USA – Social Media Agency

Super Bowl Commercials: Why Brands Pay Millions for 30 Seconds

Stephan M. Czaja — Mon, 27 Apr 2026 15:30:33 +0000

The Super Bowl isn’t just the biggest sporting event in the U.S.—it’s also the most expensive advertising platform in the world. Brands pay millions for just a few seconds of airtime because nowhere else do reach, cultural relevance, and emotional engagement come together in such a concentrated way. Super Bowl advertising has long been more than just a TV commercial—it’s a cultural event.

What Is a Super Bowl Commercial? Definition and Significance

Here’s what it’s all about:

Super Bowl Ads Explained Simply and Clearly
Distinction from Related Concepts
The foundation of every marketing strategy

Super Bowl advertising refers to commercial breaks during the annual NFL championship game, which regularly reaches over 100 million viewers in the U.S. and hundreds of millions online worldwide. Since 2024, a 30-second spot has cost around 7 million U.S. dollars—a price that reflects the exclusivity and strategic impact of this advertising space. For brands, the Super Bowl is not a traditional media buy, but a platform moment: The commercials are discussed weeks in advance, go viral on social media, and are analyzed by marketing experts. Super Bowl ads are cultural products that combine brand awareness, emotion, and social relevance in a single moment.

Core Principles of Super Bowl Advertising

Super Bowl commercials operate by different rules than traditional TV spots: They must entertain and surprise viewers in 30 seconds while also conveying a clear brand message. The difference from regular TV commercials lies in the audience’s expectations—viewers deliberately tune in to watch the commercial breaks as well. This significantly increases their willingness to engage with humor, emotion, and storytelling. Brands must therefore not only develop a message but also create an experience that sticks in viewers’ minds. Studies by Nielsen show that Super Bowl commercials are actively discussed on average three times as often as regular TV commercials.

Distinction: Super Bowl Ad vs. Traditional TV Commercial

A traditional TV commercial is aired within a program’s programming block to reach a target audience as efficiently as possible. A Super Bowl ad, on the other hand, is a media event in its own right that generates attention before, during, and after the game. The production budgets differ drastically: While an average TV commercial costs between $50,000 and $500,000 to produce, production costs for Super Bowl commercials regularly range from one to five million dollars. Added to this is the teaser cycle: Many brands post previews on social media weeks before the game to maximize the buzz. The Super Bowl commercial is thus not the end point, but the climax of a multi-stage campaign.

Feature	Description
Costs (2024)	Approx. 7 million USD for 30 seconds of airtime
Reach	110–115 million U.S. viewers, billions online
Cultural Impact	Ads are discussed and shared independently
Lead time	Campaign teasers are often active weeks before game day

Why Are Super Bowl Commercials Important? Strategic Significance

Keep in mind:

Super Bowl ads create a direct competitive advantage
Measurable impact on revenue and reach
Starting early pays off in the long run

For brands, the Super Bowl offers a unique combination of a massive TV audience and viral online reach. The high level of attention means that commercials don’t get lost in the usual noise—viewers actively wait for the commercial breaks. Studies show that Super Bowl ads trigger up to 40 percent more emotional reactions than comparable TV commercials in other contexts. For brands, this represents a strategic investment in brand awareness, positioning, and cultural relevance all at once.

Mass penetration in seconds

No other advertising format achieves a comparable combination of reach and attention in a single broadcast moment. Over 110 million U.S. viewers watch the commercials live—with no way to click them away or skip them. This forced attention is a rare commodity in the digital age. New brands specifically use the Super Bowl for launch campaigns, while established brands use it for repositioning or to make cultural statements.

Data & Figures: The Measurable ROI

Advertising researchers at Kantar and Nielsen have been documenting the disproportionately high effectiveness of Super Bowl commercials for years. Brands that advertise during the Super Bowl see an average increase in unprompted brand awareness of 8 to 12 percentage points within 48 hours of the broadcast. The social media impact is even more dramatic: According to Ispot.tv, a successful Super Bowl commercial generates an average of over 100 million online views within the first week—in addition to its TV reach. For brands with national growth ambitions, there is no other format that can deliver this impact in a single moment. The price of $7 million for 30 seconds corresponds to a CPM (cost per mille) of around $63—cheaper than many premium digital placements offering comparable attention quality.

Super Bowl advertising increases brand awareness by 8–12%
Over 100 million online views in one week
$7 million for 30 seconds of airtime
A CPM of $63 is more affordable than digital placements
No alternative for national growth ambitions
Massive social media impact documented

Viral Reach and PR Multiplier

Super Bowl commercials generate independent media coverage —in trade and consumer media, on social media, and in everyday conversations. YouTube views of Super Bowl ads often exceed TV viewership by a wide margin. This earned media effect significantly multiplies the value of the investment: $7 million in airtime turns into a multi-channel campaign with global reach. Today, brands no longer calculate based solely on the commercial—but on the entire buzz ecosystem surrounding it.

How Do Brands Use Super Bowl Ads? Strategies and Tactics

Here’s how it works:

Clearly define your goals before you start
Integrate Super Bowl advertising strategically into the marketing mix
Test, measure, and continuously optimize

The most successful Super Bowl campaigns follow a clear strategic framework: They combine entertainment value with the brand message, focus on emotions rather than product features, and adopt a multimedia approach from the very beginning. The commercial is just the beginning—teaser videos on YouTube and social media build excitement weeks before the game. Hashtag strategies ensure that the commercial becomes part of the conversation even for those who don’t watch TV. Brands like Budweiser build entire franchise universes around their Super Bowl appearance.

