The power of data: using insights to drive successful luxury marketing campaigns in China

An exemplary case is China, which has seen remarkable adoption of data-driven technology in its marketing tactics especially with the dominance of e-commerce in the country.

Even as economic challenges mount, China’s luxury market has pivoted well with this shift – more brands have come to rely on cutting-edge data-driven strategies to stay ahead in the midst of a competitive market and sluggish economy. Today, digital advertising spend in China is estimated to be growing towards $199.4bn, reaching countless consumers and democratizing the ad space to benefit both buyers and sellers.

How data became a new frontier in shaping marketing strategies

Before data analytics emerged as the cornerstone of modern marketing strategies, many advertising strategies were often a shot in the dark. Traditional media placements often either ended up wasted on uninterested consumers or an audience too broad, which meant brands needed more time for campaigns to take off and reach the right crowds.

Now, brands are now handed a treasure trove of consumer behavior insights about their target audience. Within a shorter time, digital marketing allows brands to cut to the bone and reach the right consumers, which not only is a great advantage for sales numbers but also a great benefit to customers who often find it hard to navigate a vast e-commerce space.

According to Luxe Digital, 85% of luxury brands’ sales comes from customers registered in their database. By harnessing this comprehensive data, brands can tailor campaigns on a personal level, amplifying consumer engagement and conversions.

Understanding China’s challenging luxury sector and its affluent customers

Although China is not immune to the rising economic pressures and increasing unemployment rates, the luxury sector remains a lucrative trade in the country and is making a slow-but-sure recovery.

Rather than completely shunning purchases entirely, consumers are becoming more selective and specific about what they choose to spend on. From small luxuries (eyewear, beauty, etc) to gourmet dining, recent economic developments have transpired into a shift of consumer focuses. For instance, international luxury travel among Chinese tourists is now on the rise, as Altagamma-Bain reports a greater number of Chinese shoppers abroad in regions like the Europe and Japan.

It is therefore critical for brands to understand the evolving preferences of its consumers and optimize their marketing strategies for consistent visibility among its Chinese consumers. By leveraging on Petal Ads technological advancements, it empowers brands to maintain efficiency and effectiveness in their ad campaigns, despite the weakening market, making the most of their limited budget.

Driving successful campaigns with Petal Ads

As part of Huawei’s vast and growing ecosystem, Petal Ads builds a bridge for brands to reach the consumers through intelligent and bespoke marketing campaigns. Petal Ads uses its access to first-party data, which is collected through Huawei’s Data Management Platform (DMP), to support both native tracking and third-party tracking platforms. This effectively helps advertisers track ad performance and optimize campaigns in real-time.

Petal Ads recently partnered with Turismo Andalucía, showcasing its award-winning campaign video, ‘Andalusian Crush’ across Huawei’s Connected TV (CTV) and mobile ads platforms. This drew impressions from high value Chinese consumers and resulted in an increase in searches related to Andalusia within Huawei channels by 1.73% in Q4 of 2023 during the campaign, compared to Q3 2023 pre-campaign. In Europe, the mobile campaign successfully achieved 5.48 million impressions and a click-through rate (CTR) of 2.24% while in China, over 80.33 million impressions were reached between CTV and mobile with a CTR of 1.87% in mobile.

Seizing the massive opportunity

In spite of changing economic circumstances, the Chinese market continues to present a massive opportunity for brands aiming to expand globally. Brands aiming to connect with more high-value consumers can seize this opportunity and navigate the intricacies of China's advertising landscape through Petal Ads’ extensive presence in China and tailored services.

By leveraging Huawei’s extensive ecosystem, Petal Ads provides a holistic platform to connect with a vast and diverse user base. Through advanced targeting, comprehensive advertising formats, and programmatic solutions, brands can now reach their target audience effectively from end-to-end.