WeChat Location Targeting in Ads: Maximize Reach of Chinese Audiences in China and Abroad

Chinese super-app WeChat is an indispensable part of daily life in China with more than 1.3 billion monthly active users.

As such, it holds ample opportunities for brands worldwide to engage with Chinese consumers in one of the largest consumer markets in the world.

In this article by the China experts at WeChat Advertising, read up on 

• targeting options of WeChat ads,
• with a focus on location targeting, 
• how well they work, and
• how to maximize reach among Chinese audiences

Let’s take a closer look.

The Chinese Market

Did you know? After the USA, the Chinese market is the second-largest consumer market in terms of household consumption expenditure. Besides, China is the largest e-commerce market in the world with a steep growing trend.

As such, the Chinese market is an important growth opportunity for brands aiming to grow in Asia. In fact, the Chinese market is more than “just a good idea.” In today’s hyper-connected world, it is a necessity to be present in a gigantic market with no end to its growth in sight. 

China is a key growth driver for all types of businesses—whether B2B or B2C—offering services or products.

B2C Companies

From luxury goods to everyday essentials, from hospitality to education services: Chinese consumers are eager to purchase and buy online fast, typically with mobile phones.

B2B Companies

Likewise, the Chinese market is a powerhouse for companies selling directly to businesses, offering a vast network of suppliers, distributors, and partners. Find more information about B2B marketing on WeChat here.

WeChat at the Forefront

Regardless of the type of business, WeChat with its many integrated features is a must for brands wishing to succeed in the Chinese market, which offers unmatched potential.

• An Official Account and brand profile demonstrate authenticity (which is very important in China!).
• Sharing educational, informative, or entertaining content adds value to followers and engages them with the goal of converting them into buyers.
• Offering customer service and additional services on WeChat makes it easy for prospects and clients to fall in love with the brand and become loyal customers.
• WeChat is also used as a professional communication tool among businesses (rather than email)
• Advertising on WeChat is a great way to reach your target audience.

Understanding the needs and preferences of Chinese consumers (which vastly differ from consumers in Western countries) is important, so your brand connects with your target audience.

The Power of WeChat

Since its launch in 2011, WeChat has expanded far beyond a messaging app, offering shopping, ticketing, payment, mini-apps, and much more for Chinese communities in mainland China and globally.

Today, with its large user base and many practical ways of usage, advertising on WeChat, in addition to organic content marketing strategies, is ideal to 

• boost brand awareness,
• increase audiences,
• generate leads, and
• drive revenue and growth.

For domestic and global brands wishing to reach Chinese consumers, WeChat offers highly effective advertising tools with ample and precise targeting options.

Targeting Options on WeChat

WeChat offers a range of sophisticated targeting options compared to the advertising and targeting options on other popular Chinese social media platforms.

All WeChat ad formats have these targeting options to reach specific audiences effectively:

• Demographic: age, gender, education level, marital status.
• Location.
• Interests: viewed content and engagement, accounts followed.
• Behavior: purchasing patterns, app usage.
• Device: brand, whether the device was activated in the past 90 days.
• Spending type and level.
• Re-targeting.
• Custom Tags: lookalike audiences, apps on the user’s phone.

Based on our real-life experience of more than 15 years in China marketing, the most effective targeting on WeChat is a combination of various options, including interests, behavior, and location. 

Location Targeting on WeChat

In general, location targeting is a valuable option because it allows advertisers to deliver relevant and personalized content to users in specific geographic locations.

Geo-Targeting vs. Location Targeting

Overall, both terms refer to the same thing: Targeting users according to their location in cities or districts. 

The terms are used interchangeably. However, the term “location targeting” is often used in general conversations, whereas marketing specialists more commonly refer to it as “geo-targeting.”

How to Target WeChat Ads Based on Location

The location of WeChat campaigns can be targeted by

• Place of residence
  • Even though the user enters their place of residence when they set up the account (or change it later), WeChat determines the place of residence according to the user’s location behavior in the last month.
  • Province, city, and district level within mainland China.
  • Countries outside of mainland China are not supported for targeting.
• Travel visits
  • WeChat determines travel visits when users go to areas outside their residences.
  • Recent travel history by province, city, and district level within mainland China.
  • Targeting only on a country level outside of mainland China.
  • More than 4,400 commercial areas.
  • More than 58 million Points of Interest.

So, what does this mean?

Here’s our take on WeChat location targeting: 

Interestingly, even though the user sets their place of residence on WeChat, the app uses location tracking when running geo-targeting ads.

With an estimated 200 million permanent WeChat users outside of mainland China (foreigners, Chinese who live abroad, not travelers), this WeChat user group equals a non-neglectable segment (15%) of the app’s total 1.3 billion users.

There is no exact data available for the number of Chinese WeChat users who travel abroad. However, more than 80 million Chinese people travel abroad yearly, and most of them will be WeChat users.

Keep in mind the usage habits of WeChat differ within China and outside. In China, WeChat integrates deeply into daily life, supporting chatting, shopping, payments, and more. Outside China, however, it’s primarily used to stay connected with Chinese friends. 

FAQ: WeChat Location Targeting

Here are the answers to the most common questions around WeChat location targeting.