Others, like Apple, focus on a single, iconic moment—the 1984 commercial is still featured in marketing textbooks today. Strategic clarity is key: What is the commercial supposed to achieve—increase brand awareness, sharpen positioning, or demonstrate cultural relevance? Anyone who invests 7 million without a clear goal is wasting their budget. Those who plan with precision achieve an ROI that extends far beyond Super Bowl Sunday.

Combining Entertainment with a Brand Message
Use emotions instead of product features
Plan a multimedia strategy from the start
Teasers and social media before the game
Use hashtags for viral reach
Clearly define the strategic goal
Precise planning for a high ROI

Step-by-Step: How to Plan a Super Bowl Campaign

Successful Super Bowl campaigns don’t start in January—they begin six to nine months before game day. In the first step, the marketing team defines the strategic goal: Is it about acquiring new customers, repositioning the brand, or launching a new product? In the second step, the creative agency develops several concepts that are tested in focus groups—sometimes multiple complete commercials are produced before the final version is decided. The third step involves the teaser strategy: short snippets or teaser clips on social media build anticipation. On game day itself, social media teams coordinate real-time reactions to the commercial and the game’s action. After the game, the follow-up phase begins: behind-the-scenes videos, extended cuts, and press coverage keep the attention going for weeks.

Super Bowl campaigns launch six to nine months in advance
The marketing team defines the campaign’s strategic goal
The creative agency develops several concepts and tests them
A teaser strategy builds anticipation on social media
Social media teams coordinate real-time reactions on game day
Post-event promotion extends attention span over several weeks

Practical Tips: What Makes Super Bowl Commercials Successful

An analysis of more than 30 years of Super Bowl commercials reveals clear patterns of success. Commercials featuring emotional storytelling—especially those involving animals, children, or unexpected twists—consistently achieve higher recall rates than ads focused solely on the product. Humor works, but only if it aligns with the brand’s identity: forced humor with no connection to the brand falls flat. Celebrity endorsements boost initial buzz but cannot replace a clear message. The first three seconds are also crucial: In an environment with such high levels of attention, the commercial must captivate viewers immediately, as they are quick to tune out mentally. Brands that establish their core message within the first five seconds and then build on it emotionally consistently perform better in post-game tracking studies.

Emotional storytelling featuring animals is effective
Humor only works if it aligns with the brand
Celebrities don’t increase recall
The first three seconds are crucial
Anchor the core message within five seconds
Build on the emotional impact after the initial hook
Product focus alone is less effective

Common Mistakes in Super Bowl Campaigns

The most costly mistake is a lack of strategic clarity: commercials that try to achieve multiple goals at once often fail to achieve any of them. Another classic mistake is neglecting the digital extension—brands that don’t have a social media plan for game day are throwing away most of the value of their investment. Too much self-reference is also counterproductive: commercials that are only understandable to the brand’s existing fan base fail to reach the general public. Overly long product presentations seem out of place in the Super Bowl context and are punished by the audience—the Super Bowl crowd expects entertainment, not a sales pitch. Finally, many brands underestimate the production lead time: Commercials produced on short notice are rarely polished enough to meet the standards of the event.

Failing to Meet Multiple Goals at Once
A social media plan is mandatory on game day
Self-referential content prevents reaching a mass audience
Long product presentations seem inappropriate
The audience expects entertainment, not a sales pitch
Production lead time is often underestimated

Key Insight: Super Bowl advertising today is a 360-degree campaign format—the TV commercial is just the core; the viral and PR reach determine the true return on investment.

Success Stories: Super Bowl Ads in Practice

The most important thing:

Leading brands prioritize consistency
The courage to be different pays off
Define measurable KPIs from the very beginning

In 1984, Apple set the standard for the entire advertising industry with a single Super Bowl commercial—the ad aired only once, but became a cultural touchstone for disruptive branding. For decades, Budweiser has relied on emotional storytelling featuring Clydesdale horses, which are consistently among the most talked-about commercials. Doritos revolutionized the format with user-generated content —the “Crash the Super Bowl” campaign invited consumers to submit their own commercials and generated maximum engagement. Amazon regularly uses the Super Bowl to promote Alexa features to a mass audience with humor and celebrity castings. These examples show that the most successful brands combine entertainment value with a clear brand message and create commercials that work even outside the Super Bowl context—as standalone, shareable pieces of content.

Apple 1984: A One-of-a-Kind Commercial, a Cultural Milestone
Budweiser successfully uses emotional horse stories
Doritos: User-Generated Content Revolutionizes the Format
Amazon uses humor and celebrities to promote Alexa
Success: Entertainment + Brand Message + Shareability
The best commercials work regardless of the Super Bowl

Apple 1984: The Commercial That Changed Everything

Apple’s “1984” commercial, directed by Ridley Scott, aired only once during Super Bowl XVIII on January 22, 1984—and is still considered the most influential commercial of all time. The dystopian narrative, inspired by George Orwell’s novel, positioned the Macintosh as a liberating force against conformity. The investment of approximately $900,000 in production costs plus airtime generated millions in free publicity: news magazines re-aired the commercial in their programs because it had become news in its own right.

