China’s Advertising Guidelines and Taboos: A Quick Checklist for 13 Special Industries and 2 Special Types of Advertising

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发布时间：2024-07-15   作者：

David Ogilvy, the Father of Advertising, once highlighted: “Never write an advertisement which you wouldn’t want your family to read. You wouldn’t tell lies to your own wife. Don’t tell them to mine.”

This serves as a fundamental principle for advertisers. As a country governed by the rule of law, China has established special guidelines for different industries to protect consumer rights, prevent false advertising, and curb unfair competitive practices. For those intending to launch advertisements in China, the article will avoid unnecessary troubles.

We compiled advertising guidelines for 13 special industries in China: pharmaceuticals, dietary supplement, food for special medical purposes (FSMP), medical equipment, food, education and training, real estate, finance, tobacco, alcohol, cosmetics, farming & animal husbandry & aquaculture, and pesticides. Additionally, regulations for two special types of advertising, involving patents and internet advertising, are consolidated.

01 Medical-Related Sector: the “Three Products and One Device

In China, we have a term “Three Product and One Device” for medical-related sector, covering 4 major industries: pharmaceuticals, dietary supplement, FSMP and medical equipment. These industries are related to life and health, hence Chinese Advertising Law particularly requires that advertisements for “Three Product and One Device” must be truthful and legal, must not contain false content, and should provide the right guidance to the target audience. Detailed regulations are as follows:

Parmaceutical Advertisementsh

• The content should be based on the instructions approved by the State Council drug regulatory department.

• The content involving the name, indications, or pharmacological effects should not exceed the scope of the instructions.

• The content must prominently display contraindications and adverse drug reactions.

• Prescription drug advertisements should prominently display “This advertisement is intended only for medical and pharmaceutical professionals.”

• OTC drug advertisements should prominently display the logo of OTC and “Please purchase and use according to the instruction or under the guidance of a pharmacist.”

Dietary Supplement Advertisements

● The content should be based on the registration certificate, and the product instruction manual approved by the market supervision department.

● The content must not involve disease prevention or treatment functions.

● The content involving health functions, efficacy components, or significant components and their content, suitable population, or dosage should not exceed the scope of the registration certificate and the product instruction manual approved by the market supervision department.

● The content must prominently display “Dietary supplements are not drugs and cannot replace drug treatment for diseases,” declare that this product cannot replace medication, and prominently display the dietary supplement logo, suitable and unsuitable populations.

FSMP Advertisements

• The content should be based on the registration certificate and product label, instruction manual approved by the State General Administration of Market Supervision.

• The content involving product name, formula, nutritional characteristics, suitable population, etc., should not exceed the scope of the registration certificate, product label or instruction manual.

• The content must prominently display the suitable population, “Not suitable for non-target population”, and “Please use under the guidance of a doctor or clinical dietitian.”

Medical Equipment

• The content should be based on the registration certificate and product instruction manual approved by the drug regulatory department.

• The content involving the medical equipment name, application scope, mechanism of action, or structure and composition, etc., should not exceed the scope of the registration certificate or the product instruction manual.

• For medical equipment advertisements recommended for personal use, it should prominently display “Please read the product instruction manual carefully or purchase and use under the guidance of medical personnel.”

• If the medical equipment product registration certificate contains contraindications or precautions, the advertisement should prominently display “Contraindications or precautions are detailed in the instruction manual.”

02 Food Advertisements

As a Chinese old saying goes, “People attach paramount importance to food.” Food industry relates to people’s livelihood, hence Chinese government has strong supervision on food advertising as below:

• Food advertisements must comply with food safety regulations and must not contain false propaganda or violate food hygiene standards.

• The content must conform to the standards of provisions on food hygiene, such as the main ingredients of the food, production date, shelf life, etc., must be consistent with the standards.

• The content must not involve medical terminologies or or easily confused with medicines.

03 Education and Training Advertisement

Chinese society generally values the education of the next generation. Moreover, adult education and vocational education in China are developing vigorously. Under such circumstances, Chinese Advertising Law stipulates that education and training advertisements:

• Must comply with the provisions of the Education Law, and must not contain false propaganda or mislead consumers.

• Must truly publicize information such as courses, teachers, certificates, employment rates, etc., and must not exaggerate academic or career prospects.

• Must not use terms such as “national level,” “highest level,” “best,” “top level,” etc., and must provide corresponding proof when used.

• Must not fabricate teacher qualifications or user evaluations

• Must not exaggerate training effects or the strength of the organization.

• Must not use data such as “enrollment rate” or “pass rate” in advertisements unless they are truth and the source of provement should be displayed.

• Must not make guaranteed commitments to enrollment or passing exams.

• Must not explicitly or implicitly involve examination institutions or their staff.

04 Real Estate Advertisements

As one of the pillar industries in China, real estate advertisements must comply with the following regulations:

• Comply with national land management regulations and must not contain false propaganda or misleading content to consumers.

• Prohibit exaggeration of project scale, fake sales data, and other false propaganda.

• Housing information should be true, and the area should indicate whether it is the construction area or the interior construction one.

• Must not contain promises of appreciation or investment returns.

• Must not violate national regulations on price management.

• Must not mislead propaganda on facilities under planning or construction.

05 Financial Advertisement

Financial actions have significant impacts on both enterprises and individuals. Therefore, the Chinese government has vigorously regulated financial advertisements to protect the legal property rights and interests of the public. Here are the details:

• The content of financial advertisements should be consistent with the business scope stated in the financial business license or filing documents.

• Financial advertisements must not use or indirectly use the national flag, national anthem, national emblem, military flag, military anthem, military emblem of the People’s Republic of China, the name or image of state organs and state functionaries.

• Financial advertisements must not use national major activities for commercial hype.

• Financial advertisements should be truthful, legal, and honest, and must not contain false or misleading content to deceive and mislead the audience.

• Financial advertisements must not induce the audience to accept inappropriate financial products and services, and should guide investors to act rationally.

• When releasing financial advertisements with investment return expectations, it is necessary to prominently indicate or warn the possible risks and responsibilities in a significant manner. Must not make guaranteed commitments to future effects, benefits, or related situations, and must not explicitly or implicitly promise capital preservation, risk-free, or guaranteed returns, except as otherwise regulated by the state.

• Must not exaggerate false or misleading statements about past performance, and must not use low-probability events to exaggerate product yield or profit range and mislead customers.

06 Tabacco Advertisements

As a special commodity with addictive properties, tabacco does harm to the health of both smokers and the surrounding people. Prohibiting tobacco advertising together with other 100+ countries worldwide, China has made the following restrictive regulations on tobacco advertisements:

• Prohibit releasing tobacco advertisements via broadcasting, film, television, newspapers, periodicals and other mass media, or in waiting rooms, theaters, conference halls, sports competition venues, public transportation, outdoor areas and other public places.

• Prohibit sending any form of tobacco advertisements to minors.

• Prohibit using advertisements for other goods or services to promote the name, trademark, packaging, and other similar content of tobacco products.

• In the announcements of relocation, renaming, recruitment, etc., published by tobacco product manufacturers or sellers, the name, trademark, packaging, decoration, and similar content of tobacco products must not be included.

07 Alcohol Advertisements

The term “alcohol” refers to alcoholic beverages, including fermented wines, rectified spirits, blended wines, edible alcohol and other drinks containing alcohol ingredients. In order to protect the physical and mental health of the public and ensure social safety, Chinese Advertising Law has made restrictive regulations on alcohol advertisements:

● Spirits who are below 39 degrees or have obtained the title of national, ministerial, provincial excellence, as well as other alcohol that meets the hygiene standards can be advertised.

• Prohibit the use of images, music, animations, etc., related to minors.

• Must not release in mass media aimed at minors.

• Must not use medical terms or easily confused terms.

• Must not display drinking actions.

• Must not depict activities such as driving a car, a ship, or an airplane.

• Must not explicitly or implicitly suggest that drinking has the effect of eliminating tension and anxiety, increasing physical strength, etc.

• Must not use terms such as “national level,” “highest level,” “best,” etc.

• Must not contain content that induces, encourages drinking, or promotes uncontrolled drinking.

08 Cosmetics Advertisements

Chinese Advertising Law stipulates that the quality of cosmetics must meet hygiene standards, and the description of cosmetics names, effects, and other information in advertisements must be accurate and clear, and must not use medical terms or easily confused with medicines. Detailed regulations are as follows:

• The advertisement should accurately and precisely express the name, efficacy claims, ingredients, efficacy components, quality, usage, origin, price, manufacturer, shelf life, promises, etc., of cosmetics.

• Advertisements must not involve disease treatment functions and must not use medical terms or easily confused terms with drugs or medical equipment, and should avoid using the following medical-related content:

• Medical cosmetics, prescription, medicinal, Chinese medicine, medical, treatment, injection, stretch marks, various skin disease names, various disease names, and other medical terms.

• Antibacterial, bacteriostatic, decontamination, sterilization, bactericidal, antiseptic, anti-inflammatory, blood-activating, detoxification, anti-allergy, anti-sensitivity, de-sensitivity, spot removal, spot-free, scar removal, and other terms that explicitly or implicitly indicate medical effects.

09 Avertisements of Farming, Animal Husbandry and Aquaculture

The expression of crop seeds, forest seeds, grass seeds, breeding animals, aquaculture seedlings, planting and breeding advertisements on variety names, production performance, growth or yield, quality, resistance, special usage and value, economic value, suitable planting or breeding range & conditions, etc., should be true, clear, and understandable, and must not contain the following content:

• Make scientifically unverifiable assertions.

• Make assertions or guarantees of efficacy.

• Analyze, predict, or make guaranteed commitments to economic benefits.

• Use the name or image of research institutions, academic institutions, technology promotion institutions, industry associations, or professionals, users for recommendations or proof.

10 Pesticide Advertisements

Pesticides are indispensable to ensure crop production. However, some pesticides are dangerous to different extents. Therefore, Chinese government has introduced the following restrictions on pesticide advertisements:

• Must not use language that asserts safety such as non-toxic and harmless.

• Must not contain unscientific assertions or guarantees of efficacy.

• Must not contain text, language, or images that violate the routine use of pesticides.

• Must not use the name or image of research institutions, academic institutions, technology promotion institutions, industry associations, or professionals, users for recommendations or proof.

• Must not belittle similar products, or compare the efficacy and safety of other pesticides.

• Must not contain comprehensive evaluation content such as evaluation, ranking, recommendation, designation, selection, winning awards, etc.

• Must not use ambiguous or exaggerated language that might cause misunderstandings about the product’s safety, applicability, etc.

11 Advertisements Involving Patents

Products involving patents are generally more likely to win consumer praise and trust. In order to maintain a fair competitive market environment, and to protect the legal rights and interests of consumers, Chinese Advertising Law has made the following regulations on advertisements involving patents:

• The patent number and type must be clearly marked.

• The patent information in the advertisement needs to be consistent with the information on the official website of the China National Intellectual Property Administration.

• Products or methods that have not obtained patent rights must not claim to have patent rights in advertisements.

• Prohibit the use of patents that have not been granted rights and patents that have been terminated, revoked, or invalidated for advertisements.

12 Internet Advertisements

With the rapid development of Internet Industry in China, various forms of Internet advertisements bloom and enrich the advertising ecosystem. In order to maintain the safety and cleanliness of the network environment and to protect the legal rights of consumers, Chinese government has made the following regulations and restrictions on Internet advertisements:

• Internet advertisements should be recognizable, allowing consumers to identify them as advertisements.

• For search ads in the manner of bidding and ranking, the advertiser should prominently mark “Advertisement” so that they can be clearly distinguished from natural search results.

• Except for the circumstances where laws and administrative regulations prohibit the release or disguised release of advertisements, when promoting goods or services through knowledge introduction, experience sharing, consumer evaluation, and other forms, and attaching shopping links and other purchasing methods, the advertiser should prominently mark “Advertisement.”

• For pop-up Internet advertisements and start-up screen advertisements displayed and released when starting Internet applications, the advertiser and the publisher should prominently mark the close sign to ensure a one-click closure.

• Must not deceive or mislead users to click or browse advertisements in the following ways:

• False prompts such as system or software updates, error reports, cleaning, notifications, etc.

• False signs such as play, start, pause, stop, return, etc.

• False reward promises;

• Other ways to deceive or mislead users to click or browse advertisements.

• When publishing or sending advertisements on the Internet, do not affect the normal use of the network by users, and do not insert bidding & ranking advertisements in the search results of websites, web pages, apps, WeChat Official accounts and other platforms related to government services.

The aforementioned regulations and restrictions are meticulously crafted to safeguard consumer rights and foster a robust, ethical landscape for the advertising industry within China. Having acquainted yourself with these guidelines, you are now better equipped to navigate the complexities of launching advertisements in the Chinese market. However, given the intricacies and stringent requirements of legal compliance, it is prudent to consult with professional legal experts before finalizing and executing your advertising strategies.

Image source: QianTu Network, with commercial authorization

Measure

Measure

Prohibited Products for Promotion under Chinese Laws and Regulations：A Guide to Navigating the Regulatory Landscape

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发布时间：2024-07-15   作者：

Each country has its own social environment and standards for different industries vary accordingly. In China, there are clear restrictions on the industries involved in advertising and promotion. Especially for the following 55 industries listed, Chinese laws and regulations have explicit prohibitions against promoting these industries through advertising.

01 Drug-Related Items

This category encompasses all types of illicit drugs, chemicals that can be synthesized into drugs, raw materials for drug production, and literature on drug manufacturing.

02 Gambling Prohibitions

We’re putting all bets off on gambling. It’s forbidden to use money or property as stakes in gambling, as well as providing venues, funds, tools, or facilitating gambling activities through products and services.Gambling Tools: Think slot machines and dice games—no luck here.

• Gambling Information and Software: This includes illegal gambling information, communities, software, and betting apps.

• Gambling Products: Unlawful gambling products such as Mark Six lotteries and other lottery types not approved for sale in Mainland China.

• Gambling Techniques: Ads that teach gambling tactics like card sharking and cheating methods are off the table.

• Cheating Devices: Devices like see-through glasses, card changers, and other cheating tools are strictly prohibited.

• Gambling Products: Products suspected of being gambling-related, such as “one-yuan purchase” schemes.

• Gambling on Raw Stones: The act of gambling by selling rough stones is banned.

• Others: Hotels or scenic spots that offer casino gambling services are not allowed.

03 Religious Matters

• Spreading the word about religious activities and content is a no-go zone.

• Selling religious items under the guise of religion is also prohibited.

04 Pyramid Schemes

Theallure of quick riches through recruitment or by charging fees for membership is an illegal path we advise against.

05 Superstition and Fortune-Telling

Products or services for fortune-telling, divination, Feng Shui, and other superstitious practices, along with claims of improving luck or human capabilities, are banned.

06 Fraudulent Websites

• Imitating financial institutions like banks, funds, securities, and trusts is a scam that won’t stand.

• Posting job ads for fake reputation farming on online stores is also prohibited.

• Illegal sales of items like Sinopec fuel cards, Q coins, and other virtual cards, along with providing illegal phone top-up services, are forbidden.

07 Special Diseases

• No advertising is allowed for diseases that the state has paused medical advertising for: genital warts, syphilis, gonorrhea, chancroid, psoriasis, AIDS, cancer, epilepsy, hepatitis B, vitiligo, lupus.

