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Ad spending forecast to grow 5-8% this year

By Zheng Lifei (chinadaily.com.cn)
Updated: 2009-02-27 14:57

China's advertising spending is projected to grow between 5 to 8 percent in 2009, down from last year's 15 percent growth, as the economic downturn is likely to force companies to tighten their ad budgets, a leading market research firm predicted on Friday.

Related readings:  Ad spending up 15% to 441b yuan in 2008  New rules on foreign-invested advertising firms adopted  China's online advertising market near 11b yuan

The business and services sectors are forecast to enjoy reasonable growth in 2009 thanks to the government's efforts to spur domestic consumption, said Beijing-based CTR Market Research。

However, the real estate, finance and auto sectors, which saw their ad spending tumble 13 percent in the fourth quarter of 2008, are expected to decline further in 2009 as a result of the global economic crisis, CTR said.

China's ad spending rose 15 percent to $64.8 billion last year, CTR said.

In contrast, ad spending in US is expected to post negative growth of 3 to 6 percent this year, market research firm TNS Media Intelligence said.

CHINA'S TOTAL AD SPENDING VS GDP GROWTH