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Ad spending may post lowest expansion
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SPENDING on media advertising in China may post the lowest growth this year after expanding by double digits in the past four years but a rebound is forecast in 2015, according to a latest report.
Total advertising spending in China this year will increase by 9.8 percent from that in 2013 to 473 billion yuan (US$77 billion), according to WPP’s media investment unit GroupM’s “This Year, Next Year: China Media Forecasts” report released yesterday.
The report also predicts ad spending to increase 11 percent year on year in 2015 to 525 billion yuan.
Although the share of TV ad expenditure will drop below 50 percent for the first time this year, its moderate growth of 2 percent this year still sees it dominate all forms of media by coverage and influence.
The Internet may take up 31.4 percent of total ad spending, the second-largest category by expenditure value, to remain the fastest growing sector.
The growth of online advertising will slow 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 2015.
The income from newspaper ads may decline by 7.3 percent this year and 9.5 percent next year as companies allocate more of their budgets to Internet advertising.
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