Going-global firms focus on brand building

From manufacturing to internet technology, and consumer goods to financial services, Chinese firms in various sectors are looking to expand their presence, as well as attaching more importance to brand building, in overseas markets.

Given fierce competition and limited brand awareness in overseas markets, more Chinese brands prefer to enhance their brand influence and conversion rates through refined advertising options.

For instance, Shenzhen-listed Chinese audio product maker Edifier has been actively expanding its overseas business in over 80 countries and regions, including Germany, the United Kingdom, France, the United States and Japan, and the company hopes to further raise its brand influence internationally.

The Trade Desk, a global advertising technology company based in Ventura, California, said its database helped Edifier to target a business demographic group aged over 30 in the US.

By placing advertisements on major US technology and sports websites, Edifier's brand awareness significantly increased, and its sales in the US jumped over 50 percent year-on-year in the two-week period after placing the advertisements.

Meanwhile, Shenzhen, Guangdong province-based smart home brand Govee has continued to expand its presence overseas. In the fiercely competitive smart lighting market, the company said it faces challenges of enhancing brand awareness and purchasing intentions among consumers.

Govee said it aims to establish a stronger brand influence among young consumers aged between 18 and 34 in the US. Early last year, it placed display advertisements, as well as advertisements through connected TV by promoting co-branded products of a Hollywood sci-fi film.

These actions have helped Govee significantly raise its brand awareness in the US, and transformed several movie enthusiasts into potential consumers.

"Premium internet resources represented by connected TV are rising rapidly worldwide, fueled by consumers' growing demand for premium digital content," said Ashley Wu, senior director of business development of The Trade Desk in China.

"For Chinese brands, launching advertisements on connected TV means being able to accurately reach overseas high-value audiences, and getting new opportunities to establish high-quality and trustworthy international brand images," Wu said.

She added that only by taking connected TV as the core and building an omnichannel marketing strategy based on premium internet resources can Chinese brands truly enhance consumer trust and purchase intentions, and continue to raise their global influence.

According to a survey by The Trade Desk about streaming behaviors last year, 41 percent of surveyed UK consumers said they subscribed to new streaming services, while 44 percent of surveyed US consumers said they watched significantly more streaming content than the previous year.

In addition, as major global streaming platforms gradually launch subscription plans with advertisements, 21 percent of surveyed UK consumers and 28 percent of surveyed US consumers said the time they spent watching streaming content with advertisements has significantly increased compared to a year ago.

According to a separate survey by The Trade Desk last year, 94 percent of surveyed advertisers said the effectiveness of connected TV advertising has met or exceeded their expectations.

Fueled by such a trend, advertisers have been significantly increasing their advertising placements on connected TVs. These platforms cover a variety of content such as popular films and TV dramas, streaming music, podcasts, live sports events and news, which have reshaped the global advertising ecosystem, The Trade Desk said.

"With the transformation of the advertising market, brands must adopt more refined and collaborative strategies to stand out amid fierce competition, which is in line with the demand of consumers," Wu said.

Last year, total global advertising revenue of the connected TV sector grew by 20 percent on a yearly basis, achieving a record high of $35.2 billion, and the figure is expected to grow further to $46.3 billion by 2026, according to global research firm Statista.

zhuwenqian@chinadaily.com.cn