According to Marcus Luer, managing director/chief executive officer at TotalSports Asia, many local advertisers - from FMCG to auto brands - have outbid international sponsors for spots on China Central Television 5.
The national broadcaster and Shanghai TV have the rights to broadcast the September race live to viewers in China.
"All the ad spots on CCTV are sold out. A lot of the local companies have taken bigger spots and they must feel that this will appeal to a high-end consumer audience, which has an interest in cars and luxury goods," said Luer.
Although motor racing ranks well behind football, basketball and table tennis in terms of popularity in China, interest in the sport is increasing as local drivers such as Cheng Congfu have redoubled their efforts to win a place on F1 teams.
The Shanghai race, of which China oil company Sinopec is the key sponsor, is expected to draw a majority of male viewers (12 per cent viewership), with young adults aged 15 to 34 taking 28 per cent viewing share.
"On the whole, (viewers targeted are) highly-educated Shanghainese (university graduates)," said TNSSport Asia's managing director, Pierre Justo.
"Education and income is heavily correlated, and most of the F1 viewers belong to wealthier households."
The company's research found that 20 per cent of Shanghai's residents, or two million people, were "very or rather well interested in F1".
However, Justo noted that the sport lacked the potential to reach beyond the core F1 fan base.
"For the F1 world, the real challenge lies in finding the adequate ways to attract beyond the current niche," he said.
The most watched Grand Prix in 2003 was the San Marino race, which was broadcast live on CCTV 5 during primetime and drew nearly eight million viewers, according to CSM-Sofres Media data.
SIC, meanwhile, has come under fire from media agencies for neglecting sponsorship packages for property outside the track.
MEC China managing director, Charley Kan, said: "We are clearly seeing demand for F1 from advertisers like DHL. This race is seen as one of the biggest events in China. (SIC) needs to get its act together, otherwise they will risk losing out to the other sporting events taking place over the next few months."
However, Field Asia managing director and Media columnist Sid Duguid added: "The majority of Formula One sponsors and team partners find TV advertising a far more important source of revenue than the spectators at the circuit, which explains why they don't care where in the world the race is held."