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9 Ways To Sell In China: Tips For Ecommerce Marketers

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9 Ways To Sell In China: Tips For Ecommerce Marketers

You don’t have to have an MBA from Wharton to spot the opportunities the Chinese market presents for ecommerce.

The world’s most populous nation, the People’s Republic of China, has the world’s second-largest economy, with a GDP of nearly $16 trillion. And what’s truly astonishing is that most of its economic growth has occurred over the last three decades.

If you’re like most foreign (i.e., not based in the PRC) companies, this potential probably has you licking your chops.

But unfortunately, this is a notoriously difficult market to enter for Western companies because it presents several unique challenges. These often include:

  • Difficulty navigating a complex and inconsistent bureaucracy.
  • A poor understanding of consumer buying habits.
  • Governmental challenges include corruption and a lack of transparency.
  • Sourcing local labor and managing employees.
  • Intense competition (and rules that favor domestic companies).

That said, it’s not impossible, and the possibilities far outweigh the cost and time required.

In this piece, we’ll discuss the unique challenges of doing business and look at nine things ecommerce companies can do to not only get their foot in the door but also thrive.

Ecommerce Tips For Marketing In China

1. Understand Chinese Consumer Behavior

Chinese digital shoppers do not behave in the same manner as their American and European counterparts.

For one thing, thanks in no small part to censorship laws, Western search engines have no significant presence in the PRC.

Instead, the Chinese have several home-grown search engines, each with its niche in the market.

And the vast majority of shoppers are using these on mobile devices, with 99.7% of Chinese internet users accessing the web via smartphone. 

But, those are far from the only differences in consumer behavior.

Chinese citizens also prefer single-entry-point shopping, where they can choose between brands rather than visiting a shopping platform of a single company.

For example, they’re more likely to buy Nikes from Tmall (an Amazon-like store) than from the Nike site itself.

Chinese consumers are also heavily swayed by influencers and social media.

Chinese companies actively encourage celebrities to use their apps as a channel for product launches. And direct links from social media posts to online stores make it easy for shoppers to find and buy the exact shoes their favorite star was wearing.

Additionally, the vast economic growth the country has undergone led to an increased emphasis on quality, convenience, and customer service when making decisions.

2. Select The Right Products

Whereas previous Chinese generations may have valued collectivization and sought benefits for society, modern Chinese consumers have moved into a more individual mindset.

In a whitepaper entitled “Chinese Consumer Insights 2022,” Ireland-based professional services company Accenture found an 11% increase in consumers willing to buy products that highlight their identity between 2013 and 2021.

This should come as no surprise in a country that now boasts more than 700 million middle-class citizens.

To ensure the success of your ecommerce marketing in the PRC, you need to sell the type of products they’re looking for.

Goods for leisure activities, technology, beauty and makeup, and clothing remain hot items on the Chinese digital market.

There is a high demand for foreign products, but they must be considered premium alternatives to domestic items.

According to the South China Morning Post, an English-language newspaper owned by Alibaba, China claimed 32% of the global luxury goods market in 2020.

This is a huge opportunity for foreign companies looking to expand into the Chinese marketplace.

3. Set Up Local Hosting For Your Website

Chinese search engines tend to prioritize websites hosted on servers within the country. Launching a Mandarin version of your existing online store alone will not cut it.

To show up in the searches of Chinese consumers, you need a site hosted in China. But it’s not as simple as clicking a few buttons and filling in your credit card information.

Before any website can be hosted in the PRC, you must apply for an Internet Content Provider (ICP) registration with the Chinese Ministry of Industry and Information Technology (MIIT).

Depending on which industry you fall under (e.g., education, healthcare, financial services), you may have to receive permission from a relevant government agency before applying. 

You need to receive your ICP commercial license, as well as an Electronic Data Interchange (EDI) if you plan on processing data and transactions.

However, if you plan on having a physical presence in China, you may not need an ICP.

Just be aware if you do need one, the entire process may take several months.

4. Use Trusted Payment Processors

The way payment works in China differs from what you’re probably used to.

For one thing, the model varies depending on the type of transaction. You could try to navigate these complex requirements on your own, but it’s recommended that you work with a third-party online payment platform like Alipay or Tenpay.

Alibaba’s Alipay is the primary payment method for major Chinese ecommerce platforms, TMall and Taobao. It offers escrow capabilities to reduce risk when receiving payments.

