Business / Advertising boom

TV stations' ad revenue might stop rising: analysts

( Updated: 2012-10-12 20:59

Advertising revenue for China's leading satellite TV stations might stop increasing, amid the economic slowdown and growing competition among stations, analysts said, according to

The Chinese TV stations' advertising revenue is closely connected with the macroeconomic situation.

In 2009, the government's large-scale stimulus policies shielded the country's TV stations from a significant decline in advertising revenue. Commercials in TV stations nationwide were worth 65.4 billion yuan ($10.4 billion) in 2009, accounting for 86.98 percent of the stations' total advertising revenue, up 7.36 percent from the previous year.

During the strong economic growth period between 2003 and 2007, TV stations' advertising revenue grew at a significant rate. However, this year, with the eurozone debt crisis deepening, the lackluster economy in the United States, and China's GDP growth below 8 percent, the rising trend is expected to come to an end, analysts said.

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