Articles

2.12.2010 China set for adspend surge

Advertising revenues in China are set to record double-digit growth over the next six years, with paid search and online video among the key drivers of this trend. MAGNA Global, part of Interpublic Group, predicted total expenditure will surge 21.5% to 153bn yuan (€17.6bn) in 2010, as television takes nearly 70bn yuan and newspapers receive 39bn yuan. The agency argued the ad sales registered by media owners - as opposed to rate-card figures typically used elsewhere - should rise 18.8% in 2011, reaching 182bn yuan, making China the third biggest market worldwide. "Marketers whose sales in their home countries are tepid will continue to look to China as the next frontier and invest accordingly," MAGNA said.

"Global and domestic brands alike hope to capitalise on the increasing purchasing power of the growing middle class." While China leapfrogged Japan to become the world's second-largest economy this year, currency pressures, food and real estate price inflation might put pressure on GDP growth. More positively, between 2011 and 2016, advertising spend could witness a compound annual growth rate of 16.6%, touching 392bn yuan in all.

B.L. 2.12.2010