• Professional jargon related to these diseases, such as HBV, “big three yang,” “small three yang turning negative,” and “two pairs and a half,” is also banned in advertisements.

08 Special Medications and Medical Devices

• A strict ban on narcotics, psychotropic substances, toxic medical drugs, radioactive drugs, drug-like precursor chemicals, prescription drugs, specific total nutrition formula foods for special medical purposes, infant formulas for special medical use, and drugs and medical devices for drug addiction treatment.

• Military-specific drugs and preparations made by military medical institutions.

• Medicinal preparations made by medical institutions.

• Any drugs, medical devices, health foods, and special medical formula foods that are legally stopped or banned from production, sale, or use.

09 Medical Intermediary Services

Offering domestic registration services or overseas medical intermediary services for a fee is prohibited.

10 Cultural Relics and Literary Works

● Counterfeit commemorative coins and replicas of famous artworks are not to be advertised.

● Exempted are antique stores and auction companies with the appropriate legal qualifications.

11 Illegal Stamp Trading

Legal stamps (including common and commemorative stamps) can be exchanged and traded.The following activities are banned as per Article 25 of the “Philatelic Market Management Measures”: Trading in counterfeit or altered postage vouchers.

• Trading in stamps prohibited from circulation by the state.

• Trading in stamps issued by the Taiwan region after October 1, 1949.

• Trading in stamps without indicated issuing entity information.

• Trading in stamps with counterfeit or imitation stamp patterns not in accordance with national regulations.

• Trading in stamps with obviously false information.

• Trading in stamps imported without authorization.

• Producing or selling stamps under someone else’s name without permission.

• Any other business activities that violate relevant national regulations.

12 Circulating RMB

Without the approval of the People’s Bank of China, no unit or individual may bind or operate bound circulating RMB, including RMB of special years and misprinted RMB.

13 Bills

• Including various types of invoices, financial bills, etc.

• Including issuing and selling real and fake invoices on behalf of others.

• Except for the case of transfer for the purpose of collection without validity and circulation.

14 Fake certificate and seal services

Providing illegal services such as processing false certificates and privately engraved official seals.

15 Illegal network public relations

Illegal network water army, network promoters, flooding companies, post deletion companies, soft article marketing, e-commerce order brushing, etc.

16 Illegal network technology and equipment

• Using illegal network technology to break through network restrictions, infringe on the privacy and property of others, or disrupt the normal operation order of Internet platforms, including: “over the wall” service, “over the wall” software, game plug-ins, dual-opening software, jailbreak software, etc.

• Equipment for inserting phone cards in batches.

• Equipment and software with functions such as changing the caller number, virtual dialing, and illegal access of Internet phones to the public telecommunications network.

• Automatic switching systems for batch accounts and network addresses, platforms for batch receiving SMS verification and voice verification.

• Other equipment and software used to commit crimes such as telecommunications network fraud.

17 Illegal debt collection

Illegal provision of services or consulting content related to debt repayment, debt arrears, and debt collection.

18 Vehicle formalities agency

• Violation of traffic rules and points, agency service or content for car purchase quotas.

• Providing transaction services or information such as leasing, selling, and transferring of vehicle license plates and lottery quotas.

• Providing illegal vehicle-related services or information such as scrapping without a car, transferring ownership without a car, annual inspection without a car, and collecting points for driver’s licenses.

19 Personal business agency

• Agency for personal certificates, agency for social security payment, agency for housing provident fund payment, agency/consultation for points-based settlement, etc.

• Scalper proxy photography and proxy photography business.

20 Certificate affiliation/leasing

“Certificate affiliation”, “certificate affiliation” and any qualification certificate, administrative license, identity document leasing, lending, and transfer services, etc.

21 Foreign Recruitment

Provide jobs for foreign personnel, recruit foreign personnel, recruit foreign volunteers, etc.

22 Firearms, Ammunition and Other Weapons

• Includes various types of firearms, ammunition and related equipment, such as firearms, firearm imitations (such as imitation guns), bullets (cannons), silencers, gunpowder, instructions, packaging boxes, etc.

• Other weapons: crossbows, slingshots, steel balls, lead balls, real machines, real bullets, etc.

23 Security, police and military equipment

• Security equipment refers to security and defense equipment including but not limited to electric shocks, strong lights, tear gas, etc.

• Police and military equipment refers to police and military equipment including but not limited to police uniforms, police badges, handcuffs, police lights, sirens, stun guns, etc.

24 Cult Organizations

Illegal organizations that endanger society, such as Falun Gong, the Church of Almighty God, Voodoo, etc.

25 Government Documents

Various certificates and documents issued by the government, such as identity cards, files, various licenses, etc.

26 Illegal Publications and Film and Television Works

Illegal books, film and television works include, but are not limited to:

• Obscene and Pornographic Materials : This includes any publications or films that are vulgar or sexually explicit, such as adult magazines, videos, and adult videos (AV).

• Materials Harmful to Social Stability : Publications or films that undermine social stability, damage national unity, or disrupt ethnic solidarity.

• Publications with Discriminatory Content : Any materials containing racial or religious discrimination or other content that violates laws and regulations.

27 Protection of Wild Flora and Fauna

• Wildlife : Under national regulations, no trade or publication is allowed for wild animals, world/national protected species, endangered animals, their organs, any body parts, fur, specimens, or any products made from them, such as ivory and tortoiseshell products.

• Wild Plants : Any plants listed in the world/national protected species list and prohibited from sale by law, or plant products.

28 Illegal Sexual Products

Such as illegal aphrodisiacs and similar products.

29 Dangerous Goods

• Flammable and Explosive Materials : Including raw materials for their production.

• Toxic and Corrosive Chemicals : Along with their raw materials.

• Fireworks and Firecrackers : And devices for setting off fireworks and firecrackers.

• Publications and Videos on Explosives : Materials that instruct on making explosives.

30 Regulated Knives

Knives that violate national controlled knife standards, such as daggers, three-edged knives (including those used for mechanical processing), switchblades with self-locking mechanisms, and other similar single-edged, double-edged, or three-edged sharp knives.

31 Illegally Obtained Goods

Goods obtained through smuggling, theft, or robbery.

32 Tobacco Products

Cigarettes, cigarette packs, cigarette labels, electronic cigarettes, and smoking cessation products.

33 Prohibited Food Items

• Betel nut and its products.

• Infant formula dairy products for babies aged 0-12 months (ie, stage 1 and stage 2).

34 Illegal Cash Advances

• Services such as agent extraction of housing provident funds, social security, and credit card cash advances.

• Cash advances using POS machines, card swiping rebates.

• Credit card cash advances and credit card repayments on behalf of others.

35 Banned Advertising and Promotion

• Crude oil and crude oil derivatives.

• POS machine sales.

• Private equity funds; private financial products.

• IoT (Internet of Things) cards.

36 Non-compliant Loan Services

Such as campus loans, student loans, down payment loans, cosmetic loans, etc.

37 Non-compliant Securities Services

• Stock recommendations, stock financing, stock leverage.

• Trading of Hong Kong and US stocks.

38 Illegal Fundraising Activities

Illegally absorbing public deposits or disguised forms of public deposits, and illegal fundraising activities with the purpose of illegal possession using fraudulent methods.

39 Non-compliant Bank Card and Account Services

Copying/cracking or recycling of bank cards, handling of bank cards through non-bank official websites, handling of bank statements, buying and selling of bank accounts (bank cards), etc.

40 Products Infringing on Intellectual Property Rights

• Trademark and Patent Infringements : Counterfeit and copycat products.

• Copyright Infringements : Unauthorized films, television shows, software programs, websites, etc.

• Private Servers and Cheats : Private servers refer to the unauthorized establishment of network servers after illegally obtaining server installation programs. Cheats refer to programs that use computer technology to alter parts of one or several online games to create cheating software.

• Other Violations:Unlawful sales of gaming equipment from other manufacturers, impersonation of official game websites, and establishment of phishing websites.

41 Tax Evasion Products

Goods that have not gone through proper import procedures, such as “grey market” products, “European water”, “Hong Kong water”, and similar items.

42 Illegal Signal Interception Products

Devices like TV sticks and signal receivers that illegally intercept television signals.

43 Products Infringing on Property Rights

• Products for electricity theft or illegal electricity saving, such as power-saving devices.

• Wi-Fi moochers, dialers, and similar devices.

• Products with unclear charges, malicious billing, hidden billing programs, or any situation that harms consumer rights, or containing malicious programs for account theft or password theft.

44 Privacy Invasion Equipment:

• Eaves dropping devices, hidden cameras, pinhole cameras, information interception (fax, SMS, phone interception), and other equipment that may violate privacy.

• Products that infringe on personal information, including but not limited to directly providing personal phone numbers, email addresses, and software or products used for collecting or stealing personal information (such as phishing websites).

• Products with tracking capabilities, such as GPS trackers.

45 Non-compliant Motor Vehicles and Services

• Cloned vehicles, smuggled vehicles, confiscated vehicles, illegal vehicles, unregistered vehicles, mortgaged vehicles, etc.

• “Assembled motor vehicles”, “built motor vehicles”, or related service information.

46 Products Disrupting Traffic Safety

Products like radar detectors, electronic dogs, car concealment sprays, roll-up license plate frames, radar jammers, license plate covering devices, traffic signal changers, and similar items.

47 Prohibited Education and Training

• Online advertisements for off-campus training for primary and secondary schools, kindergartens.

• Franchise services for off-campus training for primary and secondary schools, kindergartens.

48 Exam and Thesis Fraud

Impersonating test takers, ghostwriting theses, etc.

49 Non-compliant Software Tools

• Software advertised as making free calls (Note: Not instant communication tools, products that can directly make free calls without phone charges using certain means).

• Military software.

• Overseas marriage service software.

50 Political News

Political: Domestic and foreign military and political news, reactionary remarks, etc.

51 Illegal Game Agents

Merchants and regional privileged agents for special permissions in games (such as selling room cards).

52 Military Aircraft

Aircraft that directly participate in combat, support combat operations, and military training, such as fighter jets, bombers, special operations aircraft, etc.

53 Non-compliant Real Estate Business

• Types of real estate transactions: Real estate and land not normally sold or not qualified for listing, such as small property rights, account-settlement houses, land transactions, property exchange for old, mortgaged houses, etc.

• Real estate peripheral business: Beyond the normal living and use functions of real estate, emphasizing financing, investment, medical services, including real estate investment or investment lectures, financing or disguised financing content, medical services, housing for the elderly, real estate investment immigration, etc.

54 Illegal Fishing Products

Electric fishing devices, sail nets, ground cages, beach seines, net cages, dense mesh screens, towed pump suction rakes, and other fishing gear.

55 Other Illegal and Non-compliant Products and Services

• Surrogacy, drug testing, fetal gender determination services.

• Human organs, remains, animal carcasses, etc.

• Advertisements for car decoders, master keys, and other technologies that can be used for criminal activities.

• Private detectives.

• Medicated cosmetics.

• Medical waste.

• Products for reducing or limiting the speed of bicycles.

• Online part-time fraud (such as typists, data entry clerks), personal manual processing fraud (such as wormwood processing, manual beading), etc.

• Others.

Measure

Measure

China’s programmatic advertising market has seen unprecedented prosperity since 2012, a year that is also dubbed as the “Year One” of programmatic advertising in China. With the flourishing development of the internet traffic market, China’s programmatic advertising ecosystem has become increasingly mature, gradually meeting advertisers’ needs for fine-group screening of quality customers, comprehensive control and constant adjustment of the advertising process, following customer trends to lock media platforms, and recalling high-potential customers for repeated exposure. This article will provide a complete practical guide based on China’s programmatic advertising market.

01 Planning Phase

Step 1: Define Objectives

Before clarifying the objectives, brands often complete the analysis of the consumer portrait for the promoted product, competitive advertising analysis, and summary of product selling points. With the support of the above information, the brand needs to define the goals of programmatic advertising, whether it is to enhance brand exposure, improve customer awareness, or enhance purchase conversion.

Domestic traffic vendors and media types are diverse and numerous, with a vast array of conversion models and indicators. Advertisers and their agencies need to set targets that are specifically tailored to their advertising needs and platform indicators. Taking the AIPL model indicators of Alibaba, a top-tier e-commerce platform in China, as an example:

Aware: Within the last 15 days, passively interacted with the brand, including behaviors such as exposure & clicks, browsing (limited to one day), watching, etc.

Interest: Within the last 15 days, actively engaged with the brand, including behaviors like membership, followership, interactions, browsing, favorites/add to cart, claiming trial products/samples, etc.

Purchase: All consumers who have purchased brand products in the last two and a half years (2*365 days + 180 days), including those who made pre-sale deposits, scanned codes for Taobao eggs after purchase, used offline cloud POS payment consumers, made purchases via iStore mini-program, scanned codes for Taobao eggs after purchase, included consumers who purchased on Taoxian, including those who bought Tmall u-first samples) minus “Loyalty” consumers.

Loyalty: Consumers who have had positive comments/positive follow-up reviews or have purchased the brand’s products at least twice within the past 365 days.

Step 2: Refine Audience Strategies

Audience strategies are often rooted in product features, brand tone, and combined with past advertising experiences. It is even possible to seek recommendations from local media, third-party advertising agencies, and traffic platforms. The premise of programmatic advertising effectiveness is the brand’s reasonable segmentation of user groups, so that in the process of traffic purchase and expansion, it can better hit the brand’s target audience. Specific classification methods can refer to the “4W1H” model.

Who: Refers to user attributes, judging what type of user it is based on attributes (gender, age, region, income, interests, etc.), such as student groups who love affordable makeup, white-collar workers who like to watch fashion bloggers’ videos, users with a high-level VIP status, etc.

When: Refers to the time corresponding to user behavior, from which the user’s visit duration, frequency, interval, etc., can be calculated. For example, first-time visits to the official website, not logged in for 30 days, purchased within 15 days, etc.

Where: Refers to the user’s source, such as entering through an ad click, through a friend’s share, or through a search engine, etc. Users from different sources represent different groups. For example, those who enter through search keywords belong to an active group of users, which is more in line with the advertiser’s needs; while those who enter by clicking on ads may be interested because of the attraction of the ad content, etc.

What: Refers to the user’s behavior, such as what type of ads they have clicked on, what content they have visited, what products they have purchased, etc.

How: Refers to the user’s quality, which can be measured by visit depth, number of behaviors, order amount, etc. For example, a user who has browsed 50 different product pages, a user who has made a total of 20 orders within a year, a user with an order amount of more than 100,000 yuan in 30 days, etc.

Step 3: Develop Media Strategy

In the face of numerous media resources, it is particularly important to formulate an appropriate media strategy before advertising, which depends on the objectives. The principle of formulating a media strategy is “positive, high coverage, and strong exposure,” and to design the media around advertising forms, page environments, media quality, advertising area, screen position, to meet the KPI requirements.

Advertising Forms: The form of advertising to some extent determines the user experience and interaction form. Common forms in programmatic advertising include banner image ads, video ads, native ads, etc.

