Chinese adspend growth

Adspend levels are continuing to rise in China, with the internet, television and digital outdoor advertising set to be the main beneficiaries of this trend.

In a new report, GroupM – which is the media arm of WPP Group – predicted advertising expenditure would increase by 13.4% on an annual basis in 2012, reaching RMB394bn. Returns will then jump by a further 11.6%, to RMB493bn, in 2013.

Television will remain the dominant channel, as ad sales improve by 6.5% this year, hitting RMB210bn, a 53% share. It is due to witness a 5.3% lift next year, to RMB221bn, equating to 50% of the market.

GroupM also suggested that digital cable penetration should record significant growth from the 115m households, some 57% of the total, registered in 2011, requiring a response from marketers.

"It is critical that advertisers deepened their understanding of audiences' culture and entertainment needs in the living room," the study said.

"This will become even more important as networks are upgraded to provide more interactive services, such as lottery tickets and games on TV.

Elsewhere, online ad expenditure was pegged to surge by 55.7% this year and 35.4% next year, expanding from RMB79.4bn to RMB107bn as a consequence.

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