Advertising spending in China in the second quarter of 2002 was US$3.8bn, an increase of 33 per cent year-on-year, according to a survey by Nielsen Media Research. The company said that a strong domestic economy and the staging of Asia's first football World Cup were the major stimuli for the sector.
Multinational agencies have strengthened their grip on the market, said the China Advertising Association. Seven of the 10 top agencies in terms of 2001 billings were multinational agencies and two firms, Dentsu Beijing and Leo Burnett Shanghai, achieved growth rates in excess of 50 per cent.
The association said that their dominance was down to multinational agencies being more active in seeking out local mainland clients and Chinese firms becoming more open in trying them out. However, some companies did record a decline in 2001 billings. Ogilvy & Mather, for example, attributed its 19 per cent fall in business to international clients cutting their budgets, due to the worsening business climate outside China.