Apple thus demonstrated for the first time that a Super Bowl commercial doesn’t have to be just advertising—it can make cultural history. The strategic principle behind it remains valid to this day: Brands that take a clear stance and boldly act on it generate far more resonance than those that play it safe.

Apple’s 1984 commercial revolutionized advertising for good
A one-time broadcast during Super Bowl XVIII
A dystopian message positioned against conformity
A $900,000 investment generated millions in press coverage
The ad itself became the news
A bold stance creates a greater impact

Budweiser Clydesdales: Emotional Brand Continuity Over Decades

Since 1986, Budweiser has relied on its Clydesdale horses as an emotional anchor in the Super Bowl—demonstrating one of the rarest disciplines in marketing: consistent emotional continuity over decades. The commercials vary in narrative and setting, but always maintain the core promise: warmth, tradition, and the American spirit. Post-game studies show that Budweiser commercials consistently rank among the top three in terms of emotional impact, even though—or perhaps precisely because—the audience knows what to expect. This predictable unpredictability creates a special bond: viewers specifically look forward to the Budweiser moment. For other brands, the lesson is clear: those who build a consistent Super Bowl identity over the years benefit from cumulative brand equity that extends far beyond any single commercial.

Budweiser has been featuring Clydesdales since 1986
Emotional continuity spanning several decades
Variations in the narrative, consistent core value
Top 3 commercials by emotional impact
Predictable unpredictability builds brand loyalty
Consistency generates cumulative brand value

“The Super Bowl is the only place where viewers actively look forward to commercials—and are disappointed when they’re bad.” – Industry Analysis, Kantar 2023

Conclusion: Super Bowl commercials as a competitive advantage

Conclusion:

Super Bowl advertising is indispensable in modern marketing
Think strategically, execute consistently

Super Bowl advertising is the most expensive—and at the same time, the most effective—mass advertising format in the world—when used correctly. Brands that strategically leverage the Super Bowl benefit from a unique combination of reach, attention, and cultural relevance. The key lies not in the budget, but in creativity and strategic integration into a broader campaign strategy. For brands looking to build awareness or sharpen their positioning, the Super Bowl remains unbeatable even in the digital age. The investment is worth it—but only with an idea that will still be the talk of the town even after the final touchdown.

How much will a Super Bowl commercial cost in 2024?

In 2024, a 30-second commercial cost around 7 million U.S. dollars for airtime alone. On top of that are production costs, which are often in the seven-figure range as well. Total investments of 10–15 million dollars per commercial are not uncommon.

Why do brands pay so much for Super Bowl ads?

The Super Bowl reaches over 110 million U.S. viewers live—an audience that actively waits for the commercial breaks. The earned media effect generated by news coverage and social media shares significantly multiplies the actual reach far beyond the TV broadcast.

Which brands benefit the most from the Super Bowl?

New brands benefit particularly strongly, as the Super Bowl generates maximum brand awareness in a very short time. Established brands use it for repositioning or to make cultural statements. Consumer goods brands, tech companies, and automakers traditionally dominate the format.

Super Bowl Advertising: The Most Expensive and Most Effective Mass Advertising Format
A 30-second spot costs around $7 million
Total budget often ranges from 10 to 15 million dollars
Over 110 million live viewers in the U.S.
Earned media effect significantly multiplies reach
New brands benefit the most from this

Worldcoin: Sam Altman’s crypto project – What’s behind the Orb and the World ID

Stephan M. Czaja — Fri, 02 May 2025 15:54:24 +0000

Worldcoin is causing a stir: A global digital identity, but then nothing was heard for a long time, until now – secured by an iris scan. While the project has already inspired millions of users worldwide, it has not yet been available in the USA. But at the official event in San Francisco, the go-ahead has now been given for the US market. In addition, a Visa partnership brings real benefits – and a new device, the Orb Mini, makes the technology mobile. What does this mean for our digital future? Inspiration & source for the post: Hard Fork Podcast.

What is Worldcoin?

Wow, that’s news, do you remember Worldcoin? After years, the time has come: Worldcoin launches in the USA.

Worldcoin is a global identity project founded by Sam Altman – CEO of OpenAI. The aim is to create a digital ID that uniquely identifies every person. Authentication takes place via an iris scan with the “Orb”. Users receive Worldcoin tokens worth around 40 US dollars as an incentive. The World ID is intended to provide long-term access to digital services, financial systems and apps. The New York Times is already talking about a new digital identity layer for the Internet.

The idea: proving humanity in the world of AI

In a world full of bots and generated content, Worldcoin wants to create proof that you are a real person. The Orb verifies the uniqueness of your iris – a biometric signature that cannot be manipulated. This identity can be stored anonymously and used to log in to platforms. Critics compare the system to dystopian science fiction, but the technology is real. According to WIRED, Worldcoin is one of the most ambitious biometrics projects of recent years.

Global ID through iris scan
Sam Altman as a founding figure
Up to $40 in tokens as an incentive
Biometric verification against AI bots

Live from the Worldcoin Event in San Francisco.

This is how the Orb works:

US launch & visa partnership: this was the big event

At the event in San Francisco, Sam Altman and co-founder Alex Blania announced the launch of Worldcoin in the USA. The token was previously not accessible there – now it is officially activated. The background to this is a friendlier political climate for crypto issues, for example through Trump-affiliated advisors such as David Sachs. The announcement marks a strategic turning point for the project. The Verge reports on the details of the new US focus.

