China outdoor spend rockets to $1.2b

BEIJING: Outdoor advertising in China hit Rmb10 billion (US$1.2 billion), but media agencies worry that new Government measures could restrict the industry's growth.

The O-Dex tally represented 14 per cent of the combined adspend - television, print and outdoor - for 23 mainland cities. But Beijing, Shanghai and Guangzhou accounted for 44 per cent of the total outdoor adspend; Beijing alone represented 20 per cent of the share. As a result, media agencies believe moves to restrict outdoor advertising in the main cities could deal a fresh blow to outdoor's long-term prospects.

Maximize Beijing MD Eddie Cheng , said: "Last year, Beijing launched a policy on outdoor advertisement installation stating that certain areas are strictly forbidden for advertising."

At the same time, rural networks remain primitive, offering no evaluation on outdoor's effectiveness or standard rate card - issues which could limit growth opportunities if city restrictions remain in place.

Real estate emerged as the top-spending category, billing Rmb 1.24 billion or close to 12 per cent of the overall spend. But no single property developer showed strong spending patterns. Led by China Telecom, the service sector accounted for four of the other five top-spending categories.