Alliance Essential to Boost Advertising Industry

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Last updated at: (Beijing Time) Sunday, March 03, 2002

Alliance Essential to Boost Advertising Industry

Experts have called for greater cooperation within the domestic advertising industry to boost its growth and prepare for greater competition with China's accession to the World Trade Organization.

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Average turnover: US$96,000

Experts have called for greater cooperation within the domestic advertising industry to boost its growth and prepare for greater competition with China's accession to the World Trade Organization.

China's advertising firms report an average turnover of 96,000 U.S. dollars, whereas that of the world's leading players is as high as 15 billion U.S. dollars, said delegates attending a meeting of the China Advertising Association in Beijing.

Latest figures show China's 47,000 advertising companies post an aggregate annual turnover of 37 billion yuan (4.5 billion U.S. dollars).

Small domestic advertising firms will fail to meet new requirements

However, experts say many domestic advertising firms, which are small in size and lack professionalism, will fail to meet the new requirements set by the further growth of the industry.

"Fame, performance, credibility, professionalism and personalized design will be the yardstick to evaluate an advertising company," Yang Peiqing, president of the China Advertising Association, told the meeting.

Business executives from the industry, therefore, called for expanded cooperation among domestic firms to set up a strategic alliance and nurture more professionals.

Foreign ad firms will be allowed to set up solely-funded enterprises in China as of January 1, 2004, according to China's commitment to the World Trade Organization.

A number of overseas firms have entered China's advertising market through joint stock operations.

The domestic advertising industry will face recession if local firms fail to grow and expand within the next two years, insiders say.

However, China's booming advertising market has provided favorable conditions for the industry's rapid expansion, according to an AC Nielson survey earlier this year.

The survey shows China has once again topped the Asia-Pacific advertising market with last year's expenditure hitting 11.2 billion U.S. dollars.

Advertisements Law of the People's Republic of China

This law is formulated to regulate advertising activities, to promote the sound development of the advertising sector, to protect the lawful rights and interests of consumers, to maintain the social and economic order, and to let advertisements play an active role in socialist market economy. In detail

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Annual Ad Revenue Totals 71 Billion Yuan