Worldcoin event in San Francisco

Worldcoin + Visa: crypto in everyday life

Worldcoin is now cooperating with Visa. Users receive a debit card with which they can pay worldwide – the system automatically converts the token into fiat currency. Worldcoin thus goes beyond pure speculation and becomes a usable digital currency in everyday life. Decrypt sees this as an important step towards mass application.

Official launch in the USA
Political tailwind from new administration
Visa debit card for real use

New hardware: The Orb Mini is coming

A new device was presented alongside the classic Orb: the Orb Mini. It resembles a smartphone and is designed to enable mobile and discreet scanning. The aim is to also use the technology outside of fixed locations. Users can thus register more quickly – at events or in pop-up stores, for example. TechCrunch reports on the mobile hardware as the next scaling step.

This is what the Orb looks like with its cameras:

7,000 orbs planned in the USA

Worldcoin is planning over 7,000 orbs in the USA alone – in stores, cities and at mobile stations. These “World Spaces” are to be set up like modern tech stores to enable low-threshold orbing. The first station opens tomorrow in San Francisco, with other cities such as LA and Atlanta to follow.

Orb Mini = mobile iris scanner
7,000 orbs announced for the US market
Retail design similar to Apple Stores

Influencers, partnerships & the Sam Altman effect

The event in San Francisco was not just a product launch – it was also a strategic PR move. Influencers were invited to test the Orb and report on TikTok, YouTube & Co. There were also major partnership announcements, including with Stripe, Tinder (Match Group) and Razer. All of this would hardly have been possible without Sam Altman in the background. Fast Company analyzes how Worldcoin is targeting Creator.

World ID as an identity layer in the network

With the World ID, Worldcoin wants to create a new layer for digital identity – usable for platforms, transactions, logins and access. This clearly sets the project apart from traditional cryptocurrencies, which are often only designed for speculation. The long-term goal: everyone should be able to use their identity digitally in a self-determined and anonymous way.

Partnerships with Stripe, Match Group, Razer
Sam Altman = central figure of trust
World ID to revolutionize Internet logins

Conclusion: revolution or dystopia?

Worldcoin is caught between vision and criticism. The technology is there, the launch in the USA has taken place – but many questions about data protection, ethics and social acceptance remain unanswered. The project shows how close digital identity, cryptocurrencies and everyday use have become. Perhaps the next login will not be by password – but by eye.

Have you already orbed?

The question that many are now asking: Will you let yourself be scanned? Or will Worldcoin remain an experiment for you? The coming months will show whether the vision works – or fails due to acceptance and regulation.

US launch announced live
Digital identity via iris scan
First major partnerships active
Data protection & acceptance crucial

Sam Altman, Worldcoin & Co. more on the topic

Is Worldcoin part of OpenAI?

No, Worldcoin is not part of OpenAI. It is an independent project of the company Tools for Humanity. However, there is a close personal connection: Sam Altman, the CEO of OpenAI, is also the co-founder and chairman of Worldcoin. The two companies operate independently of each other, but share the same vision of technological innovation. Learn more here:

Also interesting, as it is also by visionary Sam Altman:

Source: YouTube / The Verge

Worldcoin event in San Francisco: Exclusive insight – Have you already georged?

Stephan M. Czaja — Thu, 01 May 2025 15:54:20 +0000

Worldcoin event in San Francisco – right on site: In an industrial building near the Bay Area, Worldcoin hosted a large event with influencers, media and the crypto community. Visitors were able to “orb” live, test new hardware and get an update on global strategy from Sam Altman (the man behind Open AI & ChatGPT) and co-founder Alex Blania. The focus: the official US launch, new partnerships – and the vision of a global identity infrastructure. The Verge was also there and reports on the mood, technology and political significance.

The US launch is official – despite open regulation

The biggest moment of the event: the announcement of the official launch in the US. Despite the still uncertain regulatory situation, Worldcoin feels encouraged by political signals – for example from advisors close to Trump. This is the first time that Worldcoin has entered the home market of major tech companies. Fortune emphasizes how important the launch is for global scaling.

Video: This was the event

Worldcoin, now in the USA.

7,000 new orbs planned in US cities

With the launch, Worldcoin announced that it would be placing more than 7,000 new orbs in the USA – from San Francisco to Atlanta. In specially designed “World Spaces” reminiscent of Apple Stores, users will be able to have their orbs scanned in future. The aim is to lower the inhibition threshold for “orbing” and make the technology accessible. CoinDesk provides an insight into the new store concept.

Partnership with Visa – token becomes suitable for everyday use

Another highlight: the integration of Worldcoin into the Visa payment network. Users can pay worldwide with a Visa debit card via the World app – the system automatically switches to fiat at the checkout. This gives the token real use in everyday life – far beyond speculation. Decrypt calls it a strategic milestone.

New device: The “Orb Mini”

The new, portable “Orb Mini”, which looks like a smartphone, was also presented. It is designed to enable iris scanning anywhere – flexible, mobile and directly by trained people in the field. Critics speak of “black mirror vibes”, but Worldcoin is pursuing the goal of making the technology suitable for the masses. TechCrunch sheds light on the new hardware and its social context.

