Introduction
As international companies continue to expand into the Chinese market, one industry that offers enormous potential is travel and tourism. China’s rapidly growing middle class, increasing appetite for travel, and strong digital infrastructure make it a promising destination for travel businesses. However, tapping into this market comes with its challenges, particularly when it comes to digital marketing.
In China, the digital landscape is unique and requires specialized strategies that are different from those used in other global markets. One powerful tool that travel businesses can leverage to reach their target audience is demand-side platforms (DSPs). DSPs allow brands to automate and optimize ad buying in real-time, using data to ensure ads are shown to the right people at the right time.
This article will explain why running a travel business in China requires DSPs, highlight the specific advantages they bring to the travel industry, and provide actionable strategies for international brands looking to enter the Chinese market. We will also explore key differences between China’s DSP market and those in other parts of the world and share insights on how to create successful campaigns tailored to the Chinese traveler.
The Chinese Travel Market: A Booming Opportunity
1. Growth of the Chinese Middle Class
China’s middle class has been growing steadily, and with it, the demand for both domestic and international travel has surged. According to a McKinsey report, over 400 million Chinese will belong to the middle class by 2025, and many of them will have the disposable income to spend on travel. This growing affluence has made China the world’s largest outbound travel market, with Chinese tourists spending more than $277 billion overseas in 2019 alone.
For international travel companies, this means an enormous opportunity to capture the attention of a rapidly expanding consumer base that is eager to explore new destinations. However, reaching these consumers requires understanding their digital habits, which differ significantly from those in Western markets.
2. China’s Digital Ecosystem: A Unique Landscape
The Chinese digital ecosystem is unlike any other in the world. Global platforms like Google, Facebook, and Instagram are blocked in China, while domestic platforms such as WeChat, Baidu, and Douyin (TikTok’s Chinese counterpart) dominate the market. These platforms have built closed ecosystems that integrate social media, messaging, e-commerce, and more, providing advertisers with powerful tools to reach targeted audiences.
Travel businesses looking to market to Chinese consumers must navigate this complex digital landscape and develop tailored strategies to reach their target audience. This is where DSPs come into play.
Why DSPs are Essential for the Travel Industry in China
1. Precision Targeting for a Fragmented Audience
One of the key advantages of using DSPs in China is the ability to precisely target specific audience segments. The travel industry caters to a wide range of travelers with different preferences, including business travelers, families, young millennials, and luxury vacationers. DSPs allow travel companies to use data to segment their audience based on behavior, interests, and demographics, ensuring that their ads are shown to the right people.
For example, a DSP campaign can target young professionals who are likely to book quick weekend getaways, or families looking for vacation packages during national holidays. With DSPs, travel businesses can reach these fragmented audiences across various platforms such as WeChat, Baidu, and online travel agencies (OTAs) like Ctrip and Qunar.
2. Real-Time Optimization and Flexibility
The travel industry is highly dynamic, with frequent changes in pricing, availability, and consumer preferences. DSPs allow travel companies to optimize their ad campaigns in real time, adjusting bids, creatives, and targeting parameters based on performance data.
For instance, a hotel chain running a DSP campaign during peak travel seasons can increase bids for high-value audiences who are more likely to book. Likewise, if an airline notices that a particular route is underperforming, they can shift their ad budget to other routes or destinations that are seeing higher demand.
Real-time optimization ensures that travel brands can be agile in their marketing efforts, making adjustments on the fly to maximize their return on investment (ROI).
3. Data-Driven Insights for Personalized Campaigns
Personalization is critical in the travel industry. Chinese consumers expect tailored experiences, whether they are booking a flight, choosing a hotel, or planning an itinerary. DSPs provide travel businesses with the data-driven insights needed to create highly personalized campaigns.
For example, an international airline can use DSPs to target Chinese consumers who have shown an interest in European destinations by serving them ads with flight deals to Paris or Rome. Similarly, a luxury hotel chain can target affluent travelers by showcasing premium suites and exclusive packages.
By using DSPs, travel companies can leverage first-party data from their own platforms, as well as third-party data from DSP providers, to deliver personalized ads that resonate with individual consumers’ preferences and travel aspirations.
4. Multi-Platform Reach in a Closed Ecosystem
China’s digital landscape is dominated by a few large platforms, each with its own ecosystem. Tencent’s WeChat, Alibaba’s Tmall, Baidu, and ByteDance’s Douyin are examples of closed ecosystems where users engage in everything from social networking to shopping and content consumption.
DSPs in China offer travel businesses the ability to reach audiences across multiple platforms within these ecosystems. For instance, a travel brand can run programmatic ads on WeChat Moments (the equivalent of Facebook’s news feed), display ads on Baidu search results, and video ads on Douyin, all through a single DSP. This multi-platform reach ensures that travel companies can engage consumers at different touchpoints throughout their decision-making journey.
