Fresh examples of the rapidly growing Chinese media market are abundant in Magna Global's new ad forecast, which predicts a 36.9% spike in television advertising for 2010 and a 21.4% growth in overall advertising. Next year's growth should slow slightly, but will still be spectacular, with the TV ad spend expected to jump 21.4% and overall ad revenues climbing by 18.8%.
The report notes that the state owned CCTV broadcaster recently concluded its prime time advertising auctions, raising 12.7 RMB in revenues ($2 billion), a 15.6% increase from 2009. Overall Magna Global expects TV advertising to hit 84.9 billion RMB, nearly $13.6 billion in 2011. Unlike most other markets, multichannel TV will account for the majority of the TV ad spend, about 52.9 billion RMB ($8.5 billion) and broadcast bringing in RMB32 billion RMB ($5.1 billion).
Online advertising is also seeing rapid growth, with internet advertising growing 32.5% to 18.3 billion RMB in 2010 ($2.9 billion), and growing 29.7% in 2011 to 23.7 billion RMB ($3.8 billion).
Despite fears that the rapidly growing Chinese market could overheat, sparking inflation and government efforts to reduce credit, Magna Global is predicting healthy media growth for the next five years, with the overall TV ad spend increasing by 19.2% a year between 2011 and 2014.