Source: YouTube / The Verge

Sam Altman as the driving force

Sam Altman is more than just a co-founder – his personality attracts investors, tech pioneers and the media alike. Without Altman, according to many on site, the project would hardly have this reach. The Governor of California, Gavin Newsom, was also present at the keynote – a clear sign of the growing political interest. Fast Company describes Altman as the face behind the project.

Event with 45-minute keynote speech by Altman & Blania
US launch officially announced
7,000+ orbs in US retail spaces
Visa cooperation for real use
New device: Orb Mini presented

PS: Fun Fact Worldcoin x Sphere

It reminds me so much of the Orb! The Sphere in Las Vegas.

Sam Altman, Worldcoin & Co. more on the topic

Is Worldcoin part of OpenAI?

Also interesting, as it is also by visionary Sam Altman:

Source: YouTube / The Verge

Cannabis Hype USA: California, Instagram, YouTube and the Big Buiness

Stephan M. Czaja — Sat, 14 Sep 2024 13:52:03 +0000

Cannabis hype – It all started with medical cannabis, but the cannabis business is now a billion-dollar market. The cannabis hype in the USA, especially in California, has revolutionized the way brands appear on social media worldwide. California is not only considered a pioneer for the legalization and consumption of cannabis, but also a center for innovative marketing strategies.

California: The pioneer in the cannabis market

California was one of the first US states to legalize the recreational use of cannabis. Since legalization in 2016, the industry has exploded. Today, there are numerous cannabis companies in California offering innovative products and services, from high-quality flowers to THC and CBD products for various applications.

Cannabis brands are experiencing enormous growth, particularly on platforms such as Instagram and YouTube. What is behind this hype and how does the big business behind it work? Finally, such“online cannabis stores” are now also available in Germany, where you can easily order cannabis. Find out how social media has changed the cannabis market and what you can learn from it.

The combination of a creative start-up scene, support from the government and broad acceptance in society has led to California serving as a role model for many other states and countries today.

2016: Legalization of cannabis for recreational use
2018: Opening of the first legal cannabis stores
Today: A billion-dollar industry with a focus on lifestyle, health and wellness

The role of Instagram in cannabis marketing

Instagram has established itself as one of the most important platforms for cannabis brands to promote their products and reach their target groups. Through visually appealing content, influencer marketing and targeted hashtag strategies, companies can achieve high reach and engagement. Hashtags such as #CannabisLegal or #MedicalCannabis in particular help to reach the target group and generate attention.

Companies use Instagram to tell authentic stories and build a connection with their community. It’s not just about selling products, but also about building a brand that stands for certain values and a certain way of life. A good example is the Cookies brand, which has become one of the world’s most recognizable cannabis brands through clever influencer marketing and strong visual campaigns.

Forbes documentary: Cookie’s Business

The Cookies brand has become one of the most recognizable cannabis brands in the world in recent years. Under the leadership of Berner, the founder and CEO of Cookies, the brand has not only revolutionized the cannabis industry, but also created a unique concept that combines music, culture and community. Read more about Cookie’s Hype here.

https://www.youtube.com/watch?v=tvVz3CAy2nA

YouTube: Combining education and entertainment

YouTube offers cannabis brands even more opportunities to create content that both informs and entertains. From tutorials on cultivation and use to product tests and medical explanations, the variety of content is huge. Companies like MedMen and Weedmaps have shown that quality content and a strong online presence are crucial to succeeding in this industry.

For those who want to learn more about the buying process, we recommend taking a look at the options for buying weed online – no waiting room required!

Big business with cannabis

The sale of cannabis has become a multi-billion dollar business in California. From startups to established companies, everyone is using social media to expand their brand presence and attract new customers. It’s not just about selling the products, but also about building a strong brand that stands for quality, sustainability and conscious consumption.

One example of success in big business with cannabis is the company Canopy Growth, which has made a name for itself through strategic partnerships and a strong online presence. The focus is on high-quality products and a clear brand message. This shows how important it is to use the right platforms and channels in order to be successful.

Interesting: Even the thumbnail shows the fun, the team spirit and therefore the lifestyle, not the product.

Conclusion: a flourishing market with potential

The cannabis market in the US continues to grow, opening up new opportunities with the right marketing strategies on Instagram and YouTube. Learn more about medical cannabis and how to order it online. If you’re looking for a reliable source of medical cannabis, visit a cannabis teleclinic and discover how easy it is to get a cannabis prescription online.

Cannabis in Germany: the new trend

Weed, where does it actually come from? Sharo visited the market leader for medical cannabis at Mary Jane Berlin.

Marketing China: Agency, Experience, Economy, Strategy + Tips

Stephan M. Czaja — Sat, 09 Jan 2021 11:37:37 +0000

Marketing Agency China – You are thinking about expanding your marketing to China? This is our overview of the most important aspects and strategies for companies and their marketing in China. Asia, especially China, is where the new trends are emerging. We take an in-depth look at the country, the development of purchasing power / income, target groups in China and give you an insight into our marketing strategies, online and offline. WeChat, Sina Weibo, Douyin (TikTok), QZone, Baidu Tieba, Xiaohongshu and Tencent Weibo, are just a few of the names you need to know as a company in China when it comes to marketing. With an absolute buying power of 16,500 billion / year currently, China is set to overtake the US during the 20s. We’ll help you market successfully on Chinese platforms, the foundation for long-term success. Tips, experiences and our 3-point strategy.

