Amazon Ads: Active Chinese advertiser accounts soar 13-fold compared to 2017

As an increasing number of Chinese enterprises expand their presence in overseas markets to seek new growth drivers, advertising has become an important driving force in helping going-global enterprises achieve revenue growth and build their brands, said US tech company Amazon.

As of June 2023, the number of active Chinese advertiser accounts on Amazon was more than 13 times compared with early 2017, according to Amazon Ads. It noted that advertising empowers brands in launching new products, increasing brand exposure and establishing meaningful connections with local customers.

The number of active Chinese advertiser accounts in various marketplaces such as Poland, Sweden, Saudi Arabia, Mexico, the Netherlands, Singapore, the United Arab Emirates and Brazil increased by more than 40 percent year-on-year in June.

According to a white paper released by Amazon Global Selling, the number of China-based brand owners with stores on Amazon increased by nearly twofold between June 2020 and June 2023.

These brand owners are also active advertisers with a strong sense of brand-building, making full use of the multiple advertising products provided by Amazon Ads to improve brand awareness and boost product sales.

In addition, more and more brands are using video advertising as an important means to attract consumers. As of June 30, the number of active Chinese advertiser accounts on at least one video ad format surged more than 30 percent year-on-year.

Cross-border e-commerce in China has made great strides in recent years. According to Customs data, the import and export scale of the nation's cross-border e-commerce reached 1.1 trillion yuan ($150.9 billion) in the first half, up 16 percent year-on-year. E-commerce exports stood at 821 billion yuan, up 19.9 percent on a yearly basis.

Amazon Ads continuously offers high-quality content and creative services for Chinese companies going abroad, and helps Chinese brands reach overseas consumers via various video streaming and media platforms, such as Prime Video, Twitch and Freevee, said Yang Tong, director of account management for Amazon Ads Asia-Pacific.

This helps Chinese brands boost marketing efficiency and access more clients by leveraging innovative technologies, such as machine learning tools and algorithms, and offers insights from local buyers in overseas markets, Yang added.

Since entering China in 2017, Amazon Ads has built a local team and keeps strengthening its local services to address the needs of cross-border sellers and brands in China. It has sped up localization efforts by establishing training systems and providing courses to help more Chinese cross-border advertisers improve their marketing capabilities.

Noting that many foreign trade enterprises are facing mounting pressure and challenges from supply chains and rising logistics costs, Zhang Zhouping — a senior analyst of business-to-business and cross-border activities at the Internet Economy Institute, a domestic consultancy — said cross-border e-commerce has become an important driving force for stabilizing China's foreign trade and economic growth.

Chinese intelligent pet brand Homerunpet has accelerated steps to expand its footprint in overseas markets since 2021 with the help of Amazon by establishing a team covering operations, brand and customer service, with its business involved in Amazon's 12 sites, including the United States, Europe and Japan.

Liu Kun, founder and CEO of Homerunpet, said the company's pet dryers have gained popularity in Japan, and Amazon Ads has helped the company distribute creative video advertisements through multiple channels.

Brands going global will face cross-cultural marketing challenges. The way to achieve steady growth in an overseas business expansion is to deep dive into local cultures, and understand local needs and preferences to develop marketing strategies, Amazon Ads said.

"Cross-border e-commerce platforms have become an efficient and convenient way for traditional manufacturing enterprises to expand their overseas footprint. They also can help micro, small and medium-sized enterprises open up new markets," said Lyu Gang, a researcher from the Development Research Center of the State Council.