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Chinese Ad Spend Will Increase 5-8% in 2009

China Is One of Few Markets Still Growing Globally, According to CTR Market Research

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BEIJING (AdAgeChina.com) -- Ad spend in China will grow between 5-8% in 2009, according to CTR Market Research, a significant drop from 2008, when spending grew 15% to $64.8 billion.

"Our outlook for 2009 is driven significantly by advertiser and media owner's short term sight in revenues," said Beijing-based Tian Tao, a VP at CTR, a joint venture between Chinese company CTR Market Research and TNS Group.

"The ongoing pessimistic global economic situation and continued strategy of increasing rate cards and decreasing in spot resources will further drive advertiser's ROI expectation."

As a result of the government's stimulus plan to boost domestic consumption, ad spend for business and services is forecast to enjoy reasonable growth in 2009. But spending in China's real estate, finance and auto sectors fell 13% in the fourth quarter of 2008, and will continue its downturn turn in 2009.

"We believe that rapidly growing economies are likely to be a significant contributor to global growth. Consequently, all global forecasts are now in line showing a global decreasing trend of -0.2% or -0.3% for 2009," said Brigitte Lhomme, international development director at TNS Media Intelligence in Paris.

Measured ad spend in the U.S., the world's largest ad market, fell 1.9% in the first ten months of 2008 to $145 billion, despite the 2008 Olympic Games and the presidential election campaign. In 2009, ad spending in the U.S. is expected to drop between -3% and -6%.

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