Thursday, July 10, 2014

Focus group shows increase of advertising in China

Focus group shows increase of advertising in China

The advertising in China amounts to the 3rd world rank, since 2007. The advertising market is very dynamic: in 10 years, advertising spending increased fourfold showed focus group in China.

Advertising in China

advertising in China

The market is nevertheless unbalanced: approximately 50 % of the investments are always realized in Beijing, Shanghai and in the province of the Guangdong.
The advertising market in China is dominated by small local agencies. Focus groups count more than 140 000 companies of advertising and communication, offering very heterogeneous services.
Attracted by the potential of this gigantic market, the big international advertising agencies are present in China for more than 10 years. Their number moreover doubled in 2006, further to the opening in 2005 of this market to companies of capital 100 % foreigners. These international agencies are in competition with the more successful, local Chinese companies, which benefit from strong local networks.
However, 5 of the first 10 advertising agencies are foreign and some are specialized in focus group in China.

Focus group and Store Check in China

store check in China

Since November, 2008, the foreign advertising agencies have to have a governmental authorization to exercise focus group and store check in China. These new regulations of the Chinese government, concerning the companies of advertising with only foreign investments, came into effect in November, 2008. It is same for store check in China.
Advertising agencies with foreign capital will have to, from now on; obtain an official authorization, before making a commitment in any conception, production, and publication in the sector of the advertising in China, as well as focus group.
A Sino-foreign joint-venture can be created only on condition that the shareholders are companies of the sector and in service since more of 2ans.
To create a company of advertising with capital foreign 100 %, the investor will have to be a company the advertising of which is the main "business purpose" and in service since more of 3ans.
A company of advertising, in foreign capital, cannot ask to establish a subsidiary in China only if its capital is completely freed and that sound THAT annual is equal or upper to 20 million RMB (2 million Euros).

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