Brand Spending On Marketing Remains Stable in china

Totem’s brand survey indicates that digital and social media spending in China will increase on average between 10-15% during 2020. By contrast, previous years’ increases where >20%. So, brands are taking a more subdued approach to 2020.

However, our survey also shows that there is a split between leading brands and smaller brands. Leading brands plan to increase budgets, whereas middle-of-the pack brands are keeping budgets un-changed.

And, while advertising spending has slowed down, brands continue to increase spending on digital (and social) channels at higher rates than traditional media.

Brands should start looking beyond the major digital channels to new channels. By going into new channels, there is the prospect of

(1) benefiting from under-priced audience attention

(2) surprising audiences with something new, different.

Modest Ad Spend Increases For 2020 But Most Brands Maintain Status Quo

The majority of brands surveyed planned to maintain budgets similar to 2019. 88% of brands surveyed planned to either maintain or increase budgets in 2020. 40.5% of brands planned to keep the same budget levels they had the previous year.

In 2017 and 2018 (survey data from AdMaster showed that average yearly ad budget increases were at/near 20%). Based on our research, average increases are projected to be (at/near) 10% for 2020.

Digital Ad Spend To Continue Growing

The majority (64.3%) of brands surveyed planned to increase digital spending in 2020. The increases planned for 2020 are however lower than the increases seen in previous years.

Spending increases average between 10-15% for 2020, where average increases in previous years were >20%.

About the survey: At the end of 2019, Totem Media surveyed a group of 42 brands on their advertising plans for 2020. This group of brands represents a cross section of (mostly global brands) from very large to medium sized - most of which have more than ten years experience in the market.

Social Spending Also Up In 2020

Social media runs in parallel with digital spending. The majority (57.2%) of brands surveyed planned to increase social spending in 2020. Interesting to note, that while the number of brands planning to increase spend in social and digital were similar, the increases to planned social spend were slightly higher than digital as a whole.

Several brands citied big investments planned for Douyin and other short video apps as the reasons behind the increases into social media.

About the survey: At the end of 2019, Totem Media surveyed a group of 42 brands on their advertising plans for 2020. This group of brands represents a cross section of (mostly global brands) from very large to medium sized - most of which have more than ten years experience in the market.