized approach that takes into account the differences between the Chinese and global digital ecosystems. Industries such as luxury, retail, automotive, tourism, and tech are particularly well-suited to DSP-driven strategies, but success hinges on adapting content, leveraging first-party data, and focusing on mobile-first, localized tactics.

By following the strategies outlined above, foreign companies can effectively navigate China’s digital advertising space, driving greater engagement, conversions, and brand growth.

DSP Products

The Development, Current State, and Future Trends of DSP in China Introduction

Post author By Eric NIU
Post date 2024年 10月 17日

Digital Signal Processing (DSP) has emerged as a critical technology in various fields, including telecommunications, electronics, audio processing, and artificial intelligence. In China, DSP technology has undergone rapid development, driven by advancements in research, manufacturing capabilities, and market demands. This article will explore the history, current state, and future trends of DSP technology in China.

1. The Early Development of DSP in China

The development of DSP technology in China can be traced back to the late 20th century when the country began to recognize the importance of digital signal processing in telecommunications and electronics. In the 1980s, China started to import DSP chips and began research in this field, mainly relying on foreign technology from companies like Texas Instruments and Analog Devices.

By the early 1990s, Chinese universities and research institutions started focusing on the theoretical aspects of DSP. Notable academic centers such as Tsinghua University and the Chinese Academy of Sciences played a key role in laying the groundwork for DSP technology by contributing to both hardware and algorithm research. Early applications of DSP in China were primarily in the fields of radio communication and image processing.

However, China’s DSP industry was largely dependent on imported technologies for most of the 1990s, and domestic development lagged behind international counterparts. Nevertheless, this period laid the foundation for future growth by training a generation of engineers and researchers.

2. The Rise of DSP in the 2000s

The 2000s saw a significant shift in China’s DSP development. The rapid growth of telecommunications, especially with the expansion of 3G and 4G networks, created a huge demand for DSP solutions. Domestic companies began to invest heavily in R&D, and government support for the semiconductor industry accelerated the growth of DSP capabilities.

China began developing its own DSP chips, with companies like HiSilicon (a subsidiary of Huawei), Spreadtrum (now UNISOC), and Allwinner Technology entering the scene. These companies started producing competitive DSP chips for mobile phones, routers, and consumer electronics. By the mid-2000s, China had made notable strides in catching up with global leaders, although the country was still reliant on foreign DSP core technologies for the most part.

Another key area of development during this period was the increasing use of DSP in consumer electronics. From audio devices to video codecs, Chinese manufacturers were able to integrate DSP technology into a variety of applications, making it accessible to a wider market.

3. Current State of DSP in China

As of today, China’s DSP technology is highly advanced and continues to grow rapidly. Several trends characterize the current landscape of DSP development in China:

a. Self-reliance and Localization

China has intensified its efforts to develop indigenous DSP technology, especially as geopolitical tensions have led to restrictions on the import of key semiconductor technologies from the U.S. Companies like Huawei have increased their focus on developing homegrown DSP chips, such as the Kirin series, which incorporate custom-designed DSP components for signal processing in telecommunications and AI applications. This trend is part of China’s broader effort to achieve technological self-reliance, particularly in the semiconductor industry.

b. AI and Machine Learning Integration

With the rapid rise of artificial intelligence and machine learning, DSP has found new applications in AI-driven solutions, such as natural language processing (NLP), computer vision, and smart home devices. Chinese companies are at the forefront of integrating DSP with AI, particularly in areas like voice recognition, image processing, and autonomous driving technologies. Major Chinese tech firms, including Baidu, Alibaba, and Tencent, are leveraging DSP for AI-driven applications, optimizing performance through custom chips and algorithms.

c. 5G and IoT Expansion

The deployment of 5G networks has created a new demand for sophisticated DSP systems that can handle massive amounts of data with low latency. Chinese telecom giants such as Huawei and ZTE are using DSP to enhance network performance, reduce energy consumption, and enable real-time communication in 5G-enabled Internet of Things (IoT) devices. DSP plays a crucial role in managing the data traffic and signal quality in these high-speed networks.

d. Growing Domestic DSP Ecosystem

China’s domestic DSP ecosystem has expanded significantly. In addition to established players like HiSilicon and UNISOC, many smaller firms and startups are entering the market, focusing on niche DSP applications in automotive, medical devices, and industrial automation. Government-backed initiatives have encouraged more domestic chip manufacturing, helping to foster innovation and reduce dependency on imports.

