The QuestMobile 2024 Internet Advertising Market Half-Year Report reveals key insights into China’s rapidly evolving digital advertising landscape. According to the report, the total market value reached a staggering ¥3.514 trillion, marking an 11.8% year-on-year growth. As consumer behaviour and media consumption continue to shift, the internet advertising industry is experiencing significant changes, driven by content marketing, e-commerce innovations, and an intensifying battle for short drama integration across major platforms.
Economic Growth and Consumer Behavior Trends in 2024
The first half of 2024 saw China’s economy continue its steady recovery, with GDP reaching ¥61.7 trillion, a 5.0% increase from the previous year. However, despite this growth, consumer behaviour remains somewhat cautious, with discretionary spending habits still in a conservative phase. This conservatism highlights the need for more engaging and innovative marketing techniques to capture the attention and wallets of consumers.
The online space continues to expand, with increasing internet user activity, especially across video platforms. This trend has fueled the growth of Internet advertising, with video-based ads proving to be one of the most effective mediums to capture consumer interest.
Key Characteristics of 2024’s Digital Marketing Landscape
The Continued Dominance of Traditional Advertising Methods
Even as marketing evolves, hard-sell advertising remains a key strategy for building brand awareness. The report shows that over 55% of advertisers from traditional industries utilized in-platform e-commerce ads during the first half of 2024. During major sales events like the 618 Shopping Festival, advertising resources leaned heavily towards these platforms, driving significant engagement and conversion rates.
The Rise of Content Marketing
Soft-sell or content-driven marketing strategies have taken on a more prominent role, as brands focus on embedding their products within highly engaging and relatable narratives. Short dramas, in particular, have emerged as a powerful tool for e-commerce platforms, with platforms like Taobao, JD.com, and Pinduoduo all incorporating short dramas to drive traffic and sales.
This content-driven approach has allowed brands to get ahead of consumer demand, positioning themselves within narratives that align with their target audience’s values and preferences. By collaborating with key opinion leaders (KOLs), brands have further enhanced their soft-sell strategies, ensuring that their products reach a wider, more engaged audience.
Evolving Marketing Strategies: Building Relationships with Consumers
Emphasizing User Experience Over Product Features
As consumer sensitivity to traditional marketing buzzwords wanes, brands are shifting their focus towards user experience and emotional resonance. Rather than solely pushing product features, brands now emphasise how their products align with consumer values, needs, and aspirations.
Brands such as Pangdonglai and Yonghui Superstores have successfully adopted this approach, focusing on emotional value and leveraging “emotional engagement” themes to drive loyalty. QuestMobile’s data shows a significant overlap between users of both brands, indicating that this strategy enhances brand recognition and consumer loyalty.
Cultural Resonance and Local Collaboration
Cities and cultural institutions have also adopted this approach, using new media channels to boost local tourism and cultural experiences. Collaborating with local brands and citizens, these campaigns effectively promote city branding and drive engagement with both locals and tourists alike. Similarly, brands increasingly tap into traditional Chinese culture and heritage, weaving elements of guochao (a national trend) and intangible cultural heritage into their narratives to build stronger connections with domestic audiences.
Creating Emotional Connections
With younger audiences driving much of today’s consumer behaviour, emotional marketing has become a critical strategy for brands. Campaigns that resonate with a consumer’s feelings, desires, and challenges tend to perform better than those that simply showcase product features. Whether through humorous content, nostalgia, or shared values, brands that can evoke emotional connections are more likely to see positive engagement and increased sales.
Industry-Specific Marketing Trends
Beauty and Personal Care
Beauty brands continued to leverage a mix of hard and soft advertising to stay top-of-mind for consumers. With influencers playing a central role in marketing strategies, beauty brands focused on both mass market appeal and niche segmentation. For instance, local beauty brands utilized social media platforms and KOLs to reach younger audiences, while international brands increased content-driven marketing to build long-term relationships with their consumers.
E-Commerce and Live Streaming
E-commerce platforms, especially those focused on live streaming, remained a dominant force in the advertising landscape. The integration of short dramas, brand collaborations with popular TV shows, and influencer-led live streaming were some of the most effective tactics used to drive consumer engagement and sales.
The Future of Advertising in 2024: Trends to Watch
Looking ahead to the second half of 2024, several key trends are expected to define the advertising landscape:
Consolidation of Advertising Resources: Brands will continue to focus their efforts on top media platforms, channelling their resources into high-traffic channels to maximize their ROI.
Sales-Oriented Marketing: As competition heats up, brands are likely to prioritize sales-driven strategies, leveraging upcoming events and campaigns to boost conversion rates.
Sports Marketing and Event Sponsorships: With the continued popularity of sports marketing, brands are expected to tap into high-profile sporting events and niche sports to reach new consumer segments.
Innovative Marketing Strategies: Emotional marketing, IP collaborations, and content-driven campaigns will likely gain more traction as brands explore new ways to connect with their audience.
Conclusion
The 2024 QuestMobile Internet Advertising Market Half-Year Report highlights the rapid evolution of the advertising landscape in China. With content-driven marketing, emotional engagement, and e-commerce innovations at the forefront, brands are redefining how they connect with consumers. As the market continues to grow, it is clear that the brands that can successfully adapt to these changing trends—by leveraging creativity, technology, and data-driven insights—will be the ones that thrive in the competitive landscape ahead.
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