OOH Advertising Digital

China advertising spend to grow 7% in 2019


By Danielle Long, Acting APAC Editor

January 14, 2019 | 3 min read

Advertising spend in China is forecast to increase by 7% in 2019 as the middle classes’ purchasing habits continue to fuel the market, according to Dentsu Aegis Network.


China ad spend is expected to continue to increase in 2019

China’s ad spend will reach RMB 717bn driven by digital’s ongoing growth – up 15.8% in the first three quarters of the year – and digital out of home (OOH), which increased 14.2% over the same period. Meanwhile, newspapers, magazines and television all recorded declines of 28%, 9% and 5.5%, respectively.

The increase in ad spend is in line with consumer behaviours which are being driven by increased disposable income, consumption habits and media behaviours. Chinese consumption accounted for 78% of China’s GDP during the first three quarters, a 14% increase over the same period last year.

Pharmaceuticals were the top category by ad spend in 2018 at more than RMB 125bn, while Entertainment and Web Services are the fastest-growing sectors. Real Estate showed the largest decline, with a -34.93% drop year-on-year.

Susana Tsui, group CEO of Dentsu Aegis Network China, said: “China’s digital economy continues to lead the globe, both in terms of scale and advancements made. It is therefore unsurprising that China remains a core driving force in the year ahead, with further positive growth forecast.”

Tim Andree, global CEO & chairman of Dentsu Aegis Network, said: “As the world transitions to a digital economy, advertising is at the leading edge of change. Digital connectedness - driven not only by advances in technology, but the speed of consumer adoption - has fundamentally changed the shape of our business and will continue to do so. Even where digital penetration is highest - such as China and the UK – the trend shows little sign of slowing down.”

The forecast is part of a global ad spend report which predicts global growth will increase 3.8% in 2019 to reach a total of $625bn. Asia Pacific and North America continue to be the strongest growth market with forecasts predicting each will contribute 42% and 30%, respectively, to the global increase. Western Europe accounts for 15%, Latin America is 10% and Central and Eastern Europe is 4%.

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