China/Ad Agencies

AdAgeChina: Japan Inc. Takes Closer Look at China

"Ad agencies “increasingly are asked by clients to help them with marketing strategies for China,” said Mark Blair, Ogilvy‘s Tokyo-based president, Japan, “to help them understand local conditions and make new products that are right for China.” As in Japan, Dentsu is the biggest competitor for Japanese clients the multinational agencies face in China.. Much to its dismay, Japan’s advertising agency giant Dentsu has not succeeded in building a strong global network, but is determined to dominate the Chinese market the way it does in Japan."

"While Dentsu cannot own Chinese TV stations outright, the way it owns much of Japan’s airwaves, it has aggressively forged alliances with production companies like Shanghai Media Group to create branded content opportunities. Dentsu’s deep pockets also mean it can operate indefinitely with lower margins than Western agencies owned by holding companies with strict revenue targets like WPP Group. Dentsu now operates one of the largest agencies in Beijing."