Digital set to overtake newspapers in China

SHANGHAI - Digital adspend in China will overtake both newspaper and outdoor advertising by the end of this year, with the gap set to widen in 2009, according to new figures from GroupM.

The media group’s ‘This year, next year’ forecast predicts that the combined spend for internet and other digital advertising (principally mobile and LCD screens) will reach $3.6 billion this year, and $5.2 billion in 2009. In contrast newspaper adspend is projected to show steady, if modest, growth from US$3.2 billion in 2007 to $3.6 billion in 2009.

The adspend for out of home, meanwhile, is expected to reach $3.1 billion in 2008, growing slightly to $3.9 billion by the end of 2009.

The boom in digital advertising is partly responsible for the declining share of total media occupied by television. While TV will remain the dominant medium in terms of advertising dollars (projected to rake in almost US$20 billion in 2008 and $23 billion in 2009), its share of total media is set to decline, from 65 per cent in 2007, to 63 per cent in 2008 and 61 per cent in 2009.

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