The Strategic Functions of Advertising Agencies in China: A Networking Perspective

This exploratory study investigates both marketing and strategic functions of advertising agencies in China. The results of factor analysis identify four categories of strategic functions: product development, relationship maintenance, company strength, and knowledge and adaptation. The findings indicate that advertising agencies in China cannot perform a wide range of advertising! marketing activities; but, with their networks with government and other business entities, they can contribute to non-advertising strategic functions. This suggests that international marketers should pay special attention to the agency selection issue when competing in China. In particular, a broader perspective is required when defining the selection criteria for advertising agencies.