The Chinese internet industry is facing challenges in customer acquisition due to the decentralized nature of users and complex networking structures. Traditional methods of buying traffic are no longer practical in a market dominated by tech giants. Alibaba's average customer acquisition cost has increased from USD125 in 2013 to USD800 in 2020. China has 989 million internet users, with Tencent, Alibaba, Baidu, and Tencent capturing over 57% of total monthly effective use time. Adspend in 2021 was 543.5 billion Yuan, a 9.32% increase from the previous year. The adspend growth rate in 2021 decreased by 4.53%. Companies targeting users in first- and second-tier cities should focus on improving traffic quality and setting up a regional traffic ecology, while lower-tier cities should also be considered for traffic growth.
