Publicis Media leads China’s media pitches in 2024

China’s media agency market marked a year of growth in 2024, with both the number of pitches and total budgets setting new highs. According to Ebiquity’s analysis of COMvergence Media Agency New Business Barometer data, the total pitch budget surged by 40% to 31.06 billion RMB ($4.26 billion), while the number of pitches grew by 6% to 128. Publicis Media emerged as the clear leader, dominating new business wins, while strong retention capabilities were evidenced with Omnicom Media Group's performance.

The total pitch budget in 2024 exceeded 31 billion RMB ($4.34 billion), indicating heightened advertiser activity. The average budget per pitch also jumped by 68% year-on-year to 1.93 billion RMB ($270.2 million), as prominent advertisers ramped up investments. The top 10 pitches alone accounted for 62% of the total budget, with a combined value of 19.25 billion RMB ($2.64 billion).

Leading the charge were SAIC Volkswagen, Nestlé, and Yum Brands, with declared budgets of 3.22 billion RMB ($450.8 million), 2.99 billion RMB ($418.6 million), and 2.88 billion RMB ($403.2 million) respectively. Automotive, fast food, and FMCG were the top-tier sectors driving this growth, while 78% of pitches were locally driven, showcasing the unique dynamics of China’s market.

Publicis Media sits on top

Publicis Media had a banner year, winning six of the top 10 pitches, valued at 8.7 billion RMB ($1.22 billion). This equates to a staggering three-quarter (73%) of the total pitch volume from the top 10. Starcom led the group’s charge, adding key brands such as Nestlé, Lego and Dyson, while Spark Foundry secured Yum Brands and Zenith added Swatch and L’Oréal Travel Retail to its portfolio.

In total, Publicis Media totalled 7.16 billion RMB ($1 billion) in net new business revenue, making it the top-performing agency group of the year in the mainland market. Starcom alone contributed 3.91 billion RMB ($547.4 million), followed by Spark Foundry with 3.18 billion RMB ($445.2 million), both showing remarkable growth compared to previous years.

OMG shines in retention

While Publicis dominated new wins, Omnicom Media Group stood out in retention, successfully defending 10 bluechip accounts, including SAIC Volkswagen, Mercedes-Benz (partial), Yili, and HP. OMG retained a total of 7.23 billion RMB ($1.01 billion) in business as a testament to its strength in maintaining client relationships amidst growing competition. Retention accounted for 42% of the total pitching budget in 2024, a slight dip from 43% in 2023.

GroupM also retained 13 accounts, including Ford Motor and Honor, worth 4.39 billion RMB ($614.6 million), while Publicis Media retained 1.21 billion RMB ($169.4 million) across four accounts, including partial Volkswagen Group business and Volvo.

Challenges for others: GroupM, Dentsu, MediaBrands

Not all agency groups had a strong year. GroupM faced a net new business loss of 3.49 billion RMB ($488.6 million), losing 13 mid-to-large-sized clients with a combined budget of 4.25 billion RMB ($595 million). While GroupM acquired 16 new clients, their smaller budgets (averaging just 46 million RMB ($6.44 million) per client) failed to offset the losses.

Dentsu also struggled, reporting a net new business loss of 930 million RMB ($130.2 million). Despite adding 15 new clients, the group lost 10 major accounts worth 3.26 billion RMB ($456.4 million). MediaBrands similarly faced challenges, losing 760 million RMB ($106.4 million) in net new business as client churn outpaced acquisitions.

Key trends

Ebiquity identified three major trends reshaping China’s media agency landscape in 2024:

1. Specialised pitches: Advertisers are increasingly stratifying pitches into specific verticals like influencer marketing, biddable performance advertising, and OOH buying. There's a clear growing demand for specialised expertise across different media channels.
2. Data and technology integration: Agencies are being evaluated on their ability to integrate advanced data and technology tools, including AI-generated content to optimise media execution and drive innovation.
3. Compliance and transparency: Advertisers are demanding stricter governance in media buying, with an emphasis on transparency, direct buying, and operational compliance to ensure sustainable partnerships.