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What makes YOYI TECH’s omnichannel approach unique compared to other platforms

YOYI TECH’s omnichannel approach to advertising stands out in several ways compared to other platforms. Here are the key elements that make it unique:

1. Integration of Online and Offline Data

YOYI TECH excels in integrating both online and offline data sources, allowing brands to create a comprehensive view of customer interactions. This integration helps advertisers maximize ROI by understanding consumer behavior across multiple touchpoints, from digital ads to physical store visits.

2. Real-Time Tag Updates and Optimization

The platform offers real-time updates and optimizations through multiple channels, ensuring the accuracy of audience targeting. This capability allows for dynamic adjustments based on current data, enhancing the effectiveness of ad campaigns.

3. Cross-Screen Audience Targeting

YOYI TECH supports cross-screen audience targeting, enabling brands to engage users across various devices seamlessly. This feature enhances brand impact and ensures a consistent user experience, which is crucial in today’s multi-device environment.

4. Rich Advertising Formats

The platform provides a wide range of advertising formats that cover full consumer media touchpoints, including display ads, video ads, and interactive content. This versatility allows advertisers to tailor their campaigns to different consumer preferences and behaviors.

5. AI-Driven Targeting and Dynamic Creatives

YOYI TECH leverages AI capabilities for comprehensive targeting and dynamic creative optimization. This means that ads can be personalized in real-time based on user interactions, increasing engagement and conversion rates.

6. Extensive Media Inventory Access

YOYI TECH claims to reach up to 80% of China’s media inventory, providing advertisers with vast opportunities for ad placements across various platforms. This extensive reach is beneficial for brands looking to maximize visibility.

7. Unified Data Management Platform

The YOYI DNA serves as a robust customer data management platform that empowers businesses to collect, analyze, and manage first-party data effectively. This unified approach helps brands understand their audiences better and optimize their marketing strategies accordingly.

Conclusion

YOYI TECH’s unique omnichannel approach combines advanced data integration, real-time optimization, cross-device targeting, diverse ad formats, and AI-driven capabilities. These features collectively enhance the effectiveness of advertising campaigns, making YOYI TECH a compelling choice for brands looking to navigate the complex digital advertising landscape in China.

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China Marketing Marketing

What are the main differences between Baidu and WeChat ad platforms

Baidu and WeChat are two of the most significant advertising platforms in China, each offering distinct features and advantages. Here’s a comparison highlighting their main differences:

1. Advertising Model

  • Baidu: Operates primarily on a Pay-Per-Click (PPC) model, similar to Google Ads. Advertisers pay each time a user clicks on their ad, making it suitable for direct response campaigns where tracking ROI is crucial. The ads are keyword-driven, allowing advertisers to target users based on specific search queries .
  • WeChat: Utilizes a PUSH marketing approach, where ads are integrated into users’ feeds and other content. This includes formats like Moments Ads, which appear alongside user posts, and various interactive ad types. While WeChat also offers CPC options, the focus is more on brand awareness and engagement rather than direct conversions .

2. Targeting Capabilities

  • Baidu: Offers extensive targeting options based on search queries, demographics, and user behavior. Advertisers can refine their audience targeting using keywords that align with user intent, making it effective for capturing users actively searching for products or services .
  • WeChat: Provides precise targeting based on location, age, gender, interests, and device type. This allows brands to reach specific demographics effectively but relies more on user engagement and content interaction rather than search intent .

3. Ad Formats

  • Baidu: Supports various ad formats including text ads, display ads, and multimedia ads. The customizable nature of these formats allows advertisers to choose the one that best fits their campaign goals .
  • WeChat: Features a diverse range of ad formats such as Moments Ads, banner ads, video ads, and interactive content. This versatility allows brands to tailor their advertising strategies to different marketing objectives and audience preferences .

4. User Engagement

  • Baidu: Primarily captures users who are in a search mindset; thus, engagement is often driven by the relevance of the search results and ads shown. It’s effective for generating leads from users actively looking for information .
  • WeChat: Engages users through social interactions and content sharing. The platform’s integration with messaging and social networking features encourages higher engagement rates as users interact with content from friends and brands alike .

5. Analytics and Insights

  • Baidu: Provides comprehensive analytics tools that help advertisers track performance metrics such as click-through rates (CTR), conversion rates, and ROI. This data-driven approach is essential for optimizing campaigns over time .
  • WeChat: Also offers analytics but focuses more on engagement metrics like shares, comments, and interactions with content. This insight helps brands understand how well they resonate with their audience but may not provide as granular data on direct conversions .

Conclusion

In summary, Baidu is best suited for advertisers focused on capturing active search traffic through PPC campaigns aimed at immediate conversions. In contrast, WeChat excels in building brand awareness and engaging users within a social context through diverse ad formats and targeted content strategies. The choice between the two platforms should depend on the specific marketing objectives of the brand—whether they prioritize direct response or brand engagement.

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AdTech Digital Marketing Marketing

101 of YOYI TECH programmatic advertising

Yoyi Tech, through its programmatic advertising platform, offers a range of features and capabilities that position it as a leader in the Chinese digital advertising landscape. Here are the key aspects of Yoyi Tech’s programmatic advertising:

Key Features of Yoyi Tech’s Programmatic Advertising

1. Comprehensive Audience Targeting

Yoyi Tech specializes in precision targeting technology, allowing advertisers to reach specific audience segments based on various criteria, including demographics, interests, and behaviors. This capability enhances the effectiveness of ad campaigns by ensuring that ads are shown to the most relevant users .

2. Integration of Online and Offline Data

Yoyi’s platform integrates multi-channel data, combining online and offline consumer interactions. This holistic view enables brands to maximize their return on investment (ROI) by understanding customer behavior across different touchpoints .

3. Rich Ad Formats

The platform supports a variety of ad formats, including display, video, and mobile ads. This versatility allows advertisers to choose the most effective format for their target audience and campaign objectives .

4. Real-Time Optimization

Yoyi Tech employs advanced algorithms for real-time optimization of ad placements and bidding strategies. This ensures that campaigns can adapt quickly to changing market conditions and user behaviors, improving overall performance .

5. Cross-Screen Capability

Yoyi’s programmatic platform enables cross-screen audience targeting, allowing advertisers to engage consumers across multiple devices—desktop, mobile, and smart TVs—enhancing brand impact and engagement .

6. Data Management Platform (DMP) Integration

The platform integrates with data management systems to leverage first-party and third-party data for improved targeting and personalization. This integration helps advertisers make data-driven decisions that enhance campaign effectiveness .

7. Access to Extensive Inventory

Yoyi Tech claims to reach up to 80% of China’s media inventory, providing advertisers with a broad range of opportunities to place their ads across various publishers and platforms .

8. Dynamic Creative Optimization

Yoyi utilizes AI capabilities for dynamic creative optimization, allowing advertisers to tailor ad content in real-time based on audience interactions and preferences. This feature helps maintain user interest and improves engagement rates .

Yoyi Tech’s programmatic advertising solutions are characterized by advanced targeting capabilities, integration of comprehensive data sources, real-time optimization features, and a wide array of ad formats. These elements collectively enhance the effectiveness of advertising campaigns in China’s competitive digital landscape, making Yoyi Tech a significant player in the programmatic advertising space.

How does YOYI’s dataset contribute to the development of programmatic advertising models

Yoyi’s dataset plays a crucial role in the development of programmatic advertising models by providing rich, actionable insights that enhance targeting, optimization, and overall campaign effectiveness. Here are the key contributions of Yoyi’s dataset to programmatic advertising:

1. Comprehensive Audience Insights

Yoyi’s extensive dataset includes demographic, behavioral, and psychographic information, which allows advertisers to build detailed audience profiles. This data enables precise targeting, ensuring that ads reach the most relevant users based on their interests and behaviors .

2. Data Integration Across Channels

Yoyi integrates online and offline data sources, creating a unified view of customer interactions across multiple touchpoints. This holistic approach allows for better understanding of the customer journey, enhancing the ability to tailor advertising strategies effectively .

3. Dynamic Audience Segmentation

The platform utilizes advanced algorithms to segment audiences dynamically based on real-time data. This capability ensures that advertisers can adjust their targeting strategies quickly in response to changing consumer behaviors and market conditions .

4. Predictive Analytics

Yoyi employs machine learning techniques to analyze historical data and predict future customer behaviors. By identifying patterns such as purchase propensity and churn risk, advertisers can prioritize high-value segments in their campaigns, optimizing ad spend for maximum impact .

5. Real-Time Optimization

With access to real-time data, Yoyi’s programmatic models can continuously optimize ad placements and bidding strategies. This responsiveness helps improve campaign performance by ensuring that ads are served at the right time and context .

6. Enhanced Creative Personalization

The dataset supports dynamic creative optimization, allowing advertisers to tailor ad content based on audience insights. This personalization increases engagement rates by delivering relevant messages that resonate with specific user segments .

7. Multi-Touch Attribution

Yoyi’s platform enables multi-touch attribution analysis, helping advertisers understand the effectiveness of various touchpoints throughout the customer journey. This insight allows for better allocation of advertising budgets across channels based on performance metrics .

Conclusion

Overall, Yoyi’s dataset significantly enhances the capabilities of programmatic advertising models by providing deep insights into audience behavior, enabling real-time adjustments, and fostering personalized ad experiences. These features collectively contribute to more effective advertising strategies that drive engagement and conversions in a competitive market like China.

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AdTech China Marketing Digital Marketing DSP Marketing Products

How do short video platforms like Douyin and Kuaishou influence video programmatic advertising

Short video platforms like Douyin and Kuaishou have significantly influenced video programmatic advertising in China through various mechanisms that enhance user engagement and drive advertising effectiveness. Here are the key ways these platforms impact the landscape:

1. Massive and Engaged User Base

Both Douyin and Kuaishou boast substantial daily active users—over 400 million for Douyin and around 300 million for Kuaishou. This vast audience provides advertisers with extensive reach, allowing brands to target diverse demographics effectively. The high engagement levels on these platforms mean that ads are more likely to be viewed and interacted with compared to traditional media channels .

2. Content-Driven Advertising

Douyin and Kuaishou prioritize creative, entertaining, and authentic content. Advertisers can create video ads that blend seamlessly with user-generated content, making them less intrusive and more appealing to viewers. This approach enhances user experience, as ads that resonate with the platform’s culture tend to perform better in terms of engagement .

3. Advanced Targeting Options

Both platforms utilize sophisticated algorithms to analyze user behavior and preferences, enabling advertisers to deploy advanced targeting strategies. Advertisers can reach niche audiences based on interests, browsing habits, and demographic information, ensuring that their messages are relevant and timely . This precision targeting is crucial in a competitive advertising environment.

