Advertising industry refers to the industry sector that gains profits through advertising creation, planning, design, production, display, release, testing, management, investigation, release, scientific and technological research and development, technical promotion, effect evaluation, media operation, brand agency and other means. And the so-called advertising, refers to the commercial or other purposes of paid information distribution.

As an important part of modern service industry and cultural industry, advertising industry plays an active role in shaping brands, displaying images, promoting innovation, promoting development, guiding consumption, stimulating domestic demand, spreading advanced culture and building a harmonious society.

The industrial development

Industry data

In 2010, China's advertising revenue reached 234.051 billion yuan, an increase of 29.950 billion yuan over 2009, with an increase rate of 14.67%, higher than the 10.3% growth rate of the gross domestic product (GDP), and 7.22 percentage points higher than the 7.45% growth rate in 2009. In 2010, advertising revenue accounted for 0.59% of China's GDP (397,98.3 billion yuan), basically unchanged from 2009. In 2010, the scale of advertising business units and employees continued to grow steadily. There were 243,445 advertising business units nationwide, up 18.76 percent over the previous year, and the number of advertising employees was 1480,525, up 10.91 percent over the previous year. China's online advertising in 2010 is expected to reach 15.7 billion yuan, China's online advertising contains a huge potential.

In 2011, China's advertising revenue reached 3,125. 552.9 billion yuan, compared with 2,340 yuan in 2010. $5.1 billion up 33 percent. 54%, the highest growth rate in 15 years since 1997. In the first quarter of 2012, the market size of China's Internet advertising operators was 14.03 billion yuan, with a growth of 5.6% compared with the previous quarter and a year-on-year growth of 56.2%. China's advertising revenue is expected to reach 716 by 2016. $4.1 billion.

Prospects for development

Mobile display ads and search ads will reach their maximum share of mobile AD revenue in 2013. But at the same time, in-app advertising will grow faster, generating more revenue. The rapid growth of in-app advertising has been driven by the proliferation of smartphone users, particularly iPhone and Android users who tend to spend more time using apps than browsing the mobile web.

Nowadays, not only new products are often launched through advertising, but also in areas such as urban commercial housing development, there are often advertising companies involved in the planning stage of products and services for the whole case. Moreover, with the development of new media and the popularity of "streaming media" in advertising, as well as the emergence of new forms of advertising such as "product placement", advertising has deeply penetrated into other cultural industries such as transportation, film and television, digital entertainment.


Foreign situation

In the process of global economic integration, the international brands of multinational companies enter the market of other countries, which is often spearheaded by multinational advertising companies. Before China joined the WTO, there had been foreign capital in China's advertising industry. As these foreign-backed advertising companies mainly act as agents for the advertising of big international brands, the business volume is very large. According to statistics, eight of the top 10 advertising companies in China have foreign backgrounds. With the advent of the post-wto era and the opening up of advertising industry, the competition between Chinese local advertising and foreign advertising companies will be more and more fierce.

Advertising is also a true barometer of China's economy. Since the 1980s, China's advertising industry has developed along with China's reform and opening up and the process of market economy. The rapid growth of China's economy promotes the rapid development of China's advertising industry. Over the past 20 years, China's advertising industry has been growing at a higher rate than the macroeconomic growth rate. Especially since entering the 21st century, Chinese advertising industry is developing at an unprecedented speed.