Page Environment: Refers to the state of the page where the advertisement is placed, including page content, the number of page advertisements, etc. Especially when placing brand advertisements, advertisers usually require that the page content must be positive, in line with the brand image, and must not contain pornographic and vulgar, politically sensitive information, etc.. Moreover, the number of page advertisements should not be too many. An environment full of advertisements on the entire page will cause trouble for users and seriously affect the user experience, causing users to have a negative impression of the page and the advertisements within the page.

Media Quality: When formulating a media strategy, attention should be paid to the quality and quantity of the media. Quality refers to whether the media’s traffic scale and user groups are of high quality and in line with the advertiser’s needs. In addition, it is necessary to consider the category of these media (such as entertainment), channels (such as TV series), historical data of advertising positions (such as click-through rate), etc. Quantity refers to the media traffic being large enough to ensure sufficient user coverage and meet the advertiser’s budget.

Advertising Area: The ratio of advertising size and the proportion of advertising area on the page are also very important. If the advertising size is too small or the proportion of the entire page is too low, it is difficult to be discovered by users; non-standard size ratios will increase the cost of material production.

Screen Position: The screen position where the advertising position is located determines the probability of the advertisement being seen. The first screen is generally better than the non-first screen, and the effect of the last screen advertisement may be the worst. However, for some pages with high-quality content, the exposure probability of the second screen or even the third screen will also be high.

Step 4: Develop Creative Solutions

The first step in creating creativity is to grasp the form of creativity and the way users interact. The form of creativity refers to what file form the material is presented in, such as images, text, graphics and text, Flash, video, forms, or others. At present, video creativity and post creativity (such as information streams) have the best effects, which are related to the characteristics of the advertising space. The price of such advertising spaces is also a bit higher than that of ordinary advertising spaces.

User interaction refers to the specific operations of users on the material, such as clicking to switch dynamic creativity, filling in registration information on the creativity, expanding the material after clicking on the advertisement, and even submitting information by voice.

In the process of advertising, both the created creativity and the landing page need to undergo A/B testing or multi-version testing, using data to determine which version to adopt in the end. The premise of the test is to keep the test environment and the test volume of multiple versions as consistent as possible.

02 Execution Phase

Step 1: Advertising Preparation

The preparatory work before advertising mainly includes uploading qualifications for review, creating creativity for review, and deploying advertising monitoring, etc.

Qualifications are the necessary proof documents for advertisers to carry out advertising activities (such as business licenses, ICP filing screenshots, organization codes, etc.).

In terms of creativity, traffic parties will also have certain requirements for the effectiveness and legality of the content, so the media needs to review the creativity. Common review scopes include size, sound, etc.

In addition, advertisers generally use third-party monitoring during the advertising process, so there is also the deployment work of monitoring codes, etc. Optimization strategies need to add code in the advertiser’s game promotion page or SDK (or S2S docking), so that the DSP platform can adjust strategies according to different user behavior trajectories.

A good job in the early preparation work does not mean that the ads can be directly placed without manual intervention. Advertising activities should also be gradually increased in multiple stages to ensure the final effect. Programmatic advertising in China can be generally divided into four stages: technical docking test, strategy test, strategy optimization, and stable extension, each with a corresponding time period, and should be flexibly adjusted according to the actual situation of the project.

Technical Docking Test Phase: This phase usually lasts for 1 to 3 days, mainly to check whether the work in the preparation phase runs well, such as whether the statistical monitoring code is deployed correctly, whether S2S docking can correctly return data, etc.

Strategy Test Phase: This phase usually takes 3-7 days to verify whether the media strategy formulated in the advertising strategy is reasonable and whether the media effect has reached the expected level. Based on the test data, corresponding grade divisions are made for different AdX/SSP, different media, different advertising spaces, etc., so as to better allocate the budget in the later stage.

Strategy Optimization Phase: This phase usually lasts for about 1 week to 1 month. On the basis of optimization and adjustment in the early test phase, further optimization of the media is carried out, and the crowd strategy and creative strategy formulated in the advertising strategy are continuously optimized. During the strategy optimization phase, the fluctuation of advertising effects is generally large, which is a normal phenomenon. During this phase, various strategy combinations are usually tried, and the effects of different combinations may vary greatly. The goal of this phase is to quickly screen out the optimal combination of “media + audience group + creativity”, so that the advertising effect reaches a stable change and regular fluctuation trend, such as the effect of the weekend is better than working days, the effect of the evening peak period is better than the daytime, etc.

Stable Extension Phase: This phase is usually more than 1 month according to the brand’s needs. After the stable effect is achieved in the strategy optimization phase, the volume of traffic can be increased according to the budget. Especially in the RTB bidding model, the volume and price of traffic will fluctuate due to the different degrees of market competition, hence the operator needs to be able to find problems in time and take actions.

Step 2: Official Launch

After the qualification and material review are passed, the executor needs to add various advertising campaigns according to the planning plan of the advertising proposal and set up corresponding campaign.

Basic Settings

Bid Setting: Set the upper limit of the price that can be borne, generally in the form of CPM, to control the cost within an acceptable range. Some DSP can support bidding according to CPC or CPA (the algorithm replaces manual dynamic control of CPM bidding).

Budget Control: Set the budget according to the media budget plan provided by the advertiser/advertising agent to avoid excessive consumption. The budget is divided into daily budget, weekly budget, monthly budget, and total budget. Some DSP can also control the level of exposure and the number of clicks, corresponding to daily exposure, total exposure, or daily clicks, total clicks, etc. In addition, there are also settings for budget allocation, such as setting differentiated budgets for different regions, different creatives, etc.

Date and Time: Set the date or time period according to the advertising schedule, or there is no limit. Date and time can be set according to the online habits of the target audience. The date or the daily advertising time period will have an impact on the effect, such as weekends, evening peak periods.

Advertising Speed: The Advertising speed is divided into uniform speed and rapid speed. Some advertisers hope that the advertising budget can be as distributed as possible in each time period or every day, and the activity can be set to “uniform speed”.

Frequency Control: Set the total number of times a specific advertisement is seen by the same user within a set time, or the total number of times a certain advertising material is seen within a set time.

Media Settings

Transaction Model: Select the transaction model, including RTB open bidding, PDB direct purchase, etc.

Ad Exchange: Choose the channel for advertising, such as Baidu Bes, Alibaba Tanx, Tencent AdX, etc.

Media Category/Channel: Select the category of media or a specific channel under a single medium, such as financial, entertainment, sports, and other media categories, or TV drama, movie, technology, sports, and other channels under Youku media.

Media URL: Set specific media root domain names (e.g., qq.com), second-level domains (e.g., news.qq.com), or specific URL addresses.

Placement Size: Choose the placement size and arrange corresponding size materials. Generally, popular ad spaces or commonly used high-quality ad spaces are selected.

Ad Position: Choose the specific ad position, such as WeChat Search Super Brand Zone.

Ad Position Type: Choose the type of ad placement, such as banner, information game, OTV, etc.

Ad Viewability: According to the advertiser’s requirements for viewability, the operators can only target media resources with a viewability higher than a certain value, or conversely, they can exclude media resources with a viewability lower than a certain value and not place ads on this part of the media resources.

Page Ad Slot Quantity: Since the number of ad slots on the page will affect the user experience, it may indirectly cause the user to have a negative impression of the page’s ads. Therefore, when placing ads, you can control the number of ad slots on the page, such as only targeting pages with up to 3 ad slots.

Screen Order: Choose the screen order where the ad space is located, such as the first screen, the second screen, etc. Generally, it is necessary to exclude the bottom of the page such as the tail screen and other positions where users generally cannot see this ad space.

Page Content: Choose to place ads based on designated page keywords, video content direction, such as only placing pages containing baby-related keywords, or only placing workplace drama video ads, and brand can also directly specify TV drama names for directional advertising.

Target Audience Settings

Advertisers can collect people who have seen, clicked on, and visited the official website during the advertising process, and retarget them or use them as the seed segment for look-alike extensions. The target audience may include people with needs, potential needs, and even those who have made purchases, as well as those who are using the product/service or the lost audience.

Creative Settings

Creative and landing page settings: Set up the creative and corresponding landing pages for different advertising campaigns. It should be noted that some AdX will require the landing page to support HTTPS.

Display rules: Set the rules for the order in which the creative is displayed to the same person multiple times. The general rules for the order in which users see the creative are loop rotation, sequential display, etc. For example, if you need to display creative A, B, C to the same user, with a frequency limit of 6 times a week, the order in which a user sees the creative can be AABBCC, ABCABC, etc.

Other Settings

Third-party monitoring: Set the exposure monitoring code and click monitoring code of the third-party monitoring platform.

Brand protection: Select the brand safety supplier that the DSP platform has connected and fill in the corresponding information.

Anti-fraud: Set up to filter fraudulent traffic. Some DSP platforms have anti-fraud mechanisms themselves, but some advertisers will also find third-party anti-fraud suppliers for traffic filtering in order to ensure the effectiveness and reduce waste.

03 Review Phase

Based on the actual feedback data during the advertising period, the brand can summarize the experience and guide subsequent campaigns through comparison, attribution, segmentation, and intersection.

Media optimization: Make the optimal media combination according to the media crowd matching degree, media overlap degree, and media saturation degree. Media matching degree refers to the ratio of the advertiser’s target audience that can be covered in the media; Media overlap degree refers to the ratio of the target audience that overlaps between multiple media; Media saturation degree refers to the ratio of the target audience that has been covered in the media to the total target audience of the media.

Creative Optimization: The match between the ad’s creative and its intended message plays a significant role in determining the effectiveness of an ad campaign. Ad matching refers to how well the creative aligns with the ad’s appeal.

Frequency Adjustment: Identify the optimal frequency by analyzing data from groups exposed to different levels of ad impressions, and establish reasonable frequency capping.

Audience Adjustment: Depending on the scale of the target audience and their conversion outcomes, you can correspondingly increase or decrease the targeting of audience segments.

Viewable Exposure Optimization: Optimize based on data from ad viewability, analyzing visibility metrics across various ad placements, regions, times, and browsers (for instance, visibility might be lower in certain areas or browsers due to differences in audience characteristics or internet connectivity issues). Filter out those with low viewability and fine-tune the advertksk g with various campaign settings to form the best combination.

Measure

Measure

China’s Media Platforms’ Regulatory Guidelines for Advertising Content

Blog

发布时间：2024-07-15   作者：

For advertisers, after navigating through the initial strategy formulation, plan refinement, and qualification review, only to be thwarted by media platforms repeatedly returning advertising materials and even facing penalties and restrictions from the platforms due to non-compliant materials, it’s a loss that no one wants. The following guidelines from China’s top traffic platforms can help brands avoid pitfalls in advance, thus smoothly advancing their deployment plans.对于广告主来说，经过最初的策略制定、方案细化、资质审核后，却被媒体平台屡屡退回广告材料所阻，甚至因材料不合规而面临平台的处罚和限制，这是一种无可挽回的损失。一个想要。以下来自中国顶级流量平台的指引，可以帮助品牌提前规避陷阱，从而顺利推进布局计划。

01 Advertising Must Not Have the Following Circumstances

• Use or indirectly use the national flag, national anthem, national emblem, military flag, military anthem, or military emblem of the People’s Republic of China.

• Use or indirectly use the name or image of state organs or their staff.

• Must not exploit the images of party and state leaders (including various cartoon virtual images), including current, former, or deceased party and state leaders for commercial promotion.

• Impair the dignity or interests of the state, or disclose state secrets.

• Disrupt social stability or harm the public interest of society.

• Endanger personal or property safety, or disclose personal privacy.

• Disrupt public order or violate social ethics.

• Contain obscene, pornographic, gambling, superstitious, terrorist, or violent content.

• Contain content discriminating against ethnicity, race, religion, or gender.

• Impede environmental, natural resource, or cultural heritage protection.

• Other circumstances prohibited by laws or administrative regulations.

02 Advertising Must Not Contain False or Misleading Content, Must Not Deceive or Mislead Consumers

• Advertising should be recognizable, allowing consumers to identify it as such.

• Must not disguise advertising in the form of news reports. Advertisements published through mass media should prominently display “Advertisement” to distinguish from other non-advertising information, preventing consumer misunderstanding.

• Must not deceive or mislead consumers with non-existent goods or services.

• Must not present information about the product’s performance, function, origin, purpose, quality, specifications, ingredients, price, manufacturer, shelf life, sales status, honors received, or promises related to goods or services that do not match the actual situation.

• Must not use fabricated, forged, or unverifiable scientific research results, statistical data, survey results, excerpts, quotes, or other information as proof.

• Must not fabricate the effects of using products or receiving services.

• Apart from the above, must not deceive or mislead consumers with false or misleading content.

03 Prohibition of Using Absolute Phrases Such as “National Level,” “Highest Grade,” “Best,” etc.

Advertising is prohibited from using absolute phrases such as “national level,” “highest grade,” “best,” “top level,” “number one brand,” “elite,” “supreme,” “most popular,” etc. Expressions in the form of “one of the most…” are considered to represent the highest degree of an adjective and are also prohibited in advertising. However, objective statements that meet the following specific conditions can be used:

Objective factual statements, but legal evidence should be provided.

“XX Competition First Place” falls into this category. For example, if an advertiser participates in an authoritative competition or an analysis report issued by an authoritative institution shows their winning rank, such as a design company winning first place in an international competition. If the “national level” title is obtained through legal or administrative authorization (non-authoritative awards without legal or regulatory authorization do not qualify), the standardized name should be allowed for use. Advertisers should provide award certificates, selection results, and other relevant proof documents.

Temporal or spatial order statements, but legal evidence should be provided.

Expressions such as “first model, debut, first release, earliest, exclusive, only” belong to this category. For example, if game company A launches mobile game B for the first time, it can be described as “A’s first mobile game” or “A’s first mobile game.” If advertiser A obtains exclusive authorization for a game, they may use “A’s exclusive release” or “A platform’s first launch” in advertising. Advertisers should provide authorization letters, copyright registration certificates, and other relevant proof documents.

Explicit self-comparison of degree grading.

This refers to the objective existence of different grading quality products in one’s own products, and the use of words to distinguish these grades.

For example: The largest housing model of Company X, the smallest size of Product X, the top configuration model of the X series of cars, the mobile game with the most users of Company X, etc.

Grading recognized by relevant standards in a certain industry field, or grading widely accepted by the public.

For example: In the national standard of Anji white tea, the product is divided into four quality grades: “boutique, special grade, first grade, second grade”. For specific “boutique grade” Anji white tea advertisements called “the highest grade” or “the highest level” usually do not belong to the absolute words prohibited from use. Advertisers need to provide relevant grading basis and grade inspection certificates, and must not promote multiple grades as the highest level at the same time.

Explicitly indicate the business philosophy and pursuit goals of the merchant, and objectively there is no possibility of misleading.

“Customer first, strive for perfect quality” and so on belong to this category. Such expressions must not lead consumers to think that the advertiser’s products and services are “first” or “perfect”, that is, they must not lead consumers to link the advertiser’s business philosophy or pursuit goals with the quality of products and services.

04 Standards for Data and Material Citation

Any content cited in advertising is considered part of the advertising content itself. Therefore, the expression of cited content must also comply with the relevant regulations of the Advertising Law, and the review standards for the expression of cited content are consistent with the general advertising content review standards. When using data, statistical materials, survey results, excerpts, quotes, and other cited content in advertising, it must be true, accurate, and indicate the source. If the cited content has an applicable scope and a validity period, it should be clearly stated. The following are prohibited for cited materials:

• Cited materials must not involve the highest level of expression, national level expression, and other content that violates the relevant provisions of the Advertising Law.

