China’s Brand Advertising Market Expands in 2024
China’s brand advertising industry experienced a notable 9% growth in 2024, reaching a value of RMB 539.18 billion, according to a joint study by COMvergence and Ebiquity. Despite this overall market expansion, a sharp contrast has emerged between international and local advertising agencies.
International Agencies Gain Ground
The six leading international agency groups collectively managed RMB 128.1 billion in billings, claiming 23.8% of the market and growing by 4.7% year-on-year. Publicis Media saw the most significant growth, recording a 20% increase to RMB 39.47 billion and securing major new business wins. Omnicom Group also posted a similar growth rate, reaching RMB 20.37 billion. WPP Media maintained its market dominance with RMB 53.17 billion, despite a slight decline of 1.2%.
Other international players had mixed results. Havas Group grew by 3.0%, while dentsu Group and Mediabrands saw significant declines of 22.1% and 19.1% respectively, underscoring varied strategic effectiveness across global firms.
Local Agencies Face Steep Decline
In contrast, China’s top six local agency groups suffered a combined decline of 9.3%, handling RMB 63.3 billion in billings and capturing just 11.7% of the market. Only GIMC reported positive growth, increasing its billings by 24.0% to RMB 20.64 billion. GIMC attributed its success to strategic partnerships and a strong automotive client base.
Other local players struggled. Leo Group remained relatively stable with a minor 0.5% decline, while BlueFocus dropped 18.3%. Zhewen plummeted by 28.8% despite automotive gains, and Hyink saw a staggering 62.8% decline. Three’s Media also fell by 20.7% amid budget cuts in the automotive and FMCG sectors.
Market Share and Tier Segmentation
The top 12 international and local agencies together managed RMB 191.39 billion, representing 35.5% of the market—a slight decline of 0.4% from the previous year. Agencies are now categorized into three tiers based on billings:
- Tier 1: Agencies with billings above RMB 30 billion, represented by WPP Media and Publicis Media, holding a combined 17% market share.
- Tier 2: Agencies with billings between RMB 10-30 billion, including GIMC, Omnicom, Leo Group, BlueFocus, and dentsu, totaling 15% market share.
- Tier 3: Smaller firms with under RMB 10 billion in billings, such as Zhewen, Three’s Media, Hyink, Mediabrands, and Havas, collectively making up 3.3%.
The upcoming Omnicom-IPG merger is expected to create a RMB 22.5 billion enterprise, potentially reshaping the second-tier landscape by surpassing GIMC in scale and influence.
Competitive Dynamics Intensify in 2025
COMvergence’s first-half 2025 data indicates escalating competition. Publicis led in net new business with RMB 5.34 billion, securing major accounts such as Mars (RMB 4.13 billion), SAIC-GM (RMB 1.05 billion), and L’Occitane (RMB 240 million). On the other hand, WPP faced a net loss of RMB 4.2 billion, despite winning RMB 380 million in new business, primarily due to the loss of the Mars account and other contracts totaling RMB 4.58 billion. By July 2025, WPP’s lead had narrowed to just RMB 4.16 billion, placing its decade-long dominance at risk.
Broader Advertising Trends and Implications
According to the State Administration for Market Regulation (SAMR), China’s total advertising market reached RMB 1,546.41 billion in 2024, growing by 17.9% year-on-year. However, COMvergence’s data shows that brand advertising accounted for only 34.8% of this total, down from 37.7% in 2023. This decline reflects a shift in spending patterns, with brands increasingly exploring non-traditional channels and fragmented media strategies.
Stewart Li, Managing Director of Ebiquity China, commented, “The 2024 data reveals a market in fundamental transition. For advertisers, intensifying competition among international agencies creates opportunities for better terms and innovation. Meanwhile, the consolidation of local agencies calls for more strategic partnerships. With agency-managed spending dropping to 34.8% of the total market, brands must adapt to a more fragmented and complex media environment.”
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.