4. Integration with E-Commerce

Kuaishou has made significant strides in integrating e-commerce features into its platform, allowing users to purchase products directly during video streams. This capability enhances the effectiveness of video programmatic advertising by providing a seamless shopping experience that can lead to higher conversion rates. Douyin is also developing similar functionalities, making it easier for brands to convert views into sales .

5. Interactive Ad Formats

The platforms offer various interactive ad formats, such as live-streaming ads and branded challenges, which encourage user participation and engagement. For instance, live-streaming on Kuaishou fosters a sense of community and connection between hosts and viewers, which can lead to higher trust and increased sales conversions .

6. Real-Time Feedback and Analytics

Advertisers benefit from real-time analytics provided by these platforms, allowing them to monitor campaign performance closely. This data-driven approach enables brands to adjust their strategies quickly based on viewer interactions and preferences, optimizing ad spend and improving overall effectiveness .

7. Cultural Relevance

Both Douyin and Kuaishou reflect cultural trends and consumer interests in China. Advertisers who align their messaging with current trends or popular content on these platforms can enhance their brand’s relevance and appeal, leading to better engagement outcomes .

In summary, Douyin and Kuaishou significantly shape video programmatic advertising in China by providing vast audiences, promoting creative content integration, enabling advanced targeting options, facilitating e-commerce interactions, offering interactive formats, delivering real-time analytics, and fostering cultural relevance. These factors collectively enhance the effectiveness of advertising campaigns on these platforms.

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AdTech China Marketing Digital Marketing DSP Marketing Products

What are the key factors driving the popularity of video programmatic advertising in China

The popularity of video programmatic advertising in China is driven by several key factors that reflect the unique characteristics of the market and consumer behavior. Here are the main drivers:

1. Rapid Growth of Mobile Internet Users

China has seen a dramatic increase in mobile internet users, reaching over 829 million. This growth has shifted content consumption predominantly to mobile devices, making video ads particularly effective as they align with how users engage with media on their smartphones and tablets .

2. Rising Demand for Video Content

Video content consumption is surging in China, with platforms like Douyin (TikTok) and Kuaishou leading the way. As users increasingly prefer video over other formats, advertisers are adapting by investing more in video programmatic advertising to capture audience attention effectively .

3. Enhanced Targeting Capabilities

AI-driven programmatic advertising allows for precise audience targeting based on user data and behaviors. This capability enables advertisers to deliver relevant video ads to specific demographics, increasing engagement and conversion rates .

4. Cost-Effectiveness and Efficiency

Programmatic buying automates the ad purchasing process, reducing costs and improving efficiency. Advertisers can optimize their budgets by targeting specific audiences without the inefficiencies associated with traditional media buying methods . This efficiency is particularly appealing in a competitive market.

5. Integration with E-Commerce

The rise of live e-commerce and shoppable video ads has created new opportunities for advertisers. Platforms often allow users to purchase products directly while watching videos, enhancing user engagement and driving sales simultaneously . This seamless integration between content and commerce is a significant factor in the growth of video programmatic advertising.

6. Improved User Experience

Video ads can be more engaging than static formats, providing richer storytelling opportunities that resonate with viewers. The ability to create immersive experiences helps brands connect emotionally with their audience, leading to higher retention and engagement rates .

7. Innovative Ad Formats

The development of interactive and innovative ad formats, such as augmented reality (AR) and virtual reality (VR) experiences within video ads, has also contributed to their popularity. These formats capture user interest more effectively than traditional ads .

8. Support from Major Platforms

Dominant players like Baidu, Alibaba, and Tencent have developed their own programmatic advertising technologies, providing robust infrastructure for video programmatic buying. Their extensive reach ensures that advertisers can access large audiences through targeted video campaigns .

In summary, the combination of a growing mobile user base, increasing demand for video content, advanced targeting capabilities, cost-effectiveness, integration with e-commerce, and support from major platforms are all key factors driving the popularity of video programmatic advertising in China.

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AdTech China Marketing Digital Marketing DSP Marketing Products

How does AI-driven programmatic advertising improve user engagement in China

AI-driven programmatic advertising significantly enhances user engagement in China through several innovative strategies and technologies. Here are the key ways in which it achieves this:

1. Personalized Advertising Experiences

AI enables advertisers to analyze vast amounts of user data, allowing for highly personalized marketing messages tailored to individual preferences and behaviors. This personalization increases the relevance of ads, making users more likely to engage with the content. For instance, platforms like Alibaba utilize AI to recommend products based on users’ browsing history and purchasing patterns, leading to higher engagement rates .

2. Dynamic Content Optimization

AI-driven programmatic advertising allows for real-time adjustments to ad content based on user interactions. This means that if an ad is not performing well, it can be modified on-the-fly to better suit the audience’s preferences. This responsiveness keeps the content fresh and engaging, reducing ad fatigue among users .

3. Contextual Targeting

By leveraging AI, advertisers can deliver ads that are contextually relevant to the content being consumed by users. This method ensures that ads appear in environments where they are most likely to resonate with the audience, such as video ads on platforms like Douyin (TikTok) or Youku. Contextual relevance enhances user engagement by aligning ads with user interests at the moment they are consuming related content .

4. Enhanced User Insights

AI tools provide deeper insights into consumer behavior and preferences, enabling advertisers to refine their targeting strategies continuously. By understanding what drives user engagement, brands can create more compelling campaigns that resonate with their target audiences, ultimately leading to higher interaction rates .

5. Interactive and Engaging Formats

AI facilitates the creation of interactive ad formats that engage users more effectively than traditional static ads. For example, AI scene marketing platforms can integrate brand exposure directly into video content, allowing for seamless interactions where users can purchase products while watching videos. This immersive experience significantly boosts user engagement .

6. Efficient Retargeting Strategies

AI-driven programmatic advertising excels in retargeting users who have previously interacted with a brand but did not convert. By serving tailored ads based on past behaviors, advertisers can re-engage potential customers effectively, enhancing conversion rates and overall engagement .

7. Utilization of Rich Media

The rise of video content consumption in China makes programmatic video advertising particularly effective. AI helps optimize video ads for specific audiences and contexts, ensuring that they capture attention and encourage interaction. As users increasingly engage with video content on platforms like Kuaishou and Douyin, this strategy becomes crucial for maintaining high engagement levels

In summary, AI-driven programmatic advertising improves user engagement in China by delivering personalized, relevant, and interactive experiences that resonate with consumers’ interests and behaviors. This approach not only enhances the effectiveness of advertising campaigns but also fosters stronger connections between brands and their audiences.
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AdTech China Marketing Digital Marketing DSP Marketing Products

Why need AI-Driven programmatic advertising in China

AI-driven programmatic advertising is increasingly essential in China for several reasons, reflecting the unique challenges and opportunities within the market. Here are the key factors that highlight the need for this approach:

1. Efficiency and Cost-Effectiveness

Programmatic advertising automates the buying and selling of ad space through AI and machine learning, significantly reducing the time and resources required compared to traditional advertising methods. This efficiency translates into lower costs for advertisers, allowing them to allocate their budgets more effectively across various channels .

2. Enhanced Targeting Capabilities

With the vast amount of data available in China, AI-driven programmatic advertising enables precise audience targeting. Advertisers can segment audiences based on demographics, behaviors, interests, and contextual factors, ensuring that ads reach the most relevant users. This capability helps improve engagement rates and return on investment (ROI) .

3. Adaptation to Mobile Consumption Trends

China has a massive mobile user base, with over 829 million mobile internet users consuming content primarily through their smartphones. Programmatic advertising is particularly effective in this environment, allowing advertisers to deliver targeted ads on mobile platforms where consumer attention is concentrated .

4. Dynamic Content Optimization

AI technologies enable real-time adjustments to ad content and placements based on performance data. This dynamic optimization means that advertisers can quickly respond to changing consumer behaviors and preferences, enhancing the effectiveness of their campaigns .

5. Improved User Experience

AI-driven advertising can enhance user experience by reducing irrelevant ads and improving ad relevance. By analyzing user data, AI can help deliver personalized content that resonates with individual consumers, leading to higher engagement and satisfaction.

6. Integration with Emerging Technologies

The integration of AI with other technologies such as blockchain, augmented reality (AR), and virtual reality (VR) is beginning to reshape advertising in China. These innovations allow for more immersive and interactive ad experiences, which can capture consumer interest more effectively than traditional formats .

7. Data-Driven Insights

AI facilitates advanced analytics that provide advertisers with deeper insights into campaign performance and consumer behavior. These insights allow for better decision-making and strategy adjustments, ultimately improving campaign outcomes .

8. Competitive Advantage

As competition intensifies in the Chinese market, leveraging AI-driven programmatic advertising can provide brands with a significant edge over competitors who rely on traditional methods. The ability to adapt quickly to market changes and consumer preferences is crucial in a fast-paced environment

In summary, AI-driven programmatic advertising addresses many of the pain points faced by advertisers in China today, including inefficiencies in traditional models, the need for precise targeting, and the demand for engaging content tailored to mobile users. As the digital landscape continues to evolve, adopting these advanced technologies will be essential for brands aiming to succeed in this dynamic market.

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AdTech China Marketing Digital Marketing DSP Marketing Products

What specific targeting options does Yoyi DSP offer for niche audiences

Yoyi DSP offers a range of specific targeting options designed to help advertisers effectively reach niche audiences. Here are the key targeting features available:

1. Behavioral Targeting

Yoyi DSP allows advertisers to target users based on their online behaviors, such as browsing history, engagement with previous ads, and interaction with specific content. This enables brands to reach audiences who have shown interest in similar products or services.

2. Demographic Targeting

Advertisers can define their target audience based on demographic factors like age, gender, income level, and education. This granular approach helps in reaching specific segments that are most likely to convert.

3. Interest-Based Targeting

Yoyi DSP enables targeting based on user interests and preferences. Advertisers can create segments around particular hobbies, lifestyles, or topics that resonate with their niche offerings.

4. Contextual Targeting

This feature allows ads to be displayed on websites or within content that is contextually relevant to the advertised product. For example, an ad for outdoor gear can appear on travel blogs or adventure-related content, ensuring it reaches an audience likely to be interested.

5. Geographic Targeting

Advertisers can focus on specific geographic areas to reach local audiences or regions where their products are most relevant. This is particularly useful for businesses that cater to localized markets.

6. Retargeting Options

Yoyi DSP provides robust retargeting capabilities, allowing advertisers to reconnect with users who have previously interacted with their brand but did not convert. This includes serving ads to users who visited a website or engaged with a specific product.

7. Custom Audiences

Advertisers can create custom audience segments using first-party data from their own customer databases. This allows for highly tailored campaigns that align closely with existing customer profiles.

