Where advertisers invested their budgets in China in 2024
Last year was not a strong one for the advertising industry according to Guideline SMI data, which tracks media expenditure trends across global markets, including China where it works with 4A agencies who represent 85% of the top-50 advertisers. Overall spending fell by 3.4% compared to the previous year, dragged down by a poor August to November and marking the third consecutive annual drop. In a notable twist, radio was the only channel to register an increase, reversing its long-standing downward trend.
December Signals a Recovery
Despite the general decline, December saw a steep 11.8% year-on-year rise in ad spending, hinting at an industry turnaround. This upswing coincided with government initiatives designed to boost consumer confidence and stimulate retail spending.
Digital Still Dominates
Digital platforms continued to strengthen their hold on the ad market, growing their share from 80.8% in 2023 to 81.4% in 2024. Out-of-home (OOH) advertising claimed the second-highest investment, inching up from 13.4% to 13.6% over the same period.
Within the digital segment, two sectors stood out:
Social platforms grew from 26.2% to 28.1%
eCommerce climbed from 6.6% to 7.4%
Among individual digital platforms, RED (Xiaohongshu) was the standout performer, with ad spend surging 29.1%. JD saw a 5.1% boost, while Alibaba recorded a 2.6% uptick—reflecting eCommerce’s overall momentum.
December saw continued strong growth across most major channels as highlighted below.
A Mixed Bag for Consumer Categories
Consumer electronics led category growth, with a 23.4% year-on-year increase in 2024 - helped in large part by government subsidies for smartphones and other devices. Alcoholic beverages posted the second-fastest growth at 12.5%, followed by food, produce, and dairy at 10.2%.
By contrast, the automotive sector saw the steepest decline, plunging 25.2% from 2023 to 2024. Computers and software dropped 12.6%, and beauty, grooming, and personal care fell 7.3%.
Reflecting the uptick in spending in December, the major categories largely saw an increase, with the exception of auto and fashion, both dropping 8%
Looking Ahead
While last year’s overall advertising spend trended downward, the significant upswing in December suggests a turning point - likely buoyed by improving consumer sentiment and supportive government policies. We will continue to monitor how these factors shape advertising spend in the months to come.
Despite increasing geopolitical tensions, rising nationalism and Covid fears, imports of consumer goods grew 8.2% in China last year. Sales of domestic goods contracted 3.9%. Chinese consumers' historic pursuit for beauty helped see imported cosmetics as one of the biggest drivers of this growth, with their value rising over 30% according to China's Ministry of Commerce (MOFCOM) figures published last week.The strong growth in cosmetics imports further reinforces the attractiveness of foreign skincare brands, and is well timed to coincide with the launch of the China Skinny Skincare Tracker.