Advertising spending in China jumped 19 percent to approximately $120 billion in 2009 based on current exchange rates. China is now projected to become the fourth-largest global ad market in 2010.
So says a new forecast by Zenith Optimedia, which shows higher spending across all paid media sectors in China in ’09 compared to the previous year.
TV took the lead with a 20 percent increase, supported by big-spending toiletries companies such as Procter & Gamble, Unilever and L’Oreal.
Online spending advanced 12 percent based largely on increases from the ISP and auto sectors. Out of home increased 9 percent owing mainly to outlays from the business-to-business and general services sectors. In addition, radio rose 6 percent, newspapers were up 4 percent and magazines — an especially weak segment in the U.S. of late — enjoyed a 3 percent ad increase in China.
Overall, the top-spending categories in China last year were toiletries, business and services, foodstuffs, pharmaceuticals and beverages, per ZO.
In 2010, China’s ad investment growth is projected to reach 11 percent, making China the fourth-biggest advertising market after the U.S., Japan and Germany, the survey said.
Looking at the economy as a whole, China’s GDP hit its target of 8.7 percent in ’09, with a strong rebound in exports in December and increasing industrial output.
Retail sales rose 15 percent as China overtook the U.S. as the world’s largest auto market with a 53 percent boost in passenger car sales.
The International Monetary Fund forecasts that China will continue to lead the global recovery and become the second-largest world economy in 2010.
See also: “Social Media Grows Across China”