• Cited materials must not involve obviously false propaganda content.

• Cited materials should be consistent with the original content and must not be fabricated, switched, or exaggerated. They must not engage in taking things out of context, concealing facts, distorting the original meaning, or causing misunderstandings among the audience.

• It is forbidden to use consumer evaluations, beneficiary images, and other related comments from individual natural persons or users as cited materials.

05 Standards for Patent Expression in Advertising

• When using patented products or patent methods in advertising, the patent number and type should be indicated.

• Those who have not obtained patent rights must not falsely claim to have obtained patent rights in advertising.

• It is forbidden to use patent applications that have not been granted and patents that have been terminated, revoked, or invalidated for advertising.

06 Regarding the Use of Names, Images, Copyright, and Trademarks

• Utilizing the name or image of another party (including individuals, enterprises, and other organizations) in advertising requires prior written consent; for those without or limited civil conduct capacity, consent must be obtained from their guardians. Proof of authorization must be provided for such use.

• Unauthorized use of others’ works and trademarks is prohibited; consent and proof of authorization are mandatory when needed.

• According to the “Trademark Law of the People’s Republic of China,” producers and operators are prohibited from using the term “well-known trademark” on products, packaging, containers, or in advertising, exhibitions, and other commercial activities; the term must not appear in advertisements.

07 Compliance with Advertising Endorsement Rules

An advertising endorser is a natural person, legal entity, or other organization that recommends or certifies goods or services in their own name or image, apart from the advertiser. The following rules must be observed when using an endorser in advertising:

• Endorsements must be based on facts, comply with relevant laws and regulations, and must not endorse goods or services that the endorser has not used or received.

• Minors under ten years of age may not be used as advertising endorsers. When using minors, verify their age (under ten is prohibited) and obtain authorization from the minor and their legal guardians.

• The names or images of medical institutions or doctors must not be used in food advertising. Expert or consumer names or images must not be used to certify specific effects in food advertising.

• Investment-expected goods or services, education, and training advertisements must not use the names or images of research institutions, academic bodies, educational institutions, industry associations, professionals, or beneficiaries for recommendations or certifications.

• Medical, pharmaceutical, medical device, and health food advertisements must not utilize endorsers for recommendations or certifications.

• Advertisements for pesticides, veterinary drugs, feed, feed additives, crop seeds, forest seeds, grass seeds, breeding livestock, and aquaculture must not use the names or images of research institutions, academic bodies, technology promotion organizations, industry associations, or professionals, or users for recommendations or certifications.

• Natural persons, legal entities, or other organizations that have received administrative penalties for endorsements in false advertisements within the past three years must not be used as endorsers.

08 Protection Regulations for Minors

Advertisements for goods or services targeting minors under fourteen years of age must not contain the following: 

• Encouraging them to demand that their parents purchase the advertised goods or services. 

• Content that may prompt imitation of unsafe behaviors.

• Mass media targeting minors must not publish advertisements for medical treatment, drugs, health foods, medical devices, cosmetics, alcohol, beauty products, or online games detrimental to the physical and mental health of minors.

09 Prohibition of Disparaging Other Producers’ Goods or Services

• Advertisements must not fabricate or invent facts to defame or belittle others’ products or services.

• Advertisements must not indirectly belittle others’ products or services by claiming superiority in quality, price, etc.

10 Standardization and Regulation of Advertising Language

• Pinyin must not be used in isolation in advertisements; when used, it should be correct, standardized, and appear alongside standardized Chinese characters.

• The use of numbers, punctuation, measurement units, etc., in advertisements must comply with national standards and regulations.

• Foreign languages must not be used in isolation in advertisements; when necessary, they should complement Mandarin and standardized Chinese characters.

• The use of idioms in advertisements must adhere to national regulations and must not mislead or negatively impact society.

• Handwritten fonts, artistic fonts, variant characters, and ancient scripts used in advertisements for creative purposes must be recognizable and must not mislead.

The following are prohibited in advertising language and script:

• The use of incorrect characters.

• The use of traditional characters in violation of national laws and regulations.

• The use of obsolete variant and simplified characters.

• The use of obsolete print character forms.

• Other non-standard uses of language and script.

11 Respect for Heroes and Martyrs

• Commercial advertisements must not use or indirectly use the names or portraits of heroes and martyrs.

• Commercial advertisements must not feature the Monument to the People’s Heroes in Tiananmen Square, Beijing, or any related names, inscriptions, texts, reliefs, graphics, or logos.

• Images or videos depicting activities that harm the environment or atmosphere of memorial facilities for heroes and martyrs are prohibited.

• No promotion or glorification of aggressive wars or acts of aggression is allowed.

12 Miscellaneous

• The maximum value of the top prize in lottery-style promotional sales must not exceed 50,000 yuan.

• The depiction of the RMB is prohibited in advertisements.

• Content implying “national inspection-exempt products” or similar regarding quality exemption is prohibited.

• Advertisements are banned from featuring tobacco, smoking images, including real and cartoon characters, and the promotion of cigarettes and e-cigarettes is forbidden.

• Advertisements must not be disguised as news reports.

• Advertisements must not contain content such as “special supply” or “exclusive supply” to state organs, with specific requirements as follows:

• Content containing “special supply” or “exclusive supply” to state organs or similar.

• Using names of specific locations or landmark buildings closely associated with state organs, and using state banquets, state guests, etc., to promote “special supply” or “exclusive supply.”

• Falsely using “special supply,” “exclusive supply,” or similar names to sell goods or services, engaging in misleading false propaganda.

• Other content containing “special supply,” “exclusive supply” to state organs, and similar, which may cause adverse social impact.

• Except for the above, if a product is specially made by the manufacturer for a specific region or event (such as special packaging, models), it can be used, such as “exclusively supplied to Hangzhou area.”

Measure

Measure

Interpretation of Advertising Monitoring Indicators in China

Blog

发布时间：2024-07-29   作者：

Advertising effectiveness monitoring indicators are crucial for advertisers to determine the effectiveness of advertisements and how to optimize them. The commonly used advertising monitoring indicators by Chinese advertisers mainly include four major categories: traffic indicators, interaction indicators, conversion indicators, and cost indicators.

Traffic Indicators

Ad Impressions

The total number of times an advertisement is displayed on a specific website within a designated time period. High exposure means the advertisement has a wide reach, but it is also important to avoid ineffective exposures. This indicator cannot measure whether users have actually seen the advertisement, as it can be affected by factors such as page scroll speed, which affects the visibility of the advertisement.

Unique Impressions

Unique impressions refer to the number of exposures after excluding multiple exposures by the same user, which is mainly achieved by excluding duplicate cookies.

Calculating the ratio of ad impressions to unique impressions (Impression/Unique Impression) is one of the simple ways to identify ad fraud. A high ratio indicates that some users are repeatedly visiting in large numbers, suggesting that the website may have abnormal traffic and is suspected of having machine-generated traffic.

Viewable Impressions

Viewable impressions are based on the visibility of the advertisement. The IAB (Interactive Advertising Bureau) stipulates: For PC-side image advertisements, 50% of the pixels are displayed for more than 1 second, and for PC-side video advertisements, 50% of the pixels are displayed for more than 2 seconds, which can be considered viewable impressions. Additionally, for larger ad formats, 30% of the pixels displayed for more than 1 second can be considered 1 viewable impression.

The internet advertising pricing model related to this indicator is CPMv (cost per mille viewable impression), which is the cost for a thousand viewable impressions. The new CPM selling method used by Tencent mentioned earlier is CPMv. This selling method excludes data for advertisements that have not been actually watched, which can ensure the fairness, authenticity, and effectiveness of advertising transactions to a certain extent, help advertisers improve advertising effectiveness, save advertising budgets wasted on poor media resources or content, and improve ROI, thus being welcomed by advertisers.

Clicks

Clicks are the metrics used to measure user behavior after ad exposure. Clicks are the key actions that link front-end advertisements with back-end landing pages, reflecting the audience’s interest in the advertisement. Factors affecting clicks include two aspects: first, the accuracy of ad placement, and second, the quality of ad creativity.

Click-Through Rate (CTR)

The ratio of clicks to impressions (Click/Impression), the click-through rate allows for a horizontal comparison of the effectiveness of different advertisements and is the most direct and persuasive quantitative indicator reflecting the effectiveness of online advertising. Factors affecting the click-through rate include: the number of impressions, which only becomes relatively stable after reaching a certain quantity, objectively reflecting the effectiveness of the advertisement; the accuracy of ad placement, the higher the proportion of the target consumer group reached, the higher the click-through rate; the attractiveness of ad creativity, the stronger the visual impact and the more attractive the content, the higher the click-through rate.

Page Views (PV)

Page views are a commonly used indicator for website traffic statistics. A request from the user’s end to open a page is considered one page view. Page views are one of the commonly used traffic indicators for monitoring ad landing pages. To a certain extent, they can reflect the degree to which the interests and desires of the ad audience are stimulated and can reflect a certain advertising effect.

Visits

Visits are commonly used in website traffic analysis to describe a series of user behaviors within a certain period of time or in the process of achieving a certain goal. The mainstream view is that visits refer to the number of times users visit a website.

Visits can be used for the calculation of CPV (Cost Per Visit), which is the cost per visit. In practical applications, it is rarely used as a billing method in settlements between media and advertisers, but rather as an indicator for advertisers to measure the ROI of marketing activities.

Unique Visitors (UV)

Unique visitors are used to measure the number of website visitors. According to the “China Mobile Internet Advertising Standards,” a device visiting a website within a specified time period is counted as one visitor, and the same device will only be counted once within the specified time period.

Compared with other traffic indicators, unique visitors are centered on a user as a measure, which can help advertisers more accurately identify the audience affected by advertising activities, and can also be used to identify simple traffic fraud. Unique visitors can be used for CPUV (Cost Per Unique Visitor), which is the cost per unique visitor. However, like CPV, it is often not used as a billing method in advertising transactions between advertisers and media, but rather as an ROI indicator set by advertisers according to the goals of the advertising campaign.

Interaction Indicators

Traffic indicators describe the arrival of users for advertisements and landing pages, while interaction indicators describe the depth of user participation. Compared with traffic indicators, the standardization of interaction indicators is relatively low.

Bounce Rate

Bounce rate refers to the ratio of users who, after clicking on an advertisement and entering the advertiser’s promoted page, do not generate further clicks and choose to leave directly. In internet marketing, the bounce rate can be used to measure the quality of external traffic and the attractiveness of website content to the audience. The higher the quality of external traffic and the more accurate the front-end advertising, the more target users can be attracted, and the lower the bounce rate of users after entering the website.

2nd-Click Rate

When a first-level website page is clicked and opened, any additional clicks generated by the user on the page are called “2nd-clicks,” and the number of 2nd-clicks is referred to as “2nd-click volume.” The ratio of “2nd-click volume” to page views is called the page’s “2nd-click rate.”

Visit Depth (PV/V)

Visit depth (PV/V) is an average number, referring to the number of times a specific web page is exposed to a visitor during a single visit, calculated as page views divided by visits. The higher the visit depth, the more pages a visitor browses in one visit, the more information they get, and the greater the value of these visits to advertisers.

Visit Duration

Visit duration (Time on Site) is also an average number, a measure of the length of visits, specifically the average time spent per visit, calculated as total visit time divided by visits. Theoretically, the longer the visit duration, the better the interactive effect of the advertisement.

Conversion Indicators

Conversion indicators are the most valuable category of indicators for businesses as they directly reflect the benefits that advertising activities bring to the enterprise, and thus are increasingly valued by advertisers.

Photo by Oliur on Unsplash

Conversion rate refers to the ratio of the number of times users complete specific actions (such as purchases, registrations, etc.) to the number of clicks, and is a key indicator for evaluating the effectiveness of advertisements. Specific actions for conversion include:

Sales-related conversion indicators

Offline: The number of store visits

Online: The number of orders placed and purchases completed

App-related conversion indicators

Downloads

Active users

Registrations Users

Retention

In-app purchases

Cost Indicators

Cost Per Thousand Impressions (CPM)

Refers to the cost per thousand impressions when advertising is placed, reflecting the cost of advertising placement.

Cost Per Click (CPC)

Refers to the cost per click when advertising is placed, reflecting the cost of advertising placement.

Cost Per Conversion (CPA)

Refers to the cost per conversion action when advertising is placed, reflecting the cost of advertising placement.

Advertising Monitoring Fields

The following are fields involved in the advertising monitoring process in China, covering data from multiple aspects such as users, devices, advertising activities, geographic locations, and network environments. Through the analysis of these data, advertisers can comprehensively understand the display, click-through, and conversion effects of advertisements, optimize advertising placement strategies, and improve the ROI (Return on Investment) of advertisements.

