Chinese ad revenues continue to rise

15 February 2010

BEIJING: Advertising expenditure levels rose by 19% in China last year, as marketers continued to turn their attention to this fast-growing market.

According to estimates from ZenithOptimedia, the media network owned by Publicis Groupe, total revenues in the country reached 820 billion yuan ($120bn; €88bn; £77bn) in 2009.

Television ad sales jumped by 20% year-on-year, with multinational giants including Procter & Gamble, Unilever and L'Oreal all enhancing their presence on this medium.

Online delivered an uptick of 12% over the same period, a figure that stood at 9% for outdoor, 6% for radio, 4% for newspapers, and 3% for magazines.

By sector, the toiletries sector boasted the highest overall outlay, followed by the business and services category, food, pharmaceuticals and then beverage brands.

Communications, leisure, automotive, real estate, construction and alcohol were the next segments on the list, having all boosted their media budgets in the last 12 months.

Looking forward, ZenithOptimedia predicted adspend would increase by a further 11% in 2010, meaning China would become the fourth biggest ad market in the world, behind the US, Japan and Germany.

As previously reported, CTR Research said that advertising expenditure expanded by 13.5% in the world's most populous nation in 2009, a figure Warc's latest Consensus Forecast pegged at 8.0%.

Data sourced from Marketing Interactive; additional content by Warc staff