IPG upgrades China ad forecasts to US$21bn
Shanghai -MagnaGlobal, a division of IPG's Mediabrands, has upgraded its revenue forecasts for China, pushing its predictions for 2010 up 14.4% to US$21.2 billion.
MagnaGlobal China Media Advertising Revenue Forecast show the pace of China's ad growth will position it to become the world's second largest media economy by 2013.
This is largely due to the Chinese economy rebounding more rapidly than the rest of the world during the global downturn, posting 11.7% growth for the first quarter of 2010 alone.
While TV continues to dominate the nation in terms of media share, growth is most pronounced in the digital sector, with a flurry of activity happening around emerging media. Despite this, magazines, newspapers, radio and outdoor are expected to continue their double digit growth.
TV is set to grow 12.7% in 2010 to US$8.4 billion - fuelled by the rising popularity of regional satellite channels catering to niche tastes. However, TV faces increasing pressure from online entertainment sources and a strict regulatory environment which prohibits foreign and private players.
The fastest growing sector of China's media industry is digital, and within that search is expected to grow 31% in 2010 to US$1.6 billion.
Google's exit from China solidified Baidu's dominance over the Chinese search market, allowing the search giant to post 60% growth in the first quarter of 2010.
MagnaGlobal said the lack of competition created by Google's departure may hinder expansion of the medium in the short term, but the Chinese government's own search engine initiatives may prove to be a competitor greater than Google.
"While other governments around the world have attempted to create competing search engines in the past without commercial success, the Chinese government is more likely to triumph given the vast resources and clout its state owned enterprises currently hold," its report said.
In other media, outdoor is expected rise 14.5% in 2010, and is set to benefit from the Shanghai Expo which runs from 1 May to 31 October.
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