8. Lookalike Audiences

Yoyi DSP can identify and target new users who share similar characteristics and behaviors with existing customers. This expands the reach while maintaining relevance to the niche market.These targeting options make Yoyi DSP a powerful tool for advertisers aiming to connect with niche audiences effectively, enhancing engagement and conversion rates through precise and relevant ad placements.

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AdTech China Marketing Digital Marketing DSP Marketing Products

What unique features does Yoyi DSP offer compared to iPinYou

Yoyi DSP and iPinYou are two prominent demand-side platforms (DSPs) in China, each with unique features that cater to different aspects of digital advertising. Here’s a comparison highlighting their distinctive offerings:

Unique Features of Yoyi DSP

  1. Data Management Platform (Data Bank):
    • Yoyi DSP has developed a comprehensive Data Bank that allows clients to collect and analyze first-party data from various campaigns. This platform provides insights into consumer behavior, enabling advertisers to optimize their strategies effectively
  2. Integrated Ad Formats:
    • Yoyi offers a unified platform that integrates multiple ad formats, including display, video, and mobile ads. This allows advertisers to manage all their campaigns from a single interface, streamlining the process and improving efficiency.
  3. Focus on Full Funnel Tracking:
    • Yoyi emphasizes tracking the entire consumer journey, from ad exposure to conversion. This capability helps advertisers understand the effectiveness of their campaigns at various stages and adjust strategies accordingly.
  4. Advanced Audience Targeting:
    • Utilizing AI-driven algorithms, Yoyi DSP provides sophisticated audience segmentation and targeting capabilities. This enhances the precision of ad placements and improves overall campaign performance.
  5. Historical Data Utilization:
    • Yoyi leverages historical data for predictive analytics, allowing advertisers to make informed decisions based on past campaign performances and trends.

Unique Features of iPinYou

  1. Strong RTB Technology:
    • iPinYou is known for its robust real-time bidding (RTB) capabilities, which allow for quick and efficient bidding processes on ad impressions across various platforms.
  2. Dynamic Creative Optimization:
    • iPinYou focuses on dynamic creative optimization, enabling advertisers to tailor their ads in real-time based on audience interactions and preferences. This feature enhances engagement by delivering more relevant ad content.
  3. Extensive Audience Profiling:
    • The platform provides advanced audience profiling tools that help advertisers identify and target specific consumer segments effectively. This enhances the effectiveness of campaigns by reaching the right audiences.
  4. Partnerships for Enhanced Inventory Access:
    • iPinYou has established partnerships with various publishers and ad exchanges, giving it access to a broad inventory of ad placements, which is crucial for maximizing reach and effectiveness.
  5. Multi-dimensional Reporting:
    • The platform offers comprehensive reporting features that provide insights into campaign performance across multiple dimensions, allowing for better optimization and strategy adjustments.

Summary

While both Yoyi DSP and iPinYou offer valuable services in the digital advertising space, Yoyi stands out with its integrated Data Bank and full funnel tracking capabilities, making it particularly strong in data utilization and campaign management. In contrast, iPinYou excels in real-time bidding technology and dynamic creative optimization, focusing on delivering highly relevant ads through extensive audience profiling. Each platform has its strengths tailored to different advertising needs within the Chinese market.

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AdTech China Marketing Digital Marketing DSP Marketing Products

Top 5 AI-Driven DSP in China

Here are five notable AI-driven demand-side platforms (DSPs) in China, including Yoyi DSP, which exemplifies the integration of artificial intelligence in digital advertising:

1. Yoyi DSP

Yoyi DSP is a leading platform that utilizes AI algorithms for programmatic advertising. It focuses on optimizing ad placements and targeting through data analysis, helping advertisers reach their desired audiences effectively. Yoyi DSP’s machine learning capabilities enhance campaign performance by continuously learning from user interactions.

2. Baidu DSP

Baidu’s DSP leverages its extensive search and user data to optimize advertising campaigns. The platform employs AI for precise audience segmentation and real-time ad placement adjustments, ensuring high engagement rates and maximizing return on investment for advertisers.

3. Alibaba DSP

Alibaba’s advertising platform integrates AI to analyze consumer behavior across its vast ecosystem, including e-commerce and cloud services. This allows for targeted advertising that resonates with specific demographics, utilizing machine learning to refine campaign strategies dynamically.

4. Tencent DSP

Tencent’s DSP benefits from its social media networks, such as WeChat and QQ, to deliver highly personalized ads. The platform uses AI to analyze user interactions and preferences, enabling advertisers to create more relevant and engaging campaigns.

5. Kuaishou DSP

Kuaishou, known for its short-video content, employs AI-driven analytics to optimize video ad placements. The platform analyzes viewer behavior and trends to deliver personalized ads that align with user interests, significantly improving ad effectiveness.These platforms illustrate the growing trend of AI integration in digital advertising in China, enhancing targeting precision and overall campaign performance.

How does Yoyi DSP compare to other leading AI-driven DSP companies in China

Yoyi DSP is a prominent player in China’s demand-side platform (DSP) market, but it faces stiff competition from several other leading companies. Here’s a comparison of Yoyi DSP with some of its key competitors:

Yoyi DSP Overview

  • Founded: 2007
  • Focus: Specializes in precision targeting technology and internet marketing services.
  • Capabilities: Offers both impression-based and performance-based advertising solutions. It has developed a robust network of top publishers in China and utilizes AI for audience targeting and campaign optimization.
  • Unique Features: Yoyi has integrated multiple ad formats (video, mobile, display) into a unified system and launched a data management platform (Data Bank) to enhance data utilization for advertisers.

Comparison with Other Leading DSPs

Feature/Company Yoyi DSP iPinYou Tencent DSP Alibaba DSP Kuaishou DSP
Founded 2007 2008 1998 1999 2011
Market Position Major player in China Largest DSP in China Strong presence in social media Significant in e-commerce Emerging player in video ads
Technology RTB, AI-driven targeting Advanced RTB technology, cloud computing, audience profiling
2
AI for social media targeting AI for cross-platform solutions AI for video ad optimization
Client Base Over 300 top brands Serves over 200 brands Extensive user base via WeChat Extensive e-commerce partnerships Focused on short-video content
Ad Formats Video, mobile, display Primarily display ads Social media ads E-commerce ads Short videos
Data Management Data Bank for first-party data Proprietary audience profiling Strong data integration capabilities Comprehensive data analytics Limited data capabilities

Key Insights

  • Market Leadership: iPinYou is recognized as the largest DSP in China, leveraging advanced real-time bidding (RTB) technologies and extensive audience profiling capabilities. This positions it as a formidable competitor to Yoyi
  • Integration with Social Media: Tencent’s DSP benefits from its integration with social media platforms like WeChat, allowing it to deliver highly personalized ads based on user interactions. This gives Tencent an edge in consumer engagement.
  • E-commerce Focus: Alibaba’s DSP excels in leveraging its vast e-commerce ecosystem to provide targeted advertising solutions that are particularly effective for retail brands. This specialization contrasts with Yoyi’s broader focus on various ad formats.
  • Video Advertising Growth: Kuaishou is rapidly emerging as a strong competitor by focusing on video advertising, capitalizing on the popularity of short-form video content among users. This niche may attract advertisers looking to engage younger audiences effectively.

In summary, while Yoyi DSP is a significant player with strong technological capabilities and a diverse client base, it contends with well-established competitors like iPinYou, Tencent, Alibaba, and Kuaishou, each leveraging unique strengths in the rapidly evolving digital advertising landscape in China.

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Case Study: Social Media DSP Strategy

Case Study: Social Media DSP Strategy

Overview

This case study examines how a leading brand successfully implemented a Demand-Side Platform (DSP) strategy across social media channels to enhance brand awareness and drive conversions. The focus will be on Airbnb’s campaign, which utilized hyper-personalized advertising to achieve significant results.

Company Background

Airbnb, a global online marketplace for lodging and travel experiences, sought to improve its advertising effectiveness by leveraging data-driven strategies through a DSP.

Objectives

  1. Increase Conversion Rates: Achieve higher conversion rates compared to previous standard campaigns.
  2. Enhance Personalization: Utilize dynamic creative optimization (DCO) to deliver tailored ads to users based on their interests and behaviors.
  3. Drive Bookings: Increase bookings for featured experiences offered on the platform.

Strategy

  • Dynamic Creative Optimization (DCO): Airbnb employed a DSP that enabled DCO, allowing the brand to automatically customize ad content based on user data. This included displaying relevant images and messages tailored to individual viewer preferences.
  • Audience Segmentation: The campaign targeted specific audience segments based on their past interactions with the platform, including previous bookings and searches for particular types of accommodations or experiences.

Execution

  • Ad Formats: The campaign utilized various ad formats across social media platforms, including display ads, video ads, and carousel ads that showcased multiple listings or experiences.
  • Real-Time Data Utilization: By leveraging real-time data analytics provided by the DSP, Airbnb was able to adjust its ad placements and creative elements dynamically based on performance metrics.

Results

  • Higher Conversion Rates: The hyper-personalized ads achieved a 40% higher conversion rate compared to standard campaigns.
  • Increased Bookings: The campaign resulted in a 20% increase in bookings for the featured experiences during the campaign period.
  • Enhanced Engagement: Ads tailored to user preferences led to improved engagement metrics, including higher click-through rates (CTR) and lower cost per acquisition (CPA).

Key Takeaways

  1. Personalization Drives Results: Utilizing DCO allowed Airbnb to create highly relevant ads that resonated with individual users, significantly improving conversion rates.
  2. Data-Driven Decision Making: The ability to analyze real-time data and make adjustments on-the-fly was crucial for optimizing ad performance throughout the campaign.
  3. Effective Audience Targeting: Segmenting audiences based on their behaviors and preferences enabled Airbnb to reach potential customers more effectively, enhancing overall campaign effectiveness.

Conclusion

This case study illustrates how Airbnb successfully implemented a social media DSP strategy that leveraged dynamic creative optimization and real-time data analytics. By focusing on personalization and targeted advertising, the brand achieved substantial increases in conversion rates and bookings. This approach serves as a valuable example for other brands looking to enhance their social media advertising efforts through DSPs.

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China Marketing MA Marketing Products

Why Foreign Brands Can’t Simply Apply Their Automated Marketing Strategies from Abroad to the Chinese Market

Introduction: The Allure of China’s Market

China, with its enormous consumer base and rapidly growing digital ecosystem, has long been a coveted market for foreign brands. The potential for growth in the Chinese market is substantial, and as the nation becomes a dominant global player, more international companies are eager to expand into this market. However, many brands mistakenly believe they can simply replicate the marketing automation strategies that have proven successful in their home markets and achieve similar results in China. This assumption often leads to frustration, underperformance, and missed opportunities.

The Chinese market, while lucrative, is vastly different from Western or other international markets. From its unique digital ecosystem and distinct consumer behavior to the regulatory environment and competitive landscape, marketing in China requires a tailored approach. In this article, we will explore why foreign brands can’t directly apply their automated marketing experiences from abroad to the Chinese market and what they should consider instead to achieve success.

