The Study Of Group-Oriented Development Of Local Advertising Agency

The trend of advertising agency collectivization began in 1980's in western developed countries. With more and more merger and acquisition, the strength and scale of international advertising company are becoming larger and stronger. The advertising market of 21st century will be dominated by a few advertising agency groups.With the advent of December 10, 2005, China's advertising industry has opened to foreign capital completely. After the first establishment of joint-venture advertising company in 1986, the business scope of the foreign adverting agency expanded and their operational performance improved. Not only can they set up joint-venture and holding company, but also set up the advertising company by their own. Therefore, they become the main player in advertising market of China.China's open-up policy has brought tremendous opportunities in advertising industry. The speed of development is astonishing. There are many numbers of excellent domestic advertising companies. However, there are still some problems and disadvantages, such as large quantity, small scales and weak strength.Currently, China's advertising industry is on the turning point. Facing the impact of economic globalization and entry of foreign advertising agency groups, the competition in China's advertising market is more and more fierce. The environment of domestic advertising companies becomes harder. Thus Collectivization will play important role in how to facing the challenge and seize the opportunity in China's advertising industry.From the perspective of industry organization and strategic management, this dissertation analyzes the history of Advertising Agency in both China and foreign countries. Using three methods including Textual Analysis, Comparative Research and In-depth Interview, the dissertation discusses the connotation and character of Advertising group, assays the motivation and reason of Advertising group in developed countries, and indicates the importance of Local advertising agency collectivization. Finally, the dissertation makes some suggestions on Collectivization of the local Advertising agency.