Marketing Agency China: Made in Germany

Quality, Made in Germany. But how do you make this worldwide, unique brand promise known as a company in China? As a marketing agency, we have focused early on the Chinese market and are, not only for the typical marketing strategies contact, but also and especially, for new, digital media. As one of the few agencies, we place advertisements on TikTok (Douyin in China) in the Chinese market. From building digital sales structures, to gaining reach, read more, first insights about marketing in China here!

Communicating quality: Channels, Messages in the Giant Kingdom

Owner, Stephan M. Czaja

Products and ideas that are Made in Germany have one of the strongest seals of quality that exist in this world. The largest market in this world, however, is for many still a book with seven seals. With over a billion potential contacts, the biggest problem, or the biggest question for companies that want to build customers in China:

How does marketing work in China?

Cities like Chongqing, Shanghai, Beijing, Guangzhou, Shenzhen, Wuhan and Tianjin alone have more inhabitants than the largest German cities together. The city of Chongping alone, seen immediately in the example, offers a reach of 31 million people. That’s 9x as many as Berlin, 21x Munich or 31x Cologne – in one, single city.

China as a whole, has a market volume of 16.5 trillion US dollars, 16,480 billion US dollars to be exact, rising for decades. Of that, about 2,077 billion goes to imports only, a full 2 trillion. By 2050, i.e. in 30 years, the population in China will be + 9.4 years older on average, from 38.4 years at present to 47.6 years. Valuable metrics that make the Chinese population one to target when it comes to global competition, in almost every industry: Automotive, Solar, Financial Products, Real Estate in China, Medical, etc.

Purchasing power: 16,500 billion
Imports: 2,077 billion
Population: 1.393 billion
Annual income / capita: $ 11,841

That is, even ultra local marketing, in just one city manages to reach millions of contacts. An enormous potential, from which some German companies want to profit and increasingly more. You have questions, ideas or already a concrete project in planning and are looking for support and solutions? Get in touch with our contact persons for China.

Contact

After the facts and figures about China, we also give an insight into the work of our marketing agency, with a focus on digital media and performance marketing, including social media marketing, native advertising and search engine advertising. Here already once briefly, presented in advance.

How do we work as a marketing agency?

Marketing: 3-point strategy from One

3-point strategy, what does that mean? Firstly, advertising (new people), in the second step advertising on keywords (interested / searching people) and for interested people referral marketing (checking people).

Advertising (new people)
Advertising on keywords (interested / searching persons)
Referral marketing (reviewing persons)

The goal is to reach all potential buyers. How do we achieve this goal for our customers? We rely in particular on digital marketing:

Social Media – Content Marketing & Advertising
Search engines – Advertising on keywords
Blogs, magazines and online portals – recommendation marketing

As described before, China has real mega cities. So if you advertise “only” residents of Chongping, you already have an audience of 31 million people. That is 9x Berlin, 21x Munich or 31x Cologne – in one city.

View of Chongping: Mega City

Chongping alone has 31.02 million inhabitants, the largest city in China, ahead of Shanghai and Beijing. However, also distributed over an area of 82,300 km². For comparison, Berlin has only 3.76 million inhabitants (12%), but also only an area of 891.8 km² (1%).

So when looking at China, we are talking about completely different “area scales”. For a small, first impression, here is a look at the region around the city.

The dimensions of the city you can imagine, when looking from Chaotiamen Square. Skyscrapers as far as the eye can see. There is not “only” a quarter, in which is built high, here everything is a little bigger. A view of the metropolis of millions from Chaotiamen Square:

The large amount of people leads the government to be significantly more restrictive in many aspects than “Western” countries. From a media point of view, China is therefore very different from the rest of the world. You can see that quickly by looking at the social networks used.

How many social networks from China do you know?

Ranking of the most popular social networks

If you look at the top 10 networks and messengers, you’ll actually find only 1 “western” network, LinkedIn to be precise, from America. Here you can see the latest ranking of the most popular social networks and messengers, according to the share of users in China.

Addendum – Not yet in the statistics is TikTok, which began its triumphal march, especially in 2020. It is estimated that 57% of TikTok / Douyin (which is the name of the app here), are based in China. Also not included in this statistic were QZone, Toutiao and Zhihu.

We would therefore like to add to this:

TikTok (Douyin)
QZone
Toutiao
Zhihu

In addition, the networks and messengers, according to survey of statistics (3rd quarter 2019):

WeChat – 78%
Sina Weibo – 56%
Baidu Tieba – 50%
Xiaohongshu – 39 %
Tencent Weibo – 36%
Kuaishou – 32%
Douban – 23%
Douyu – 20%
LinkedIn – 20%
Meitu – 15%
Meipai – 13%
Skype – 12%
Yizhibo – 10%
Huya – 9%
Yammer – 8%

WeChat, Sina Weibo, Baidu Tieba, Xiaohongshu and Tencent Weibo – All names that companies and marketers still have to get used to if they want to be active in the Chinese market.

Purchasing Power: Selling in China

Even if the per capita income is not exactly the same, nearly 1.4 billion residents are looking for new products, brands, ideas and ways to spend or even invest their money. More precisely, 1.393 billion, with an average income of 82,413 yuan a year, equivalent to around 11,841 US dollars. This already gives a purchasing power of 16,480,583,000,000 US dollars, or 16 trillion US dollars, or 16,480 billion.

