Navigating Media Intermediaries in China

China is one of the most exciting advertising markets in the world. It is vast, fast-moving, and fiercely competitive. For multinational companies, it represents growth on a scale that few other regions can match.

But with that opportunity comes complexity. China is not like Europe, the US, or Latin America. It has its own platforms, its own regulations, its own speed, and its own way of doing business. The rules are different, and so are the players.

One of the biggest differences is the role of media intermediaries (also known as 'brokers'). In most markets, advertisers can buy directly from platforms or through their media agency. In China, intermediaries often sit in the middle. They can unlock access, but they can also obscure it.

For global advertisers, this creates a dilemma. On the one hand, intermediaries are often the only route to market or specific supply. On the other, they raise questions around transparency, governance, and compliance.

This article is a practical guide to navigating intermediaries in China. We’ll explain what they are, why they exist, the benefits they bring, and the risks they pose. We’ll give you strategies to manage them, questions to ask your agencies, and examples of what leading advertisers are doing.

Because in China, success is not about avoiding intermediaries. It is about learning to work with them, and how to manage them.

What Are Media Intermediaries?

At the simplest level, a media intermediary is a third-party entity that sits between the advertiser and the media owner. They handle parts of the buying, selling, or delivery process. Think of them as a bridge - sometimes helpful, sometimes costly, but often unavoidable.

There are two broad categories:

• Local Buying Houses. These act on behalf of the advertiser. They are often extensions of the agency or even the client team, providing local market access and operational support.

• Brokers, Sales Houses, and Representatives. These act on behalf of the seller. They give advertisers access to specific platforms or publishers that only trade through appointed resellers.

A typical flow might look like this:

1. The advertiser briefs their media agency.
2. The agency identifies platforms and publishers in China.
3. To access those platforms, the agency goes through a local intermediary.
4. The intermediary contracts with the media owner, manages the billing in RMB, and reports back to the agency.

For the advertiser, the buy may appear straightforward. But behind the scenes, extra layers exist. And with each layer comes both complexity, value and risk.

Why They Are Necessary in China

In many markets, advertisers can buy directly from media owners. Agencies have trading desks, DSPs, and direct contracts. So why does China rely on intermediaries?

There are three structural reasons.

1. Platform Access and Integrations: Some Chinese platforms simply do not trade directly with global advertisers or agencies. Instead, they appoint authorised resellers. If you want to be on that platform, you must go through the intermediary.
2. Aggregated Buying Power: Intermediaries often pool demand from multiple advertisers. This gives them leverage to negotiate better prices or access inventory that a single advertiser might not get. For global companies trying to enter China, this can be a shortcut to scale.
3. Seller-Led Sales Models: Many media owners in China outsource sales to resellers. This is not unusual in itself, but in China, the outsourcing is often exclusive. That means the intermediary controls access to the platform or publisher.

Benefits vs. Risks

• Market Access. Intermediaries open doors. Without them, some platforms are simply not available.

• Speed to Market. They have local teams who can get campaigns live quickly.
• Local Knowledge. They understand Chinese platforms, consumer behaviour, and cultural nuances. They can adapt creative to resonate locally.
• Financial Flow. Intermediaries can handle invoicing in RMB, manage tax issues, and sometimes even take on credit risk. For a global advertiser, this simplifies operations.
• Operational Support. They provide services such as trafficking, reporting, and optimisation. In a market as complex as China, that support can be invaluable.
• Pricing Advantages. Where scale drives improved pricing for advertisers.

• Transparency Gaps. Advertisers may not know the true cost of inventory or the true overall picture of the supply chain. Margins can be hidden, and reporting may not show the full picture.

• Compliance Exposure. China has strict laws on data, advertising, and foreign investment. If an intermediary makes a mistake, the liability may still fall on the advertiser.
• Fraud and Quality Issues. Without strong controls, intermediaries may buy low-quality or fraudulent inventory. Advertisers risk paying for impressions that never reach real consumers.
• Conflicts of Interest. A broker working for a media owner may push that inventory even if it is not in the advertiser’s best interest.

• Over-Dependence. Relying on a single intermediary creates concentration risk. If the relationship breaks down, campaigns may be disrupted.

• One global advertiser discovered that their intermediary was bundling inventory with “value-adds” that were never delivered. The reporting looked healthy, but an independent audit revealed inflated costs and missing impressions. The advertiser was overpaying without knowing it.

How Advertisers Should Respond

The good news is that intermediaries can be managed. Advertisers are not powerless. With the right approach, you can capture the benefits while reducing the risks.

Here are five key strategies.

1. Rigorous Due Diligence

• Do not take intermediaries at face value. Vet them carefully. Use structured RFPs. Ask for references. Assess their financial stability, compliance record, and technical capabilities. More importantly, is an intermediary really needed and could you buy direct?

• Consider rotating intermediaries every year or two. This prevents over-dependency and keeps everyone honest. Rotation does not have to mean disruption, but it does mean fresh eyes and competitive pressure.

• Build protection into your contracts. Secure audit rights. Insist on anti-fraud clauses. Include data privacy provisions. Make sure the intermediary knows you will check their work.

• Do not rely solely on the intermediary’s reports. Use third-party measurement and auditing. Monitor campaign performance independently. If something looks wrong, investigate.

• Prioritise intermediaries with proven track records in China. Look for teams who know the platforms, the regulations, and the culture. Global scale matters, but local capability and experience is critical.

Questions to Ask Your Media Agency

One of the simplest ways to regain control is to ask better questions. The right questions force clarity and accountability. Here are five to start with.

1. Where are intermediaries being used? Are they part of direct buys, programmatic, or both? How much of the budget flows through them? Do you need them, or can you go direct? Can AI in the short/long term play a part in reducing intermediaries as the supply chain becoming more fully automated?
2. How are they selected? Was there a competitive process, or were they appointed by the platform? Who makes the decision? The agency, the client, or the publisher?
3. What is the billing process? Where does the money flow? Through the agency, the intermediary, or both? What currencies are involved?
4. What governance checks are in place? Are intermediaries audited? Are performance metrics tracked independently? Who holds them accountable?
5. How do intermediaries fit into the investment strategy? Are they a tactical fix, or part of a long-term plan? Do they add value, or just add cost?
   
   By asking these questions, advertisers can shift the dynamic. Instead of accepting intermediaries as a black box, you make them part of a controlled process.

Conclusion & Next Steps

In China, intermediaries are part of the system. You cannot avoid them. But you can decide how to work with them.

Handled badly, they create opacity, risk, and wasted budget. Handled well, they provide access, scale, and local expertise. The difference lies in how advertisers manage transparency, governance, and accountability.

The winners in China will not be those who try to bypass intermediaries. They will be those who manage them smarter, with clear contracts, independent checks, and the courage to ask the right questions.

Because in the end, intermediaries do not have to be a problem. With the right approach, they can be part of the solution.

Don't hesitate to reach out to us or schedule a call with us if you need support navigating these challenges.