#ExplainIt: Why China’s local and international agencies are growing apart

In the ever-evolving landscape of China’s advertising market, a stark polarisation has emerged between international and local agencies. 

The analysis of the 2024 agency landscape by Ebiquity China reveals that China's brand advertising market expanded by 9% in 2024, reaching RMB$539.18 billion. However, the agency sector exhibits a split trend: while international firms achieved a growth of 4.7%, local agencies faced a contraction of 9.3%, placing them in a precarious situation.

The report indicates that the six largest international agency groups, including WPP Media, Publicis Media, Omnicom Group, dentsu Group, Mediabrands, and Havas Group collectively generated RMB$128.1 billion, securing 23.8% of the market share with a strong growth rate of 4.7%. 

In contrast, the six top local agency groups managed RMB$63.3 billion, representing 11.7% of the market share, but experienced a significant contraction of 9.3%, with only GIMC recording growth at 24%.

Don’t miss: Survey: China's brand advertising market sees growth, local agencies shrink

However, a significant question persists: what are the primary factors contributing to the divide between local and international agencies, and how might this affect the overall marketing landscape in China? To gain deeper insights, MARKETING-INTERACTIVE turned to industry experts to explore.

Check out what they had to say.

Click on each picture to watch a video!

1. Kien Lim, chief executive officer, Havas Media Network China

2. DiDi Wei, founder and director, DiChat Consulting

3. Arthur Tsang, chief creative officer, Greater China, McCann Worldgroup

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