《在华媒体投资保障：中间商（broker）指南》

WHO WE ARE In a word, we are about transformation.R3 was established in 2002 in responseto an increasing need from marketersto enhance their return on marketing,media and agency investments, and toimproveefficiency and effectiveness.We want to help CMOs make marketingaccountable. Transparency and Risk Management in a ComplexMedia Market Foreword We’veworked with more than onehundred companies on global, regionalandlocalassignmentstodriveefficiency and effectiveness. We havetalent based in the US, Asia PacificandEurope and partners in LATAMandAfrica.Through global work forUnilever, Samsung, Colgate-Palmolive,and others, we have developed robustbenchmarksand process targets formore than 70 countries. The issue of transparency in China’s media buying market has once again takencenter stage. Recent high-profile investigations in China’s media trading sector,including the detention of senior executives in 2023 and another case in 2025 haveraised significant concerns among global marketers. These incidents highlight anurgent need:how can advertisers safeguard their media investments in a marketwhere the role of brokers remains deeply entrenched? •Clarifythe role of brokers in China’s media market;•Identifykey risks associated with broker involvement;•Provideactionable strategiesto strengthen transparencyand protect media spend. This whitepaper aims to: contact us Sabrina LiManaging Director, Chinasabrina@r3china.com Teriea LuConsultantteriea@r3china.com Understanding Brokers in China’sMedia Market Before delving into the complexities, it's crucial to clarify what constitutes a "broker"in this context. What ARE Brokers in China'S Media Market:1 A broker is an intermediary that facilitates bookings and payments between agencies and media publishers.Instead of agencies buying directly from publishers, brokers handle transactions. In some cases, multiplebrokers may be involved before money reaches the publisher, reducing transparency. It is equally important todistinguish non-brokers. SOCIAL MEDIA www.r3china.comWebsite Who are NOT brokers: Who are brokers: linkedin.com/company/r3LinkedIn •Well-known state-owned municipal or provincialmedia groups•Listed advertising companies•More often, unfamiliar private companies that mayhave been registered only a few years ago with aminimal staff (3 employees) •Media resource owners, such as Douyin orTencent•Exclusive ad sales houses, such as Focus Media(for lift LCD and posters) or those selling adinventory in subways or airports Brokers Transaction Chain Why are Brokers So Ingrained in China's MediaSupply Chain?2 Broker involvement in China's media supply chain is a deeply entrenched practice that hasevolved over time due to several factors: Historical Legacy Since the early 2000s, TV stations (including CCTV) and OOH owners outsourced ad sales. This model later extended into the digitalera, adopted by smart TV manufacturers like Hisense, TCL, and Skyworth. Agencies' Needs to Manage Cash Flow Agencies often face a mismatch: publishers demand payment in 60–90 days, while marketers pay agencies in 120–180 days,which requires post-campaign reports and an additional 1-2 weeks for marketers' internal aligned confirmation before an invoicecan even be issued. Brokers bridge this gap. Agencies’ Needs to Manage Smaller Media For low-volume media, brokers provide efficiency and aggregated buying power. An added advantage is that certain brokers,leveraging their larger aggregated buying power, can often negotiate better deals than an individual agency. Agencies' Drive for Trading Profit •Low profits:Agency commissions or retainer fees are typically just 1–5% of total media spend. Much of the profit is derived fromrebates offered by media publishers, which can range from 5% to 25%. While these rebates should ideally be returned to marketers,agencies often retain a portion for themselves. •Broker Involvement on profit-making strategy:Brokers benefit by inflating their reported revenue to achieve growth, earningincome either through a negotiated percentage for facilitating transactions or by reselling the media inventory they acquire.•Conflict of Interest:As a result, Marketers aim to maximize rebates from media spend, while agency trading departments areincentivized to maximize trading profit to meet internal targets. Key Risks to Your Media Investment3 The ingrained use of brokers introduces several significant risks for client media investments: Lack of Transparency for Marketers •Marketers often do not know the full extent of broker involvement or their identities unless contracts explicitly requiredisclosure.•During media performance audits, agencies may refuse to provide broker details, claiming they are only available in a financialaudit.•Even in financial audits, if a broker is involved, the agency typically shows the rebate contract between agency and broker, notbetween agency and media publisher.•In most cases, the agency holds higher buying vo