GroupM forecasts 15.2 % ad spending increase for China in 2011 and 16,9% in 2012

15 September 2011 21 h 48 min 19 comments

Share this Article

Author:

Tags:

14 September 2011, Shanghai: Measured media advertising spending in China is expected to reach RMB 347 billion this year, a 15.2 percent increase compared to 2010, according to a new forecast from GroupM China.

The study, “This Year, Next Year: China Media Forecasts”, is part of GroupM’s media and marketing forecasting series drawn from data supplied by parent company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications, and it is an upward revision to the group‟s global forecasts published in June.

The report also projects advertising spending to reach RMB 406 billion in 2012 in China, a 16.9 percent increase compared with 2011.

The International Monetary Fund said in its World Economic Outlook in April 2011 that China‟s GDP will grow in real (inflation-adjusted) terms by 9.6% in 2011 and a further 9.5% in 2012. China‟s impressive economic growth amid a gloomy global outlook has underpinned increases in advertising investment in 2011. China is an important strategic market for advertisers.

The continued year-on-year growth, which reflects this importance, was attributed to several factors:

. Television Audience Size.  In dollar terms, TV continued to dominate media advertising spend with an estimated RMB 201 billion in 2011, representing a 58% share of all advertising expenditure due to the large audiences it attracts.

With Cable Digital TV‟s continued growth in penetration and the acceleration of China‟s Tri-Play policy, Cable DTV providers will be able to upgrade their networks, enabling a transition from „watching TV‟ to „using TV‟.

The report concludes that this will ensure TV maintains its advantage in the near term.

There were 88 million digital cable households in China at the end of 2010 and this figure is set to grow in 2011 and 2012. In 2011, there will be 102 million Cable DTV households in China and this figure will reach 125 million households in 2012, according to Research-DTV.

. Internet Trends. Growth in measured media advertising spend in China has been led by Internet spending, which GroupM predicts will have grown by 46% this year and by a further 44% in 2012.

China had 485 million Internet users by the end of June this year and Internet penetration reached 36%. The report identified online group-buying and micro blogs as two important applications that lay behind the hike in online activity. By the end of June 2011, there were more than 42 million users of group-buying, an increase of 125% compared with the end of 2010, as the trend spread to tiers 2 and 3 cities. By June 2011, the number of micro-blog users in China had tripled since the end of 2010, with 195 million users.

“Looking ahead, we estimate that Internet advertising will continue to grow this year and next. Our positive outlook for Internet advertising spend is underpinned by our belief that the Internet will continue to attract budgets from advertisers as coverage grows and content improves. But it will also grow as advertisers understand how to better leverage the data garnered from online campaigns and plan more efficient campaigns in future,” commented Lucy Zhang, Futures Director, GroupM Knowledge, China.

. Outdoor and Mobile Expansion. Outdoor advertising revenues grew by 17% in 2010. The driving force behind last year‟s strong performance was digital Out of Home (OOH) advertising, which saw revenue growth in excess of 30% last year – three times that of non-digital OOH.

The report forecasts that it will continue to increase at a faster rate than non-digital outdoor. Strong growth will also continue in mobile media, according to the report, as the mobile network has been developing continuously in China. Rapid growth is forecast for advertising spend in mobile as a result of the introduction of new technologies and the growing number of 3G users.

“China remains one of the most exciting and challenging media markets in the world. 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, ”said Lucy Zhang.

About GroupM China

GroupM is WPP‟s consolidated media investment management operation, serving as the parent company to agencies including Kinetic, Maxus, MEC, MediaCom and Mindshare. GroupM is the global number one media investment management group.

GroupM employs more than 1300 people in eight cities across China. With total media billings in excess of USD 4 billion (RECMA: 2010 Definitive), GroupM is China‟s top media communications group and the industry‟s biggest investor in syndicated and proprietary media research and optimization tool development.

Related posts:

Leave a Reply

You must be logged in to post a comment.

