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Slower rise in total ad spending seen
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The growth in total advertising spending in China this year may slow from that of last year but the Internet is seen as the fastest growing while television’s share will expand, an industry report said yesterday.
Ad spending across all media categories in China may grow 10.7 percent this year from last year to reach 429.5 billion yuan (US$70.2 billion), media investment management firm GroupM said in its annual “This Year, Next Year China Media Forecast” report.
But the growth is lower than last year’s increase of 11.7 percent, it added.
The report predicted total ad spending to grow 11.8 percent in 2014 as the Chinese economy continues to stabilize.
The Internet will remain the fastest growing sector at 36 percent annually this year and around 34 percent next year due to online video and the booming e-commerce segments. But the growth will still be slower than the average gain of more than 40 percent annually over the period between 2005 and 2012.
The mobile Internet is also emerging as the most vital part of the media portfolio for marketers to gain market share, GroupM said in the report.
Newspapers, after seeing the first drop in eight years last year, will continue to fall by 3.4 percent this year and 2.4 percent next year, it said.
TV will take the biggest share of 51.4 percent among overall spending this year, though its share has been declining over recent years. Internet is catching up and is forecast to take a share of 23.8 percent, up from 19.4 percent last year.
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