Globalization and the advertising industry in China

The rapid recent growth in the size of the advertising market in China has been unprecedented, fulfilling the prediction that it will be second only to that of the United States by the Olympic year of 2008. Major Japanese and Western-based global advertising agencies have been making their presence felt via joint-venture arrangements with Chinese agencies since 1979, and now increasingly are serving not only their global clients, but working with large Chinese advertisers as well. This article traces recent developments in the advertising industry in China, with particular attention to the marketing strategies being pursued by global advertisers, and to the social, cultural and geographical barriers which they must overcome. Conversely, the analysis gives insight to the comparative advantages the Chinese advertisers and their agencies enjoy in this respect, although they also face challenges in establishing brands and otherwise transforming China into a harmonious nation of consumer-citizens.