What’s that name on the billboard?

With the growing demand for international expansion, Chinese companies have been focusing on globally popular events. The recent Euro 2024 is an example. 5 of the 13 global sponsors were Chinese companies, including Hisense, Vivo and BYD, compared to just one Chinese sponsor in 2016.

Chengcheng Li , Account Hero at SuperHeroes, shed light on this interesting phenomenon from her unique point of view.

As someone who hails from China, it's really refreshing to see brands from my homeland making their presence felt on such globally renowned platform. It certainly brings a sense of pride, considering that there used to be Japanese and Korean brands like Toshiba, Kia, and Panasonic dominating these spaces. However, from my professional perspective in the advertising industry, while recognizing why Chinese brands are eagerly foraying into such highly televised platforms, I can't help but question the strategic thought process behind these actions. Are these ads well-conceived? Who is their target audience, and what do they aim to achieve?

I'm familiar with these brands and can understand the message they aim to convey. But, can the same be said for someone not acquainted with these brands? The millions of viewers outside China who see these brand names for the first time?

In fact, I was appalled to see the lack of effective use of ad space for which these brands had paid hefty sums. If you're shelling out upwards of 70 million Euros for a sponsorship, you better make sure you're making the most out of it.

A brand venturing into a new market should be clear about what it offers. Most of these brands only focused on name visibility, enhancing it with some generic catchphrase that isn't ownable and any brand could use. When a brand dives into a new market, it must adopt the stance of a challenger. Merely mentioning the name isn't enough. The brand must also clearly communicate its promise to the customer - something I noticed was lacking completely.

Chinese brands do run extensive campaigns in China parallel with these games, aiming to engage Chinese audiences. I've seen incredible campaigns that have made fantastic use of emotional storytelling, brilliant content, and smart promotional methods. But, it seems this vigor doesn't translate into the local markets of these global events. Look at Hisense as an instance. They have had a Euro 2024 promotion on their Dutch website. However, this doesn't build any brand consideration as it only focuses on the purchase level. European consumers will see Hisense during the games, but they are unlikely to explore what the brand offers or what it stands for. It appears to me that there's excessive focus on the top and bottom of the funnel, causing them to neglect the entire consumer journey that guides them through to the final steps.

A funny (and perhaps dramatic) example is the case of car manufacturer BYD. They show a drastic misunderstanding of the local market and the underestimation of the relevance and importance of local context in advertising. German viewers who were curious to learn more about the promoted brand landed on a completely unrelated erotic website when they typed in the local web address extension (www.BYD.de). This oversight was an unfortunate misstep and an opportunity missed for BYD to have made a bolder statement in a nation dominated by strong automotive competition. This could have been completely avoided with some basic checks.

As a concluding thought, I believe investing in a local ad agency that understands the culture, context, and can design a gripping advertising campaign will deliver the best bang for their buck. This paints a more comprehensive picture of what these brands need to do better when venturing into the global scene.