China's Advertising Agencies: Problems and Relations

Abstract

This article outlines the more significant problems faced by the advertiser in China. It addresses agency-client problems, agency-media problems and problems for foreign advertisers.Agency-client problems. Most Chinese advertising agencies lack the trained personnel to help advertisers plan and execute advertising plans. Many agencies do not have the production facilities to create and produce television commercials. Advertisers believe that their own staff can do a better job.Agency-media problems. The greatest threat to the Chinese advertising agency success comes from direct placement in major mass media. The major media in China often compete directly with agencies for advertising billings. Advertisers who do not use direct placement may find themselves on the bottom of a long waiting list for time or space. There are other forms of discrimination against agency placed advertisements. These include poor quality of transmission and adverse placement of the advertisement.Problems for foreign advertisers. Like all foreign markets, China has its own methods of doing business. For example, guanxi or mutual dependence, gratitude, and indebtedness is very important for foreign marketers. One uses guanxi to establish a network of social and business contacts.

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