Media Market Overview

China media sector continued its meteoric rise in recent years, with expansion across all sectors of the industry. These developments were highlighted by a loosening of regulations, solid financial results, a move to greater access to the global capital market and a host of mergers and ventures.

The advertising market in China is one of the fastest growing advertising markets in the world. According to the ZenithOptimedia Report, advertising spending in China reached RMB120 billion in 2007, making it the second largest advertising market in Asia after Japan. ZenithOptimedia further predicts China’s advertising spending will continue to grow and reach RMB193.8 billion by 2010, representing a CAGR of 17.3% from 2007 to 2010.

Rapid and sustained economic growth and the growth in consumer spending are the main drivers of China’s advertising industry. In addition, China’s advertising spending per capita and as a percentage of GDP remain low relative to many other countries. This indicates there will be significant growth potential in China’s advertising industry.

China has also emerged as one of the world’s most advance markets for new digital media and advertising, with a number of home-grown companies dominating areas such as digital advertising, Internet search and online gaming.