China's advertising industry has been told to brace itself for a
major overhaul over the next 10 years. Experts attending the 2006
China (International) Creative Concepts Forum in Beijing on
September 3 said to expect upheaval and major readjustment during
the upgrading process.
According to a report released at the forum, the current output
value of China's advertising industry is 100 billion yuan (US$89.38
billion), and it will take "only six years" to double that
figure.
The ad industry, one of the barometers of social, cultural and
economic development, plays a key role in the building of a
"creative society", said Shen Jianjun, secretary of the Party
Committee of the Capital University of Economics and Business.
Shen added that China's ad industry is attracting worldwide
attention because of its high rate of growth in the last six
years.
In 2000, the British government published a white paper on the
creative industry. 13 industries were grouped under this
classification. "Of the 13 industries, advertising industry ranks
No.1," according to Yang Tongqing, a professor at Capital
University.
On a global scale, the daily output value of the creative
industry has reached US$22 billion and this is increasing at an
annual rate of 5 percent, Yang added.
In developed countries, the annual growth rate of the industry
is of course higher; 14 percent in the US, and 12 percent in
Britain. The innovations industry has become Britain's second
largest industry accounting for 7.9 percent of its GDP, after the
financial services industry.
?
The Chinese ad industry will no doubt follow the trend of the
times, said Zhang Xiaoping, chief executive officer of the
Guangdong Heima Advertising Co. Ltd. "Once advertising is
classified as part of the creative industry, it will upgrade itself
quickly to become more professional, varied and colorful."
In the meantime, however, experts pointed out that the current
pace of economic development will continue to place heavier demands
on domestic companies who have to fend off competition from big
global names.
From January 1, wholly foreign-funded advertising companies were
permitted to operate in the Chinese market, which many saw as the
beginning of the end for domestic players. But Wu Xiabo, general
manager of Guangdong Pingcheng Advertising Co., saw it as an
opportunity: "The year 2006 marks the beginning of a new era in the
Chinese advertising industry. Now, it is truly on the road to
globalization."
"And with globalization, we can't cling to accepted practices
without thinking of making any improvements," Wu said, adding that
this is the time for restructuring and readjustment.
But there are challenges ahead. These include restrictions
placed on creative concepts by the incumbent economic structure; an
underdeveloped professional structure; fixed patterns of urban
development and planning; lack of effective intellectual property
rights protection; a traditional and conventional education system;
and low consumption levels of creative products.
Kang Jun, a member of the Tianjin Municipal Committee of the
Chinese People's Political Consultative Conference, added that
stronger government support for the development of the industry is
required in the face of increasing competition from foreign
companies.
(China.org.cn by Li Jingrong, September 17, 2006)