Advertising Trends in China 2025: Reshaping Value and Growth

China’s advertising industry in 2025 is defined by diversification, technological acceleration, and renewed focus on brand equity. Consumer demand is expanding across industries, AI is reshaping how brands engage audiences, and immersive experiences are becoming the new norm. At the same time, policy signals encourage sustainable growth through brand building rather than short-term wins. This article draws insights from the 2025 China Advertising Market Trends Report by CTR Market Research Co. Ltd.

Sectoral Growth: Entertainment and Technology Lead

The advertising market in 2025 shows uneven yet robust growth across industries. Entertainment and leisure lead with a remarkable 53.1% year-on-year increase in ad spend, reflecting the post-pandemic revival of live experiences, concerts, and cultural tourism. Telecommunications (45.0%) and transportation (32.5%) follow closely, signalling consumer demand for digital connectivity and mobility in an increasingly mobile-first economy.

Meanwhile, personal care (30.8%) and IT products/office automation (18.1%) also demonstrate solid growth, underscoring the dual drivers of self-care consumption and technology adoption. Together, these categories illustrate how consumer demand for both lifestyle enrichment and functional efficiency is shaping advertiser priorities.

Innovation and Product Launch Investment

Brands are dedicating a larger share of budgets to new product promotion. Between 2022 and 2025, the proportion of advertising spend devoted to product launches is expected to rise from 31% to 35%. Sectors such as telecommunications, home appliances, and transportation are leading this trend, showing that Chinese consumers remain highly receptive to innovation and novelty.

This strategy reflects the rise of the experience economy, where consumers are not simply buying products but seeking stories, emotional engagement, and meaningful encounters with brands.

AI as a Marketing Differentiator

Perhaps the most transformative force in 2025 advertising is the integration of artificial intelligence. CTR data shows that the number of AI-related products grew by 83%, while AI-related advertising investment surged by an extraordinary 442.8% year-on-year. Importantly, 77% of surveyed consumers reported greater trust and positive perception of brands that integrate AI into their marketing.

AI is driving two critical shifts:

1. Human–machine co-experience – Conversational search, decision support, and immersive AI-powered interfaces are accelerating consumer decision-making. More than 54% of consumers use AI when purchasing electronics, with similar adoption in apparel (48%) and beauty products (44%).

2. Emotional resonance – Brands are experimenting with AI-driven personas and interactive campaigns. For example, Luckin Coffee’s AI mascot Lucky and McDonald’s AI assistant P.AI blend functionality with entertainment, boosting both engagement and loyalty.

These developments highlight how AI has evolved from a behind-the-scenes enabler to a front-stage feature of consumer engagement.

Immersive Experiences and Cultural Marketing

Another defining trend in 2025 is the fusion of culture and commerce. Brands are investing heavily in immersive, experience-driven marketing, from concerts to lifestyle-focused events. Ad spending on live performances alone grew by 58.8% year-on-year, reflecting consumers’ appetite for “for-the-experience” consumption.

Successful campaigns, such as OPPO’s Find X8 launch, which generated over 32 million online interactions, demonstrate how brands can create viral amplification by linking storytelling with consumer participation. Platforms like Weibo, Xiaohongshu, and short video apps amplify these narratives, transforming cultural moments into marketing milestones.

Brand Value Over Price Wars

While discounts and promotions can boost short-term sales, they often erode long-term brand equity. Price-cutting traps brands in a cycle that weakens emotional connections and reduces them to “cheap” alternatives.

In contrast, brand strength remains the top factor influencing purchase decisions (33%), ahead of product quality (26%) and price (14%). Reflecting this, nearly 58% of advertisers in 2025 plan to prioritise brand-building—a notable rise from previous years. This evolution is further supported by policy direction, with national guidelines urging companies to invest in brand value. Mechanisms such as the “investment flow tax” are designed to steer advertisers toward sustainable, value-driven strategies.

Building Emotional and Cultural Resonance

The rise of multi-dimensional brand expression is also reshaping communication strategies. Instead of relying on a single message or channel, advertisers are building layered storytelling ecosystems that include:

• User-generated experiences – Fans capturing and sharing immersive brand events.

• KOL-led narratives – Influencers interpreting products within lifestyle contexts.

• Authority-driven storytelling – Media and industry figures reinforcing brand trust and credibility.

At the same time, brands are being urged to use AI thoughtfully. Technology should enhance, not dilute, human warmth, acting as a bridge to consumer emotion rather than a purely efficiency-driven tool.

Conclusion: Balancing Innovation and Value

The 2025 advertising landscape in China is one of transition. Growth is being driven by multiple industries, AI is reshaping consumer engagement, and immersive experiences are becoming central to brand communication. Yet the foundation of future success remains brand value.

China’s market is no longer about reach alone — it is about trust, creativity, and sustainability. Want to explore how these trends can shape your brand’s next move? Click here to enquire and connect with our team.