You’ll need a Chinese phone number, bank account, and a Chinese business license to use it.

Tencent’s Tenpay also offers escrow and is simpler to set up.

To receive your license, you must prove to Tencent you want to do business in China and provide a foreign ecommerce website.

This requires a China-visible WeChat account, a cross-border payment account, and a WeChat ecommerce website.

Note: You can apply for your WeChat account and foreign business license directly through Tencent, though this is not a standard process.

Minimize your payment risk with product inspection certificates that attest your items meet agreed-upon quality requirements.

5. Provide Exceptional Customer Service

Chinese business is built upon a concept known as guanxi. Roughly translated, this means personal relationships with an implied level of trust and mutual obligation.

Because this has historically been such an important aspect of how business is done, Chinese consumers have an ingrained expectation of hierarchy, negotiation, and customer service.

While the first two are not so important to ecommerce companies, the third is crucial.

Competition in the digital marketplace is fierce, meaning Chinese shoppers are used to superior customer service.

They expect – and you should provide – things like fast delivery and returns, clear communications in Mandarin, and easy mobile payment options.

And they’re not afraid to share their opinions on social media sites, so bad customer experiences can have far-reaching effects.

6. Choose The Right Logistics Solution

Late deliveries, damaged items, and difficult return policies will turn Chinese customers off. That means your logistics must be iron-clad.

Unfortunately, finding high-quality providers can be difficult in mainland China.

This leaves you with three options: Build your own, partner with or acquire existing firms, or find a good third-party provider.

The first two options are time-consuming and prohibitively expensive for most ecommerce companies, so that leaves only option number three.

Logistics providers in the PRC generally fall into two categories:

  • Companies compete based on their large network.
  • Companies that compete based on superior service.

Choosing which is right for you will depend on what you’re selling.

For example, if you’re selling pet rocks throughout China, size is more important than service.

Your product is unlikely to be damaged, and your primary goal is getting it into the hands of the buyer, wherever they’re located.

On the other hand, if you’re selling crystal birdhouses in the Shanghai metropolitan area, a smaller logistics company that can provide a higher level of care and service is probably preferable.

7. Reach More Shoppers By Using The Top Marketplaces

As was mentioned in the first tip, Chinese online shoppers prefer marketplaces to brand websites.

While you can sell through your site, you’ll be exposed to a much larger audience if you’re part of one of China’s big online marketplaces, like Taobao, Tmall, or JD.

In 2019, Taobao surpassed $490 billion in gross merchandise volume. Tmall was second at $463.5 billion, and Jingding claimed third at $301 billion.

As you can see, the sheer volume of sales these sites account for is incredible. Taobao and Tmall are both owned by Alibaba. Jingding, or JD, is supported by Tencent.

Selling on these platforms usually requires your company to be registered in mainland China, though there are exceptions in some product categories.

These platforms are not interchangeable. Tmall is generally viewed as the luxury version of Taobao, and consumers trust it to find authentic branded items from abroad.

JD offers a wide variety of goods, from frozen foods to electronic books.

8. Take Advantage Of Shopping Festivals

Like Western online retailers have Cyber Monday and the run-up to Christmas, Green Monday, and Amazon Prime Day, China has its major shopping festivals.

To maximize your sales, you should be aware of these and use them to your advantage. These include:

  • Pre-New Year’s (January-February) – Just like the days before Christmas see massive shopping numbers in the West, the months before the Nian Huo Festival or Chinese New Year are busy shopping times for ecommerce retailers.
  • International Women’s Day (March 8) – Called the “Queen Festival” by Alibaba and the “Butterfly Festival” by JD, this day and the day before (Girls’ Day, March 7) are big online shopping days as men give presents to their significant others.
  • Mother’s Day (Second Sunday in May) – Filial piety is a big part of Chinese culture, so it’s no surprise that Mother’s Day is a big deal, with a corresponding increase in gift purchasing.
  • Love Day (May 20) – An unofficial Valentine’s Day, Love Day falls on this day because “five two zero” is a homonym for “I love you” in Mandarin. Valentine’s Day is also celebrated on its traditional date.
  • Midyear Shopping Festival (mid-June) – China’s answer to Prime Day, this summer event was started by JD but adopted by other online retailers.
  • Golden Week (starting October 1) – Beginning with China’s National Day, this week-long holiday sees a massive influx in spending because of traditions involving travel, family reunions, and gift-giving.
  • Singles Day (November 11) – First celebrated in 1993, 11/11 has become a big online shopping day in which people celebrate being single. A month later is Singles Sequel, on December 12 (12/12), many online retailers run inventory clearance events.

