China’s marketing landscape is a paradox 2025.
“On one hand, 56% of advertisers say brand-building is the key to long-term growth.
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On the other? 53% admit they’ re slashing brand budgets to fund short-term, performance-driven campaigns. “explained Marcus Zhan, Director of GMA operation.
This is what local marketers call “品效割裂” the brand-performance divide. And it’s not just a budgeting issue. It’s a mindset problem.
Why the Contradiction Exists
- Pressure for Short-Term Sales
E-commerce festivals (Double 11, 6.18) and livestream flash sales created a culture of instant ROI. CMOs get judged by this quarter’s numbers, not next year’s equity. - Platforms Reward Performance
Douyin, Xiaohongshu, JD, Tmall—they’ve built ad ecosystems optimized for conversion clicks, not storytelling. The algorithms themselves push marketers into performance-first behavior. - Fragmented Consumer Attention
With Chinese consumers split across dozens of platforms, brands fear “wasting” top-funnel dollars. Performance feels safer because it’s measurable.
The Hidden Cost of Performance Addiction…
- If you only chase conversion, your brand becomes a commodity.
- If you only do storytelling, you risk being irrelevant at checkout.
- In China, where consumer loyalty is razor-thin, brand ≠ nice-to-have—it’s the only long-term moat.
👉 The dilemma: without brand equity, your performance costs keep climbing. CPC and CPM go up. Conversion rates flatten. You’re trapped in a hamster wheel.
The Way Forward: 品效合一 (Integrating Brand + Performance)
Smart brands in China aren’t choosing sides, they’re fusing both.
Here’s how:
- Content That Sells + Tells
Use Douyin/XHS short videos that blend storytelling hooks with clear CTAs. Think: emotional micro-films with a swipe-up link to purchase. - Livestream Storytelling
Livestream commerce shouldn’t just be “hard sell.” The best hosts weave brand values + origin stories into the demo. This builds emotional stickiness. - Data-Driven Brand Equity
Track long-term brand search volume, share-of-voice on XHS, and organic UGC mentions—not just ROAS. Brand equity can (and should) be measured. - Split Budgets Smartly
Think 60/40: 60% for short-term conversion, 40% for long-term equity. Adjust by category maturity—new brands might go heavier on performance, established ones must lean into brand.
Final Thought
The brand vs. performance dilemma in China isn’t going away. The winners won’t be those who pick a side—they’ll be the ones who figure out how to make every yuan work twice:
- Build brand trust for the long run
- Drive sales velocity in the short run
That’s how you break the cycle of “品效割裂” and turn it into “品效合一.”
