A Research On Concentration Improvement Paths Of China's Advertising Industry

Despite all the flourishing and prosperity,China's advertising companies are still kept in weakness and dispersion,and the market is occupied by foreign capitals mostly,the industry is facing the challenge of structure transformation and upgrading.So the study of advertising industry concentration ascending paths benefits the resource allocation,market competition,and the international marketing of Chinese brands,as well as enrichment of the advertising industry economics study.On the basis of literature reviews and theories carding,this paper makes an empirical analysis on the concentration ratio of China's advertising industry,discusses the main factors that restrict the concentration of advertising industry,and seeks solutions for these problems.In this paper,both empirical and normative analysis is used.Embodied in the application of literature research,the empirical analysis method is to insight the low concentration of China's advertising industry.After calculating CR and according to Bain's market classification,the level of concentration ratio and structure type of China's advertising market is known.As for the normative analysis method,it's to explore the deep reasons and effective solutions,that is,to refer to the ascension paths of general industry and cultural creative industry,as well as to consider the conditions of China's advertising industry,then to discuss effective paths to improve its concentration ratio.The research shows that China's advertising industry concentration is in a low status during a long time,and the market structure is quite competitive.The reasons are as follow.First of all,interruption and destruction have occurred in the history of China's advertising industry,and the living space of native companies has been squeezed by foreign capitals after the reopen of China's advertising market.In addition,the government failed to afford effective protection,guidance and support for advertising industry at the beginning of its recovery,but reduced the entry barriers.Besides,AD companies are lack of awareness for scale development,and core competitiveness as well.And then,several paths to improve the concentration ratio of China's adverting industry are put forward.The government should offer safeguards politically and financially,and develop advertising industry parks.In addition,media-based AD companies and enterprise-based AD companies should be established to realizing intensive management and enhance the scale level.Last but not least,companies should also focus on specialization,and realize innovations on company structure,management ideas and talents training.Meanwhile,take account of the combination of strategy and data,make the advertising marketing more accurate and efficient,so as to renew the competitiveness of company.