4. Future Trends of DSP in China

The future of DSP technology in China is promising, with several key trends likely to shape its development:

a. Advancements in 6G and Beyond

As the world looks towards 6G, China is positioning itself as a leader in next-generation communication technologies. DSP will play a pivotal role in enabling ultra-high-speed data transmission and real-time processing required by 6G networks. Chinese companies are already investing in R&D for 6G technologies, which are expected to be operational by 2030. In addition to communications, 6G will drive advancements in autonomous vehicles, AI, and virtual/augmented reality, all of which will rely on advanced DSP capabilities.

b. AI-Optimized DSP Architectures

The intersection of AI and DSP will continue to grow, with more specialized DSP architectures designed to accelerate AI workloads. Neural DSP chips, which combine traditional signal processing with neural network processing, will become increasingly common. Chinese firms are likely to innovate in this area as AI-driven applications like facial recognition, smart cities, and robotics demand faster and more efficient processing solutions.

c. Green DSP for Energy Efficiency

With the growing concern for environmental sustainability, there will be a stronger emphasis on developing energy-efficient DSP technologies. This “green DSP” movement will focus on reducing power consumption in data centers, IoT devices, and communication networks. Chinese researchers and companies are likely to prioritize this aspect, especially in light of China’s commitment to carbon neutrality by 2060.

d. Collaboration with Global Standards

China is expected to continue its active role in shaping global standards for DSP technology, particularly through organizations like the International Telecommunication Union (ITU) and the Institute of Electrical and Electronics Engineers (IEEE). By contributing to and influencing global DSP standards, China will ensure its technologies are aligned with international norms, while also promoting its own innovations on the world stage.

Conclusion

China’s journey in DSP technology, from its early dependence on foreign imports to its current status as a key player in global DSP development, is a testament to the country’s rapid technological advancement. With a strong focus on self-reliance, AI integration, and next-generation communication technologies, China is poised to be a major force in the future of DSP. As industries like telecommunications, automotive, and healthcare continue to evolve, DSP will remain at the heart of innovation in China, driving the next wave of technological breakthroughs.

China Marketing Marketing Topics

#22 A Practical Guide to Douyin Advertising

Post author By Eric NIU
Post date 2024年 10月 9日

In today’s digital marketing era, Douyin, as a leader in the field of short video, has become an important position for brand promotion, with its huge user base and high user stickiness. This article will start from five advertising dissemination methods of Douyin: opening screen advertising, search advertising, in-feedadvertising, DOU+, and enterprise number, and elaborate on their respective scenarios, rights and interests, advantages, and successful cases, providing a practical guide for advertisers.

Douyin Opening Screen Advertising

On the short video platform of Douyin with a daily active user base of hundreds of millions, the opening screen advertisement, with its unique display form and strong visual impact, has become the best choice for brand exposure. The opening screen advertisement of Douyin is an advertising form that is immediately displayed when the user opens the Douyin APP, which not only occupies the commanding height of vision but also provides an unprecedented brand exposure opportunity for advertisers with its full-screen immersive experience.

Promotion Scenarios

Douyin’s opening screen advertisements are displayed at the moment when the user opens the Douyin APP, capturing the visual focus and serving as the golden spot for brands to carry out high-intensity dissemination and extensive reach. It is suitable for various scenarios such as new product launches, brand communication, and event promotion. When launching new products, the opening screen advertisement can quickly attract user attention through high-intensity dissemination; during brand communication, it can achieve a strong screen presence in conjunction with high-quality content; and during event promotion, it can capture the visual focus and guide traffic to the event page.

Advertisement Types

Images, GIFs, and Videos: When the user opens the Douyin App, the advertisement is displayed at the opening screen position for 3 seconds as a static image, 4 seconds as a GIF, or 5 seconds as a video, allowing for pure display and landing page redirection.
Topview: When the user opens the Douyin App, a full-screen display of 3 seconds static image is provided, supporting pure display and landing page redirection to achieve efficient drainage.
Toplive: Combined with the live broadcast form, it provides a real-time interactive experience for brand events or product launches.

Promotion Advantages

The advantages of Douyin’s opening screen advertisements lie in their strong exposure capabilities and high user stickiness. As the first visual entry point when users open the APP, the opening screen advertisement can strongly attract attention, ensuring a high exposure rate of the advertisement content. At the same time, the huge user base and active user group of the Douyin platform also provide a broad audience foundation for the opening screen advertisement. The opening screen advertisement is deeply integrated with the in-feedadvertisement, reaching users a second time and enhancing brand memory. In addition, the opening screen advertisement can create a three-dimensional visual experience, enhancing the attractiveness and click-through rate of the advertisement, thereby improving brand reputation and user conversion rate.

Successful Case

Taking Pepsi as an example, the brand created the topic #LoveScreenDominance# and used Douyin’s opening screen advertisements and TOPVIEW resources to widely expose event information, successfully attracting a large number of user attention and participation. According to statistics, the event topic has achieved a total of 2.72 billion exposures and attracted 425,000 users to create related videos, achieving significant brand promotion effects. This successful case fully proves the strong strength of Douyin’s opening screen advertisements in brand exposure and user interaction.

Douyin Search Advertising

In today’s era of information overload, the way users obtain information is quietly changing, with search emerging as a key means of actively acquiring information, its importance increasingly highlighted. Douyin, as the leader in the short video field, has a search function that is also becoming more sophisticated, providing advertisers with a new marketing stage—Douyin search advertising.