1. Understanding the Chinese Digital Ecosystem

One of the most significant challenges that foreign brands face when entering China is navigating its unique digital landscape. Unlike most other countries, where Google, Facebook, and Instagram dominate the digital advertising and marketing space, China has its own set of platforms and ecosystems that operate under different rules and expectations.

  • The “Great Firewall” and its Impact on Marketing Tools
    The Great Firewall refers to China’s strict internet regulations that block many foreign websites and services. This includes major platforms like Google, Facebook, Twitter, and even certain Western marketing automation tools. This means that the tools and platforms international marketers rely on for data analytics, content management, and automated marketing simply won’t work in China.

    In place of these, Chinese platforms like WeChat, Weibo, Baidu, Douyin (TikTok), and Alibaba dominate the digital space. Each of these platforms comes with its own advertising ecosystem, unique user interfaces, and different data tracking capabilities. These platforms do not integrate seamlessly with foreign marketing automation tools, forcing brands to rethink their technology stack.

  • Unique Platforms: WeChat, Weibo, Douyin, and Beyond
    China’s social media platforms have a completely different dynamic compared to those in the West. WeChat, for instance, is not just a messaging app but a multi-functional platform where users can pay bills, shop, book appointments, and engage with brands. Brands that wish to succeed in China must adapt their content marketing and automation efforts to fit into these platforms’ specific ecosystems, which often means working with third-party Chinese service providers to navigate the intricacies of API integrations and ad targeting.
  • Search Engines: Baidu, Sogou, and the Decline of Google
    With Google blocked in China, search engine marketing relies heavily on Baidu, which functions differently in terms of SEO, paid search, and display advertising. Marketing automation systems that are optimized for Google Ads or SEO practices outside of China will find Baidu’s system to have unique requirements, especially in keyword selection, ad copy restrictions, and bidding mechanisms.

2. The Cultural Factor: Consumer Behavior in China

Culture significantly influences consumer behavior, and China’s cultural landscape is distinct from that of most Western countries. This creates challenges for brands that try to replicate automated messaging, segmentation, and customer journeys based on experiences from foreign markets.

  • Localized Messaging and Storytelling
    Automated marketing systems often rely on templated messaging and content that can be adapted across regions. However, what works in the U.S. or Europe may not resonate with Chinese audiences. In China, storytelling plays a huge role in building trust and engaging consumers, with narratives often emphasizing tradition, family values, and social harmony. Foreign brands need to adjust their messaging to align with these cultural values, or risk alienating their target audience.
  • Luxury Perception and the Need for Exclusivity
    In China, particularly in the luxury market, exclusivity and status are important drivers of consumer decisions. Automated marketing that relies on mass targeting and generalized email campaigns might not resonate with Chinese luxury consumers, who prefer personalized and exclusive brand experiences. Brands that succeed in China’s luxury market often create bespoke, invite-only experiences and leverage influencers (known as Key Opinion Leaders or KOLs) to reach niche audiences.
  • The Role of “Face” (Mianzi)
    The concept of “face” or mianzi in China involves maintaining a positive social image and reputation. This cultural factor plays a critical role in consumer decision-making and requires careful handling in marketing automation. Foreign brands using broad, automated campaigns that lack personalization may inadvertently offend Chinese consumers by failing to recognize their desire for individualized treatment and social standing.

3. Regulatory Environment: Navigating Chinese Rules and Policies

The Chinese government imposes strict regulations on data privacy, advertising content, and the overall operation of foreign businesses in China. Foreign brands that fail to comply with these rules risk fines, penalties, and even being barred from doing business in China.

  • Data Privacy and the Rise of the PIPL
    In 2021, China introduced its Personal Information Protection Law (PIPL), which is comparable to the EU’s GDPR but with stricter guidelines specific to China. This law governs how companies collect, store, and process Chinese citizens’ data. Any automated marketing strategy must take these regulations into account, ensuring that consumer data is handled in compliance with local laws. Foreign brands need to reassess their data management practices, especially if their automated marketing tools rely on centralized data storage systems based outside China.
  • Censorship and Content Restrictions
    The Chinese government closely monitors and censors content that it deems inappropriate or harmful. Automated marketing strategies that work in liberal markets may run afoul of China’s content restrictions, especially when it comes to politically sensitive topics or cultural nuances. Foreign brands need to build a localized content approval process that ensures all messaging aligns with government guidelines.
  • Regulations Around Foreign Investment
    The Chinese market has complex regulations governing foreign investments, joint ventures, and market entry strategies. Automated marketing cannot operate in a vacuum; brands need to account for these broader strategic and legal considerations when entering China. Depending on the sector, foreign companies may need to partner with a local entity to establish a presence, and this will affect how marketing campaigns can be structured and automated.

4. Consumer Preferences for Digital Payments and E-commerce

China leads the world in mobile payments, and e-commerce is deeply integrated into Chinese consumers’ daily lives. Any marketing strategy that foreign brands implement must take into account the preferred digital payment systems, e-commerce platforms, and shopping habits in China.

  • WeChat Pay and Alipay: Integrating Payment Systems
    Automated marketing systems in the West are often designed around credit card or PayPal payments. However, in China, WeChat Pay and Alipay dominate the digital payment landscape. For foreign brands, this means that any automated marketing and e-commerce platform must integrate seamlessly with these payment methods. Moreover, Chinese consumers expect frictionless payment experiences, meaning that a poorly integrated system can deter purchases and hurt conversion rates.
  • E-commerce Giants: Tmall, JD.com, and Pinduoduo
    Unlike Western markets where brands often drive traffic to their own websites, China’s e-commerce landscape is dominated by platforms like Tmall, JD.com, and Pinduoduo. These platforms have built-in advertising and marketing tools that require localized strategies. Foreign brands can’t simply apply their automated marketing techniques designed for Shopify or WooCommerce and expect the same success. Instead, they must familiarize themselves with the advertising options and algorithms unique to these Chinese platforms.
  • The Rise of Livestream Commerce
    Livestreaming has become a massive driver of e-commerce sales in China. Platforms like Taobao Live and Douyin Live allow brands to engage directly with consumers through live broadcasts. This phenomenon does not have a direct equivalent in most Western markets, and automated marketing systems have not traditionally accounted for the real-time, dynamic nature of livestream commerce. Brands entering China need to consider how they can blend automated systems with the highly interactive nature of livestreaming.

5. Influencer Marketing: The Power of KOLs and KOCs

Influencer marketing in China operates differently than in the West, and foreign brands must adjust their automated marketing strategies accordingly. Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) play a pivotal role in shaping consumer perceptions, driving brand loyalty, and boosting sales.

  • KOLs vs. Western Influencers
    While Western brands are familiar with working with influencers, the scale and impact of KOLs in China are unparalleled. KOLs often have millions of followers and wield significant influence over consumer purchasing decisions. Automated marketing strategies that don’t incorporate KOLs are likely to fall flat in China, where consumers trust the recommendations of their favorite influencers more than traditional brand messaging.
  • KOC Engagement for Authenticity
    Key Opinion Consumers (KOCs) are micro-influencers who focus on authenticity and personalized engagement with their smaller audiences. They are highly trusted by their followers and can provide a grassroots approach to marketing that feels more genuine. For foreign brands, automating campaigns that involve KOCs requires a different approach compared to KOLs, as KOC engagement is more focused on community-building and long-term brand loyalty.

6. Marketing Automation in China: Customization Over Replication

At its core, the mistake many foreign brands make is assuming that marketing automation can be applied in a “one-size-fits-all” manner. While automation can streamline processes, the key to success in China is customization. The unique platforms, consumer behaviors, regulatory frameworks, and cultural nuances in China require that brands rethink how they use automation tools.

  • Localized Customer Journeys and Segmentation
    In China, customer journeys often differ significantly from those in Western markets. Consumers are accustomed to engaging with brands through multiple touchpoints, from social media to e-commerce platforms and offline experiences. Automated systems must be adapted to reflect thesecomplex customer journeys. Brands need to map out localized customer journeys that reflect the ways Chinese consumers interact with different touchpoints and tailor their automated systems to deliver relevant content at each stage. For example, a customer who follows a brand’s WeChat official account may require different engagement tactics than one who first interacts with a brand through a livestream on Taobao Live.

    Segmentation, too, needs to be localized. The broad audience categories that work for Western markets are often too generalized for China’s diverse consumer base. Automated marketing systems must account for factors such as regional differences, cultural preferences, and even the various spending power levels between Tier 1 and Tier 4 cities. Customizing automation workflows to these distinct segments will drive higher engagement and conversions.

    • Localization of Content Automation
      Content automation—such as scheduling social media posts or email marketing campaigns—requires significant localization in China. For instance, Western brands may rely on global holiday promotions like Christmas or Black Friday for their automated campaigns. However, Chinese consumers respond to different events, such as Singles’ Day, Chinese New Year, or the Mid-Autumn Festival. It’s essential to adapt automated content calendars to these local holidays and cultural moments to stay relevant.

    Furthermore, the tone and style of content must be adjusted. Chinese consumers often respond better to emotional, narrative-driven content that emphasizes harmony, trust, and family values, while overly direct or aggressive sales tactics can backfire. Brands should adjust automated content to reflect these local preferences, incorporating storytelling elements and emphasizing brand loyalty rather than just pushing products.

    • Adapting Email Marketing for WeChat
      While email marketing is a staple of automated marketing in Western countries, it is far less effective in China, where consumers rarely rely on email for communication. Instead, WeChat serves as the primary platform for customer engagement, from messaging to promotions and customer service. Therefore, brands should shift their automated marketing efforts toward WeChat-based communication. Setting up automated workflows in WeChat, such as drip campaigns and engagement sequences, can help brands nurture customer relationships in a way that is culturally and practically appropriate for China.

    7. Data-Driven Decision Making: Insights and Analytics in China

    Data is the cornerstone of effective marketing automation, but the type of data available in China, and how it is collected and used, differs from many Western markets. To be effective, brands need to build strategies that align with the Chinese data landscape and comply with the country’s regulations.

    • The Power of First-Party Data
      In China, leveraging first-party data is crucial due to restrictions on data sharing and the limited availability of third-party data compared to Western markets. Given the impact of the Personal Information Protection Law (PIPL), brands are under strict scrutiny regarding how they collect and use consumer data. This makes it more important than ever to build direct relationships with consumers through platforms like WeChat or through loyalty programs, gathering insights into their preferences, behaviors, and purchase history.

      Automated systems should be designed to make the most of this first-party data, personalizing interactions based on deep consumer insights. For example, an automated workflow might send personalized promotions through WeChat based on a consumer’s previous purchases or browsing behavior. However, unlike in many Western markets, where third-party data might be readily available to supplement insights, brands in China must build and nurture their own data pools, making consumer engagement efforts even more critical.

