China has developed into the second-largest advertising market in the world.
San Francisco, CA (PRWEB) September 22, 2012
With strong and steady economic growth over the past several decades, China has developed into the second-largest advertising market in the world. Over the past five years, revenue for the Advertising Agency industry in China has been growing 15.7% annually, says IBISWorld. The industry is set to generate $56.9 billion in 2012, up 16.6% from 2011.
Although the Advertising Agencies industry as a whole has maintained rapid growth, some localized advertising markets have become stagnant. This is due to local advertising companies being geographically scattered and small in scale. Most companies in this industry are controlled by private owners with limited funds and market reach, which contributes to the industry's low market share concentration level. Small localized firms are unable to provide the high-quality services generally required of this industry; large advertising clients are more likely to choose large domestic companies with well-established networks, like Shanghai Advertising and AVIC Culture, or foreign-owned companies with extensive experience, design and innovation capabilities, such as Saatchi and Saatchi and Leo Burnett.
With strong national policy support for the Advertising Agencies industry in China, revenue growth is expected to remain steady, says IBISWorld. Although new advertising channels such as search engines, websites and billboards have become growth points for the industry, TV advertising will continue to be the most important media due to its wide coverage and national reach.
For more information, visit IBISWorld’s Advertising Agencies in China industry report page.
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IBISWorld industry Report Key Topics
The Advertising Agencies industry in China creates advertising campaigns for clients and places these advertisements in periodicals, newspapers, billboards, shop windows, the internet, radio, television, airports, railway stations, bus shelters and other media. Firms provide a range of services, including consulting, creative talent services, advertising material production and media planning. This industry does not include video production or advertising models.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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