China has reached the threshold this year to overtake Japan in terms of the second largest market for advertising in the world, says Robert L. McCann, Chairman and CEO of Nielson Media Research. However, the recent development has not come out of blue as China has already been the world’s fastest growing ad market since few years. The advertising spending in China has been recorded at $37 billion in the year 2005, just falling short of Japan’s $38.4 billion.
Moreover, phenomenal growth in advertisement spending in China largely owes to the forthcoming Olympics games and the fact that it has emerged as the world’s one of the biggest market. China was ranked fifth in the world in terns of advertisement spending in the year 2004. If the current growth rate is taken into account, China will definitely overtake Japan this year and it will not be too long when it would overtake the U.S.
The facts and figures in recent times indicate towards China to emerge as the largest ad market of the world in the coming years. The increase in advertisement spending between 2005 and 2006 in China is likely to stand somewhere around $4.2 billion, whereas the U.S. ad spending is likely to increase by $4 billion. Therefore, since advertising records started to be maintained, this would be the first time when the U.S. will not be in the first position for marking the biggest increase of the ad spending.
Interestingly, in a time when traditional print advertisement sales reeling under the global downward trend, China’s print advertisement sales continues to grow at around nine percent per year. Due to low internet penetration in China, the online advertisement spending is quite low. According to the reports the total online ad spending in China stands around $230 million of total ad spending that represents just one percent of total.
In China there are just 160 million internet users at present and it has considerably ample rooms for the growth in advertisement spending. The red dragon, in all probability, is likely to witness a significant rise in the ad spending in 2007 and 2008 due to the scheduled Olympic Games in 2008.
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