According to a recent survey, the advertising sector in China is rapidly reverting back to normal business operations. Multinational corporations claimed that they have strengthened their ties with agency partners and that the crisis provided opportunities that would benefit the industry in the long-run.
A survey conducted by the World Federation of Advertisers (WFA) on executive operations within agency management relationships with 24 multinational corporations showed that the majority of the respondents see growth in the industry. They felt that business discussions with most agency partners and advertising vendors in China have reverted to normal business operations.
About 82 percent claimed to have strengthened their relationships with agency partners during the pandemic. About 88 percent of the respondents also believed that the pandemic created doors for the industry to reshape their plans for future prospects in China.
Half of the respondents revealed that they managed their business and maintained their ability to operate under normal conditions like how they did pre-pandemic. However, 31 percent of the respondents claimed that they had to update the scope of work. About 12 percent also offered immediate payment of invoices, while 12 percent claimed that they also assisted supply chain financing.
The participants have started to reward the agencies and vendors who lent a helping hand during the crisis. About 36 percent offered more marketing projects to agencies who helped most. In comparison, 20 percent of the respondents claimed to have extended the length of their existing contracts. About 16 percent have yet to reward the agencies. In contrast, 24 percent claimed that they would not pay any agencies who offered help during the pandemic.
The majority of the respondents claimed that they discovered new ways to work and overcome the delay that restrictions might cause. These measures included establishing officers in alternative locations unaffected by the virus. They are also considering the use of stock images or CGI, rely on critical leaders in the market to produce content in their homes, and repurposing existing content.
On the other hand, communications among advertisers improved during the pandemic as well. About 81 percent of the respondents claimed that they must continue discussions during the crisis. About 82 percent of multinational corporations highlighted that they invested more in tools and tech to maintain strong relationships with their marketing partners. About 20 percent of the advertisers revealed that they improved their performance evaluation models to reflect agencies' contributions in observing modified means of communications.
According to Campaign India, marketers and agencies in China are taking different approaches to pitches and tender initiatives. About 12 percent of the respondents claimed that they postponed plans by three months. Half of the advertisers also said that they observe measures depending on a case-by-case basis in formulating marketing plans.
