Survey: China's brand advertising market sees growth, local agencies shrink

China’s brand advertising market grew 9% in 2024, reaching RMB 539.18 billion, according to COMvergence data and Ebiquity analysis. However, the agency sector shows a split trend: international firms gained momentum with 4.7% growth, while local agencies shrank by 9.3%, facing an existential crisis.

The analysis of China's 2024 agency landscape, conducted by Ebiquity China, revealed unprecedented market dynamics that warrant immediate industry attention. It finds a stark divide between international and local agency performance that lies behind the overall market expansion.

According to the report, the six major international agency groups collectively managed RMB 128.1 billion, capturing 23.8% market share with robust 4.7% growth. In contrast, the six leading local agency groups handled RMB 63.3 billion (11.7% market share) but suffered a devastating 9.3% contraction, with only GIMC achieving growth (+24.0%).

Combined, the top 12 international and local agencies managed RMB 191.39 billion, securing 35.5% market share. This represented a marginal 0.4% decline from 2023, masking the pronounced performance divergence between international and local players.

The international agency landscape demonstrated pronounced performance divergence in 2024. WPP Media maintained market leadership with RMB 53.17 billion in billings (9.9% market share), despite a 1.2% YoY decline, whereas Publicis Media secured second place with RMB 39.47 billion (7.3% share), surging 20% YoY by new business wins. Omnicom Group ranked third with RMB 20.37 billion (3.8% share), also growing by around 20%.

On the other hand, dentsu Group (-22.1%) and Mediabrands (-19.1%) suffered significant contractions, while Havas Group showed resilience with 3.0% growth, highlighting varying strategic adaptability among international players. 

Among local agencies, despite unchanged rankings, collective billings fell 9.3% to RMB 63.29 billion, with GIMC retaining local leadership for the fourth consecutive year with RMB 20.64 billion (+24.0% YoY), expanding market share to 3.8% through automotive-focused strategies and strategic media partnerships. 

This is followed by Leo Group garnering RMB 16.43 billion (-0.5%; 3.0% share), BlueFocus with RMB 12.46 billion (-18.3%; 2.3% share). Other agencies include Zhewen, which plummeted 28.8% to RMB 7.70 billion (1.4% share) despite 12.4% growth in automotive brand marketing, as performance marketing revenue collapsed. Hyink continued its four-year decline trajectory, crashing 62.8% to RMB 2.03 billion (0.4% share), while Three's Media dropped 20.7% to RMB 4.01 billion (0.7% share) due to reduced automotive and FMCG budgets.  

Based on annual billings, the report categorises China's media agencies into three distinct tiers. The first tier, consisting of agencies with billings above RMB 30 billion, is dominated by WPP Media and Publicis Media, jointly commanding 17% market share. Their scales create significant competitive advantages in negotiations with media platforms and client acquisition.

The second tier, comprising agencies with billings between RMB 10-30 billion, includes GIMC, Omnicom, Leo Group, BlueFocus and dentsu, which collectively hold a 15% market share. The ongoing Omnicom-IPG merger will create a RMB 22.5 billion entity (4.3% market share), surpassing GIMC and potentially establishing a new second-tier leader. 

The third tier consists of smaller agencies with billings below RMB 10 billion, including Zhewen, Three's Media, Hyink, Mediabrands and Havas, jointly holding 3.3% market share. These agencies face increasing pressure to scale or specialise in order to remain competitive.

Building on these trends, COMvergence's first half 2025 pitch data reveals accelerating competitive dynamics. Publicis demonstrated strong performance, securing RMB 5.34 billion in net new business, including major accounts such as Mars (RMB 4.13 billion), SAIC-GM (RMB 1.05 billion), and L'Occitane (RMB 240 million).

In contrast, WPP faced challenges, registering a net loss of RMB 4.2 billion despite winning new business worth RMB 380 million from clients including LG Home Care, ExxonMobil and Robam Appliances. This setback was primarily due to the loss of the Mars account and other business totalling RMB 4.58 billion.

By July 2025, WPP's lead contracted further to just RMB 4.16 billion. Should Publicis maintain this momentum through second half of 2025 major wins, WPP Media's decade-long market leadership could face serious challenge by year-end. 

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In the broader context, China's total advertising market reached RMB 1,546.41 billion in 2024, recording a 17.9% YoY increase, according to State Administration for Market Regulation (SAMR) data. This comprehensive figure encompasses revenue from all advertising institutions and large-scale enterprises nationwide, such as media publications and platforms, vendors and advertising agencies. 

However, COMvergence's brand advertising market measurement of RMB 539.18 billion represents only 34.8% of SAMR's total - down from 37.7% in 2023, highlighting evolving market dynamics that traditional agencies must address.

Stewart Li, managing director of Ebiquity China, said: "The 2024 data reveals a market in fundamental transition. For advertisers, intensifying competition among international agencies creates opportunities for better terms and innovation, while local agency consolidation demands more selective partnership strategies. With agency-managed spending declining to 34.8% of total market spend, brands must prepare for an increasingly fragmented media landscape that extends beyond traditional agency relationships."

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