16.5 trillion US dollars purchasing power / year

People, like everywhere else on the planet, are investing in goods that no longer just satisfy basic needs. From French wine and Swiss watches to German-made automobiles. Due to the increasing prosperity in China, the needs and desires of consumers are rising. An excellent time for German companies.

USA vs China: Largest economy

China has already overtaken the US as the world’s largest economy! So was at least speculated, as seen here in the infographic. However, that was still too optimistic thought because, still the US is the largest economy in the world, as seen in a moment.

Forecast (10 years ago) did not happen!

According to the latest IMF forecast from 2020, the US will remain the leading economy in 2026. Seen here, in the top 10 countries, with the largest gross domestic product (GDP) from 2019 to 2026 (in billions of US dollars). First a look at the current year, then the forecast for 2023 to 2026.

Source: Statista.

Growth in comparison: Current

	2020*	2021*	2022*
USA	20.807,27	21.921,59	22.967,65
China	14.860,78	16.492,81	17.933,63
Japan	4.910,58	5.103,18	5.337,33
Germany	3.780,55	4.318,49	4.556,81
India	2.592,58	2.833,87	3.094,18
United Kingdom	2.638,3	2.855,67	3.004,8
France	2.551,45	2.917,67	3.060,62
Italy	1.848,22	2.111,65	2.207,85
Brazil	1.363,77	1.431,62	1.562,62
Canada	1.600,26	1.763,05	1.876,7

Growth forecast (IMF): 2026

	2023*	2024*	2025*
USA	23.913,12	24.833,76	25.783,44
China	19.512,74	21.217,57	23.029,81
Japan	5.626,63	5.848,65	6.014,28
Germany	4.726,37	4.877,58	5.040,94
India	3.368,9	3.657,45	3.958,81
United Kingdom	3.120,06	3.239,2	3.356,79
France	3.183,64	3.299,49	3.411,71
Italy	2.280,1	2.333,36	2.387,83
Brazil	1.665,97	1.786,91	1.891,43
Canada	1.983,49	2.086,82	2.193,41

Population and GDP development: forecasts 2026

Not only is China one of the big players, the country continues to grow, as seen here, in total population from 1980 to 2018 and projections to 2026, with the population approaching one and a half billion by 2026.

2025 – 1,417 billion +0.9 %
2020 – 1,404 billion +2.18 %
2015 – 1,374 billion + 2.53 %
2010 – 1,340 billion + 5.76 %
2000 – 1,267 billion + 10.84%
1990 – 1,143 billion
1980 – 987.05 m
…

More and more inhabitants are earning more and more money. Since 2006/2008, the gross domestic product has been rising almost inexorably. Since statistics are worth a thousand words, here is the gross domestic product (GDP) in current prices, from 1980 to 2019 and forecasts, again with forecast to 2026 (in billions of US dollars).

2025 – $23,029 billion + 54.97 %
2020 – $14,860 billion + 33.71%.
2015 – $11,113 billion + 84.20%
2010 – $ 6,033 billion + 163.44 %
2005 – $ 2,290 billion + 90.04 %
2000 – $1,205 billion
1990 – $396 billion
1980 – $303 billion
…

Here you can see once again the real growth of the gross domestic product (GDP) from 1980 to 2019 and forecasts to 2026 (compared to the previous year) visualized.

What does that mean per person? If you divide the GDP among individuals, it shows that the purchasing power of individuals in China is increasing and increasing. Another indicator that makes China one of the current and future sales markets.

2025 – 16.284,03 $ + 50,22 %
2020 – 10.839,44 $ + 34,07 %
2015 – 8.084,80 $ + 79,67 %
2010 – 4.499,79 $ + 373,08 %
2000 – 951,15 $ + 174,21 %
1990 – 346,86 $
1980 – 307,00 $
…

Target group China: age and structure

Who buys? The target group and product offering must harmonize in order to make sales. A key look when identifying target audiences in marketing, including in the Chinese market, is current age and upcoming age. Why?

Customer Lifetime Value – Simply put, “repeat customers.” Does a customer make a one-time purchase of a product or service, or does our one-time customer, become a returning customer? As with e-commerce optimization, it’s all about building loyalty to our product.

People in China are getting older, accordingly a product can, in the long run, grow with the target group. A typical example here: Automobile industry. Some car models achieve such a “cult status” among the respective brand followers that subsequent models are bought almost automatically.

Here’s a quick look, at the average age of the population, from 1950 to 2020 and projections to 2050. By 2050, 30 years from now, the population in China will be + 9.4 years older on average, from 38.4 years currently to 47.6 years.

2050 – 47.6 years (+ 1.3 years)
2040 – 46.3 years (+ 3.7 years)
2030 – 42.6 years (+ 4.2 years)
2020 – 38.4 years (+ 3.2 years)
2010 – 35.2 years (+ 5.1 years)
2000 – 30.1 years
…

As learned above, the country currently has a total purchasing power of $16,000 billion at its disposal. But, how much of that goes to imports? Currently, about 12.5%, or 2,000 / 16,000 billion. To see here, on the import of goods from 2009 to 2019 (in billions of US dollars).

2019 – $2,077.1 billion + 23.67%.
2015 – $1,679.57 billion + 20.29%.
2010 – $1,396.25 billion

What share do goods and services from Germany have in Chinese imports? Here you can see the value of German exports to China from 2007 to 2019 (in billions of euros).