Field Name	Data Format	Meaning	Value
user_id	string	Unique identifier for the user	Used to distinguish different users
user_id_type	string	Type of user identifier, such as device ID, email	Helps to understand the source of user_id
req_time	bigint	Request time, records the timestamp of the user’s ad request	Used to analyze user behavior and ad display timeliness
ip	string	User’s IP address	Used for geographical analysis and user identity verification
cookie	string	Cookie data from the user’s browser	Used to track user’s online activities and ad effectiveness
source	string	Traffic source	Identifies the channel or platform the ad traffic comes from
campaign_id	string	Unique identifier for the ad campaign	Used to distinguish and analyze different ad campaigns
order_id	string	Order ID	Used to track transactions and conversions related to the ad
url	string	Target URL of the ad display or click	Used to analyze ad effectiveness and user behavior
os	string	Operating system information of the user’s device	Used for device and platform compatibility analysis
ad_ip	string	IP address of the ad server	Used to track the source of ad requests
idfa	string	Advertising identifier for iOS devices	Used for mobile ad tracking
idfa_md5	string	MD5 encrypted form of IDFA	Used for privacy protection and data matching
idfa_sha1	string	SHA1 encrypted form of IDFA	Used for privacy protection and data matching
imei	string	International Mobile Equipment Identity for Android devices	Used for device identification
imei_md5	string	MD5 encrypted form of IMEI	Used for privacy protection and data matching
imei_sha1	string	SHA1 encrypted form of IMEI	Used for privacy protection and data matching
android_id	string	Unique identifier for Android devices	Used for device identification
android_id_md5	string	MD5 encrypted form of Android ID	Used for privacy protection and data matching
android_id_sha1	string	SHA1 encrypted form of Android ID	Used for privacy protection and data matching
mac_md5	string	MD5 encrypted form of device MAC address	Used for device identification and privacy protection
android_advertising_id	string	Advertising identifier for Android devices	Used for ad tracking
ad_timestamp	bigint	Timestamp of the ad event	Used to accurately record the time of ad display and click
oaid	string	Open Advertising Identifier	Used to replace traditional device identifiers and enhance privacy protection
callback_url	string	Callback URL	Used for server-to-server notifications and data transmission after ad click
user_agent	string	User agent string of the user’s browser	Used to identify device and browser information
brand	string	Device brand information	Used for market analysis and device performance evaluation
network_type	string	Network type, such as WiFi, 4G	Used to analyze the network environment of the ad display
csite	string	Content site	Identifies the specific site or app location where the ad is displayed
stype	string	Ad type, such as display ad, video ad, etc.	Used for categorization and effectiveness analysis
extend	string	Extension field	Used for storing other custom data
open_udid	string	Open Unique Device Identifier	Used for device identification and ad tracking
plan_id	string	Ad plan ID	Used to distinguish and manage different ad plans
platform	string	Ad serving platform, such as mobile, PC, etc.	Used to distinguish the platform where the ad is served
publisher_id	string	Publisher ID	Used to distinguish different ad publishers
adzone_type	string	Type of ad placement, e.g., banner ads, interstitial ads	Used for classification and performance analysis
adzone_id	string	Ad placement ID to distinguish different ad display positions	Used to distinguish different ad display positions
province_id	string	Province ID for geographical analysis	Used for geographical analysis
city_id	string	City ID for geographical analysis	Used for geographical analysis
county_id	string	County ID for more detailed geographical analysis	Used for more detailed geographical analysis
traffic_type	string	Type of traffic, e.g., organic traffic, paid traffic	Used for traffic quality analysis
adx_id	string	Ad Exchange Platform ID	Used to distinguish and manage different ad exchange platforms.
app_package	string	App Package Name	Used for identifying and analyzing different mobile applications
main_domain	string	Main Domain	Used for analyzing the domain source of ad display
num	int	Number of Ad Requests	Used for statistics and analysis of ad request volume
log_type	string	Log Type, such as display log, click log, etc.	Used for classification and analysis
sub_customer_id	string	Sub-Customer ID	Used for multi-level customer management and analysis
session_id	string	Session ID	Used for tracking a user’s single visit behavior
order_type	string	Order Type, such as purchase, registration, etc.	Used for conversion analysis.
creative_id	string	Creative ID	Used to distinguish and manage different ad creatives
app_id	string	App ID	Used for identifying and analyzing different mobile applications
app_name	string	App Name	Used for identifying and analyzing different mobile applications
ref_url	string	Reference URL	Used for analyzing traffic sources
creative_type	string	Creative Type, such as images, videos, etc.	Used for classification and performance analysis
id	string	General ID	Used to identify the uniqueness of the record
ad_id	string	Ad ID	Used to distinguish and manage different ads
customer_id	string	Customer ID	Used to distinguish and manage different ad customers
device_name	string	Device Name	Used for device identification and analysis
browser_name	string	Browser Name	Used for identifying the browser used by the user
bizdate	string	Business Date	Used for statistics and analysis by date
bizhour	string	Business Hour	Used for statistics and analysis by hour
data_source	string	Data Source	Used to distinguish and analyze different data collection channels

In the area of advertising monitoring, some fields may be more commonly seen in the Chinese internet environment, mainly due to China’s unique advertising technology standards, device identifiers, and certain characteristics of some application markets:

oaid: Open Advertising Identifier, a device identifier introduced by Chinese device manufacturers to replace traditional identifiers and enhance privacy protection.

android_id: In China, many devices and advertising networks rely on this identifier.

open_udid: Open Unique Device Identifier, which is quite common on some Chinese advertising platforms and applications.

mac_md5: Although used globally, in the Chinese market, this field is often used for device identification.

imei, imei_md5, imei_sha1: IMEI is globally universal, but in China, especially in early advertising monitoring, it is common to see the use of IMEI and its encrypted forms.

idfa, idfa_md5, idfa_sha1: Although IDFA is a global standard for Apple devices, it is also frequently used in iOS advertising tracking in China.

ad_timestamp: The timestamp of the advertising event, universally used globally, but the format and specific implementation may vary by region.

app_package: The application package name, used to identify applications in China’s unique app markets.

app_name: The application name, which often appears in Chinese advertising monitoring to identify specific applications.

province_id, city_id, county_id: These geographical location identifiers are especially common in Chinese advertising monitoring, used for fine-grained regional analysis.

bizdate, bizhour: Fields used for statistics by date and hour, frequently used in Chinese advertising reports and analysis.

adzone_id, adzone_type: The type and ID of the advertising space, these fields are very common on Chinese advertising platforms for ad space management and analysis.

How to Read Advertising Monitoring Reports

Compare Data

Compare data from different time periods, platforms, and ad formats to identify areas of excellent performance and areas that need improvement.

Pay Attention to Trends

Observe the trends in data changes to predict future development trends, providing a basis for adjusting advertising strategies.

Deep Dive

For data that performs poorly, delve deeper into the underlying reasons, such as whether the advertising content, target audience, and placement platform are appropriate.

How to Use Advertising Monitoring Data to Optimize Advertising Strategies

Adjust Advertising Content

Based on user feedback and data analysis, optimize advertising copy, images, videos, and other elements to improve the attractiveness and conversion rate of advertisements.

Precisely Target the Audience

Understand the interests, needs, and behavioral habits of the target audience through data analysis to formulate more precise advertising placement strategies.

Optimize Placement Platforms and Timing

Choose more suitable advertisingplatforms and time slots based on data performance to increase the exposure and click-through rate of advertisements.

Control Advertising Budget

Allocate the advertising budget reasonably according to ROI and advertising effects to ensure the maximization of the input-output ratio.

Advertising monitoring reports are not only a set of data reports but also a valuable marketing guide. By deeply analyzing advertising monitoring data, we can better understand the performance of advertising activities, identify optimization space, and enhance advertising effectiveness.

Measure

Measure

In the rapidly evolving digital landscape of China, a mobile-first approach is not just an option but a necessity for foreign companies aiming to capture the market’s immense potential. With over 900 million internet users, of which a vast majority access the web through mobile devices, understanding and leveraging China’s mobile-first environment is crucial for effective localized marketing. This article explores the strategies foreign companies can adopt to navigate the Chinese market successfully by harnessing the power of mobile technology.

Understanding the Mobile-First Ecosystem in China

1. Mobile Usage Statistics and Trends

China is one of the most mobile-centric countries in the world. The statistics speak volumes about the importance of mobile in China:

• High Mobile Penetration: Over 99% of internet users in China access the web via mobile devices.

• Mobile Payments Dominance: Mobile payment platforms like Alipay and WeChat Pay dominate the market, making cashless transactions a norm.

• App Usage: Chinese users spend a significant amount of time on mobile apps, especially super-apps like WeChat, which combine multiple services into one platform.

2. Key Mobile Platforms

Several key mobile platforms dominate the Chinese digital ecosystem:

• WeChat: A super-app that combines messaging, social media, mobile payment, e-commerce, and more. It’s essential for both personal and business use.

• Alipay: Initially a mobile payment platform, Alipay has evolved into a lifestyle app offering a wide range of services.

• Douyin (TikTok): The Chinese version of TikTok, popular for short-form video content and live streaming.

• Weibo: A microblogging platform similar to Twitter, used widely for sharing updates, news, and marketing.

• Xiaohongshu (Little Red Book): A social commerce platform known for user-generated content, reviews, and e-commerce, especially in the beauty and fashion sectors.

Strategies for Leveraging the Mobile-First Advantage

1. Mobile-Optimized Website and App Development

To succeed in China, foreign companies must ensure their websites and apps are optimized for mobile use:

• Responsive Design: Ensure websites are mobile-responsive, providing a seamless experience across all devices.

• Localization: Adapt the website and app content to Chinese language and culture. This includes translation and cultural customization.

• Speed and Performance: Optimize website and app loading speeds. Chinese users expect fast and efficient digital experiences.

• Integration with Local Services: Integrate with local mobile payment options like Alipay and WeChat Pay to facilitate smooth transactions.

2. Leveraging Super-Apps

Super-apps like WeChat and Alipay offer a one-stop solution for a wide range of services. Foreign companies can leverage these platforms to enhance their reach and engagement:

• WeChat Official Accounts: Create an official WeChat account to interact with users, share content, and offer customer service.

• Mini Programs: Develop WeChat mini programs – lightweight apps within WeChat – to provide additional services without requiring users to download a separate app.

• WeChat Pay and Alipay Integration: Facilitate transactions by integrating WeChat Pay and Alipay, making it easy for users to make purchases directly within the app.

3. Social Media and Content Marketing

Social media platforms are pivotal for reaching and engaging Chinese consumers. Tailoring content to the preferences and behaviors of Chinese users is crucial:

• Localized Content: Create content that resonates with local culture and trends. Utilize Chinese festivals, pop culture references, and local events to engage users.

• KOL Collaborations: Partner with Key Opinion Leaders (KOLs) to leverage their influence and reach. KOL endorsements can significantly boost brand credibility and visibility.

• User-Generated Content: Encourage users to create and share content related to your brand. Platforms like Xiaohongshu thrive on authentic user reviews and recommendations.

• Interactive Campaigns: Use interactive content such as live streaming, polls, and challenges to engage users. Douyin and Weibo are excellent platforms for such campaigns.

4. Mobile Advertising

Mobile advertising is a powerful tool to reach a broad audience in China. Adapting your advertising strategy to fit the mobile-first landscape can enhance effectiveness:

• In-App Advertising: Utilize in-app advertisements on popular platforms like WeChat, Douyin, and Weibo. These ads can be highly targeted based on user data.

• Programmatic Advertising: Leverage programmatic advertising to reach specific audiences through automated, real-time bidding processes.

• Video Ads: Short video ads are particularly effective on platforms like Douyin. Create engaging and visually appealing video content to capture attention.

5. E-commerce Integration

E-commerce is a significant part of the Chinese digital ecosystem, with platforms like Tmall, JD.com, and Pinduoduo leading the market. Integrating your mobile strategy with these e-commerce platforms is essential:

• Tmall and JD.com Stores: Set up official stores on major e-commerce platforms to reach a large audience. These platforms offer robust infrastructure and logistics support.

• Social Commerce: Utilize social commerce features on platforms like Xiaohongshu, where users can directly purchase products recommended by influencers.

• Live Streaming Commerce: Engage in live streaming commerce on platforms like Taobao Live, where influencers demonstrate and sell products in real-time.

6. Data-Driven Decision Making

Leveraging data analytics is crucial for optimizing mobile marketing strategies. Utilize data to understand user behavior, preferences, and trends:

• User Insights: Analyze data from mobile interactions to gain insights into user preferences and behavior. This can inform content creation, product development, and marketing strategies.

• Personalization: Use data to personalize marketing messages and offers. Tailored content and promotions can significantly enhance user engagement and conversion rates.

• Performance Metrics: Track key performance metrics such as engagement rates, conversion rates, and return on investment (ROI) to assess the effectiveness of your mobile marketing efforts.

Challenges and Considerations

While the opportunities are immense, foreign companies must also navigate several challenges in the Chinese market:

1. Regulatory Environment

China has strict regulations regarding internet content and data privacy. Companies must ensure compliance with local laws, including content censorship and data protection regulations.

2. Competition

The Chinese market is highly competitive, with numerous local and international players vying for consumer attention. Differentiating your brand and offering unique value propositions is essential.

3. Cultural Differences

Understanding and respecting cultural differences is crucial for success. This includes adapting marketing messages to local customs, preferences, and sensitivities.

4. Technology and Infrastructure

Investing in the right technology and infrastructure is essential for delivering a seamless mobile experience. This includes mobile app development, payment integration, and customer support.

Case Studies: Success Stories

1. Starbucks

Starbucks has successfully localized its mobile strategy in China by leveraging WeChat. The company launched a social gifting feature on WeChat, allowing users to send digital gift cards to friends. This initiative capitalized on the social nature of WeChat and integrated seamlessly with the platform’s mobile payment system. Additionally, Starbucks uses WeChat mini programs to offer personalized promotions and enhance customer engagement.

2. Nike

Nike has effectively utilized Douyin for its mobile marketing strategy. The brand launched interactive challenges and campaigns on the platform, encouraging users to create and share content related to fitness and sports. This approach not only increased brand visibility but also fostered a sense of community among users. Nike’s use of short-form video content and influencer partnerships on Douyin has been particularly successful in engaging younger audiences.

3. Burberry

Burberry has embraced WeChat’s full potential by creating an immersive brand experience. The luxury brand uses WeChat mini programs to offer personalized shopping experiences, virtual try-ons, and exclusive content. Burberry’s integration with WeChat Pay ensures a seamless shopping process, while its use of interactive content and social features on WeChat enhances customer engagement and loyalty.

Conclusion

The mobile-first landscape in China offers foreign companies unparalleled opportunities to connect with a vast and digitally savvy consumer base. By adopting a mobile-optimized approach, leveraging key platforms, creating localized and engaging content, and utilizing data-driven strategies, foreign companies can effectively navigate the Chinese market and achieve marketing success.

Understanding the unique dynamics of China’s mobile ecosystem, investing in the right technology and infrastructure, and staying attuned to local regulations and cultural nuances are crucial for sustained success. As the digital landscape continues to evolve, foreign companies that adapt and innovate in their mobile marketing strategies will be well-positioned to thrive in the competitive and lucrative Chinese market.

Expanding a business into China, one of the world’s largest and most dynamic markets, presents a multitude of opportunities and challenges. To succeed in this competitive landscape, it is crucial to understand the digital advertising ecosystem, particularly the role of local Demand-Side Platform (DSP) providers. This article delves into the strategies and best practices for leveraging Chinese DSP providers to effectively penetrate and thrive in the Chinese market.

Selecting the Right DSP Provider

Choosing the right DSP provider is a critical step in your digital marketing strategy in China. Here are key factors to consider:

1. Integration with Local Platforms

Ensure the DSP provider has strong integration capabilities with major Chinese platforms such as WeChat, Weibo, Douyin (TikTok), and popular e-commerce sites. This will enable comprehensive reach and effective targeting across various consumer touchpoints.

2. Data and Analytics

Access to high-quality data is essential for effective ad targeting and campaign optimization. Evaluate the DSP provider’s data sources, analytics capabilities, and the depth of consumer insights they can offer.

3. Compliance and Regulation

Navigating the regulatory landscape in China can be complex. Partnering with a DSP provider that is well-versed in local regulations and has a good relationship with regulatory bodies can help ensure compliance and mitigate risks.

4. Customization and Flexibility

Each business has unique advertising needs. Look for DSP providers that offer customizable solutions and flexible campaign management options to meet your specific requirements.

Best Practices for Leveraging Chinese DSP Providers

Once you have selected a suitable DSP provider, implementing best practices will maximize the effectiveness of your digital advertising campaigns.

1. Localized Content

Chinese consumers respond better to content that resonates with their cultural values and preferences. Ensure that your ad creatives, messaging, and overall campaign strategy are localized to reflect the tastes and behaviors of the Chinese audience.

2. Mobile-First Approach

China is a mobile-centric market, with the majority of internet users accessing content via mobile devices. Design your campaigns with a mobile-first approach, optimizing ad formats and user experiences for mobile consumption.

3. Utilize Advanced Targeting

Leverage the advanced targeting capabilities offered by local DSP providers. These can include geographic targeting, demographic targeting, interest-based targeting, and retargeting to reach the most relevant audiences.

4. Optimize for E-Commerce Platforms

Given the dominance of e-commerce in China, integrating your advertising efforts with major e-commerce platforms like Alibaba’s Tmall and JD.com can drive better conversion rates. Utilize DSP features that allow you to target users based on their shopping behavior and preferences.