9. Promote On Chinese Social Networks

Chinese citizens love their social media platforms like the rest of the world.

And while none of these have direct correlations with more familiar platforms like Facebook or Instagram, many share similar features – including paid advertising. 

In tip #1, we mentioned these sites’ role in online sales.

The ability to click on an item in a Chinese social post and be linked directly to that item in an online store allows influencers to wield massive influence over purchasing decisions, which is a good reason to foray into this market.

Additionally, just like Westerners, the Chinese spend a good portion of their daily lives on these sites, which means well-placed products will generate a lot of exposure.

Here are some of the most popular social media sites in the PRC:

  • WeChat – Sometimes referred to as the Chinese Facebook, WeChat is more accurately a combination of Facebook, WhatsApp, Google News, and a dating app combined. It has 1.2 billion monthly active users worldwide. An all-in-one messaging app from Tencent, it also has games, shopping, and financial services.
  • Sina Weibo252 million people use this micro-blogging app every month. It is most similar to Twitter in that it has character limits while allowing the posting of videos, images, and gifs.
  • Tencent Video – The fourth largest streaming service worldwide, Tencent Video has 1.2 billion monthly active users. China’s online video market is highly competitive, but Tencent Video is the leader, outpacing rivals IQiYi and Youku.
  • Xiao Hung Shu – A hybrid ecommerce/social media site, this platform allows users to post reviews, participate in discussions, and post content. Most content is focused on product photos and shopping experiences. It has 100 million active users each month.
  • Douban – With 200 million monthly active users, Douban is a social networking platform dedicated to lifestyle content. The platform has integrated functionality allowing users to download ebooks, listen to music, and buy tickets for movies and concerts.

Chinese Ecommerce Is Worth The Work

As you can see, getting into the Chinese digital market requires a fair bit of work. But because online shopping is a huge piece of the Chinese economy, it’s worth the effort.

Be aware that you will probably face legal, cultural, and digital hurdles. And the process of getting set up will take much longer than you’re accustomed to.

With that said, if you have the time, patience, and language skills to navigate the complicated bureaucracy and develop a strategy that may feel alien initially, you’ll be gaining a foothold in one of the world’s biggest online markets.

Chinese citizens are strongly interested in international brands, particularly those perceived as high-end. But if you’re not a luxury goods company, don’t let this dissuade you.

The Chinese online marketplace provides a tremendous opportunity for businesses of all types and sizes.

Do your homework, follow the proper channels, and you’ll become a successful ecommerce player in China.

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Featured Image: William Potter/Shutterstock



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New Google Search Ads Resemble AI Assistant App

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New Google Search Ads Resemble AI Assistant App

A keynote at Google’s Marketing Live event showed a new AI-powered visual search results that feature advertisements that engage users within the context of an AI-Assisted search, blurring the line between AI-generated search results and advertisements.

Google Lens is a truly helpful app but it becomes unconventional where it blurs the line between an assistant helping users and being led to a shopping cart. This new way of engaging potential customers with AI is so far out there that the presenter doesn’t even call it advertising, he doesn’t even use the word.

Visual Search Traffic Opportunity?

Google’s Group Product Manager Sylvanus Bent, begins the presentation with an overview of the next version of Google Lens visual search that will be useful for surfacing information and for help finding where to buy them.

Sylvanus explained how it will be an opportunity for websites to receive traffic from this new way to search.

“…whether you’re snapping a photo with lens or circling to search something on your social feed, visual search unlocks new ways to explore whatever catches your eye, and we recently announced a newly redesigned results page for Visual search.

Soon, instead of just visual matches, you’ll see a wide range of results, from images to video, web links, and facts about the knowledge graph. It gets people the helpful information they need and creates new opportunities for sites to be discovered.”

It’s hard to say whether or not this will bring search traffic to websites and what the quality of that traffic will be. Will they stick around to read an article? Will they engage with a product review?

Visual Search Results

Sylvanus shares a hypothetical example of someone at an airport baggage claim who falls in like with someone else’s bag. He explains that all the person needs to do is snap a photo of the luggage bag and Google Lens will take them directly to shopping options.

He explains:

“No words, no problem. Just open Lens, take a quick picture and immediately you’ll see options to purchase.