Does Geo-Targeting on WeChat Work?

The short answer is “Yes.” 

Targeting by location when running WeChat ads offers much potential, but there are also a few things to remember. 

Strengths

• Segmentation of WeChat’s massive user base to maximize reach and engagement.
• Accuracy of data since WeChat users enter their residential information (it is not tracked by WeChat).
• Targeting Chinese travelers works well within mainland China.

Limitations

• Reaching WeChat users outside of China only works on a country level and their number is limited.
• Opportunities to connect with WeChat users who travel abroad are limited.
• Differences in WeChat usage and advertising practices make cross-border campaigns more complex.

What’s the Real Difference between “Place of Residence” and “Travel Visits”?

The distinction is pretty straightforward.

The place of residence is set by the user (where he or she mainly stays), and in marketing, this can be beneficial for long-term campaigns. For example, a drugstore chain launching a loyalty program.

On the other hand, travel visits are identified by WeChat and indicate a recent visit to a particular location, regardless of where the person normally resides. A hospitality provider (restaurant, hotel, etc.) in a major city targeting users visiting the area may find this useful during its campaigns. 

Should Geo-Targeting on WeChat be Used in China?

Within mainland China, location targeting of WeChat ads is highly recommended. Here’s why:

• In China’s diverse market, regional marketing is essential. The needs and preferences vary according to tier cities and rural areas.
• Certain industries like ride-hailing or food delivery can benefit significantly from geo-targeting within China.
• Real-time ads that solve a user’s problem have a higher success rate.

Should WeChat Location Targeting be Used outside of China?

While geo-targeting on WeChat can be effective for international campaigns, we recommend against it. 

On the plus side:

• WeChat is available for download in more than 200 countries around the world.
• More than 50 million Chinese people live abroad.

But, geo-targeting outside of mainland China is limited.

• Targeting based on “place of residence” only works within mainland China.
• Outside of China, location targeting on WeChat only supports “travel visits.”

Here’s our take on WeChat advertising in the USA.

How Can Brands Promote Themselves to Chinese People Overseas? 

The limited location targeting capabilities on WeChat are not unique. Other popular Chinese platforms, such as Little Red Book, Bilibili, and Zhihu, also share similar limitations outside of China. 

However, being on WeChat is still recommended! 

Organic content marketing on WeChat is a great way to share useful information about your brand and content that adds value to your followers. It will help to put your brand on the radar of WeChat users, connect with them, and ultimately sell your products or services.

In terms of classical marketing strategies, brands can run ads in local media or have a presence at local cultural events.

If you are focused on digital marketing, consider

• adapting your international website to suit Chinese preferences,
• run targeted email marketing campaigns in Mandarin,
• partner with influencers to promote your brand via their Chinese social media accounts,
• and more.

Reaching overseas Chinese audiences requires specific knowledge and tools, and when executed correctly can yield excellent results.

What is the Pricing Structure of WeChat Location Targeting?

Several factors determine the CPC (cost per click) or CPM (cost per mille = 1,000 impressions).

• First-tier or core cities like Beijing are the most expensive.
• Second-tier cities are more affordable.
• Third-tier cities are the least expensive.
• Single-image ads are less expensive compared to ads with more images or videos.

Overseas CPM campaigns on WeChat start from 50,000 RMB in most Asian countries, Australia, and the US, and 10,000 RMB in most European countries.

Case Study: WeChat Location Targeting

This is a recent example of a WeChat ad with different targeting options and selections for one of our clients.

Our 5 Tips to Optimize WeChat Location Targeting

With our extensive experience in China marketing, these are our top tips for geo-targeting ads on WeChat:

• Combine location targeting with behavior insights, like brand preferences and shopping locations.
• Use dynamic WeChat ads that update based on real-time location to boost engagement for things like food delivery services.
• Offer special promotions during Chinese holidays and festivities. For example, limited-time offers to WeChat users near a retail store or ride-hailing promos for those visiting their family.
• Create custom messages based on regional preferences, languages, and cultural specialties. A restaurant in Guangzhou could mention regional fillings such as lotus seed paste or red bean.
• Use A/B testing to refine targeting.

The targeting options on WeChat are manifold, and location targeting allows brands to connect with WeChat users, cater to their needs, and solve their problems.

The Takeaway – WeChat Location Targeting

Reaching Chinese audiences is the goal of many domestic and global brands. WeChat is THE go-to tool for this with its market penetration and everyday presence. 

Running ads on WeChat is a great way to connect with consumers effectively. With its many targeting options (demographic, behavior, interest), WeChat enables brands to cater to the users’ needs and solve their problems very specifically.

Also known as geo-targeting, this tool allows advertisers to drill down and engage Chinese consumers domestically and abroad.

While targeting by location within mainland China is practical and proven useful (recommended), geo-targeting outside of mainland China comes with many limitations (not recommended).

Within China, targeting users by “place of residence” and “travel visits” enables advertisers to deliver personalized content tailored to specific regions or users’ travel patterns. This can be particularly useful for service providers in the retail, hospitality, travel, and event sectors.

While there are limitations, WeChat remains a vital platform for reaching Chinese audiences globally, and by combining location targeting with organic content strategies, brands can still effectively engage overseas Chinese consumers.