• by Wayne Friedman , September 15, 2010

China, one of the most-watched and fastest-growing media economies, continues to outperform the world. 

GroupM says China's advertising spending will soar 16% in 2010, as well as adding another 11% in 2011. The big media agency group forecasts that China will get to $44.9 billion in ad revenues this year.

The Far East giant continues to outpace worldwide advertising estimates. Many reports have shown the global ad marketplace would rise around 5% this year, and somewhat more next year. GroupM projects China will reach almost $50 billion in 2011 -- $49.6 billion.

GroupM says the bulk of the growth this year will be pushed by a 16% growth in TV ad spending, rising to $28 billion in 2010 from $24 billion in 2009. Internet ad spending will grow 30% to almost $4 billion in 2010, from $3 billion in 2009.

The many causes of the rise include per capita income growth, rocketing almost 200% in urban areas in the last decade, as well as a broader distribution of retail goods in smaller and smaller cities.

Adam Smith, futures director for GroupM, says: "Advertising serves this rising urban consumer and increasingly, the rural consumer as well. Advertising investment could well run ahead of GDP for years to come."

Media inflation is also pushing up advertising budgets.

Television in particular remains a big seller's medium for major channels -- CCTV, Beijing TV and Shanghai Media Group (SMG). GroupM says the demand for airtime far exceeds supply on these big TV channels. It also notes that stringent airtime restrictions are also pushing up prices.

Lucy Zhang, futures director for GroupM China, says: "The media market is about to begin an era of hyper-fragmentation, offering media agencies and advertisers a massive degree of choice when formulating media plans."