And for the first time, shopping ads will appear at the very top of the results on linked searches, where a business can offer what a consumer is looking for.

This will help them easily purchase something that catches their eye.”

These are image-heavy shopping ads at the top of the search results and as annoying as that may be it’s nowhere near the “next level” advertising that is coming to Google’s search ads where Google presents a paid promotion within the context of an AI Assistant.

Interactive Search Shopping

Sylvanus next describes an AI-powered form advertising that happens directly within search. But he doesn’t call it advertising. He doesn’t even use the word advertising. He suggests this new form of AI search experience is more than offer, saying that, “it’s an experience.”

He’s right to not use the word advertisement because what he describes goes far beyond advertising and blurs the boundaries between search and advertising within the context of AI-powered suggestions, paid suggestions.

Sylvanus explains how this new form of shopping experience works:

“And next, imagine a world where every search ad is more than an offer. It’s an experience. It’s a new way for you to engage more directly with your customers. And we’re exploring search ads with AI powered recommendations across different verticals. So I want to show you an example that’s going live soon and you’ll see even more when we get to shopping.”

He uses the example of someone who needs to store their furniture for a few months and who turns to Google to find short term storage. What he describes is a query for local short term storage that turns into a “dynamic ad experience” that leads the searcher into throwing packing supplies into their shopping cart.

He narrated how it works:

“You search for short term storage and you see an ad for extra space storage. Now you can click into a new dynamic ad experience.

You can select and upload photos of the different rooms in your house, showing how much furniture you have, and then extra space storage with help from Google, AI generates a description of all your belongings for you to verify. You get a recommendation for the right size and type of storage unit and even how much packing supplies you need to get the job done. Then you just go to the website to complete the transaction.

And this is taking the definition of a helpful ad to the next level. It does everything but physically pick up your stuff and move it, and that is cool.”

Step 1: Search For Short Term Storage

1716722762 15 New Google Search Ads Resemble AI Assistant App

The above screenshot shows an advertisement that when clicked takes the user to what looks like an AI-assisted search but is really an interactive advertisement.

Step 2: Upload Photos For “AI Assistance”

1716722762 242 New Google Search Ads Resemble AI Assistant App

The above image is a screenshot of an advertisement that is presented in the context of AI-assisted search.  Masking an advertisement within a different context is the same principal behind an advertorial where an advertisement is hidden in the form of an article. The phrases “Let AI do the heavy lifting” and “AI-powered recommendations” create the context of AI-search that masks the true context of an advertisement.

Step 3: Images Chosen For Uploading

1716722762 187 New Google Search Ads Resemble AI Assistant App

The above screenshot shows how a user uploads an image to the AI-powered advertisement within the context of an AI-powered search app.

The Word “App” Masks That This Is An Ad

Screenshot of interactive advertisement for that identifies itself as an app with the words

Above is a screenshot of how a user uploads a photo to the AI-powered interactive advertisement within the context of a visual search engine, using the word “app” to further the illusion that the user is interacting with an app and not an advertisement.

Upload Process Masks The Advertising Context

Screenshot of interactive advertisement that uses the context of an AI Assistant to mask that this is an advertisement

The phrase “Generative AI is experimental” contributes to the illusion that this is an AI-assisted search.

Step 4: Upload Confirmation

1716722762 395 New Google Search Ads Resemble AI Assistant App

In step 4 the “app” advertisement is for confirming that the AI correctly identified the furniture that needs to be put into storage.

Step 5: AI “Recommendations”

1716722762 588 New Google Search Ads Resemble AI Assistant App

The above screenshot shows “AI recommendations” that look like search results.

The Recommendations Are Ad Units

1716722762 751 New Google Search Ads Resemble AI Assistant App

Those recommendations are actually ad units that when clicked takes the user to the “Extra Space Storage” shopping website.

Step 6: Searcher Visits Advertiser Website

1716722762 929 New Google Search Ads Resemble AI Assistant App

Blurring The Boundaries

What the Google keynote speaker describes is the integration of paid product suggestions into an AI assisted search. This kind of advertising is so far out there that the Googler doesn’t even call it advertising and rightfully so because what this does is blur the line between AI assisted search and advertising. At what point does a helpful AI search become just a platform for using AI to offer paid suggestions?

