2010 ad revenue in China forecast to rise by 14.4 per cent : Magna Global

The forecast study pointed out that the increase is "due to the Chinese economy rebounding more rapidly than the rest of the world during the global downturn, posting 11.7 per cent growth for the first quarter of 2010 alone".

Digital is the fastest growing sector, and search is expected to grow 30.9 per cent in 2010 to $1.6 billlion. Google’s exit from China solidified Baidu’s dominance over the Chinese search market, allowing the search giant to post 59.6 per cent growth in the first quarter of 2010.

However the forecast report pointed out that the Chinese government’s own search engine intiative may prove to be a competitior greater than Google.

Outdoor, which should rise by 14.5 per cent in 2010, is expecting growth particularly during the Shanghai World Expo which runs from 1 May to 31 October.

Growth in TV will be up by 12.7 per cent in 2010 to $8.4 billion, fuelled by the rising popularity of regional satellite channels catering to a niche audience.

Yet TV faces increasing pressure from online entertainment sources, and China’s State Administration of Radio, Film, and Television (Sarft) announced new rules earlier this year, restricting advertising placement on TV programmes, limiting the length and frequency, content and claim restrictions of advertisements, and putting requirements around community focused messages.

The forecast also indicated that with a resurgence of foreign investment and employment, China’s greatest challenge is not around recovery, but preventing hyper growth and speculation.

Moreover, the exponential increase in real estate pricing have skeptics pointing to a bubble, and China is increasingly facing pressure to moderate growth of exports through a lift on its currency peg.