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China’s ad revenue continues rise

Market up 22% from last year

SHANGHAI — Figures for 2006 show that ad revenue in China is continuing to rise at astronomical rates.

According to Nielsen Media Research, China’s advertising market reached 386.6 billion yuan ($50 billion) last year, up 22% from 2005. Income was up in all media sectors, but magazines and TV in particular experienced dramatic growth of 27% and 26%, respectively.

Chinese newspapers, which have not suffered as much as their Western compatriots in recent years, saw relatively modest growth of 8%.

Major advertising categories for 2006 were largely unchanged from 2005, with pharmaceuticals, cosmetics and toiletries and retail services coming on top. Automobile ads saw something of a comeback toward the end of 2006 after a downturn in 2005.

Four of the top five advertised brands in 2006 were Chinese, including telecom giant China Mobile and three pharmaceutical companies. The top slot for the fourth year in a row, however, went to Oil of Olay, from Procter & Gamble.

TV took the lion’s share of the ad market, with 81% of total revenue. That’s good news for broadcasters, many of which continue to invest in infrastructure and improved programming with the expectation that ad growth will continue at these rates for several years to come.

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