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China's advertising spending, having experienced strong growth in 2006, is expected to climb 20 percent this year and even higher in 2008, driven by next year's Olympics, according to a recent report.

The report, by CTR Market Research, a leading market information provider in China, said companies at home and abroad were adopting advertising strategies with a mix of traditional and new media.

Residents walk past a huge billboard on a street in Beijing. China's advertising spending, having experienced strong growth in 2006, is expected to climb 20 percent this year and even higher in 2008, driven by next year's Olympics, according to a recent report. [China Daily]

CTR said China's advertising expenditure amounted to $36.9 billion last year, an annual growth of 18 percent and equal to that of the year before last.

The analysts forecast an increase this year. "China's advertising spending is expected to grow by 20 percent in 2007," said Tian Tao, vice-president of CTR.

"We're extremely optimistic about the domestic advertising market in the next two years leading up to the 2008 Beijing Olympics. And we expect the share of top-100 advertisers will contribute to double-digit growth."

The drinks, financial and banking, post and telecommunication, detergent and auto sectors are the top five in terms of advertising spending growth.

As a result of China opening up the banking industry in late 2006, advertising spending in the financial, investment and banking sectors grew rapidly, with the banking industry alone achieving growth of 36 percent compared with 2005.

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The Agricultural Bank of China ranked No 1 in advertising spending, along with CITIC Bank. The two banks' advertising expenditure grew by 91 and 652 percent respectively year-on-year.

Increasing advertising expenditure has spread across traditional media such as TV, newspapers, magazines, outdoor media and radio.

Radio saw the highest growth rate of 24 percent, and brands such as Mengniu, Lenovo, China Construction Bank, Wahaha and China Minsheng Bank entered the Top 10 Radio Advertiser List for the first time in 2006.

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