2019 – $95.98 billion (+$24.7 billion)
2015 – $71.28 billion (+$17.49 billion)
2010 – $53.79 billion (+23.89 billion)
2007 – $29.9 billion

Media Mix in China: Strategies

As already mentioned at the beginning, Chinese use completely different platforms than Europeans or Americans when it comes to obtaining information.

Communication with friends, celebrity news, shopping to paying at restaurants and for online stores, does not take place on separate platforms here, but often in a single app.

Apps like WeChat are also much more comprehensive. They are social network, users do their online banking through the app, much more even, even simple payment at the supermarket or, as mentioned above, at the restaurant, are possible with the app.

Accordingly, you need for your brand on the one hand, a marketing concept and on the other: A completely new customer journey, when “everything” takes place in an app. Customer journey means the path of the user, from acquisition to lead (desired conclusion, from newsletter to product sale). In comparison: someone searches for a product on Google, clicks there, comes to e-commerce, puts a product in the shopping cart, registers as a customer and pays.

Marketing concept
Customer Journey

Besides WeChat, there are other apps that a large portion of the population actively uses. Here is a brief review of the top 10 social networks in China:

WeChat – 78%
Sina Weibo – 56%
Baidu Tieba – 50%
Xiaohongshu – 39 %
Tencent Weibo – 36%
Kuaishou – 32%
Douban – 23%
Douyu – 20%
LinkedIn – 20%
Meitu – 15%
…

Solutions for German companies in China

Solutions for German companies in China are always individual – for market entry, whether physical or only medial, there is no simple 1-2-3 roadmap that shows the way. For more complex products, the solutions are even more individual, for example for companies in mechanical and plant engineering. Here, it is no longer sufficient to “only” place advertisements.

Therefore, the very first step is to have a conversation. What are your / yours:

Assortment, products and A-products
Target group
Company and structure
Employees and capacities
Competition and local competition
Key market figures on site

From this, the first strategies are formulated, from pure e-commerce marketing, to local partners on the ground, with sales structures.

But before we get too far into the subject, let’s get back to basics.

Market barriers and communication management

China, as I’m sure you know, is a very regulated country and actions have to be considered in advance. Unlike in the European Union or in Germany, you need local partners for a lot of marketing and advertising.

Our agency also had to communicate with many partners in the first weeks, the focused work in China, in order to create trust. Only then did we get the appropriate approvals, for example for advertisements in individual apps, or the opportunity to work with local partners on site and their system and / or structures.

The market entry itself is much more difficult than, for example, an advertising campaign in France, a direct neighbor and member of the European Union. Especially when it comes to reach millions of people with a message as a company with an advertising budget, not twice but three times as much attention is paid to the action(s).

In particular, the platforms that are based in China want to protect themselves from possible violations. Accordingly, the selection of advertising partners is very selective. The longer one is active as a marketing agency in China, the more freedom and desires are approved.

Social Media One: Bridge to USA & China

Marketing agency: 3-point strategy

Our marketing agency has been specializing in global marketing since 2018. With a focus on digital media and performance marketing. Our services include social media marketing, as well as native advertising and search engine advertising. This gives our clients a presence in all new, important media.

How do we work?

Marketing concept and strategy

Our strategy employs a 3-point strategy: Firstly advertising (new people), secondly advertising on keywords (interested / searching people) and for interested people referral marketing (checking people).

Advertising (new people)
Advertising on keywords (interested / searching persons)
Referral marketing (reviewing persons)

The goal is to reach all potential buyers. How do we achieve this goal for our customers? We rely in particular on digital marketing, state-of-the-art in the 20s.

Social Media – Content Marketing & Advertising<
Search engines – Advertising on keywords
Blogs, magazines and online portals – recommendation marketing

These are the core elements of our marketing strategies, also in China. With this, potentially interested parties, at all important points, are adressed and also adressed again(social ads / remarketing).

1) Through advertising, you reach people for your company and your products, who have not yet had contact with it. Through 2) advertisements in search engines, the people are adressed who are actively looking for specific information at this very moment. In a 3) further step, we rely on recommendation marketing, for example through tests by bloggers, comparisons, testimonials on magazines and online portals.

Online first: Complementary offline methods

In addition, there are other methods and strategies, depending on which strategy has been worked out for the respective company or the individual product and campaign. These could be, for example, posters, printed and in the streets of the city of Shanghai and Beijing or also influencer marketing actions, i.e. reputation marketing, by brand advocates. In China, trends are picked up quickly, so virtual influencers are also part of the mix. In particular, these local multipliers ensure that a campaign is not only seen, but really, as relevant information, perceived by the prospect on the ground.

Start a company in China: Company (List)

Founding a company in China? This question comes up relatively often for companies that want to expand to China. In Europe, as well as in America, people are used to the fact that setting up a company for activities in the local market is relatively easy. In China, however, it is the case that every time a foreigner sets up a company, a Chinese partner must be involved.

You can find more information about the company models here (external).

Representative Office
Company with exclusively foreign participation (WFOE)
Foreign trading companies (FICE)
Joint venture – joint ventures
Partnerships with foreign shareholders (Foreign Invested Partnerships)
Branches

Contact and contact person

Do you have questions, ideas or are you already planning a concrete project and looking for support and solutions? Get in touch with our contact persons for China.

Contact