Watch The Keynote At The 32 Minute Mark

Featured Image by Shutterstock/Ljupco Smokovski

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How Do I Get A Job With A PPC Agency

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Conversion Tracking In PPC Campaigns

This month’s “Ask A PPC” question is particularly significant because the job market has been quite volatile.

“How do I get a job with a PPC agency when I have only worked in-house. What experience would they want?” – Karl Toronto

It’s understandable that people want to know which skills employers seek when hiring for a PPC team. There can be a disparity between what people think they need and what the market actually demands.

We’ll delve into some data and commentary to explain why various traits are valued.

It’s crucial to understand that the ideal candidates will be versatile and have an aptitude for all aspects of digital marketing.

However, no one can excel at everything, so leveraging your strengths or preferences is beneficial.

Ensure that you’re securing the best role for yourself while the company hiring you finds the best fit for them.

Here Are The Essential Skills

  • Analytics.
  • Creativity.
  • Ad network knowledge.
  • Willingness to test/learn.
  • Culture fit.

Discrepancy Between Market Demands And Perceived Needs

I conducted a poll on my LinkedIn to gauge the skills desired by current employers and practitioners.

Screenshot from author, LinkedIn, April 2024

Analytical skills emerged as the most sought-after trait. Employers seek individuals who can interpret numbers and discern the story behind them.

However, relying solely on analytical prowess may overlook the importance of creativity.

Creative skills are vital in today’s ad networks, especially emphasizing visual content like videos and campaign types that force visual content (Performace Max/Demand Gen). Neglecting creativity can hinder a company’s branding efforts.

Unexpectedly, ad network skills and cultural fit were deemed far less critical than analytical skills. Brands should prioritize team cohesion for long-term success, yet this aspect is often undervalued.

The disparity between job descriptions and actual skill requirements contributes to the difficulty in the job market.

Agencies that hire for how PPC used to work will be left wanting. Practitioners who only focus on popular skills instead of needed ones will be made obsolete by the privacy-first era obscuring data and AI owning creative.

Analytical Skills

Analytical abilities involve knowing where to find relevant data sources and understanding how they contribute to success.

While PPC historically relied on measurable outcomes, the landscape is evolving, necessitating adaptability in data analysis. Technical proficiency and strategic acumen are crucial for navigating different data sources.

These include:

  • Customer relationship management (CRM) systems.
  • Google Analytics 4 (GA4).
  • Ecommerce platforms.
  • Content management platforms (CMS).

Empathy for various ad channels improves your candidacy, and knowing how to work with post-click data will give you an edge over those who can only work with ad platform data.

While being highly technical isn’t required, having empathy for coding and scripts will give you a better chance to stay current with evolving data mechanics (especially as APIs become even more important for accessing data blocked by privacy-first regulations).

Here are some takes from PPC experts on why analytics is the most important:

A screenshot of a LinkedIn comment by Georgi Zayakov, who describes himself as analytical Screenshot from author, LinkedIn, April 2024
A LinkedIn post by Kathryn B., a paid media specialist at a PPC agencyScreenshot from LinkedIn, April 2024
Screenshot of a LinkedIn post by Nikolaos B., discussing how marketers must become data-savvyScreenshot from author, LinkedIn, April 2024

Creativity

Creativity is essential for crafting compelling ad content, yet many PPC agencies struggle in this area.

Clients are often tasked with providing creative materials due to cost or complexity constraints.

You’ll get a competitive edge if you have these skills:

  • Video Editing: With the rise of PMax, as well as many ad networks leaning heavily into connected TV, having video editing chops will be a huge asset for any team. If you’re not comfortable using conventional editing tools, AI tools like Descript are a great way to take on those tasks.
  • Graphic Design: No matter the ad network your potential employer is hiring for, you will need some ability to design static images. Whether you use stock photos or AI-generated images or come up with the creative yourself, the days of purely text ads are over. Tools like Canva can help bridge the gap for less technical designers, but don’t discount ad network AI.
  • Content Creation: While the first two categories leaned toward visual content, written content is still important (i.e., most ad formats include some text). Having the ability to understand how diverse audiences prefer to be addressed while respecting the specific requirements of each format is a great skill to hone.

While some roles may prioritize analytics or ad network knowledge, emphasizing creative abilities can distinguish you during the hiring process.

Here are some experts who value creativity:

A screenshot of a LinkedIn post by Erik PetersonScreenshot from author, LinkedIn, April 2024
A screenshot of a Linkedin post by Amy HebdonScreenshot from author, LinkedIn, April 2024

Ad Network Knowledge

Ad network expertise is valuable, but adaptability is paramount as platforms evolve rapidly.

