NEW STUDY SHOWS MULTINATIONAL AND LOCAL COMPANIES VALUE AGENCY PEOPLE
MORE THAN EVER BEFORE.
• Local agencies outperforming multinationals now in many area, especially digital
• Less than two thirds of China markets satisfied with their agencies – below global
norms of 82%
• No more “One Stop Shop” – Creative agencies missing out on diversified services
• Apple, Coca-Cola and P&G prove to be the most respected marketers; many local
companies well admired too
• Ogilvy, Mindshare, OgilvyOne lead Perception
Shanghai, March 2012
China Marketers Finally Putting People First
According to a new study, China marketers are for the first time valuing agency
talent above all else, similar to more developed countries. “Experienced
marketers know that as strong as an agency‟s network, clout or creativity is, its
ultimately the people that make all the difference” said Sabrina Lee, General
Manager of R3:GC, a Joint Venture between global consultancies R3 and Grupo
Consultores. In this research, 77% of all marketers ranked “The Agency‟s
People” as Very Important, the highest of sixteen different criteria in selecting a
creative agency, and the first time this attribute has been ranked first. Amongst
media agencies, there we similar signs that people now matter as much as rates.
“The China communications industry is suffering from a talent crunch – so
marketers have a new level of hunger to get an unfair share of the best talent
“ added Ms Lee
R3:GC: A Joint Venture between R3 Asia and Grupo Consultores Europe
The research involved five months of face to face interviews with more than 300
senior marketing decision marketers in China, covering more than 850
relationships. It included top multinational marketers such as Coca-Cola, L‟Oreal,
McDonald‟s and Diageo as well as major local players including China Mobile, Yili,
Lenovo and Shanghai Jahwa.
• Local agencies outperforming multinationals now in many area, especially digital
The study also highlighted the fact that the gap is narrowing, not increasing, between the
quality levels of multinational and local agencies. “Marketers rate the local agencies they
are currently using higher overall in terms of pro-activity, timeliness, client service and senior
management involvement. “It‟s clear that the agency management who won their
businesses are taking a significantly higher level of involvement in their clients” said Ms Lee.
But the news is not all bad for multinational agencies, who lead locals in terms of strategic
planning and integration. Amongst digital agencies, there‟s an even more pronounced
trend – “There‟s now more than fifty top class local digital agencies in China , working
across all aspects of social, search and web creation – and a lot of local and multinational
agencies are gravitating towards them” she added
• Less than two thirds of China markets satisfied with their agencies – below global
norms of 82%
Chinese marketers are not a happy lot – with low levels of satisfaction compared to other
markets where this study is also done. “The average relationship is getting a little longer
than 2010 , at 3.3 years for all agencies and as short as 2.5 years for digital media agencies
– but one of the main reasons why is a „concubine mindset‟ – with some marketers happy to
have two of three full time roster agencies” added Ms Lee. “Four years ago, marketers
averaged just 1.4 media agency relationships , and now its 2.0” she added
• No more “One Stop Shop” – Creative agencies missing out on diversified services
The role of specialist agencies and diversified services is growing dramatically in China,
along with the management of multiple partners. 69% are now looking to work with a
digital specialist agency, up from 52% in 2010. And with this diversification comes
training and collaboration demands “95% of marketers are looking for their agencies to lead
in terms of digital training and 91% are demanding a greater level of collaboration as well”
said Ms Lee. “We‟re increasingly seeing the best agencies also go well beyond execution in
digital and look to more complete digital business solutions “ she added
R3:GC: A Joint Venture between R3 Asia and Grupo Consultores Europe
• Apple, Coca-Cola and P&G prove to be the most respected marketers;
many local companies well admired too
For the first time in this study, one company (Apple) topped both the best
campaigns in China as well as the most respected marketer in China, as judged
by their peers, with Coca-Cola, P&G and Nike performing well in both categories.
“2001 was the year of Apple in China – their business went through an incredible
growth , and their brand is now on the top of everyone‟s lips , including fellow
marketers” said Ms Lee. Local brands , such as Vancl, Wang Lao Ji , China
Mobile, Yili and others also received multiple mentions, showing the
diversification of the China market – as a number of top local marketers look to
China-grown brands as a success measure
• Ogilvy, Mindshare, OgilvyOne lead Perception
According to marketers, WPP agencies Ogilvy (amongst creative agencies),
Mindshare (amongst media agencies) and OgilvyOne (amongst digital agencies)
continue to lead the way in terms of perception. “All three of these agencies
have invested in their own marketing and brand building in China – and this is
having a very positive effect in the way current and potential clients see them”
added Ms Lee. In the digital space, local agencies also performed well overall in
perception – “Six of the top fourteen agencies in Digital in terms of perception
were local agencies – and given that most respondents to this study were from
multinational firms, it shows there are still multiple approaches to digital
relationships in China” she added
About the Study
In-depth, Face to Face Study, covering over 300 senior marketers and 850 agency
relationships
The China Agency Scope is now in its fourth wave, with previous research
conducted in 2006, 2008 and 2010. The Study aim is to understand the latest
marketer-agency engagement trends, and perception and performance of
creative, media and marketing services agencies in China.
In-depth face-to-face interviews were conducted with senior Chinese marketing
decision makers from China‟s top marketing companies, providing
comprehensive data and insights to help agency networks and marketers
forecast and benchmark their businesses. The study is conducted every two years
in China, making it the most robust independent tracking measure of Chinese
agencies and their client relationships.
R3:GC: A Joint Venture between R3 Asia and Grupo Consultores Europe
About R3
R3 is a global marketing consultancy with our heart in Asia. We focus on
improving the effectiveness and efficiency of marketers and their agencies.
Founded in 2002, it works with eight of the world‟s top twenty global marketers.
For more information , visit www.rthree.com, write to [email protected] or call
+8610 5900 4733
About Grupo Consultores (GC)
Grupo Consultores (GC) was founded in 1990 in Madrid, Spain and now operates
throughout Europe and Latin America in client-agency consulting, agency pitch
management and agency image research. Outside of Europe, this agency
image research has been completed in China, Brazil and Argentina, and now
India. For more information, visit www.grupoconsultores.com or write to
[email protected]