5. Monitor and Adapt in Real-Time

The Chinese market is highly dynamic, with consumer trends and behaviors changing rapidly. Use the real-time analytics and reporting features provided by your DSP to monitor campaign performance and make data-driven adjustments on the fly.

6. Engage with Influencers and KOLs

Key Opinion Leaders (KOLs) and influencers play a significant role in shaping consumer opinions in China. Collaborate with relevant KOLs to amplify your brand message and increase campaign reach and engagement.

Case Study: Successful DSP Utilization in China

To illustrate the effectiveness of leveraging local DSP providers, let’s consider the case of a global fashion brand entering the Chinese market.

Objective: Establish a strong brand presence and drive sales through digital channels.

Strategy:

1. DSP Selection: The brand partnered with YOYI, known for its robust data analytics and strong integration with major social and e-commerce platforms.

2. Localized Campaign: Created ad creatives tailored to Chinese cultural themes and local fashion trends.

3. Mobile-First: Designed mobile-friendly ad formats to ensure a seamless user experience on smartphones.

4. Advanced Targeting: Utilized iPinYou’s targeting capabilities to reach fashion-conscious consumers based on demographics, interests, and past purchase behavior.

5. E-Commerce Integration: Integrated ads with Tmall and JD.com, directing traffic to their flagship stores on these platforms.

6. Influencer Collaboration: Partnered with popular fashion influencers to promote the brand through social media campaigns and live-streaming events.

Results:

• Increased Brand Awareness: The campaign achieved a significant increase in brand visibility and recognition among the target audience.

• Higher Engagement: Mobile-optimized ads and influencer partnerships drove high levels of engagement and interaction.

• Improved Sales: Integration with e-commerce platforms resulted in a substantial boost in online sales, with a notable increase in conversion rates.

Conclusion

Expanding into the Chinese market requires a nuanced approach to digital advertising. By leveraging local DSP providers, businesses can effectively navigate the unique landscape, capitalize on advanced targeting capabilities, and ensure compliance with local regulations. Through strategic selection and implementation of DSP services, coupled with best practices such as localized content, a mobile-first approach, and influencer collaborations, businesses can successfully establish and grow their presence in China’s vibrant digital ecosystem.

In the ever-evolving landscape of digital marketing, China presents a unique environment where traditional advertising methods often take a backseat to the influence of Key Opinion Leaders (KOLs). KOLs, who are highly influential individuals with significant followings on social media platforms, play a crucial role in shaping consumer behavior and driving marketing success in China. This article delves into the significance of KOLs in Chinese marketing, their influence on consumer behavior, strategies for effective KOL collaborations, and the future of KOL marketing.

Understanding Key Opinion Leaders (KOLs)

Key Opinion Leaders, commonly known as KOLs, are individuals who have established credibility in a specific industry or field and possess a substantial online following. They can be celebrities, bloggers, industry experts, or even ordinary people who have gained influence through their expertise, charisma, or engaging content. In China, KOLs are particularly powerful due to the high trust and loyalty that followers place in them.

1. Platforms for KOLs

Several social media platforms in China serve as the primary channels for KOLs to engage with their followers:

• Weibo: Often compared to Twitter, Weibo is a microblogging platform where KOLs share updates, opinions, and promotional content. It’s a popular platform for celebrities and public figures.

• WeChat: As a super-app that combines messaging, social media, and payment services, WeChat is a versatile platform for KOLs. They use WeChat Official Accounts and mini-programs to engage with their audience.

• Douyin (TikTok): Known for short-form videos, Douyin is an ideal platform for KOLs to create engaging and viral content. It’s particularly popular among younger audiences.

• Xiaohongshu (Little Red Book): Combining social media and e-commerce, Xiaohongshu is popular among young consumers, especially for beauty, fashion, and lifestyle products. KOLs on Xiaohongshu often influence purchasing decisions through detailed product reviews and recommendations.

• Bilibili: Known for its focus on anime, comics, and gaming, Bilibili is a video-sharing platform where KOLs share content related to entertainment and pop culture.

The Influence of KOLs on Consumer Behavior

KOLs wield significant influence over consumer behavior in China. Their ability to shape opinions, drive trends, and inspire purchases stems from several key factors:

1. Trust and Credibility

Chinese consumers place a high level of trust in KOLs, often viewing them as more credible and relatable than traditional celebrities or brand advertisements. This trust is built on the perceived authenticity and expertise of the KOLs, who provide honest reviews and recommendations.

2. Personal Connection

KOLs often establish a personal connection with their followers through regular interactions and engaging content. This relationship creates a sense of community and loyalty, making followers more receptive to the KOLs’ recommendations.

3. Trendsetting

KOLs are trendsetters who influence fashion, beauty, technology, and lifestyle trends. Their endorsements can propel products to instant popularity and drive significant sales. For example, a beauty product recommended by a popular beauty influencer on Xiaohongshu can quickly sell out due to the influencer’s authority in the beauty community.

4. Social Proof

The concept of social proof plays a crucial role in KOL marketing. When followers see their trusted KOL using or endorsing a product, they are more likely to believe in its quality and effectiveness, leading to increased interest and purchases.

Strategies for Effective KOL Collaborations

To harness the power of KOLs effectively, brands must adopt strategic approaches to collaboration. Here are key strategies for successful KOL partnerships:

1. Identifying the Right KOLs

Choosing the right KOLs is critical for the success of any campaign. Brands should consider several factors when selecting KOLs:

• Relevance: The KOL’s niche and audience should align with the brand’s target market and product category. For instance, a skincare brand should collaborate with beauty influencers rather than gaming influencers.

• Engagement: A KOL’s engagement rate is more important than their follower count. High engagement indicates an active and interested audience, which is more likely to respond positively to promotions.

• Authenticity: Authenticity is key to building trust. Brands should look for KOLs who genuinely use and endorse products, rather than those who promote products indiscriminately for money.

2. Building Long-Term Relationships

Long-term collaborations are more effective than one-off promotions. Building a long-term relationship with a KOL allows for deeper integration of the brand into the KOL’s content, creating more authentic and convincing endorsements.

• Consistency: Regular mentions and features of the brand in the KOL’s content help build familiarity and trust among followers.

• Exclusive Partnerships: Consider exclusive partnerships where the KOL becomes a brand ambassador. This exclusivity can enhance credibility and brand loyalty.

3. Co-Creating Content

Co-creating content with KOLs ensures that the promotional material is authentic and aligns with the KOL’s style. This approach can include:

• Product Reviews: Detailed reviews and demonstrations of the product by the KOL.

• Behind-the-Scenes Content: Sharing the process of product creation or the KOL’s experience with the brand.

• Interactive Campaigns: Engaging followers through challenges, live streams, or Q&A sessions with the KOL.

4. Leveraging Multiple Platforms

Using multiple platforms maximizes reach and engagement. Each platform has its strengths, and a multi-platform strategy ensures comprehensive coverage:

• Weibo for Wide Reach: Use Weibo for broad exposure and trendsetting.

• WeChat for Deep Engagement: Use WeChat for more personalized and in-depth interactions.

• Douyin for Viral Content: Use Douyin for creating engaging and viral short-form videos.

• Xiaohongshu for Detailed Reviews: Use Xiaohongshu for detailed product reviews and recommendations.

5. Measuring and Optimizing Performance

Measuring the performance of KOL campaigns is crucial for understanding their effectiveness and optimizing future strategies. Key metrics to track include:

• Engagement Rates: Likes, comments, shares, and overall interaction with the content.

• Conversion Rates: The number of followers who make a purchase or take a desired action after seeing the KOL’s content.

• Brand Sentiment: The overall perception and sentiment towards the brand in the comments and discussions.

• ROI: The return on investment from the KOL campaign, considering both direct sales and long-term brand equity.

The Future of KOL Marketing in China

As digital marketing continues to evolve, the role of KOLs in Chinese marketing is expected to grow and transform. Here are some emerging trends and future directions:

1. Micro-KOLs and Nano-KOLs

While mega-KOLs with millions of followers are still influential, there is a growing trend towards micro-KOLs and nano-KOLs. These smaller influencers, with more niche and engaged followings, offer higher engagement rates and more targeted reach. Brands are increasingly collaborating with multiple micro-KOLs to tap into specific communities and build authenticity.

2. Live Streaming E-Commerce

Live streaming has become a significant trend in Chinese e-commerce, with KOLs hosting live sales events where they showcase and sell products in real-time. Platforms like Taobao Live and Douyin Live have popularized this format, which combines entertainment and shopping. Live streaming allows for real-time interaction, instant feedback, and impulse purchases, making it a powerful tool for driving sales.

3. AI and Data Analytics

Advancements in AI and data analytics are enabling more precise identification of suitable KOLs and more effective campaign optimization. Brands can leverage AI tools to analyze vast amounts of data, predict trends, and measure the impact of KOL campaigns more accurately. This data-driven approach enhances the efficiency and effectiveness of KOL marketing.

4. Cross-Border Collaborations

With the globalization of e-commerce, cross-border collaborations are becoming more common. International brands are partnering with Chinese KOLs to enter the Chinese market, while Chinese brands are leveraging foreign influencers to expand globally. These cross-border partnerships require careful cultural and market understanding but offer significant growth opportunities.

5. Authenticity and Transparency

As consumers become more discerning, authenticity and transparency will continue to be paramount. Brands and KOLs must maintain genuine and honest communication to build and retain trust. This includes clear disclosure of sponsored content and a focus on long-term relationships over short-term gains.

Conclusion

Key Opinion Leaders are an integral part of the marketing ecosystem in China. Their ability to influence consumer behavior, drive trends, and create authentic connections makes them invaluable for brands looking to succeed in the Chinese market. By understanding the dynamics of KOL influence, adopting strategic collaboration approaches, and staying attuned to emerging trends, brands can harness the power of KOLs to achieve marketing success in China. As the digital landscape continues to evolve, the role of KOLs will only grow, offering new opportunities for brands to connect with consumers in meaningful and impactful ways.

How to Sell Online in China: A Comprehensive Guide如何在中国进行网上销售：综合指南

Selling online in China presents a vast opportunity for businesses around the globe, given the country’s massive and digitally savvy consumer base. With over 900 million internet users and a rapidly growing e-commerce market, China has become a powerhouse for online retail. However, navigating this complex market requires a deep understanding of local platforms, consumer behavior, regulatory environment, and marketing strategies. This guide will provide a comprehensive overview of how to successfully sell online in China.

Understanding the Chinese E-commerce Landscape

Before diving into the strategies for selling online, it’s crucial to understand the Chinese e-commerce landscape, which is dominated by several major platforms and characterized by unique consumer behaviors and expectations.

1. Major E-commerce Platforms

China’s e-commerce market is dominated by a few key players, each offering distinct advantages and catering to different segments of the market:

• Alibaba’s Tmall: Tmall is the largest B2C platform in China, known for its wide range of products from international and local brands. It offers businesses a trusted platform with a large user base but requires rigorous approval processes and significant investment.

• JD.com: JD.com is a major B2C e-commerce platform known for its robust logistics network and focus on authentic, high-quality products. JD.com also offers a marketplace for third-party sellers.

• Pinduoduo: Known for its group-buying model, Pinduoduo focuses on lower-tier cities and price-sensitive consumers. It’s a rapidly growing platform that offers unique opportunities for brands willing to engage in price competition and social commerce.

• Xiaohongshu (Little Red Book): Combining social media and e-commerce, Xiaohongshu is popular among younger consumers, particularly for beauty, fashion, and lifestyle products. It’s an ideal platform for influencer marketing and content-driven sales.

• WeChat: As a super-app integrating social networking, messaging, and e-commerce, WeChat allows businesses to create mini-programs and stores within the app, offering a seamless shopping experience.

2. Consumer Behavior

Understanding Chinese consumer behavior is crucial for success in the market. Key characteristics include:

• Mobile Dominance: The majority of online shopping in China is conducted via mobile devices. Ensuring a mobile-friendly experience is essential.

• Social Commerce: Social media and e-commerce are closely integrated, with platforms like WeChat and Xiaohongshu driving sales through social interactions and content sharing.

• Preference for Local Brands: While international brands are popular, there’s a strong preference for local brands, especially in lower-tier cities.

• Trust and Authenticity: Chinese consumers highly value trust and authenticity. Ensuring product quality and authenticity is vital for building brand loyalty.

Steps to Successfully Sell Online in China

1. Market Research and Entry Strategy

Before entering the Chinese market, conduct thorough market research to understand consumer preferences, competitive landscape, and potential demand for your products.

• Consumer Insights: Analyze consumer preferences, trends, and purchasing behavior in your product category. Identify key demographics and target segments.

• Competitive Analysis: Study your competitors, both local and international. Understand their strengths, weaknesses, pricing strategies, and marketing tactics.

• Market Entry Strategy: Decide on the most suitable market entry strategy. Options include setting up a Wholly Foreign-Owned Enterprise (WFOE), partnering with local distributors, or leveraging cross-border e-commerce platforms.

2. Choosing the Right E-commerce Platform

Selecting the right e-commerce platform is critical for reaching your target audience and achieving your sales goals. Consider the following factors when choosing a platform:

• Target Audience: Match your target audience with the platform’s user demographics. For instance, Tmall and JD.com are ideal for reaching urban, high-income consumers, while Pinduoduo is suitable for price-sensitive, lower-tier city residents.

• Platform Requirements: Understand the platform’s entry requirements, fees, and operational processes. Some platforms have strict vetting processes and require significant upfront investment.

• Logistics and Fulfillment: Consider the platform’s logistics capabilities. JD.com, for example, offers robust logistics support, which can be a significant advantage.

3. Setting Up Your Online Store

Setting up your online store involves several key steps, from registering your business to designing your store and listing products.

• Business Registration: Ensure your business is properly registered in China or through a cross-border e-commerce solution. This includes obtaining necessary licenses and permits.

• Store Design: Invest in professional store design that reflects your brand identity and appeals to Chinese consumers. A visually appealing and user-friendly store can significantly impact your sales.

• Product Listings: Create detailed and compelling product listings. Include high-quality images, accurate descriptions, and specifications. Highlight key features, benefits, and use cases.

• Pricing Strategy: Develop a competitive pricing strategy that considers local market conditions, competitor pricing, and consumer purchasing power.

4. Marketing and Promotion

Effective marketing and promotion are crucial for driving traffic and sales to your online store. Leverage a mix of digital marketing strategies to reach and engage your target audience.

• Search Engine Optimization (SEO): Optimize your store and product listings for Chinese search engines like Baidu. Use relevant keywords, meta tags, and high-quality content to improve your search ranking.

• Pay-Per-Click (PPC) Advertising: Invest in PPC advertising on platforms like Baidu, Alibaba, and WeChat. Targeted ads can drive immediate traffic and conversions.

• Social Media Marketing: Engage with consumers on popular social media platforms like WeChat, Weibo, and Xiaohongshu. Create engaging content, run contests, and collaborate with influencers to build brand awareness.

• Influencer Marketing: Partner with Key Opinion Leaders (KOLs) who have a strong following in your target market. KOL endorsements can significantly boost your credibility and reach.

