Warc Blog

China's adspend to grow 10%

6 September 2013
SHANGHAI: Advertising expenditure in China is expected to grow more than 10% in 2013 – ahead of GDP – with a similar performance predicted for 2014, according to GroupM, the media investment business.

The figures appear in a new report, This Year, Next Year: China Media Forecasts, with measured media advertising spending projected to reach RMB 430bn this year and RMB 480bn next year.

Television continues to dominate adspend, taking a 51% share in 2013, despite a decline over the past three years. GroupM observed there had been a steady growth in the number of IPTV subscribers and suggested that advertisers were going to have to develop more precise TV strategies, encompassing search and targeted advertising.

Internet advertising, however, is the fastest growing area, up 36% this year and 34% next year. Online video was highlighted by the report as taking share from television. Nearly all content available on Chinese TV can be seen online, and TV stations often partner with video sites on effective promotions.

Possible sticking points for the future growth of online video are that the number of viewers is expected to hit saturation point in 2013 while pre-roll inventory, particularly in the most developed cities, is not expanding enough.

Within the internet channel, mobile internet advertising is benefiting from an increasing number of 3G users, and more time being spent viewing online videos and playing games.

The report argued that mobile internet was "emerging as the most important part of the media mix for brand campaigns" and said that marketers would have to focus on innovation and vitality to win market share.

Eve Lo, Chief Knowledge Officer, GroupM China, commented: "The rapid development of mobile internet makes the line between brand communication and brand experience blur a little."

She said that successful integrated marketing communications needed brand communication, brand engagement and sales to fit together "in a cohesive and consistent way".

"Advertisers who aim to build intimate and enjoyable relationship with consumers must offer true value via paid, owned or earned media platforms," she added.

Data sourced from GroupM; additional content by Warc staff

 
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