China agencyScope 2014: Media Agencies General Report

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    12-Nov-2014

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China agencyScope 2014 is research study on the trends of the Marketing Industry in China. The study also gathers data on the perception and performance trends of Creative, Digital, Media, and Marketing Services Agencies in China. R3 Worldwide and Grupo Consultores have been doing this study since 2006 in China. In this edition, the field study was done between August 2013 to December 2013 by conducting 40 minutes to 1 hour interviews with Senior Decision Makers in China's biggest companies/organisations. In this presentation you will get a glimpse of what are the general trends of the Media Industry in China.

Transcript

  • 1. 1 CHINAagencyScope 2014 A research study conducted by Grupo Consultores and R3, since 2006 2006Grupo Consultores 5th Edition, 2014 , 2014
  • 2. 2 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS CLIENT- MEDIA AGENCY TRENDS INTRODUCTION, METHODOLOGY, & TECHNICAL DATA ADVERTISERS AND THEIR RELATIONSHIPS WITH MEDIA AGENCIES MEDIA AGENCIES OVERVIEW 1 2 3
  • 3. 3 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS INTRODUCTION,METHODOLOGY, & TECHNICAL DATA 1
  • 4. 4 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 1978 2008 2011 2003 2009 2013 2012 2010 2006 2005 2009 Introduction agencyScope Globally
  • 5. 5 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 2014 report is the fifth edition of the Study in China. Only Senior Decision Makers were Interviewed. Face-to-face and telephone, 40min-1 hour interviews. Fieldwork: August - December 2013. A tool for taking action. Introduction 2014 401 20138 201312 Introduction
  • 6. 7 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS IMAGE STUDIES # RELATIONSHIPS Marketers on Media Agencies 230 Marketers on Advertising agencies 314 Marketers on Marketing Services agencies 102 Marketers on Digital agencies 243 Methodology
  • 7. 8 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 2014 2012 2010 Below 40M 4 12.3 13.3 20.3 41 - 100M 41 1 12.3 14.5 26.4 101 - 200M 1 1 2 5.9 10.3 12.8 201 - 500M 21 5 15.8 18.2 14.9 501 - 1B 5 1 10 10.8 6.7 6.8 Above 1 B 10 11.8 5.5 7.4 DK/NA / 31.0 31.5 11.5 Average RMB 744.09 450.09 418.68 Technical data Marketing Budget (%) Base: 203 interviewees in 2014, 165 in 2012 and 148 in 2010 201420320121652010148
  • 8. 9 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 48.4 34.7 16.9 Above-the-line (ATL) Below-the-line (BTL) Digital Base: 203 interviewees in 2014 2014203 48% of budget goes to above-the-line campaigns, 35% to below-the-line and 17% to Digital. In the UK investment in Digital goes up to 22.5%. Technical data Budget Split (%) (%) 48% 35% 17% 22.5%
  • 9. 10 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS Technical data 78.4 10.1 11.5 MULTINATIONAL STATE OWNED LOCALLY OWNED 2014 54.5 9.1 36.4 54.6 10.8 34.6 2012 2010 Technical data Type of company (%) (%) Base: 203 interviewees in 2014, 165 in 2012 and 148 in 2010 201420320121652010148
  • 10. 11 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS Technical data Companies interviewed (59% that agreed to share their name) (59%)
  • 11. 12 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS ADVERTISERS & THEIR RELATIONSHIPS WITH MEDIA AGENCIES 2
  • 12. 13 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS MEDIA AGENCY SELECTION
  • 13. 16 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 57.1 30.0 25.1 20.2 16.7 11.8 6.4 78.8 20.0 24.8 29.1 11.5 13.3 9.7 72.3 37.2 43.2 32.4 25.0 13.5 Pitch (Strategy and rates) Pitch (Strategy) Trial assignment / Project / Selection by credentials No pitch Workshop Consultants 2012 2014 2010 Media agency selection Selection Method (%) (%) Base: 203 interviewees in 2014, 165 in 2012 and 148 in 2010 201420320121652010148
  • 14. 17 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS MEDIA AGENCIES - ADVERTISERS RELATIONSHIPS
  • 15. 18 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 4.58 4.01 5.13 4.60 BENCHMARK CHINA INDIA MEXICO Media Agency-Advertiser relationships - Duration of the relationship (average) ()
  • 16. 19 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS TYPE OF AGENCIES # AGENCIES 2014 2014 # AGENCIES 2012 2012 Average number of Media agencies 1.20 2.0 Average number of Marketing Services agencies 2.31 5.5 Average Number of Advertising agencies 2.22 3.5 Average number of Digital agencies 2.48 3.3 TOTAL AVERAGE OF AGENCIES 8.21 14.30 Agency-Advertiser relationships - Number of Agencies by client (%)
  • 17. 20 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS MEDIA AGENCIES COMPENSATION
  • 18. 21 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 42.3 35.9 12.8 35.4 30.7 31.432.3 54.2 18.4 2014 Mix (fee+commission): 0.6% 2014(+): 0.6% Fee / Retainer Commission Project based 2012 2014 2010 Agency Compensation Compensation methods (%) (%) Base: 203 interviewees in 2014, 165 in 2012 and 148 in 2010 201420320121652010148
  • 19. 22 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 50.9 16.4 27.0 16.0 31.9 65.0 79.0 2014 2012 2010 Marketing Procurement Both Dk/Na / Agency Compensation Who leads compensation process (%) (%) Base: 203 interviewees in 2014, 165 in 2012 and 148 in 2010 201420320121652010148
  • 20. 23 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS CHANGING MEDIA AGENCIES
  • 21. 24 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 13 12.1 11.1 17 16.5 18.6 11.1 12.8 13.1 15.4 3.7 10.6 81% to 100% 50% to 80% 11% to 50% Up to 10% TOTAL CLIENTS Multinational State owned Locally owned Average (0%-100%)35.10 37.06 25.71 31.16 Changing agencies Contribution to Business Growth (%) (%) Clients in average in China believe media agencies contribute to their business growth in 35%. Multinational clients are the ones that believe media agencies help them more to grow their business (37%). 35% 37% Base: 203 interviewees in 2014 2014203
  • 22. 25 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 8.8 7.8 7.7 10.9 11.4 17.4 8.0 8.7 78.9 73.0 84.0 79.8 Satisfied Indifferent Dissatisfied Dk/Na / BENCHMARK CHINA INDIA MEXICO Changing agencies Satisfaction with current agency (%) (%)
  • 23. 26 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS The Media Agencies Overview 3
  • 24. 27 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS HIGH PROFILE CAMPAIGNS
  • 25. 28 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS 1 2 3 4 5 6 7 8 9 10 High profile Campaigns
  • 26. 29 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS Most respected Companies 1 2 3 4 5 6 7 8 9 10
  • 27. 30 AGENCY RELATIONSHIP + REMUNERATION + REVIEW CONSULTANTS vera@rthree.com THANK YOU www.rthree.com www.grupoconsultores.comcvacchiano@grupoconsultores.com