    • Data Analytics Platforms in China
      Google Analytics, a key tool for most Western marketers, is not accessible in China. Instead, brands need to use Chinese analytics platforms such as Baidu Analytics or local third-party solutions. These tools have different interfaces, metrics, and reporting capabilities. Automated systems must be adapted to pull data from these local sources and incorporate them into broader global reporting structures if necessary.

      This also means that data-driven marketing strategies, from A/B testing to customer segmentation, will need to rely on locally generated insights. Foreign brands must ensure that their marketing automation tools are compatible with these analytics platforms and adjust their KPIs and success metrics based on the available data.

    8. Omnichannel Approach: Offline and Online Integration

    China is a leader in the integration of offline and online commerce, often referred to as new retail. In this environment, automated marketing systems must be able to bridge the gap between online and offline experiences seamlessly.

    • O2O (Online-to-Offline) Marketing
      One of the key trends in China is O2O (Online-to-Offline) marketing, where consumers interact with brands across both digital and physical channels. Automated marketing strategies need to reflect this dynamic. For example, a customer may browse products online but prefer to complete the purchase in a physical store. Brands must automate personalized follow-up messages that encourage store visits, perhaps by offering time-sensitive discounts or rewards for in-store purchases.

      Technologies such as QR codes play a major role in integrating the online and offline experiences. Consumers in China are accustomed to scanning QR codes to access promotions, menus, product information, or even make payments. Automated marketing systems should leverage this behavior by linking QR codes to automated workflows, enabling seamless transitions between online interactions and offline sales experiences.

    • AI-Driven Personalization in Offline Stores
      Leading Chinese retailers are incorporating artificial intelligence to personalize the in-store shopping experience. For example, some stores use facial recognition to identify returning customers and offer tailored recommendations based on their previous purchases or browsing history. Automated marketing systems must be integrated into these AI-driven experiences, ensuring that customer data from online interactions is available to offline stores and vice versa.

    9. Building a Strong Local Team and Partnerships

    The complexity of the Chinese market means that foreign brands cannot succeed by relying solely on their global teams and existing resources. Local expertise is crucial to ensure that marketing automation systems are adapted properly.

    • Local Teams for Cultural and Technological Insight
      Hiring a local marketing team in China is essential. These professionals understand the nuances of consumer behavior, the competitive landscape, and the ever-evolving digital ecosystem. A local team can help tailor automated marketing workflows to align with local preferences, manage relationships with key platforms, and ensure compliance with Chinese regulations.

      Local teams can also provide real-time feedback on the performance of automated campaigns and recommend adjustments based on shifting consumer trends, new platform features, or emerging regulations. They serve as the bridge between the global strategy and local execution, ensuring that automation efforts are both effective and culturally appropriate.

    • Partnerships with Chinese Agencies and Service Providers
      Many foreign brands also benefit from partnering with Chinese agencies or third-party service providers who specialize in digital marketing and e-commerce in China. These partnerships can help navigate the complexities of working with platforms like Tmall, WeChat, and Douyin, ensuring that automation systems are properly integrated with local tools and platforms.

      Additionally, local service providers often have direct relationships with KOLs, media outlets, and key stakeholders, which can enhance the effectiveness of automated influencer campaigns or media buys. Partnering with local agencies can also reduce the time needed to launch campaigns and ensure that brands are always up-to-date with the latest developments in China’s fast-moving digital landscape.

    Conclusion: Customization is Key to Success in China

    The Chinese market is rich with potential for foreign brands, but it requires a fundamentally different approach to marketing, especially when it comes to automation. Brands that attempt to apply their global marketing automation strategies without adapting to China’s unique digital landscape, cultural nuances, regulatory environment, and consumer behaviors are setting themselves up for failure.

    Success in China hinges on understanding the intricacies of local platforms like WeChat and Baidu, embracing cultural differences in messaging and consumer engagement, complying with China’s data privacy and censorship laws, and building robust partnerships with local experts. Marketing automation can still play a critical role in scaling operations and personalizing customer experiences, but it must be customized to meet the demands of the Chinese market.

    For international brands looking to enter China, the most effective strategy is to treat the market as distinct—not just another extension of their global operations. With the right blend of localization, strategic adaptation, and partnerships, foreign brands can unlock the full potential of automated marketing in China, driving sustainable growth and long-term success.

Categories
China Marketing MA Marketing Products

Why International Luxury and Fashion Brands Need DSP to Succeed in China

Introduction

Entering the Chinese market offers unparalleled opportunities for international luxury and fashion brands. With the rapid rise of China’s affluent middle class and an insatiable appetite for luxury goods, the country is a crucial destination for global brands. China now accounts for nearly one-third of the global luxury market, and this figure is expected to rise in the coming years.

However, succeeding in China’s luxury market is not as simple as replicating marketing strategies from the West. The Chinese digital ecosystem is unique, dominated by platforms like WeChat, Tmall, and Baidu, which function in ways entirely different from Facebook, Instagram, or Google. Consequently, marketing in China requires a completely different approach. One of the most powerful tools available to luxury and fashion brands is the Demand-Side Platform (DSP)—a technology that automates ad buying to target specific audiences with precision.

In this article, we’ll discuss why DSPs are crucial for international luxury and fashion brands entering the Chinese market. We’ll explore the key differences between China’s digital advertising environment and that of the West, and highlight the strategies that will allow brands to maximize the value of DSPs. With a focus on strategic, tactical, and practical insights, this article will serve as an essential guide for decision-makers and marketing professionals looking to establish or grow their luxury brand presence in China.

Understanding the Chinese Luxury Consumer: Why Precision Matters

1. Affluent Consumers with Unique Behaviors

Luxury consumers in China are significantly younger than their Western counterparts. While the average luxury consumer in the U.S. or Europe might be in their 40s or 50s, in China, they are often in their 20s and 30s. These consumers are highly engaged with digital media, spend a large portion of their time on mobile devices, and have high expectations for personalized, premium experiences.

Chinese luxury consumers are also deeply influenced by social media and key opinion leaders (KOLs). Rather than relying solely on traditional advertising, they turn to influencers, user-generated content, and reviews from their social networks when making purchasing decisions. Brands that want to reach these consumers must be present on the platforms they use, and DSPs are the perfect tool for ensuring their messages are targeted effectively.

2. Hyper-Segmented Market

China’s luxury market is diverse, with segments that vary greatly by region, income level, and personal preferences. For example, consumers in Tier 1 cities like Beijing and Shanghai might be looking for established global brands like Chanel or Louis Vuitton, while younger consumers in Tier 2 and Tier 3 cities might be more open to newer, niche luxury brands.

This hyper-segmentation requires luxury brands to have a detailed understanding of their target audience and to create highly customized marketing campaigns. DSPs offer the ability to do just that by using data to target specific audience segments based on their demographics, location, interests, and online behaviors.

Why DSPs Are Essential for Luxury Brands in China

1. Precision Targeting and Personalization

Luxury goods are not for mass consumption, and the consumers who buy them expect a highly personalized experience. DSPs enable luxury brands to target very specific audience segments with precision. For example, a brand can target high-net-worth individuals in Shanghai who are interested in specific product categories, such as watches, handbags, or shoes. DSPs allow brands to refine their targeting parameters continuously, ensuring that their ads are shown only to the most relevant audiences.

With DSPs, brands can also create personalized ads tailored to different segments of their audience. For example, a luxury brand could run a campaign showcasing its most exclusive collection to ultra-wealthy consumers, while promoting its entry-level products to aspirational buyers.

2. Cross-Platform Reach

One of the unique challenges of the Chinese digital ecosystem is that consumers are spread across a variety of platforms, including WeChat, Tmall, Douyin, and Baidu. Unlike in the West, where Facebook or Google Ads might cover the majority of a brand’s digital advertising needs, brands in China need to engage with consumers across multiple platforms to have a comprehensive reach.

DSPs allow luxury brands to run campaigns across a wide range of platforms while centralizing the management of their ad buys. For example, a DSP can help a brand run targeted ads on WeChat’s Moments, display ads on Baidu’s search results, and video ads on Douyin, ensuring maximum exposure across China’s fragmented digital landscape.

3. Real-Time Optimization and Flexibility

The ability to make real-time adjustments to campaigns is critical for luxury brands that want to maintain a sense of exclusivity and respond quickly to trends. For instance, a brand might notice that a particular product is performing well in Beijing but not in Guangzhou. With DSPs, the brand can reallocate its budget toward Beijing, or optimize its creatives for the Guangzhou market based on performance data.

Similarly, DSPs allow luxury brands to react quickly to unexpected events or shifts in consumer behavior. If a new fashion trend emerges or a KOL mentions the brand in a post, the brand can use DSPs to instantly amplify its message and take advantage of the increased visibility.

4. Integration with E-Commerce Platforms

In China, luxury brands are not just using DSPs to drive brand awareness; they are also using them to drive e-commerce sales. Platforms like Tmall and JD.com have become major channels for luxury goods, offering a controlled environment where brands can maintain their exclusivity while reaching a large audience.

DSPs can be integrated with these e-commerce platforms, allowing luxury brands to target consumers who have shown an interest in their products and drive them to make a purchase. For example, if a consumer has browsed a luxury brand’s product page on Tmall but has not completed a purchase, the brand can retarget that consumer with a personalized ad through a DSP, reminding them of the product and offering an exclusive promotion to encourage conversion.

5. Leveraging Data for a Competitive Edge

One of the greatest advantages of using DSPs in China is the access to vast amounts of data. Luxury brands can use data from multiple sources to build detailed profiles of their target audience and tailor their messaging accordingly.

For instance, DSPs can analyze consumer behavior on social media platforms, e-commerce sites, and search engines to identify which consumers are most likely to purchase luxury products. By leveraging this data, brands can create highly targeted campaigns that speak directly to their audience’s preferences and purchasing behaviors.

Strategies for Using DSP in the Chinese Luxury Market

1. Invest in High-Quality Creative

In the luxury market, creative excellence is non-negotiable. Chinese consumers expect high-quality visuals and premium content from luxury brands. To maximize the effectiveness of DSP campaigns, brands must invest in high-quality creative assets that reflect their brand’s image and resonate with their target audience.

This could include professionally shot videos, interactive rich media ads, or personalized dynamic ads that showcase the brand’s products in a luxurious, aspirational way. Given the importance of social media and visual platforms in China, brands should also consider working with KOLs to create authentic content that enhances their DSP campaigns.

