The Strategic Functions of Advertising Agencies in China: A Networking Perspective

Abstract

This exploratory study investigates both marketing and strategic functions of advertising agencies in China. The results of factor analysis identify four categories of strategic functions: product development, relationship maintenance, company strength, and knowledge and adaptation. The findings indicate that advertising agencies in China cannot perform a wide range of advertising/marketing activities; but, with their networks with government and other business entities, they can contribute to non‐advertising strategic functions. This suggests that international marketers should pay special attention to the agency selection issue when competing in China. In particular, a broader perspective is required when defining the selection criteria for advertising agencies.

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