China's Ad Market in 2025: Structural Growth and the Rise of Experience

The New Rules of China's Ad Market

If you've been watching China's ad market from the sidelines, you might think it's still all about buying cheap clicks and hoping for the best. But the data from CTR's 2025 China Advertising Market Trends report tells a different story. The market is growing, yes, but it's growing in ways that are reshaping how brands think about everything from media spend to the role of AI.

The report, released at CTR's annual innovation event in Shanghai on September 11, 2025, paints a picture of a market that's no longer satisfied with simple reach. It's a market where experience, emotion, and trust are becoming the new currency.

Multiple Drivers, Structural Growth

Let's start with the numbers. In the first seven months of 2025, ad spend in categories like entertainment, telecom, transportation, personal goods, and IT products grew at double-digit rates. That's not just a blip; it reflects a deeper shift in what Chinese consumers care about—experience, self-pleasure, and tech-savvy products.

Some categories are exploding. Personal health care, teaching supplies, footwear, and entertainment services saw ad spend more than double year-over-year. Meanwhile, the number of brands advertising in laundry products, beer, PC games, and sports gear is rising fast. That's a sign that these markets are still open for business, with plenty of room for new players.

New product launches are also getting a bigger slice of the pie. Advertisers now plan to spend 35% of their total marketing budgets on new product promotion, up three percentage points from 2024. Industries like mobile phones, home appliances, transportation, and daily necessities are spending even more than that average.

AI is a big part of this story. AI-related product ads saw an 83% jump in volume and a staggering 442.8% increase in spend during the same period. And it's working: 77% of consumers say AI elements in marketing make them like the brand more. They see it as a sign of tech-savvy and innovation, which builds trust.

Experience Economy Takes Center Stage

The old playbook was about pushing features and benefits. That's no longer enough. In the experience economy, value isn't just created by what a product does—it's created by how it makes people feel. Brands are shifting from being "cognitive and transactional influencers" to "experience stage planners."

This means moving from one-way messaging to multi-dimensional expression. Consumers are no longer passive receivers; they're co-creators of brand stories. Every share, every check-in, becomes part of the brand's narrative. The loop goes like this: create an experience, spark an emotional response, then watch it spread through word-of-mouth.

KOLs are playing a bigger role here. They're not just endorsing products; they're creating immersive, authentic content that resonates with their followers. Whether it's a hands-on review, a lifestyle vlog, or a behind-the-scenes look, this "content is advertising" approach makes brand messages feel natural, not forced.

But there's also a counter-trend: the rise of authoritative voices. Brands like Baixiang, Zun Jie, and Genki Forest are inviting CCTV hosts into their factories for "transparent factory" live streams. It's a way to show consumers exactly how products are made, building credibility and establishing a "quality benchmark" in their minds. In a world of fragmented information, that kind of authority is gold.

From Human-Machine Interaction to Symbiosis

AI is no longer just a tool for efficiency; it's becoming a digital employee, even an emotional companion. Brands are using AI to add warmth to their interactions, not just speed.

But AI is also changing how consumers search. For categories like 3C electronics, apparel, and beauty products, AI search is already a significant part of the purchase decision process. That means brands have to rethink their search strategies. If a consumer asks an AI assistant for the best smartphone, what does it say about your brand?

According to the CTR Advertiser Marketing Trends Survey, 31% of advertisers plan to increase spending on AI conversational search ads in 2025. They're also keeping a closer eye on their brand's visibility and reputation in AI-generated answers. CTR is even launching a service to measure and track brand performance in AI contexts.

Brand Value Makes a Comeback

For years, the mantra was "performance marketing above all." But the pendulum is swinging back. CTR's consumer data shows that brand factors are the top influence on purchase decisions. Advertisers are taking notice: the percentage of those who prioritize brand over performance, or see them as equal, is rising.

Even the government is getting involved. The State-owned Assets Supervision and Administration Commission issued guidelines for central enterprises to strengthen brand building, with six key tasks. And the State Administration for Market Regulation now treats ad placement as advertising, subject to the Advertising Law. This has sparked talk of a "traffic tax," but the underlying message is clear: instead of endlessly buying traffic, focus on building a real brand.

Three Moves for the Second Half of 2025

So what should brands do? CTR offers three pieces of advice.

First, build multi-dimensional experiences. Stop talking at consumers; start inviting them to participate. Use a mix of channels and formats so your brand is perceived, trusted, and shared across different contexts and audiences.

Second, embrace AI, but keep it human. AI should serve people, not replace them. Use it to create interactions that are warm, interesting, and worth talking about. Let AI be the bridge between your brand and your customers, not a barrier.

Third, invest in brand value. Don't be a slave to performance metrics. Put more money into brand advertising that strengthens emotional and value-based connections. That's how you build long-term competitive advantage and sustainable growth.

The Bottom Line

China's ad market is entering a new era—one where value beats volume. The days of "traffic is king" are fading. Today, it's about creating experiences that matter, using AI to enhance human connection, and building brands that stand for something. The brands that get this right will be the ones that shine like gold in the years ahead.