2. Combine Branding and Performance Marketing

Traditionally, luxury brands have focused more on brand-building campaigns rather than performance marketing. However, in China, there is an opportunity to combine both approaches through DSPs. Luxury brands can use DSPs to build brand awareness through top-of-funnel activities, such as running video ads on Douyin or display ads on WeChat Moments, while also using DSPs to drive e-commerce sales by retargeting consumers who have engaged with their brand.

By combining branding and performance marketing, luxury brands can create a full-funnel approach that not only enhances brand equity but also drives measurable business outcomes.

3. Utilize Geo-Targeting for Tiered City Strategies

China’s luxury market is not uniform, with different consumer behaviors and preferences across Tier 1, Tier 2, and Tier 3 cities. For example, consumers in Tier 1 cities like Beijing, Shanghai, and Shenzhen may already be familiar with global luxury brands, while those in Tier 2 and Tier 3 cities might be experiencing these brands for the first time.

Luxury brands can use DSPs to create tiered city strategies, tailoring their messaging and targeting for different regions. For example, a brand could run campaigns in Tier 1 cities that focus on exclusive, limited-edition collections, while in Tier 2 and Tier 3 cities, the focus might be on introducing the brand and promoting more accessible products.

4. Optimize for Mobile Consumers

China is a mobile-first country, with the vast majority of digital interactions happening on smartphones. Luxury brands must ensure that their DSP campaigns are optimized for mobile devices, with responsive ad formats that look stunning on small screens. Interactive ad formats, such as swipeable carousels or short-form video ads, work particularly well on platforms like WeChat and Douyin, where mobile engagement is high.

Additionally, mobile DSP campaigns can incorporate location-based targeting to reach consumers who are near luxury retail stores or premium shopping districts, driving foot traffic and in-store purchases.

5. Align Campaigns with Key Cultural Moments

In China, certain cultural moments and festivals, such as Chinese New Year, Singles’ Day, and Golden Week, are critical opportunities for luxury brands to engage with consumers. These periods often see a spike in luxury spending as consumers look to treat themselves or buy gifts for loved ones.

Luxury brands should align their DSP campaigns with these key moments, using data to anticipate consumer demand and create timely, relevant ads that resonate with their audience. For example, a luxury watch brand could run a campaign during Singles’ Day offering limited-time promotions on select items, while a high-end fashion brand could launch a Chinese New Year collection featuring ads that highlight cultural motifs.

Case Studies: Luxury Brands Successfully Using DSP in China

Case Study 1: Burberry’s Digital Transformation in China

Burberry, one of the most iconic British luxury fashion brands, has been a pioneer in leveraging DSPs and digital tools to engage Chinese consumers. Recognizing the importance of being digitally savvy in China, Burberry was one of the first luxury brands to launch a flagship store on Tmall. The brand used DSPs to target affluent Chinese consumers with personalized ads across multiple platforms, including WeChat and Douyin.

By integrating its DSP campaigns with e-commerce platforms like Tmall and JD.com, Burberry was able to create a seamless experience for consumers, from awareness to purchase. The brand also worked with KOLs to create exclusive content that was amplified through its DSP campaigns, helping Burberry strengthen its digital presence and drive e-commerce sales.

Case Study 2: Cartier’s Cross-Platform Strategy

Cartier, the French luxury jeweler, has successfully utilized DSPs to reach Chinese luxury consumers across multiple platforms. Recognizing that its target audience is active on WeChat, Douyin, and other Chinese platforms, Cartier used DSPs to run targeted campaigns that featured high-quality video content showcasing its latest collections.

By using DSPs to segment its audience and deliver personalized messages to different consumer groups, Cartier was able to build brand awareness while driving traffic to its online and offline stores. The brand’s DSP campaigns were also integrated with its Tmall flagship store, allowing consumers to easily make purchases online after engaging with Cartier’s ads.

Conclusion

For international luxury and fashion brands, DSPs are not just an option—they are a necessity for succeeding in China’s competitive and complex market. The ability to target specific audience segments with precision, optimize campaigns in real-time, and deliver personalized ads across multiple platforms makes DSPs a powerful tool for luxury brands looking to build awareness and drive sales in China.

As the Chinese luxury market continues to grow, brands that invest in sophisticated digital tools like DSPs will be best positioned to capture the attention of affluent Chinese consumers and build long-term brand loyalty. By aligning their strategies with the unique behaviors and preferences of Chinese luxury shoppers, brands can ensure their success in one of the most lucrative markets in the world.

Categories
China Marketing DSP Marketing Products Scene Travel

Why Running a Travel Business in China Requires DSP: A Comprehensive Guide for International Brands

Introduction

As international companies continue to expand into the Chinese market, one industry that offers enormous potential is travel and tourism. China’s rapidly growing middle class, increasing appetite for travel, and strong digital infrastructure make it a promising destination for travel businesses. However, tapping into this market comes with its challenges, particularly when it comes to digital marketing.

In China, the digital landscape is unique and requires specialized strategies that are different from those used in other global markets. One powerful tool that travel businesses can leverage to reach their target audience is demand-side platforms (DSPs). DSPs allow brands to automate and optimize ad buying in real-time, using data to ensure ads are shown to the right people at the right time.

This article will explain why running a travel business in China requires DSPs, highlight the specific advantages they bring to the travel industry, and provide actionable strategies for international brands looking to enter the Chinese market. We will also explore key differences between China’s DSP market and those in other parts of the world and share insights on how to create successful campaigns tailored to the Chinese traveler.

The Chinese Travel Market: A Booming Opportunity

1. Growth of the Chinese Middle Class

China’s middle class has been growing steadily, and with it, the demand for both domestic and international travel has surged. According to a McKinsey report, over 400 million Chinese will belong to the middle class by 2025, and many of them will have the disposable income to spend on travel. This growing affluence has made China the world’s largest outbound travel market, with Chinese tourists spending more than $277 billion overseas in 2019 alone.

For international travel companies, this means an enormous opportunity to capture the attention of a rapidly expanding consumer base that is eager to explore new destinations. However, reaching these consumers requires understanding their digital habits, which differ significantly from those in Western markets.

2. China’s Digital Ecosystem: A Unique Landscape

The Chinese digital ecosystem is unlike any other in the world. Global platforms like Google, Facebook, and Instagram are blocked in China, while domestic platforms such as WeChat, Baidu, and Douyin (TikTok’s Chinese counterpart) dominate the market. These platforms have built closed ecosystems that integrate social media, messaging, e-commerce, and more, providing advertisers with powerful tools to reach targeted audiences.

Travel businesses looking to market to Chinese consumers must navigate this complex digital landscape and develop tailored strategies to reach their target audience. This is where DSPs come into play.

Why DSPs are Essential for the Travel Industry in China

1. Precision Targeting for a Fragmented Audience

One of the key advantages of using DSPs in China is the ability to precisely target specific audience segments. The travel industry caters to a wide range of travelers with different preferences, including business travelers, families, young millennials, and luxury vacationers. DSPs allow travel companies to use data to segment their audience based on behavior, interests, and demographics, ensuring that their ads are shown to the right people.

For example, a DSP campaign can target young professionals who are likely to book quick weekend getaways, or families looking for vacation packages during national holidays. With DSPs, travel businesses can reach these fragmented audiences across various platforms such as WeChat, Baidu, and online travel agencies (OTAs) like Ctrip and Qunar.

2. Real-Time Optimization and Flexibility

The travel industry is highly dynamic, with frequent changes in pricing, availability, and consumer preferences. DSPs allow travel companies to optimize their ad campaigns in real time, adjusting bids, creatives, and targeting parameters based on performance data.

For instance, a hotel chain running a DSP campaign during peak travel seasons can increase bids for high-value audiences who are more likely to book. Likewise, if an airline notices that a particular route is underperforming, they can shift their ad budget to other routes or destinations that are seeing higher demand.

Real-time optimization ensures that travel brands can be agile in their marketing efforts, making adjustments on the fly to maximize their return on investment (ROI).

3. Data-Driven Insights for Personalized Campaigns

Personalization is critical in the travel industry. Chinese consumers expect tailored experiences, whether they are booking a flight, choosing a hotel, or planning an itinerary. DSPs provide travel businesses with the data-driven insights needed to create highly personalized campaigns.

For example, an international airline can use DSPs to target Chinese consumers who have shown an interest in European destinations by serving them ads with flight deals to Paris or Rome. Similarly, a luxury hotel chain can target affluent travelers by showcasing premium suites and exclusive packages.

By using DSPs, travel companies can leverage first-party data from their own platforms, as well as third-party data from DSP providers, to deliver personalized ads that resonate with individual consumers’ preferences and travel aspirations.

4. Multi-Platform Reach in a Closed Ecosystem

China’s digital landscape is dominated by a few large platforms, each with its own ecosystem. Tencent’s WeChat, Alibaba’s Tmall, Baidu, and ByteDance’s Douyin are examples of closed ecosystems where users engage in everything from social networking to shopping and content consumption.

DSPs in China offer travel businesses the ability to reach audiences across multiple platforms within these ecosystems. For instance, a travel brand can run programmatic ads on WeChat Moments (the equivalent of Facebook’s news feed), display ads on Baidu search results, and video ads on Douyin, all through a single DSP. This multi-platform reach ensures that travel companies can engage consumers at different touchpoints throughout their decision-making journey.

Key Strategies for Using DSPs in China’s Travel Industry

1. Understand Consumer Travel Behavior

Before launching a DSP campaign, it’s crucial for travel brands to understand the behavior of Chinese travelers. China’s travel market is highly seasonal, with peak travel periods such as Chinese New Year, Golden Week, and the summer holidays. During these times, demand for flights, hotels, and travel packages skyrockets, and DSP campaigns need to be strategically timed to capitalize on this surge in interest.

Additionally, the rise of “free independent travelers” (FITs) in China—who prefer to plan their own trips rather than join group tours—means that personalized marketing is more important than ever. DSPs enable travel companies to target FITs with customized offers based on their browsing and booking behavior.

2. Collaborate with Local Platforms and Agencies

Navigating the Chinese digital ecosystem can be challenging for foreign brands unfamiliar with the nuances of platforms like WeChat and Baidu. Partnering with local platforms or agencies that specialize in DSP advertising can help international travel companies launch effective campaigns in China.

For example, travel brands can collaborate with Tencent to access WeChat’s vast user base and use its DSP capabilities to run targeted ads on Moments and mini-programs. Similarly, partnering with Baidu can provide access to valuable search data, allowing travel companies to run programmatic ads that target consumers searching for specific destinations or travel services.

3. Leverage First-Party and Third-Party Data

Data is the foundation of any successful DSP campaign. Travel brands should make use of both first-party data (from their own websites, booking platforms, and CRM systems) and third-party data provided by DSP providers.

For instance, an international hotel chain can use its own customer data to retarget past guests with personalized offers, while also using third-party data to identify new potential customers based on their online behavior. This combination of data sources allows travel businesses to create highly targeted campaigns that drive bookings and conversions.