Promotion Scenarios

Douyin search advertisements cover multiple scenarios of users’ active searches, including but not limited to product inquiries, service consultations, and content exploration. When users enter keywords in the search box with clear needs, relevant advertisements can be accurately displayed in front of them. This active search behavior makes the advertisement exposure more targeted, and the conversion rate is significantly improved.

Advertisement Types

Brand Zone: When users search on Douyin and hit the advertiser’s brand word, the brand zone information is displayed at the top, and the brand video plays automatically.
Search Easter Egg: The search results pop up a full-screen Lottie animation, which is highly entertaining and attracts user attention. Clicking on the Easter egg leads to a conversion landing page.
Douyin Hot List: The brand hot word is displayed in the sixth position of the search page hot list. Clicking on it leads to a results page that showcases the “Douyin Hotspot Brand Zone.”
Bidding Advertisements: In the search results page of Douyin, one bidding advertisement is displayed among positions 2-10, mixed with user content.
Precision Advertisements: When users search for an app name, a download card style can be triggered; when users search for specific brand words, a precision card is displayed at the top.

Promotion Advantages

Advertisers can rely on multi-dimensional data such as users’ search keywords, interest preferences, and geographical locations to achieve precise targeted advertising, ensuring that advertising information is directly delivered to potential target users, demonstrating strong precise targeting capabilities. At the same time, with the continuous growth of the scale and share of the Ocean Engine search, Douyin search advertisements have a huge traffic blue ocean, providing advertisers with a broad development space. What’s more, this advertising form has achieved the integration of brand effect and sales, supporting brand display and content linkage through the entire link of the scene, and effectively promoting effect transformation, meeting a variety of marketing needs. In particular, “search after watching” has become the mainstream trend of search under the content ecosystem, and search behavior profoundly reflects the user’s active intention, making Douyin search advertisements particularly outstanding in efficient transformation, bringing higher investment returns to advertisers.

Successful Case

Watermelon Creator (a children’s programming brand) achieved significant results when advertising their search products by carefully optimizing the advertising area and search words. They expanded the coverage of keywords to more than 700, which not only improved the accuracy of the advertisement but also led to a substantial increase of 112% in the number of customers acquired, while attracting up to 450,000 participation videos, fully demonstrating the powerful driving force of optimizing advertising strategies on brand exposure and user growth.

Douyin in-feedAdvertising

With a platform boasting a daily active user base of 600 million, in-feedadvertising on Douyin has become an essential channel for brand promotion and product marketing, offering a native and immersive experience.

Promotion Scenarios

Douyin in-feedadvertisements support a variety of promotion scenarios, including lead collection, traffic exposure, and store promotion. Through landing page forms and smart phone conversions, advertisers can efficiently collect potential leads, managing and following up with customer information. Additionally, in-feedads support app downloads and application promotion, helping advertisers quickly acquire new and active users. For physical stores, these ads can accurately target users around the store, combining POI (Points of Interest) and coupon features to effectively increase store exposure and customer traffic.

Advertisement Types

Recommended: Ads are displayed in the Douyin in-feedcontent, with a vertical screen display style that is native and strongly associated with the account, supporting various ad styles such as native and single-page.
Feedslive: Users see real-time live broadcast images and cards in the Douyin recommendation stream, and can enter the Douyin native live broadcast room with one click on the live broadcast image in the recommendation stream.
Local Reach: When browsing the recommendation stream videos in the Douyin app, users have the opportunity to view Local Reach ads, meeting the local marketing needs of advertisers such as offline store promotion.

Promotion Advantages

Douyin in-feedadvertising offers advertisers a wealth of benefits. Firstly, advertisers can choose suitable ad types and styles according to their needs, such as native or single-page, to meet different marketing needs. Secondly, the Douyin platform provides refined audience targeting features, allowing advertisers to display to specific types of users, improving the accuracy and conversion rate of the advertisement. Moreover, Douyin in-feedads also have the advantage of deep penetration, being displayed on multiple pages of the Douyin APP, deepening user impressions, and increasing ad click-through rates.

The core advantage of Douyin in-feedadvertising lies in its efficient reach and precise marketing. With the vast user base of the Douyin platform, advertisers can easily reach a large number of potential customers, achieving brand exposure and product promotion. At the same time, combined with the intelligent recommendation algorithm of the Douyin platform, advertisers can make precise advertisements based on user interests and behavioral habits, improving the pertinence and conversion rate of the advertisement. In addition, Douyin in-feedads also support a variety of display forms, such as small images, large images, group images, etc., meeting the creative needs of different advertisers.

Successful Case

Liby Group is a typical case of the successful application of Douyin in-feedadvertising. Liby Group, through the president’s live broadcast debut, combined with the efficient reach and precise marketing advantages of Douyin in-feedadvertising, successfully started a long-term live broadcast cooperation with Douyin and built a small shop ecosystem. According to statistics, the total number of live broadcast views exceeded 3 million, with 103,000 new fans added, and the highest number of people online at the same time reached 99,000. This successful case fully demonstrates the huge potential of Douyin in-feedadvertising in brand promotion and user growth.