China is the world’s largest TV market with over 380 million TV households and a cable penetration of 43%, reaching more than 168 million homes. Digital penetration will reach around 70% of cable homes within the next five years. International channels are only granted full landing rights in Guangdong Province or in 3-star+ hotels and foreign residential communities throughout China. However, foreign programme blocks are distributed via locally owned channel partners delivering strong audience figures. Nationally, TV dramas continued to dominate Chinese television, accounting for 24.6% of the content broadcast on all TV channels and 32.4% of audience ratings for the first half of 2009.

For the same period, CTR Media Intelligence reports that advertising expenditure amounted to USD34.01 billion (rate card), representing a growth of 9%. With a market share of over 79%, TV fuelled the momentum, growing by 12%. Newspapers, magazines and radio declined, mainly due to the real estate sector. The three major telecommunications operators increased advertising spending in newspapers and radio, China Mobile still taking the lead. We believe that the China advertising market will stay on a stable growth track for the second half and achieve the forecasted 8% annual increase at the end of 2009.

GroupM reporting in the second half of 2009 also asserts that TV will continue to dominate advertising investment trends but Mobile and LCD screens are showing remarkable growth running at +30%. CSM Media Research operates the world’s largest TV and radio audience measurement panel, covering the 1.3 billion people in China with access to TV. The operation covers 217 individual markets (comprising the national entity, 24 provinces and 192 cities), with 178,800 panelists participating in the measurement of over 1,270 main channels every day of the year using a combination of diaries and people meters.

For overview of China advertising regulations please go to : http://www.casbaa.com/china.aspx