4. Optimize for Mobile-First Consumers

China’s internet users are overwhelmingly mobile-first, with over 98% of the population accessing the internet through their smartphones. For travel businesses, this means that DSP campaigns must be optimized for mobile devices, with ad formats that are designed to engage mobile users.

Mobile-friendly formats such as in-feed ads, video ads, and interactive ads work particularly well on platforms like WeChat and Douyin. Additionally, travel brands should consider leveraging mobile-specific features like location-based targeting, which can be used to promote nearby attractions or last-minute deals to consumers on the go.

5. Align with Major Travel and Shopping Events

China has several key travel and shopping events that present significant opportunities for travel businesses to launch DSP campaigns. Events like Singles’ Day (11.11), Double 12 (12.12), and 618 Shopping Festival are not only major e-commerce events but also times when consumers plan and book travel.

Travel companies should align their DSP campaigns with these events, using them as opportunities to promote special offers, limited-time deals, and exclusive travel packages. By strategically timing campaigns around these high-traffic periods, travel brands can maximize their reach and drive higher conversions.

Case Studies: Success Stories of DSP in China’s Travel Industry

Case Study 1: Marriott International’s Personalized DSP Campaign

Marriott International is a prime example of a travel brand that has successfully leveraged DSP advertising in China. To promote its hotel properties across China, Marriott used Tencent’s DSP to run personalized ads on WeChat Moments. The campaign targeted users based on their travel history, search behavior, and social interactions, serving them tailored hotel offers based on their preferences.

By using data-driven insights to create personalized ads, Marriott saw a significant increase in engagement and bookings, particularly among young, affluent travelers looking for premium hotel experiences.

Case Study 2: Ctrip’s Retargeting Campaign

Ctrip, one of China’s leading online travel agencies (OTAs), used DSP advertising to retarget consumers who had browsed specific travel destinations but hadn’t completed their bookings. By using Baidu’s DSP, Ctrip was able to serve dynamic ads featuring the exact destinations and travel packages that users had previously viewed.

This retargeting strategy proved highly effective, driving a significant increase in bookings for Ctrip, particularly during peak travel seasons like Golden Week and Chinese New Year.

Conclusion

The travel industry in China presents a unique set of opportunities and challenges for international brands. While the market is booming, success requires a deep understanding of China’s digital landscape and the use of sophisticated tools like DSPs to reach the right audience at the right time.

DSPs offer travel businesses the ability to target specific consumer segments, optimize campaigns in real-time, and deliver personalized ads across multiple platforms. By leveraging these capabilities, international travel companies can tap into China’s vast and lucrative travel market, driving growth and long-term success.

For decision-makers and marketing leaders, the strategic and operational advantages of using DSPs in China are clear. As you plan your entry or expansion into this dynamic market, incorporating DSPs into your marketing strategy will be essential to achieving your goals.

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China Marketing DSP Marketing Products

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

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.

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DSP Products

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

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.

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China Marketing Marketing Topics

#22 A Practical Guide to Douyin Advertising

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.

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Topics

#10 Classification and Introduction of Chinese Demand-Side Platforms

Demand-side platforms provide services for brand advertisers or ad agencies, acting as an automated online advertising purchasing system known as DSP (Demand-Side Platform). DSPs enable advertisers or ad agencies to programmatically select targeted traffic and purchase ad spaces, control budgets, and optimize advertising strategies in real-time. As an integral part of digital marketing and programmatic advertising, DSP platforms offer advertisers an efficient and intelligent way to deploy ads.

Classification of Chinese DSP Platforms and Corresponding Suppliers

Analysis of Entrants

Ad agencies or ad networks transitioning into DSPs: With a wealth of advertiser resources, these companies can directly integrate into the DSP landscape. Their entry can involve building a technical team to develop a DSP, purchasing a DSP technology solution for private deployment, or acquiring a DSP company outright, with representatives such as HaoYe and others.

Ad Exchange or SSP companies expanding into DSPs

These companies, with significant traffic resources, aim to connect directly with advertiser resources. Leveraging existing technical capabilities, they typically develop a DSP in-house, with representatives including Baidu, Alibaba, Tencent, Youku, and more.

Pure-tech companies entering DSPs

Originating from a technical background, these companies have entered the programmatic advertising field rapidly, using their technological edge. Representatives include YOYI Technology and others.

Large-budget advertisers building their DSPs

With ample advertising budgets, these advertisers seek to efficiently utilize their proprietary data to enhance campaign performance and gain transparency over traffic. Their approach can range from developing a technical team for DSP creation to purchasing technology solutions for private DSP deployment. The YOYI Plus team offers a DMP+DSP model, providing large-budget advertisers with a solution for the efficient use of first-party data and transparent execution of programmatic advertising.

DSP Types in China

Based on the resources connected and the target of service, DSPs can be further classified into Pure Web DSPs, Mobile DSPs, Cross-screen DSPs, and DSP+.

Pure Web DSPs

Focus on web traffic and services for web-oriented clients, evolving towards cross-screen DSP capabilities.

Mobile DSPs

Concentrate on mobile traffic and advertisers targeting mobile users.

Cross-screen DSPs

A hybrid of PC and mobile DSPs, offering inventory across multiple screens, including computers, smartphones, tablets, etc. YOYI Plus is a leading cross-screen DSP in China with Mobile, PC, OTT, and CTV inventories in hand.

DSP+

Encompasses various specializations such as DSP+advertiser types (e.g., performance DSPs, brand DSPs), DSP+vertical industries (e.g., financial DSPs, e-commerce DSPs), DSP+resource types (e.g., video DSPs). However, performance DSPs now generally serve brand clients as well, making pure performance DSPs rare.

Depending on the background of the DSP owner, such as owning proprietary media or being an advertiser themselves, DSPs can be categorized as follows.

Third-Party Independent DSPs

DSP platforms that bid on traffic from various Ad Exchanges/SSPs. Notable examples include YOYI TECH, FancyDigital, WiseMedia, Domob, etc..

Large Media Proprietary DSPs

Private DSPs are built by large media companies with their traffic. Examples include Tencent DSP, Sina DSP, Youku DSP, Toutiao DSP, etc. These DSPs have competitive advantages due to their unique traffic resources but may face challenges when advertisers seek cross-media frequency control for multi-media campaigns.

Advertiser Proprietary DSPs

Large advertisers, due to the privacy of their business data, cannot apply it to third-party DSP platforms. To activate this data, some advertisers opt to build their DSPs, using their technology and business data for ad deployment, achieving self-operation. Examples include Ctrip DSP, NetEase DSP, etc.

DSPs with Unique DMP Data

Companies like UnionPay with POS transaction data, and Opsmart Technology, with data from large offline traffic scenarios, use DSPs for monetization. These companies are relatively neutral in ad traffic and create value for advertisers through unique data, which is their core driving force.

Trading Desk (TD)

A Trading Desk, similar to a DSP, provides an integrated technical solution for managing multiple DSP platforms. Advertisers can manage campaigns across various DSPs through a TD, including budget allocation, strategy adjustment, and performance reporting. TDs typically serve brand advertisers who often advertise across multiple DSP suppliers, involving overall budgeting, frequency control, and unified campaign management.

TDs can be categorized into Agency Trading Desks (ATDs), Independent Trading Desks (ITDs), and Brand Trading Desks (BTDs).

Agency Trading Desks (ATDs)

Trading desks within 4A agencies serving multiple brand advertisers, such as Xaxis, Accuen, AOD, and Changrong.

Independent Trading Desks (ITDs)

Similar to ATDs they serve multiple ad agencies or direct clients, like YOYI OneDesk, Chinapex, and Fuge.

Brand Trading Desks (BTDs)

Trading desks are built in-house by advertisers or with technology providers for internal use, such as the Yili Trading Desk.

Selection and Evaluation Criteria for Chinese DSP Suppliers

Before advertising deployment, it’s crucial to select and evaluate DSP suppliers effectively. A good supplier can make advertising efforts much more effective, while a poor choice can lead to inefficiencies and potential fraud.

Key considerations when choosing a DSP include traffic, performance, product, service, and pricing. Traffic refers to media resources, performance is tied to technical capabilities, data strength, and algorithmic prowess. The product backend focuses on the ad deployment and management interface. Service is related to the company’s background and service capabilities, while pricing models determine the cost-effectiveness of the DSP. Advertisers can assign different weights to these factors, score them, and ultimately select a DSP with strong comprehensive capabilities as a partner.

●Media Resources: The advantages of DSP media resources, including featured media, ad types, and volume.

●Technical Capabilities: Including DSP functional modules and hardware equipment. Functional modules assess precise targeting capabilities and technical highlights; hardware equipment refers to data center and server resources, verifying the DSP’s authenticity.

●Data Strength: Measures whether the DSP has sufficient data to support precise ad deployment, either from its data or third-party DMP data.

●Algorithmic Capabilities: Examines whether the DSP has an algorithmic optimization model to automatically adjust and optimize ads, reducing manual workload while ensuring campaign effectiveness.

●Product Backend: Evaluates the completeness, maturity, stability, and usability of the DSP’s ad deployment backend.

●Company Background: Provides an overview of the DSP company to assess reliability, including company introduction, team members, awards, patents, and the ability to serve major clients.

●Service Capabilities: Assesses the professionalism (including data analysis, reporting, and emergency service capabilities) and stability of the DSP execution team.

●Pricing Models: Media pricing, service fees, and pricing transparency are also critical for advertiser evaluation.

YOYI Plus, as a leading DSP in China, has cross-screen delivery capabilities for various traffic terminals including PC, mobile, OTT, and CTV, covering over 80% of media traffic in China. With robust audience data and tagging capabilities, it helps brands acquire precise public domain advertising traffic more efficiently, enhancing brand exposure and ad interaction effects.

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#11 The Landscape of Advertising in China: Media, Industries, and Agencies

Driven by the digital wave, China’s advertising market has shown a diversified development trend. From traditional television and radio to modern internet platforms, various media provide publicity and promotional services for different industries. At the same time, various advertising agencies play an important role in the market, providing customized marketing solutions for brands.

Television Advertising and Its Primary Industries

Television advertising has always been an important choice for advertisers due to its extensive coverage and strong visual experience. It combines visual images, colors, and movements to create a deep impression, effectively displaying product features and establishing an emotional connection with the audience. Especially for seasonal products and urgent promotions, the immediate dissemination capability of television advertising is crucial.

The main industries of television advertisers include the food industry (such as health care products, snacks, and cooking oil), the beverage industry (such as infant formula, UHT milk, tea, and yogurt), the commercial and service industry (such as healthcare institutions and retailers), and the personal goods industry (such as glasses/contact lenses, men’s razors, watches, and cleaning products). These industries not only enhance brand awareness and memorability through television advertising but also increase the brand’s authority and trustworthiness.

