Monday, September 22, 2008

Chinese Digital Spend Soars

A number of recent reports strongly indicate that digital adspend in China will overtake both newspaper and outdoor advertising by the end of this year. Furthermore the gap is set to widen during 2009, according to GroupM. The media group’s ‘This year, next year’ forecast predicts that the combined spend for internet and other digital advertising (principally mobile and LCD screens) will reach $3.6 billion this year, and $5.2 billion in 2009. In contrast newspaper adspend is projected to show steady, if modest, growth from US$3.2 billion in 2007 to $3.6 billion in 2009.

The shift that we are seeing here is due to a decline in tv's share of total media. While tv remains the dominant medium in terms of actual advertising dollars (projected to rake in almost US$20 billion in 2008 and $23 billion in 2009), its share of total media is set to decline, from 65 per cent in 2007, to 63 per cent in 2008 and 61 per cent in 2009.


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