Some agencies will have specialists, while others hire folks they expect to be passable at every network they service. It’s important to understand what workflow will enable you to succeed.

If you’re happy working with all platforms, then don’t shy away from it. However, if you do better in focusing on one aspect of PPC, that’s totally valid. Just know it might limit your ability to get hired into smaller “familyesque” agencies.

Understanding auction dynamics and bidding strategies is crucial.

Many of us who entered the industry when manual bidding was more popular have an unfair advantage over those who came in during the Smart Bidding era (i.e., anything from 2020).

This is because manual bidding requires you to think about the mechanics of each ad platform’s auction and how you could use those mechanics to your advantage in building account structure.

Knowing what to track and allocating appropriate budgets are key considerations.

Understanding that some networks require more conversions than others to run (e.g., Meta Ads’ 50 in a 7-day period vs. Google Ads’ 15 in a 30-day period) should influence what you choose to track, as well as how you report the data.

Additionally, if you are under or over budget, you’ll set yourself up to fail. Knowing which channels require a big investment upfront and what the breaking point for each network is (either on underspending or spending too much) is critical.

Awareness of potential pitfalls, such as false positives or negatives, enhances campaign effectiveness. For example, it’s important to know how to check if automatically applying recommendations is on and what tasks it’s on for.

It’s worth noting that none of the experts who chimed in on the poll made a clear case for ad network knowledge specifically.

Willingness To Test

Success in PPC requires openness to experimentation and a willingness to adapt. While this wasn’t one of the criteria in the poll, it was one of the most popular traits experts look for in hiring.

Perfectionism can hinder progress in a fast-changing environment. Testing new ideas and embracing failure as an opportunity for growth are essential.

While analytical skills aid in test design, empathy and creativity are equally vital for devising effective experiments.

Here is an expert who favors a willingness to test:

Screenshot of a social media post by Mike RhodesScreenshot from author, LinkedIn, April 2024

Cultural Fit

Cultural alignment with an agency fosters productivity and job satisfaction. However, you can only achieve that by being honest with yourself about what you want and the mechanics of how you work.

Agencies demand intense effort and collaboration, making compatibility with colleagues crucial.

Anyone looking to make the shift from in-house to agency needs to be prepared for a much faster pace of work and a lot more agency.

Open communication with leadership regarding preferred management and learning styles will ensure a positive working relationship.

Respect for peers and a supportive atmosphere contribute to a fulfilling work environment.

Here are a few thoughts on cultural fit from polled experts:

The image shows a LinkedIn post by David Zebrout containing text discussing the importance of integrating PPC network knowledge with intertimed optimizations in generating profitable growth.Screenshot from author, LinkedIn, April 2024
LinkedIn post by Lisa Erschbamer discussing the importance of cultural fit and individual personality in team dynamics for effective performance at a PPC Agency.Screenshot from author, LinkedIn, April 2024
A screenshot of a LinkedIn post by Aaron Davies discussing the importance of cultural fit, individual skills, and team communication in marketing for a PPC agency. The post has reactions and a question comment by NavahScreenshot from author, LinkedIn, April 2024

Final Thoughts

Navigating the current job market can be challenging, but understanding industry needs and honing relevant skills increases your chances of success.

Balancing technical proficiency with creativity and cultural fit is essential for thriving in a PPC role. By aligning with market demands and showcasing your strengths, you can secure rewarding opportunities in the field.

Have a question you’d like us to address? Fill out the form!

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Featured Image: Paulo Bobita/Search Engine Journal

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Why Every Marketer Should Be On Reddit

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Why Every Marketer Should Be On Reddit

In its nearly 20 years of existence, Reddit has built a robust, dynamic, and highly engaged community.

It has cemented itself as not only one of the key influencers for the internet culture we have come to know today, but also as one of the top 10 social media sites in the world, with more than 500,000 monthly visitors across more than 100,000 active communities.

Despite its size and influence, marketers have long avoided, overlooked, and failed to establish a presence on what is arguably one of the most influential social media sites today.

To be fair, Reddit has always been known as one of the hardest communities to have marketing success with, requiring months (if not years) of dedicated commitment to actually being a part of the community and engaging with your audience through meaningful, genuine, and honest interactions.