Key Strategies for Using DSPs in China’s Travel Industry
1. Understand Consumer Travel Behavior
Before launching a DSP campaign, it’s crucial for travel brands to understand the behavior of Chinese travelers. China’s travel market is highly seasonal, with peak travel periods such as Chinese New Year, Golden Week, and the summer holidays. During these times, demand for flights, hotels, and travel packages skyrockets, and DSP campaigns need to be strategically timed to capitalize on this surge in interest.
Additionally, the rise of “free independent travelers” (FITs) in China—who prefer to plan their own trips rather than join group tours—means that personalized marketing is more important than ever. DSPs enable travel companies to target FITs with customized offers based on their browsing and booking behavior.
2. Collaborate with Local Platforms and Agencies
Navigating the Chinese digital ecosystem can be challenging for foreign brands unfamiliar with the nuances of platforms like WeChat and Baidu. Partnering with local platforms or agencies that specialize in DSP advertising can help international travel companies launch effective campaigns in China.
For example, travel brands can collaborate with Tencent to access WeChat’s vast user base and use its DSP capabilities to run targeted ads on Moments and mini-programs. Similarly, partnering with Baidu can provide access to valuable search data, allowing travel companies to run programmatic ads that target consumers searching for specific destinations or travel services.
3. Leverage First-Party and Third-Party Data
Data is the foundation of any successful DSP campaign. Travel brands should make use of both first-party data (from their own websites, booking platforms, and CRM systems) and third-party data provided by DSP providers.
For instance, an international hotel chain can use its own customer data to retarget past guests with personalized offers, while also using third-party data to identify new potential customers based on their online behavior. This combination of data sources allows travel businesses to create highly targeted campaigns that drive bookings and conversions.
4. Optimize for Mobile-First Consumers
China’s internet users are overwhelmingly mobile-first, with over 98% of the population accessing the internet through their smartphones. For travel businesses, this means that DSP campaigns must be optimized for mobile devices, with ad formats that are designed to engage mobile users.
Mobile-friendly formats such as in-feed ads, video ads, and interactive ads work particularly well on platforms like WeChat and Douyin. Additionally, travel brands should consider leveraging mobile-specific features like location-based targeting, which can be used to promote nearby attractions or last-minute deals to consumers on the go.
5. Align with Major Travel and Shopping Events
China has several key travel and shopping events that present significant opportunities for travel businesses to launch DSP campaigns. Events like Singles’ Day (11.11), Double 12 (12.12), and 618 Shopping Festival are not only major e-commerce events but also times when consumers plan and book travel.
Travel companies should align their DSP campaigns with these events, using them as opportunities to promote special offers, limited-time deals, and exclusive travel packages. By strategically timing campaigns around these high-traffic periods, travel brands can maximize their reach and drive higher conversions.
Case Studies: Success Stories of DSP in China’s Travel Industry
Case Study 1: Marriott International’s Personalized DSP Campaign
Marriott International is a prime example of a travel brand that has successfully leveraged DSP advertising in China. To promote its hotel properties across China, Marriott used Tencent’s DSP to run personalized ads on WeChat Moments. The campaign targeted users based on their travel history, search behavior, and social interactions, serving them tailored hotel offers based on their preferences.
By using data-driven insights to create personalized ads, Marriott saw a significant increase in engagement and bookings, particularly among young, affluent travelers looking for premium hotel experiences.
Case Study 2: Ctrip’s Retargeting Campaign
Ctrip, one of China’s leading online travel agencies (OTAs), used DSP advertising to retarget consumers who had browsed specific travel destinations but hadn’t completed their bookings. By using Baidu’s DSP, Ctrip was able to serve dynamic ads featuring the exact destinations and travel packages that users had previously viewed.
This retargeting strategy proved highly effective, driving a significant increase in bookings for Ctrip, particularly during peak travel seasons like Golden Week and Chinese New Year.
Conclusion
The travel industry in China presents a unique set of opportunities and challenges for international brands. While the market is booming, success requires a deep understanding of China’s digital landscape and the use of sophisticated tools like DSPs to reach the right audience at the right time.
DSPs offer travel businesses the ability to target specific consumer segments, optimize campaigns in real-time, and deliver personalized ads across multiple platforms. By leveraging these capabilities, international travel companies can tap into China’s vast and lucrative travel market, driving growth and long-term success.
For decision-makers and marketing leaders, the strategic and operational advantages of using DSPs in China are clear. As you plan your entry or expansion into this dynamic market, incorporating DSPs into your marketing strategy will be essential to achieving your goals.