Other News

  • China (mainland) film Brilliant future expected for Chinese cinema: interview

    Brilliant future expected for Chinese cinema: interview

    Jiang Wen (R), a well-known Chinese director, walks down the red carpet with his wife Zhou Yun at the opening ceremony of the 70th Venice Film Festival in Venice, Italy, Aug 29, 2013. [Photo / Xinhua] (Xinhua, 04 Sep, 2013)Chinese films have achieved over the past few years very positive results in terms of both quantity and quality, and will drive their technology-led development, 70th Venice Film Festival president Alberto Barbera told Xinhua in a recent exclusive interview. This venerable [...]

    Read more →
  • Breaking news China (mainland) film Cloudary extends script to movie industry

    Cloudary extends script to movie industry

    (chinadaily.com.cn, 26 Aug, 2013) Cloudary Corp – an online literature platform owned by interactive media giant Shanda Group – said on Friday that it reached a film script agreement with the Chinese movie firm Seven Stars Films. Seven Stars Films, a movie production and investment firm owned by Chinese media entrepreneu r Bruno Wu, will link Cloudary’s literature with the world’s movie industry. Wu, who is married to popular TV host Yang Lan, founded Seven Star Films in 2012. The [...]

    Read more →
  • Breaking news China (mainland) film China’s movie market booms with local content

    China’s movie market booms with local content

    ( Agencies, 23 Aug, 2013) In “American Dreams in China”, Cheng Dongqing is giving a lecture in an abandoned factory in Beijing . Snow falls through the damaged roof and a power cut sends students reaching for their flashlights. The movie , about how young Chinese in the 1990s tried every means to learn English so they could study overseas, is part of a boom in domestic productions that is outpacing foreign film s at the box office in China. [...]

    Read more →
  • Breaking news China (mainland) film Fast forward with film

    Fast forward with film

    (China Daily, 23 Aug, 2013) In the past year, Chinese films have galloped ahead like a dark horse, beating Hollywood imports. It is hardly surprising that most of these domestic hits are comedies. Comedy is mostly local. When Hollywood sent scouts to recover the secret formula, many of them reported that these Chinese movies were not particularly funny. Of course not. When you translate every line into English, you have lost much of the fun, leaving only a few sight [...]

    Read more →
  • Breaking news China (mainland) Digital Mobile game firms looking abroad

    Mobile game firms looking abroad

    (China Daily, 21 Aug, 2013) Intensifying domestic competition is driving Chinese mobile game developers into overseas markets, said Google Inc, owner of the world’s most used smartphone operating system. Japan and South Korea may become “sizeable” money-spinners for developers in China in the coming years, it added. “Tapping into South Korea and Japan makes sense for Chinese developers, because both countries have a large smartphone user base and high sales volume in the mobile gaming sector,” said Ben Zhang, China [...]

    Read more →
  • Breaking news China (mainland) tv PPTV denies buyout rumors

    PPTV denies buyout rumors

    (chinadaily.com.cn, 14 Aug, 2013) Online video provider PPTV has denied rumors it will be jointly acquired by e-commerce giant Alibaba Group Holding Ltd and Hunan Satellite TV. “We have noticed related media reports. PPTV is operating independently, well, and we have nothing to announce at present,” PPTV told China Daily on Wednesday. A report from IT industry portal 36kr.com said on Wednesday that the prospective deal is almost closed, with the transaction reaching $400 million. It cited venture capital sources [...]

    Read more →
  • Breaking news China (mainland) film Film industry needs long tail to grow

    Film industry needs long tail to grow

    (China Daily, 15 Aug, 2013) The domestic film market registered record half-yearly box office returns of 10.9 billion yuan ($1.77 billion) in the first six months of this year, up 35 percent year-on-year, and there have been excited voices saying that the Chinese film industry is about to boom in the international market. However, box office success is just part of the industry’s chain, and without the further development of licensed movie merchandising, the Chinese film industry is still in [...]

    Read more →
  • Breaking news China (mainland) Digital New WeChat game becoming painfully popular

    New WeChat game becoming painfully popular

    (chinadaily.com.cn, 15 Aug, 2013) A new mobile phone game on WeChat, a social network app in China, is proving so popular that it’s causing hand injuries for many Chinese users. The game, which was recently introduced to WeChat’s 400 million subscribers, allows users to compete online with their friends in aircraft battles. Within two hours after the release of the game on Aug 5, there were more than 180 million downloads. But Zou Cheng, an orthopedic doctor at Hangzhou First [...]

    Read more →