• Content Marketing: Create valuable content that educates, entertains, and informs your audience. This can include blog posts, videos, tutorials, and user-generated content.

5. Customer Experience and Service

Providing an exceptional customer experience is crucial for building trust and loyalty among Chinese consumers. Focus on delivering top-notch service at every touchpoint.

• Localization: Localize your website, product descriptions, and customer support to cater to Chinese consumers. This includes offering support in Mandarin and adapting your messaging to local cultural norms.

• Customer Support: Offer prompt and efficient customer support through multiple channels, including live chat, email, and phone. Address customer inquiries and issues promptly to build trust and satisfaction.

• After-Sales Service: Implement a robust after-sales service strategy, including easy returns, refunds, and warranty services. A positive after-sales experience can enhance customer loyalty and encourage repeat purchases.

6. Logistics and Fulfillment

Efficient logistics and fulfillment are critical for ensuring timely delivery and customer satisfaction. Consider partnering with reliable logistics providers to streamline your supply chain.

• Inventory Management: Implement effective inventory management practices to ensure product availability and avoid stockouts. Use data analytics to forecast demand and manage inventory levels.

• Warehousing: Choose strategic warehouse locations to minimize delivery times and costs. Some e-commerce platforms offer warehousing and fulfillment services, which can simplify logistics.

• Delivery Options: Offer multiple delivery options, including standard and express shipping. Provide tracking information to keep customers informed about their order status.

7. Regulatory Compliance

Ensuring compliance with Chinese regulations is essential for operating legally and avoiding potential penalties. Stay informed about the latest regulatory changes and requirements.

• Product Certification: Ensure your products meet Chinese safety and quality standards. Obtain necessary certifications and approvals for regulated products.

• Data Privacy: Comply with China’s data privacy laws, including the Personal Information Protection Law (PIPL). Implement robust data protection measures to safeguard customer information.

• Advertising Regulations: Adhere to advertising regulations and guidelines. Avoid false advertising, exaggerated claims, and misleading information.

8. Performance Monitoring and Optimization

Continuously monitor your store’s performance and optimize your strategies based on data insights. Use analytics tools to track key metrics and identify areas for improvement.

• Sales and Traffic Analytics: Track sales, traffic, conversion rates, and customer behavior using analytics tools. Identify top-performing products, traffic sources, and customer segments.

• Customer Feedback: Collect and analyze customer feedback to understand their satisfaction and identify improvement areas. Use surveys, reviews, and direct feedback to gather insights.

• A/B Testing: Conduct A/B testing on various elements of your store, such as product listings, pricing, and marketing campaigns. Use the results to optimize your strategies and improve performance.

Conclusion

Selling online in China offers immense opportunities, but it requires a deep understanding of the local market, consumer behavior, and regulatory environment. By conducting thorough market research, choosing the right e-commerce platform, setting up a well-designed store, implementing effective marketing and promotion strategies, providing exceptional customer service, ensuring efficient logistics, complying with regulations, and continuously monitoring and optimizing performance, businesses can successfully tap into the lucrative Chinese e-commerce market.

Navigating the complexities of the Chinese market may seem daunting, but with the right approach and strategies, businesses can unlock significant growth and achieve long-term success. By leveraging the insights and best practices outlined in this guide, you can position your business for success in China’s dynamic and rapidly evolving e-commerce landscape.

In the digital age, the vast amount of data generated by consumers offers unprecedented opportunities for businesses to understand their audience better and tailor their strategies accordingly. Behavioral data, which refers to the information generated by users’ interactions with a business’s digital properties, such as websites, apps, and social media platforms, is particularly valuable. By analyzing this data, businesses can gain deep insights into consumer behavior, preferences, and trends. This article explores three effective strategies for harnessing behavioral data to enhance business outcomes: personalized marketing, product development, and customer journey optimization.

1. Personalized Marketing

Personalized marketing involves tailoring marketing efforts to individual consumers based on their behavior, preferences, and interactions with a brand. By leveraging behavioral data, businesses can create more relevant and engaging marketing campaigns that resonate with their target audience.

a. Understanding Consumer Preferences

Behavioral data provides detailed insights into what consumers like, dislike, and are interested in. By analyzing data such as browsing history, past purchases, and interaction patterns, businesses can create detailed customer profiles. These profiles help marketers understand individual preferences and predict future behavior.

For example, an e-commerce platform can analyze a user’s browsing and purchase history to recommend products that align with their interests. If a user frequently browses outdoor gear and has purchased camping equipment in the past, the platform can personalize marketing content to showcase new arrivals in outdoor gear, exclusive deals on camping equipment, and related accessories. This level of personalization increases the likelihood of conversion by presenting products that the user is genuinely interested in.

b. Segmentation and Targeting

Segmentation involves dividing a broader audience into smaller, more homogenous groups based on specific criteria. Behavioral data enables more precise segmentation by considering factors such as purchase frequency, average order value, and engagement level.

With these segments, businesses can tailor their marketing messages to address the unique needs and preferences of each group. For instance, a fashion retailer can segment its audience into categories like frequent buyers, occasional shoppers, and inactive users. For frequent buyers, the retailer can send personalized emails with early access to sales and exclusive offers. Occasional shoppers might receive reminders about items left in their cart or personalized discount codes to encourage purchases. Inactive users could be targeted with re-engagement campaigns highlighting new arrivals or special promotions.

c. Dynamic Content and Real-Time Personalization

Dynamic content refers to web or email content that changes based on user behavior and preferences. Real-time personalization takes this a step further by adjusting content instantaneously based on the user’s current interactions.

For instance, a news website can use behavioral data to show personalized article recommendations on its homepage. If a user frequently reads articles about technology and sports, the website can prioritize showing the latest tech and sports news when the user visits. Similarly, an online streaming service like Netflix uses real-time personalization to recommend shows and movies based on the user’s viewing history and ratings. This approach keeps users engaged and encourages them to spend more time on the platform.

2. Product Development

Behavioral data can significantly impact product development by providing insights into how consumers interact with existing products and what features they value the most. By analyzing this data, businesses can make informed decisions about product improvements, new features, and entirely new product lines.

a. Identifying Popular Features and Pain Points

Understanding which features are most popular and which cause frustration can guide product development efforts. Behavioral data such as feature usage frequency, time spent on specific features, and user feedback can reveal what customers find valuable and what needs improvement.

For example, a software company can track how users interact with different features of their application. If data shows that a significant portion of users frequently use a particular feature but also encounter issues with it, the company can prioritize fixing these issues in the next update. Conversely, if a feature is rarely used, the company might consider removing it or replacing it with something more valuable to users.

b. Testing and Iteration

Behavioral data allows businesses to adopt a data-driven approach to testing and iteration. By analyzing how users respond to new features or changes, businesses can make informed decisions about product development.

A/B testing is a common method where two versions of a product feature are tested against each other to see which performs better. For example, an e-commerce site might test two different checkout processes to see which one leads to higher conversion rates. Behavioral data such as completion rates, time spent on each step, and user drop-off points can provide clear insights into which version is more effective.

c. Anticipating Market Trends

Behavioral data can help businesses stay ahead of market trends by identifying emerging consumer preferences and behaviors. By monitoring how users interact with products and what they search for, businesses can anticipate shifts in demand and adapt their product offerings accordingly.

For instance, if a fitness app notices an increase in searches and engagement related to home workout routines, it can respond by developing new content, features, or partnerships focused on home fitness. This proactive approach allows businesses to capitalize on trends and meet consumer needs before competitors do.

3. Customer Journey Optimization

Optimizing the customer journey involves enhancing every touchpoint a customer has with a business to create a seamless and satisfying experience. Behavioral data plays a crucial role in understanding and improving the customer journey.

a. Mapping the Customer Journey

Behavioral data provides a detailed view of how customers move through the various stages of the buying process. By mapping the customer journey, businesses can identify key touchpoints, pain points, and opportunities for improvement.

For example, an online retailer can track a user’s journey from the initial visit to the website, through product browsing, adding items to the cart, and completing the purchase. By analyzing this data, the retailer can identify where users are dropping off and why. If a significant number of users abandon their cart at the payment stage, the retailer might investigate potential issues with the payment process, such as technical glitches or a lack of preferred payment options.

b. Enhancing User Experience

Improving the user experience (UX) is essential for retaining customers and encouraging repeat business. Behavioral data can reveal areas where the UX can be enhanced to make the journey more enjoyable and efficient.

For instance, a travel booking website can use behavioral data to streamline the booking process. If data shows that users frequently get stuck or abandon the process when selecting flight options, the website can simplify this step by offering clearer options, filters, and assistance. Improving UX based on actual user behavior ensures that changes directly address user needs and pain points.

c. Personalized Customer Support

Behavioral data can also enhance customer support by enabling personalized assistance. By understanding a customer’s history and interactions with the brand, support teams can provide more relevant and efficient help.

For example, if a customer contacts support with an issue, the support agent can access the customer’s previous interactions, purchase history, and behavior on the website. This information allows the agent to offer tailored solutions and recommendations, improving the overall support experience. Additionally, proactive support measures, such as sending reminders for upcoming subscription renewals or offering assistance with frequently encountered issues, can be implemented based on behavioral data.

Conclusion

Harnessing behavioral data is crucial for businesses looking to thrive in the digital age. By leveraging this data for personalized marketing, product development, and customer journey optimization, businesses can create more engaging, relevant, and satisfying experiences for their customers. Personalized marketing enhances relevance and engagement, product development driven by behavioral insights ensures that offerings meet consumer needs, and optimizing the customer journey creates a seamless and enjoyable experience. As technology continues to evolve, the ability to effectively harness and analyze behavioral data will remain a key competitive advantage for businesses across all industries.

Expanding a business into China, the world’s second-largest economy, presents immense opportunities and unique challenges. With its vast consumer base, rapid technological advancements, and dynamic market conditions, successfully launching a business in China requires strategic planning, cultural understanding, and adaptability. This article outlines the top 10 rules for launching a successful business in China.

1. Conduct Thorough Market Research

Before entering the Chinese market, it is crucial to conduct comprehensive market research to understand the local landscape, consumer preferences, and competitive environment.

• Consumer Behavior: Study the purchasing habits, preferences, and pain points of Chinese consumers. China’s consumer base is diverse, with varying needs and expectations across different regions and demographics.

• Competitive Analysis: Identify key competitors and analyze their strategies, strengths, and weaknesses. Understanding the competitive landscape can help you position your business effectively.

• Market Trends: Stay updated with the latest market trends and emerging opportunities. China’s market is rapidly evolving, and staying ahead of trends can provide a competitive edge.

2. Understand and Comply with Local Regulations

Navigating China’s regulatory environment can be complex. Ensuring compliance with local laws and regulations is critical to avoid legal issues and establish a reputable business presence.

• Business Registration: Understand the process and requirements for registering a business in China. This includes choosing the right business structure, such as a Wholly Foreign-Owned Enterprise (WFOE), Joint Venture (JV), or Representative Office.

• Licensing and Permits: Identify and obtain the necessary licenses and permits for your industry. Different sectors have specific regulatory requirements that must be met.

• Intellectual Property Protection: Register your trademarks, patents, and copyrights to protect your intellectual property. China has made significant strides in IP protection, but proactive measures are essential.

3. Form Strategic Partnerships

Building strong relationships with local partners can facilitate market entry and growth. Strategic partnerships can provide valuable insights, resources, and networks.

• Local Distributors and Suppliers: Collaborate with reliable local distributors and suppliers to ensure smooth operations and supply chain management.

• Industry Associations: Join industry associations and chambers of commerce to connect with key stakeholders and stay informed about industry developments.

• Government and Regulatory Bodies: Establish positive relationships with government and regulatory bodies. Local authorities can provide support and guidance, especially in navigating regulatory processes.

4. Localize Your Product and Marketing Strategy

Localization is essential to resonate with Chinese consumers and meet their specific needs. This involves adapting your product offerings, marketing strategies, and communication style.

• Product Adaptation: Modify your products to align with local tastes, preferences, and cultural nuances. This could include adjusting flavors, packaging, or features to suit Chinese consumers.

• Marketing and Branding: Develop a localized marketing strategy that reflects the cultural values and trends of your target audience. Use local influencers, celebrities, and social media platforms to enhance brand visibility.

• Language: Ensure all marketing materials, product descriptions, and customer support are available in Mandarin Chinese. Clear and effective communication is vital for building trust and engagement.

5. Leverage Digital Platforms and E-commerce

China is a digital-first market with a high penetration of internet and mobile usage. Leveraging digital platforms and e-commerce can significantly boost your business growth.

• E-commerce Platforms: Utilize popular e-commerce platforms like Alibaba’s Tmall, JD.com, and Pinduoduo to reach a wide audience and drive sales.

• Social Media: Engage with consumers on major social media platforms such as WeChat, Weibo, Douyin (TikTok), and Little Red Book (Xiaohongshu). Develop a strong social media presence to build brand awareness and interact with your audience.

• Digital Marketing: Invest in digital marketing strategies, including search engine optimization (SEO), pay-per-click (PPC) advertising, and influencer collaborations to enhance online visibility and attract potential customers.

6. Focus on Customer Experience and Service

Providing exceptional customer experience and service is crucial for building a loyal customer base in China. Chinese consumers have high expectations for quality and service.

• Customer Support: Offer prompt and effective customer support through various channels, including phone, email, and social media. Providing assistance in Mandarin Chinese is essential.

• After-Sales Service: Implement a robust after-sales service strategy, including warranty, returns, and repairs. Positive after-sales experiences can enhance customer satisfaction and loyalty.

• Feedback and Reviews: Encourage and monitor customer feedback and reviews. Addressing customer concerns and continuously improving your products and services based on feedback can strengthen your brand reputation.

7. Build a Strong Local Team

Hiring and retaining a skilled local team is essential for navigating the Chinese market and understanding local consumer behavior.

• Talent Acquisition: Recruit talented professionals with local market knowledge and expertise. Consider hiring local managers who understand the cultural and business landscape.

• Training and Development: Invest in training and development programs to enhance the skills and capabilities of your team. Providing opportunities for career growth can improve employee retention and performance.

• Company Culture: Foster a positive company culture that values diversity, collaboration, and innovation. Building a strong organizational culture can attract and retain top talent.

8. Adapt to Cultural Differences

Understanding and respecting cultural differences is vital for successful business operations in China. Cultural sensitivity can help build trust and rapport with local stakeholders.

• Business Etiquette: Familiarize yourself with Chinese business etiquette, including greetings, gift-giving, and meeting protocols. Showing respect for local customs can enhance business relationships.

• Communication Style: Adapt your communication style to align with local norms. In China, indirect communication and maintaining harmony are valued, so being tactful and considerate is important.

• Festivals and Holidays: Acknowledge and celebrate major Chinese festivals and holidays, such as Chinese New Year and Mid-Autumn Festival. This can foster goodwill and strengthen relationships with employees, partners, and customers.

9. Implement Effective Risk Management

Managing risks effectively is crucial for sustaining business operations and growth in China. Identify potential risks and develop strategies to mitigate them.

• Regulatory Compliance: Stay updated with changes in regulations and ensure compliance to avoid legal issues and penalties.

• Economic and Political Risks: Monitor economic and political developments that could impact your business. Develop contingency plans to address potential disruptions.