To many, that is just too much risk and too much work, but let’s be honest – most amazing things take risk and hard work. And for all of you who put in that work to be successful on Reddit, you already see the payoff it brings.

Regardless of the reasons, marketers who continue to overlook Reddit’s potential are missing out on an extremely influential community with ideal targeted demographics, where authenticity and genuine connections lead to valuable information, positive branding, and marketing success.

Not convinced? Let’s take a closer look at Reddit!

Reddit Stats You Cannot Ignore

Reddit users are dedicated to their use of the platform, with a reported 82 million (16.4%) of its 500 million users visiting the site daily, sharing over 1 billion posts, with over 16 billion comments across 100,000+ active communities, making it easily one of the top visited and most active sites in the United States today.

The user base is so loyal that they spend, on average, 20 minutes on the platform each day (and over 45 minutes a day for long-time users of more than 7 years) and, in many cases, are inactive on other social platforms.

This makes Reddit one of the only places to actually get in front of this massive audience, with 32% being inactive on Facebook, 37% on Instagram, 41% on TikTok, and 53% on X.

When it comes to demographics, a 2019 survey concluded that the overall Reddit audience was majority male (59%), ranged in age (36% aged 18-29; 25% aged 30-49), and well educated (42% college degree; 31% some college) making them an ideal audience many businesses looking for success.

They also helped Reddit improve revenues by 21% to $804 million in 2023, with a global addressable market for advertising estimated at $1.4 trillion by 2027.

Thought by many to be mostly a North American audience, Reddit claims more than 50% of its traffic comes from international users, a rather impressive climb from its earlier years.

It is important to remember, though, that Reddit is a platform that allows communities to grow and thrive, so those demographics change from subreddit to subreddit.

If that isn’t enough to grab your attention, surveys have found that 75% of users find Reddit a trustworthy source for making purchasing decisions.

For years now, it has been included heavily and prominently in Google search results, which have become even more visible due to reports following their inclusion in SGE results and with Google’s recent $60 million a year deal with Reddit to have real-time access to Reddit content and to use its content to train Google’s future AI models.

Speaking of Reddit’s visibility in Google’s search results, let’s take a closer look at why that deal is so important, especially to search marketers.

Reddit In Google Search, SGE, And Google’s Reddit Deal

For years, Reddit results have been prominently displayed in Google’s search results – so much so that users have even started adding the term “reddit” to the end of their search queries.

So often, you will see Google suggest search lines with the term “reddit” prefilled at the end.

Screenshot by author from search for [are purple mattresses good], Google, May 2024

Even without selecting the query that includes “reddit,” you will notice Reddit’s prominent placement in two places: discussions and forums, and Reddit sitelinks, which are both just below the ads and the first organic result.

Reddit resultsScreenshot by author from search for [are purple mattresses good], Google, May 2024

This was amplified by Google’s recent Helpful Content Update (HCU), which allowed platforms like Reddit and other forums to show up more frequently in search results,

Reddit’s ability to be helpful in satisfying a user’s search for information is so successful – in combination with reported shortages in new content for AI models from all major platforms – it is not surprising Google struck a deal with Reddit to show its content faster in search results and to use the content in training future AI models.

Since news of the deal between Reddit and Google was reported, there has been a lot of additional focus on Reddit’s visibility in Google’s search results.

Experts throughout the search industry report an increase in not only the total visibility of Reddit going up within search but also the speed at which a Reddit post is indexed and shown to users.

Google responded to concerns about Reddit showing up more in search results, saying that “some of the SEO folks who tend to be vocal on this platform (X) really dislike seeing more forum content in our search results. But actual searchers seem to like it. They proactively seek it out. It makes sense for us to be showing it to keep the search results relevant and satisfying for everyone.”

Google responded to concerns of Reddit showing up more in search resultsScreenshot by author from X (Twitter), May 2024

Although disputed by Google, Roger Montii wrote about one report of Reddit content being indexed within five minutes.

ChatGPT to Surface Reddit Content

Adding to the deal Reddit made with Google, it was recently reported that OpenAI has partnered with Reddit to surface their content in ChatGPT, adding to the clear value that both OpenAI and Google see in Reddit’s content today and in the future.

Of course, this has sparked a lot of interest in companies of all sizes. They want to figure out how their brands can participate and succeed on Reddit in hopes of increasing their visibility in Google’s search results, SGE, and ChatGPT and building their brand’s visibility amongst one of the most influential audiences on the internet today.

