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China鈥檚 ad spending to see slower growth this year, report says
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CHINA'S media advertising spending is expected to post slower growth this year after recording double digit expansion in the past four years but it will rebound in 2015 as steady economy provides support to the confidence of advertisers, a latest report shows.
Total advertising spending in China this year will increase by 9.8 percent year on year to reach 473 billion yuan (US$77.5 billion), according to WPP's media investment unit GroupM’s "This Year, Next Year: China Media Forecasts" report. The report also predicts ads spending to increase 11 percent annually in 2015 to reach 525 billion yuan.
The share of TV advertising expenditure will drop below 50 percent for the first time this year and it will record a moderate increase of 2 percent. However, it still holds a dominant place amongst all forms of media in terms of coverage and influence.
Growth rate of online advertising will slow down from previous years after it surpassed the 100 billion yuan milestone last year with this year's increase at 35 percent and 33 percent in the next year.
“The Internet continues to play an increasingly important role in China and the biggest revolution currently underway on the Internet is the shift to mobile," said Andrew Carter, president of Trading and Knowledge at GroupM China.
"Brands have been making efforts to keep pace by allocating more advertising expenditure into cross-screen mobile search and mobile video campaigns," he added.
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