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GroupM forecasts 15.2 per cent ad-spend growth in China
SHANGHAI - Measured media advertising spend in China is expected to grow to US$54.2 billion this year, according to a new forecast by GroupM China.
This represents a 15.2 per cent increase on the ad-spending in 2010, its 'This year, next year' study found.
The report expects further accerlerated growth in 2012, with total spending to reach US$63.5 billion, up 16.9 percent on the projected figure for this year. Both rates are significantly higher than the estimated growth rates for the overall economy in China, with the International Monetary Fund expecting inflation-adjusted GDP growth of 9.6 percent this year, and 9.7 per cent next year.
GroupM attributes the significant ad-spend growth to a range of factors including rising television audiences, and new opportunities in the outdoor and mobile advertising spaces.
The report says television continues to dominate advertising budgets throughout Mainland China, attracting more than half (58 per cent) of all advertising spending in the country. This is because of it's ability to hit such a large section of China's spending population in one space - there were 88 million households with digital cable connectivity at the end of last year.
GroupM says this dominance is likely to continue in the near future, with new opportunities for interactive TV likely to pique the interest of advertising brands and consumers alike.
Outdoor advertising revenues grew by 17 per cent in 2010. Within this sector, the standout medium was digital out-of-home advertising, which saw revenue growth of more than 30 per cent last year, GroupM found. This was three times the growth recorded for non-digital out-of-home advertising in China.
Strong spending growth is also set to continue in mobile media, thanks to the continually growing mobile network in China. The introduction of new technologies and the growing number of 3G users are also expected to pull more yuan in to this field.
“China remains one of the most exciting and challenging media markets in the world," said Lucy Zhang, futures director, GroupM Knowledge, China. " China offers not only a complex and diversified market, but with the development and rapid adoption of new technology and communication channels, it also offers consumers who have become much more interactive. In this interactive era, brands are learning to become not just content creators but content curators and will need to explore more ways of engaging consumers, including co-creation of content.”
By Paul Howell on Sep 14, 2011