**Quick warning: Reddit requires genuine, long-term engagement and a strategy for success. So, I would definitely advise individuals and businesses to avoid trying to game, spam, or blindly jump into marketing on Reddit and take the time to really understand the platform, its audience, and your place of value within its communities.

Let’s look at how some major brands have been successful on Reddit in the past.

noosa Yoghurt

Noosa Yoghurt’s 2021 back-to-school campaign on Reddit was a great example of tapping into niche audiences to create engaging, user-driven content.

To capitalize on Reddit’s community of vocal yogurt enthusiasts, noosa launched a Flavor Poll that invited Redditors to upvote their favorite noosa flavors in the comments. This created a sense of community and interactivity around what could have been a standard poll.

Noosa Yoghurt’s 2021 back-to-school campaign on Reddit.Screenshot by author from Reddit, May 2024

After tallying the upvotes, noosa published a Promoted Post that showcased the results using a sleek custom infographic, highlighting the community’s favorites while also giving the brand important insight into consumer preferences.

Noosa published a Promoted Post that showcased the results.Screenshot by author from Reddit, May 2024

The results:

  • 49% increase in brand recall among Reddit users who were exposed to the campaign.
  • 30% increase in brand favorability.
  • 39% increase in purchase intent (15X the typical lift observed in the food vertical).
  • 50+ billion monthly views.

Sony Pictures Germany

To drum up excitement around the release of “Spider-Man: Across the Spider-Verse” in Germany, Sony Pictures Germany crafted a Reddit campaign that combined organic and promoted content to engage the platform’s robust fan communities.

The brand created a Reddit account under the protagonist’s name, u/MilesMorales, and used it to share exclusive content directly within Spiderman-related subreddits.

It also organized an AMA with the German voice actor Miles Morales to create a more personal connection with fans and promoted video posts featuring the movie trailer to amplify the excitement.

Sony Pictures Germany crafted a Reddit campaign.Screenshot by author from Reddit, May 2024

The results:

  • Sony Pictures Germany achieved a click-through rate (CTR) that was 344% higher than that of its standard paid media.
  • 831 upvotes.
  • 618,000 impressions.
  • The film remained No. 1 on the German movie charts for three consecutive weeks.

It is important to note that promoting your content and your brand on Reddit is definitely not the only value Reddit can bring you and your business.

Reddit is an amazing place to get honest feedback.

Whether you are trying to figure out what your target audience wants from your brand, test out a new feature or concept before investing and launching it openly, or even just to have continued open communication with your customers to support them and keep them connected to your brand, Reddit can help you succeed in an amazing way.

Transamerica Helping Reddit Make Dollars Make Sense

Transamerica’s campaign on Reddit is a great example of a company identifying an opportunity to connect with its target audience on the subreddit /r/finance.

This allows the company to better understand its customers’ needs and focus on content creation and future marketing plans.

Transamerica’s campaign on RedditScreenshot by author from Reddit, May 2024

Aligning itself with its audience by demonstrating awareness of the topics around personal finance happening in the subreddit, as well as acknowledging the Redditors working at the company, it asked what topics it could create “specifically for the reddit community” around the topic of finance.

It stayed involved and engaged throughout the campaign, responding to threads and maintaining a lighthearted and sometimes humorous tone.

Transamerica’s campaign on RedditScreenshot by author from Reddit, May 2024

After getting all the feedback it needed, it created content around the more popular requests, going as far as branding and designing them similar to Reddit.

IRA vs 401K venn diagramScreenshot by author from Reddit, May 2024

It even took the time to individually comment a link to the published content on its site, bringing attention back to the overall campaign and the content it created.

This campaign was 10 years ago, and it is still referenced as a core example of engaging on Reddit as a brand in a respectful, thoughtful, and meaningful way.

Why You Should Be On Reddit Wrapup

TL;DR: If your brand has something meaningful to say and is interested in truly connecting with your audience, then yes, you should be on Reddit.

These successful brand campaign examples showcase Reddit’s power when used correctly. With research to understand the specific communities you want to reach, Reddit can have exceptional performance compared to other channels.

The stakes are high to get it right because Reddit communities can be highly negative toward self-serving promotion. But if you put in the effort and solve people’s needs and problems, Reddit has the potential to be a high-performance channel.

Edit: Updated daily active users figure based on Reddit’s Q1 Earnings Report

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Featured Image: Julia Tim/Shutterstock



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