Thursday, August 11, 2011

Study: China will exceed Japan in media spending this year

Advertising in China is catching up and will become the world’s second largest advertising market by the end of this year, according to a new study by eMarketer.


In 2010, Japan was on the second spot with total media ad spending of $34 billion. But due to an only 0.4-percent growth in spending last year, as well as the effect of the tsunami and continuous economic difficulties, the ad spending will drop 3.7 percent to $32.7 billion this year, eMarketer estimated.


Meanwhile, China will see its spending up 14 percent to $38.3 billion. The U.S., however, will still be the world’s leading country, with total media ad spending projected at $157.4 billion in 2011.


“One key reason for Asia-Pacific’s growth in ad spending is that the region’s two most populous countries—India and China—also boast two of the world’s fastest-growing economies,” according to Kris Oser, eMarketer director of strategic communications and author of the report, “Worldwide Ad Spending: Online Drives Growth.”


“In 2010, China surpassed Japan as the world’s second-biggest economy. And this year marks another major milestone for the country,” Oser added.


Online is an area China is still catching up. According to eMarketer’s estimates, Chinese advertisers this year will spend $4.6 billion on digital, far behind Japan’s $7.2 billion. However, by 2014, the two countries will be even at $9.5 billion, and China will win out in the following year and become the biggest online ad market in Asia Pacific.


Image: eMarketer

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