File photo of the Nanjing Road commercial street in Shanghai at night. [Photo/VCG]

Last year, Shanghai's advertising industry experienced a strong rebound, not only reaching record highs but also expanding its presence overseas, according to the Shanghai Municipal Administration for Market Regulation.

Record revenues

In 2023, revenue for advertising enterprises and institutions above the designated size in Shanghai reached a record high of 294.59 billion yuan ($41.45 billion), marking a 23.7 percent year-on-year increase and accounting for approximately one-quarter of the national total, the administration reported in a white paper on August 29.

The data was released at the opening ceremony of the 2024 Shanghai International Advertising Festival.

Approximately one-quarter of China's leading advertising firms are headquartered in Shanghai. Of these, 246 companies each generated annual advertising revenues exceeding 100 million yuan, collectively accounting for 91.6 percent of the city's total advertising revenue. Four companies reported annual revenues surpassing 10 billion yuan.

Digital advertising growth

Internet advertising played a significant role in driving the overall increase in advertising revenue.

In 2023, internet advertising revenues reached 121.33 billion yuan, a 26.9 percent increase from the previous year, making up 85.3 percent of the total advertising revenue. Of this, revenues from mobile internet channels accounted for 60.4 percent.

By the end of 2023, Shanghai was home to over 98,000 enterprises primarily engaged in advertising, reflecting a year-on-year increase of 8.1 percent. Of these, about 17,000 companies had secured business licenses for digital advertising.

Advanced information technologies such as artificial intelligence, virtual simulation, blockchain, and big data are widely utilized in the advertising sector. Innovations like AI-generated content, virtual film production, and AI audio-video technologies are rapidly emerging within the industry.

Industrial clusters

The growth of Shanghai's advertising industry has been supported by both municipal and district-level governments.

Seven districts—Putuo, Pudong, Xuhui, Jiading, Yangpu, Huangpu, and Jing’an—have introduced specific policies to support the development of the advertising industry.

The city currently hosts one national-level industrial park dedicated to advertising, two municipal-level parks, and 12 district-level parks.

Six districts—Jing’an, Jiading, Xuhui, Pudong, Putuo, and Baoshan—each generated over 20 billion yuan in annual advertising revenue, with a combined total of 210.25 billion yuan, accounting for 71.4 percent of the city's overall revenue.

Advertising talent

The promising prospects in the city’s advertising industry have attracted a significant amount of talent to the sector. In 2023, the number of creative design professionals increased by 4.3 percent year-on-year. Shanghai's advertising workforce is distinguished by high educational attainment and a younger demographic.

The influence of the Shanghai International Advertising Awards continued to grow within the industry, with Shanghai-based advertising companies frequently winning awards at international competitions in Cannes, New York, and London.

Intl exchange

By the end of 2023, Shanghai had over 11,000 foreign-invested advertising companies, representing a 20.6 percent year-on-year increase.

Foreign-invested companies held four of the top ten spots among Shanghai's advertising companies by revenue in 2023.

The China headquarters of the world’s top six advertising and public relations agencies - WPP, Omnicom Group, Publicis Groupe, Interpublic Group, Dentsu, and Havas Group - are all located in Shanghai.

To attract international advertisers, Shanghai successfully hosted major industry events such as the Shanghai International Advertising Festival, the APPPEXPO, and the Shanghai International College Students Advertising Festival.

The 2024 Shanghai International Advertising Festival drew participation from industry experts and business leaders from nearly 20 countries, including the United Kingdom, the United States, and France.

Additionally, several local advertising companies, including Focus Media and Meetsocial, have expanded their operations overseas.