• Supply Chain Management: Implement robust supply chain management practices to minimize risks related to logistics, inventory, and supplier reliability.

10. Invest in Innovation and Technology

China is at the forefront of technological innovation, and investing in technology can drive business growth and competitiveness.

• Research and Development: Invest in research and development (R&D) to innovate and improve your products and services. Collaborate with local research institutions and universities for R&D initiatives.

• Digital Transformation: Embrace digital transformation by adopting advanced technologies such as artificial intelligence (AI), big data, and the Internet of Things (IoT). These technologies can enhance operational efficiency and customer experience.

• Sustainability and Corporate Social Responsibility (CSR): Focus on sustainability and CSR initiatives to align with China’s environmental goals and social values. Implementing sustainable practices can enhance your brand image and appeal to socially conscious consumers.

Conclusion

Launching a successful business in China requires strategic planning, cultural understanding, and adaptability. By conducting thorough market research, complying with local regulations, forming strategic partnerships, localizing your product and marketing strategy, leveraging digital platforms, focusing on customer experience, building a strong local team, adapting to cultural differences, implementing effective risk management, and investing in innovation and technology, businesses can navigate the complexities of the Chinese market and achieve long-term success. Embracing these rules and continuously learning and adapting to the dynamic market conditions will pave the way for a prosperous business venture in China.

Key Takeaways

1. Even in the wake of Covid-19 lockdowns years after the start of the pandemic, China represents a massive investment opportunity for international investors looking to diversify their portfolios.

2. Whether you are looking to start your own business or seek investment opportunities in China, there is no shortage of innovation in China.

3. While some sectors in China have taken a battering in recent years, that doesn’t make China “uninvestable”; it means that those without experience on the Chinese market should seek professional help before committing to long-term business decision.

4. These insights come from many years spent in Mainland China, as Horizons has unmatched business and employment expertise in the country. If you are interested in expanding in China, contact us today.

China is an attractive market for some of the world’s largest conglomerates. In the last few years, China has established a niche for itself regarding national and economic issues, making many entrepreneurs and established companies race to the country.

There are over one billion people in China. It has a fast-growing economy that is also rated as the second largest in the world. It is also the largest exporter and importer of goods in the world. Furthermore, the company offers affordable and reliable technology, as well as a highly productive workforce. All of these factors make China a powerful country to do business in. This is why most Fortune 500 companies have a presence in the country.

China has many thriving sectors, including agriculture, manufacturing, oil and gas, automobile, pharmaceutical, and tourism. China is currently promoting certain small business opportunities.

If you are considering opening a business or expanding your business to China, these opportunities may help you generate impressive income while allowing you to enjoy a low profile. Here are some of the most promising business ideas and investment opportunities in China currently.

Please note: This article does not contain investment advice. Horizons is sharing anecdotal insights based on what we have seen generate success in China. If you seek genuine investment advice, please speak to a certified investment professional.

Best Small Business Ideas in China

Rounding out the list of the best small business ideas in China for 2024 are:

1. Automation Control Products

The number one small business in China is a technology company that sells industrial automation control products. Marketing similar products may yield the results that you want. Consider this option if you are looking for a new business opportunity.

2. Supplemental and International Education

Previously, the supplemental education market in China was huge. After-school private tutoring services were one viable option. Another was providing online classes to students and workers. These classes are important in China, which prides itself on having a strong educational system.

It is customary for many students to continue their studies after the end of the traditional school day to gain a competitive edge. Because online classes were convenient and accessible to more people, it was a viable option for many and was an in-demand opportunity for businesses.

However, due to regulation, the supplemental education market has been reduced. While supplemental (“after-school”) education was a popular and lucrative industry, new regulations passed in August 2021 made so-called “edtech”, or online teaching platforms, comply with a specific and strict set of regulations; it also banned any supplemental education targeting pre-school aged children, and set limits on supplemental education for children aged 6-15. Finally, existing “subject training institutions” (teaching English, Math, and other subjects) must also comply with a strict set of regulations, and no new subject training institutions are permitted to form. Naturally, this wiped out many companies large and small by more than 83% nationwide and has made the supplemental education space less attractive as the barrier to entry is much higher.

However, not all hope is lost– a different category of supplemental education called “quality education training courses” are less regulated and (for now) is permitted to form. This category covers subjects like music, art, sports, and other non-core subjects; and these courses are permitted to be taught in English. For those looking to start a supplemental education business and become a private GCSE maths tutor, talk to a professional about “quality education training schools”; but for foreign individuals interested in opening an English training center or something similar, this is no longer possible.

Similarly, international education is an increasingly lucrative market in China. Just as Chinese students are increasingly studying abroad, so too are international students increasingly interested in studying in China, with China now having the third highest number of inbound international students in the world. This provides opportunities for small businesses both in offering educational services, but also associated services such as accommodation. 

 3. Import and Export

Small businesses that involve trading are often successful because they help create additional business opportunities across the globe. Because China is the largest exporter and importer of goods in the world, it is easier to create a profitable importing and exporting business in the country. This has been doubly true since the border situation became more complicated in 2019. Companies in need of goods are seeking trustworthy partners based locally to receive and qualify samples of desired goods, make factory visits, etc.

If you have not yet launched a business and are looking for ideas, this is one to consider.

4. Pharmaceuticals

The pharmaceutical industry in China is massive and highly profitable. Furthermore, in China, businesses often have access to cheap labor and raw materials. However, selling pharmaceuticals in China requires businesses to acquire the proper license.

Forbes China has previously listed a pharmaceutical company in its list of top 10 small businesses in the country, so it might be an industry worth considering if you are willing to go through the regulatory red tape.

5. Health Products

Environmental concerns, more access to health information, and the presence of new diseases and illnesses have made current generations more concerned about their health than previous generations.

Health product businesses may include herbal goods, supplements, and skincare products. In China, there are many small health products businesses. Some successful businesses focus on women and the beauty industry while others appeal to both genders.

6. Ecological Environment Construction

The world has taken notice of more environmental concerns and China has followed suit. It is encouraging businesses that are taking an eco-friendly approach and constructing ecological environments, such as afforestation projects, seeding plants, and garden landscape engineering. More businesses in Shanghai have been focusing on waste in recent years. With Shanghai city’s push for proper garbage sorting and waste disposal, some businesses see an opportunity in the city’s move to be more green.

Companies that provide technological research on ecology are also in demand. 

7. Direct Marketing

Direct marketing is one of the best opportunities for small businesses because it is reliable and has relatively little overhead.

It requires that businesses be able to communicate well and develop key connections with customers to be successful. Some businesses focus on helping international businesses communicate effectively to the Chinese market, while other businesses focus on helping Chinese businesses communicate effectively to international markets. Both business focuses can be lucrative.

8. Internet Access

Not all consumers in China have or can afford to have internet access in their homes or businesses. However, many people still need this access. Operating a small-scale internet business is a simple way to participate in the Chinese economy while not having to invest substantially into it.

9. Food

Food production: When deciding on which business initiative to pursue, it is important to consider needs so that you can opt for a safer option when available. Everyone needs food, but with a population exceeding 1.35 billion, China is in particular need of this resource.

Food (restaurant): Alternatively, many people come to Shanghai to live their dream of opening a restaurant or bar, both local Chinese and foreigners. Shanghai for example has the most coffee shops in the world. The locally-owned F&B sector in China is a powerhouse, and in most cities, the owners form a tight-knit community.

Best Investment Opportunities in China

There are also certain sectors that are prime for investment in China including:

1. Manufacturing of Household Commodities

China is one of the largest producers of household commodities. They are often cheaper than the products produced in other countries, allowing them to be more competitive. Consider starting your own household commodities manufacturing company.

2. Online Stores

China’s access to advanced technologies allows it to be a source of thriving online shops. There are several advantages to investing in this type of business in China, including that you do not have to keep all of the products that are offered in your shop in China.

You do not have to invest in inventory. Instead, you can make agreements with manufacturers in which you list their products on your shop and sell them to your customers for a markup.

3. English-Language Schools

Since English is often the language spoken by business leaders around the world, many Chinese professionals are trying to increase their English-language skills. You can open a school that teaches professionals how to speak English, especially in business settings.

This type of business requires minimal capital investment and you may already have the skills necessary to run a successful business of this nature.

Again, the English-language teaching sector has taken massive hits over the last few years; while we may not see the optimism in English-language schools anymore, someone with a high risk tolerance might make a tactical choice to invest in schools offering “quality education training courses”. 

4. Domestic Shipping Companies

Another investment opportunity is to invest in a haulage business, which transports goods by road or rail. It includes transporting ore, coal, and supplies. Since China is a country with some of the highest volume of goods in the world. In such a massive, diverse country, populated by avid consumers, goods need to move constantly across the country. There is little that is more important in a country of this size than a greased supply chain. This ensures that your investment might continue to pay off even in traditionally uncertain times.

5. Mobile Phones and Accessories Businesses

With its ready access to technology, a productive workforce, and cheap raw materials, China has revolutionized the mobile phone industry. China offers cheaper mobile phone and accessory options in comparison to some of the overpriced goods of this nature elsewhere in the world.

Having this type of business can be a highly profitable business venture when done correctly. The key to success with this type of business is partnering up with businesses outside of China to whom you can supply mobile phones and accessories. Cheap accessories that you may be able to sell include batteries, chargers, battery banks, cases, memory cards, and USB cords.

6. Electronics and Gadgets

China also produces other electronics and gadgets.

Investing in an electronics manufacturing company or factory can allow you to get or make the products more cheaply, which can then be sold abroad at more affordable prices.

7. Jewelry or Diamonds

Gold and silver plated jewelry are popular in China and other parts of the world. China has a vibrant jewelry ecosystem, not just for gold and silver, but also for pearls, jade, and other precious stones.

Connecting with industry insiders and experts in the jewelry industry in China is not so difficult, and could lead to interesting business opportunities.

8. Fashion Accessories

Bags and shoes are some of the most important accessories around the world and the production cost in China is not high.

If someone invested in a fashion accessories business in China, it is reasonable that those goods could be sold in developed and developing countries alike.

Conclusion

China has ample opportunities for small business and investment. Regardless of which investment vehicle you choose, it is important that you launch your business in an efficient and compliant manner.

Horizons can advise you of the regulatory schemes in place and inform you of the guidelines you must meet, whether that means a minimum capital investment or a necessary license to conduct the type of business you are considering in China.

We can also get you a local workforce without the need for you to open a local entity through our China Employer of Record services so that you can have people working on the ground as soon as you are ready to launch your business. Contact us today for a free consultation on your hiring project.

Measure

Measure

As the world’s leading trading nation and a GDP of more than $10 trillion, China is an attractive option for business expansion. However, companies cannot simply rely on the marketing strategies that they have implemented in western cultures when launching their brand in China. These marketing campaigns may not resonate with the local Chinese market.

Everything in China is different, including how consumers find the business, the social media channels that are used and rules on how to do business in the country. It is important to understand these differences. Having a strategic partner like Horizons can help you successfully market your product or service to the local Chinese community.

Marketing in China

While you might have a great product, this is not enough to secure success in marketing it to the Chinese market. There are so many products and businesses in China, so it is critical that you are able to make yours stand out.

It is critical that you have a customized China marketing plan and strategy. Having Horizons as part of your team allows you to access our significant resources, including market research and strategic consulting. We can analyze your business and products and develop a customized marketing plan for you.

China E-Commerce Rules

Many companies want to target the expansive Chinese market that has more than 1.3 billion consumers. China represents the largest group of ecommerce shoppers in the world with 30% of the cross-border ecommerce market. The Chinese ecommerce market exceeds 8.8 trillion RMB.

In one encouraged shopping day, more than $25 billion in ecommerce merchandise. Given these attractive figures, many businesses want to join the ranks of others who have successfully launched their product in China.

China requires that any business that advertises in China obtain a license.

While a business may not necessarily need to obtain a license to sell a product in China, it will need a license to legally advertise in the country. Some businesses choose to get around this requirement by working with a trade partner who can distribute their product through their TMall or JD store.

Digital Advertising Rules in China

China has strict rules related to online access. Consumers cannot access many of the websites that are popular in the rest of the world. In China, popular websites like YouTube, Instagram, Facebook and Google are not accessible to the general public.

To form an effective digital marketing strategy, you will need to advertise on channels that are accessible and popular in China, with the key channels being:

1. WeChat

2. Baidu

3. Sina Weibo

4. Toutiao

5. Tencent Channels

However, the process is not simply to use these channels like you might be used to in western cultures.

China Digital Marketing Platforms and Channels

List of the most popular digital marketing channels

These channels have their own rules and requirements. For example, advertising on Baidu requires that you make a minimum deposit of 30,000 RMB before you can get started and to create an account.

Before you can legally take part in any digital advertising, you must obtain a valid industry license. Additionally, many industries have strict rules regarding what type of advertisements you can run.

For example, if you are selling health and supplement products in the country, you will need a specific license for this purpose. Some platforms will not allow foreigners to create an account so you might need to go through a partnered agency who will manage your account and act as your media buyer.

Many businesses choose to work through an agency instead of managing their own advertisement account. Some channels require that you spend a certain amount of money each month on the account to obtain superior support.

Horizons can discuss your advertising and marketing needs and help you develop a strategic marketing plan.

Social Media Advertising in China

Like in other parts of the world, social media advertising is an important aspect of advertising products in China. The most popular platforms in China for this purpose are WeChat and Weibo.

As the largest channels in the country, many businesses use these two major sites to advertise their products. Most digital marketing agencies in China promote these channels.

However, there is a cost and time factor involved with using social media advertising that you should be aware of before implementing your digital marketing strategy. Additionally, other channels may better resonate with particular demographics or industries.

As part of your digital marketing strategy, you may wish to consider other social media channels, such as:

Sine Weibo – This is a popular microblogging network in China

Tik Tok or Douyin – A popular video social media platform similar to Snapchat

Toudou and Youku – These are popular video sites similar to YouTube

Tencent QQ – This is China’s ICQ

Toutiao – This is a popular Ai news platform

It is important to consider which digital channels will help you grow your business in the Asian market. This is where market research really comes in. By researching and studying your target market in China, you can determine the channels that will best position you to market your product.

Through a dedicated digital marketing strategy, you can increase brand awareness and develop a loyal customer base.

Role of Key Opinion Leaders in Chinese Marketing

In China, influencers are referred to as “key opinion leaders” or KOLs. KOL marketing is influencer marketing in which a respected person in the field advertises the product on popular social media platforms in China. These key opinion leaders are able to influence their audience, often due to their own position in the field and credibility.

While fashion and beauty blogs often feature young social media models, these key opinion leaders may have more robust backgrounds, such as tech backgrounds or healthcare providers. Because these people have credibility in their field, they are often able to influence consumers to follow their advice and purchase certain products.

However, a KOL China marketing strategy is often very expensive because these influencers usually only work for large sums of money. It is not uncommon for a large brand in China to pay hundreds of thousands of dollars to establish one KOL campaign on a platform like WeChat. KOL marketing is a key component of many large businesses’ marketing plan.

When considering a KOL marketing campaign, it is important to ensure that the influencer you choose is suited to promote your business. There may be major celebrities that have widespread recognition, but there may also be famous influencers who are particularly relevant in certain fields who may charge less to be part of your KOL marketing strategy.

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