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Ad Market to Grow 7 Percent to US$10b
China's advertising market is estimated to be worth 85 billion yuan (US$10.2 billion) this year -- an increase of about 7 percent over 2001 -- with outdoor media advertising becoming the new focus for growth.

Based on the average weight of the advertising industry in China's gross domestic product (GDP) over the past years, the total turnover of China's advertising market in 2001 could reach 78 billion yuan (US$9.4 billion), or about 8.1 percent of the 9.58 trillion yuan (US$1.15 trillion) GDP.

If China's economy kept growing at 7 percent or more this year, the value of the advertising market would reach 85 billion yuan.

Outdoor media advertising is the fastest growing sector, increasing at an average annual rate of 30 percent in recent years.

In 2000, turnover of outdoor advertising in 23 major cities totaled 8 billion yuan (US$963 million).

Based on this it was estimated that total turnover for outdoor advertising nationwide was about 11 billion yuan (US$1.3 billion), accounting for 22 percent of the country's total advertising turnover.

In comparison, outdoor advertising accounted for only 15 percent of total advertising turnover in 1999 and 12-13 percent in 1998.

Experts said several factors helped explain why outdoor advertising had grown so fast: Since the mid-1990s all major cities had steadily increased their investment in infrastructure and civil engineering projects. The appearance of the cities had been greatly improved, providing a better environment for outdoor ads.

New technology and techniques had helped to make outdoor ads more attractive.

Traditionally, some industries such as telecom services and products, banking, insurance and cosmetics have used outdoor advertising.

The World Cup football competition in Japan and South Korea from May 31 to June 30 would be a boon for the advertising media on the mainland.

The month-long event is expected to draw huge crows of television viewers as it will be the first time the Chinese football team has participated in the World Cup and live broadcasts will be made of a number of matches. China Central Television (CCTV) had secured at least 300 million yuan (US$36 million) in advertising for the World Cup. Sports newspapers and general newspapers with heavy sports coverage would also benefit from the Cup event.

(China Daily February 26, 2002)

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