Outdoor Advertising and Its Primary Industries

Outdoor advertising, with its 24-hour long-term exposure and wide visibility, covers densely populated areas, ensuring that brand messages are seen by a large number of people. Outdoor advertising has strong geographical targeting, precisely attracting the target audience in business districts or communities. Compared with television and online advertising, outdoor advertising has a strong visual impact, high cost-effectiveness, and helps in long-term brand reinforcement.

The main industries of outdoor advertisers include the beverage industry (such as mineral water, fruit and vegetable juice, and yogurt), the food industry (such as snacks, series of food products, and health care products), the cosmetics/bathroom products industry (such as skincare products, baby hygiene and bathroom products, and oral care products), the home appliance industry (such as home appliances and smart appliances), and the alcoholic beverage industry (such as Chinese meals wine, medicinal wine/tonic wine, and fruit wine). Outdoor advertising, integrated with technology, can provide interactive experiences, establish emotional connections, and enhance market coverage.

Radio Advertising and Its Primary Industries

Radio advertising attracts a mobile audience, such as drivers and commuters, with its extensive coverage and immediacy. It is cost-effective, especially suitable for small businesses, and has the flexibility to respond quickly to market changes. Localized radio can penetrate specific communities, and the emotional connection between program hosts and listeners enhances the trust in advertisements.

The main industries of radio advertisers include the food industry (such as health care products, corporate image of food, and condiments), the entertainment and leisure industry (such as scenic spots, national and city image, restaurants, tourism product service organizations, and hotels), the commercial and service industry (such as education/training categories), and other industries (such as home decoration, e-commerce brands, drugs, post and telecommunications, and alcoholic beverages). The high frequency of contact and multitasking advantages of radio make brand messages frequently and naturally blend into daily life.

Internet Advertising and Its Primary Industries

Internet advertising stands out for its target accuracy, cost-effectiveness, and measurability. It allows brands to finely target based on user characteristics, covering the vast user base of the internet. The flexibility and customization of Internet advertising allow brands to quickly respond to market changes, and interactive elements such as links and social media increase user participation.

The main industries of internet advertisers include IT products and office automation services (such as WeChat Work, DingTalk, etc.), major e-commerce/internet/video platforms (such as Taobao, TikTok, iQiyi, and other brands), the transportation industry (such as online car-hailing, carpooling, etc.), the financial industry (such as major banks, funds, and stock agency organizations), post and telecommunications (such as mobile phones, broadband packages, etc.), entertainment and leisure activities (such as exhibitions, performances, etc.), as well as the real estate/construction industry, industrial goods, and the alcoholic beverage industry. The multi-platform placement ability and creative freedom of Internet advertising provide brands with a variety of promotional methods.

Introduction to Advertising Agencies in the Chinese Market

Advertising agencies act as a bridge connecting advertisers and media channels, providing professional advertising placement and marketing services. Based on the content and characteristics of the services, advertising agencies can be divided into the following categories.

4A Creative Agencies

Focus on creating innovative and impactful advertising content, such as visual design, advertising copy, and brand stories. For example, Ogilvy, Accuen, and Angis, etc.

Media Agencies

Responsible for media planning and purchasing, helping brands effectively place advertisements on various media channels. Services include media strategy development, market analysis, media negotiation and purchasing, ad placement, and effectiveness evaluation.

PR Agencies

Focus on shaping and maintaining brand images, and communicating with the public through media relations, event marketing, and crisis management. Services include press release writing, media interview arrangements, brand spokesperson management, and crisis PR strategies.

Digital Agencies

Focus on digital marketing and online advertising, including search engine optimization (SEO), search engine marketing (SEM), and social media marketing. Services include website design, content marketing, email marketing, data analysis, and digital ad placement.

Entertainment Marketing Agencies

Combine entertainment industry resources, such as movies, TV, music, and sports, to create joint marketing opportunities for brands. Provide entertainment marketing solutions such as brand implantation, event sponsorship, celebrity endorsements, and content cooperation.

Media Communication Agencies

Focus on disseminating brand information through various media channels, which may include online and offline communication strategies. Services may involve ad placement, content distribution, media relationship establishment, and brand communication activities.

MCN Agencies

Multi-Channel Networks provide content management, business cooperation, and audience growth support for video and social media content creators. Services include content creative guidance, copyright management, brand cooperation opportunities, audience analysis, and revenue optimization services.

Social Media Marketing Agencies

Focus on helping brands establish and maintain a social image on social media platforms. Services include social media account management, content creation, audience interaction, ad placement, and social media strategy development.

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#12 Introduction to AdX and SSP in China

Overview

Ad Exchange platforms (AdX) integrate advertising resources and networks, facilitating the sale of advertising space through various transaction methods, including programmatic direct buying, preferred deals, and real-time bidding. DSPs can interface with AdX to purchase media ad impressions transparently through different transaction methods, accurately targeting audiences to improve advertising ROI. Theoretically, the role of a Supply-Side Platform (SSP) is to connect with media and then to AdX. However, since the functionality of SSPs is now essentially the same as AdX, we can discuss Ad Exchange and SSP together under the term AdX.

Common Transaction Models of Domestic AdX

PDB (Programmatic Direct Buying):PDB is the preferred model for the highest quality advertising resources in media. These resources are often in high demand and sought after by advertisers. To secure these premium resources, advertisers typically negotiate a fixed price with the media in advance, reserving these spots exclusively. Unlike traditional advertising, PDB allows for audience targeting, but this targeting is limited to a few broad demographic dimensions.

PD (Preferred Deals):After the highest-quality resources are secured by major brands, there remains a pool of relatively high-quality resources with uncertain impressions. If an advertiser purchases these uncertain volumes at a negotiated price, this model is known as PD. The downside of PD is the uncertainty of resource allocation, but the advantage is that the advertiser does not have to commit to a certain volume of impressions and can target the specific audience they need, preventing waste of advertising resources.

RTB (Real Time Bidding):After the high-quality resources are purchased, there will always be some less desirable resources left that are not favored by advertisers. Media does not want to waste these long-tail and lower-quality resources, so they are put on the open market for smaller advertisers to bid on through RTB. The placement and pricing of these resources are uncertain and determined in realtime.

Comparison of AdX Transaction Models

Model Buying Method Requires Advance Order Display Priority Guarantee Volume Resource Quality Resource Placement Reservation Pricing and Volume Guarantee
PDB Fixed CPM/CPD Yes Highest Yes Premium Yes Fixed price, fixed volume
PD Fixed CPM Yes After premium No Relatively good No Fixed price, no volume guarantee
RTB Bid CPM No Remaining traffic No Non-premium No No price or volume guarantee

Classification and Examples of Domestic AdX

AdX platforms are generally classified into public and private AdX based on their ownership of the main media resources.

Public AdX:Public AdX does not own media resources and acts as a typical intermediary matching buyers and sellers. The characteristics of these AdX include large traffic volume and low prices, but the quality of traffic is inconsistent, mainly consisting of long-tail traffic and a small amount of surplus traffic from top vertical media (media that have not established their own AdX).

Private AdX:These AdX platforms belong to major media owners and are centered around the resources of these media. Examples include the AdX of major portal media (Tencent, Sina, Sohu, etc.), video media (YouTube, IQIYI, LeTV, etc.), and emerging mobile media (Xiaomi, Momo, etc.). The traffic quality of these AdXsis relatively better since it is the media’s traffic, and the prices are slightly higher. Sometimes, to reduce the overall buying cost, these AdX may also introduce cheaper external media traffic in addition to their own.

AdX as a Key Gatekeeper in Advertising Review

In the advertising placement process, the review of advertising materials and the qualifications of advertisers is a key step that directly affects the efficiency of advertising placement, the quality of advertising, and the reliability of advertising information. The media that ultimately publishes the information is the responsible entity as stipulated by advertising law.

As the most centralized hub of advertising transactions, AdX has become the main gatekeeper for the review process. The review mainly involves the qualifications of advertisers, the upload and review of advertising materials, the review of advertiser qualifications and materials from the DSP side, and the review of advertiser qualifications and materials from the AdX side. Understanding the review entities should provide a basic understanding of whom to consult and appeal to in daily work practice.

KPIs Around AdX

These data indicators are seen from the perspective of AdX and may not be the same as what DSPs see due to network losses:

● Total available bid requests: Based on the total traffic of AdX, the total number of bid requestscan be sent to various DSPs, which isconsideredas the available inventory of AdX.

● Filtered request volume: After setting filtering conditions on the AdX self-service platform, the number of bid requests filtered by each DSP, such as filtering certain sizes or websites.

● Actual request sent: AdX will send the actual number of bid requests to each DSP based on the QPS limits set by the DSP on the AdX self-service platform. This indicator shows how much inventory the DSP can see, and AdX can also evaluate the consumption capacity of each DSP.

● Actual request rate: The ratio of the actual number of requests sent by AdX to each DSP to the total number of available bid requests. AdX can use this indicator to assess the consumption capacity of each DSP.

● Number of bids: The number of bids a DSP participates in.

● Bid participation rate: The proportion of the number of bids a DSP participatesininto the actual number of requests sent. AdX can use this indicator to assess the purchasing willingness of each DSP.

● Number of abandoned bids: The number of bids a DSP has abandoned as seen by AdX (actual request number – number of bids).

● Abandoned bid rate: The ratio of the number of abandoned bids a DSP has to the actual number of requests sent.

● Number of valid bids: The number of bids successfully responded to that meet the placement constraints (can be placed) for materials and advertisers.

● Number of invalid bids: The number of invalid bids due to reasons such as unreviewed advertiser qualifications, banned industries and categories, response timeout, parsing errors, etc. AdX can use this indicator to assess the technical and execution management capabilities of each DSP and assist in reducing this number.

● Response timeout count: The number of network failures or response timeouts (generally required <100ms) received from a DSP.

● Response timeout rate: The ratio of the response timeout count of a DSP to the actual number of requests sent. AdX can use this indicator to assess the technical capabilities of the DSP’s Bidder and network conditions.

● Parsing error count: The number of parsing failures caused by incorrect data packet formats returned by a DSP in the bidding process.

● Parsing error rate: The ratio of the parsing error count of a DSP’s returned package to the actual number of requests sent.

● Number of successful bids: The number of advertising exposure opportunities successfully won by a DSP.

● Bid success rate: The ratio of the number of successful bids a DSP has to the number of bids participated in.

● Number of failed bids: The number of bids a DSP did not win in the bidding process because the bid was not the highest (valid bid number – number of successful wins).

● Bid failure rate: The ratio of the number of failed bids a DSP has to the number of bids participated in.

● Traffic utilization rate: The ratio of the number of successful bids a DSP has to the actual number of requests sent.

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