Research On The Development Of Chinese Advertising Industry

The advertising industry is the one that matters in promoting the establishment of national brands and the development of cultural and creative economies.It is a crucial constituent of the modern service industry of China.Having developed for more than three decades,the advertising industry in China gradually shows structural imbalances as it grows fast.The business environment of high dispersion and low-level competitions has severely constrained the further expansion of the industry.In a contrast to the developed countries,problems such as the lack of professionalism and organization,creativeness,high-tech professionals and comprehensive competitiveness,and the relatively lagging government management and the limited effectiveness of the industry's self-discipline organization exist in the domestic advertising industry.Confronting the existing problems and the intensified international competitions,the industry prepares to enter a new phase of transformation and development.Thus,in a context where the nation's new round of economic development and reform is in motion,how to realize a sustained and stable progress of the advertising and catch up with or even surpass the counterpart of the developed countries has become an important topic to study for the development of domestic advertising industry.Development economics is an economic theory that can helps analyze and solve problems developing countries face on their cause of economic development,and thereby help accelerate the process.Development economics and traditional economics both consider resources as the core element of industrial development.However,traditional economics mainly regards recourses as labor forces,capitals and lands,while development economics includes market,labor and cultural resources into the category of resource elements.As institutional economics emerges,development economics also regards institutional issues as part of the analysis framework of industrial development.Although various elements may influence the development of the advertising industry,looking from the perspective of development economics,there are two essential elements that determine the development of the industry:resource elements and institutional elements.This paper mainly studies the development elements of development economics.By applying methods like reference collection and statistical analysis,it analyzes the status quo of advertising in China and the problems faced by the industry.Resource elements of the advertising industry in China can be divided into 6 types,including capital,technology,culture,market,labor force and media.The result shows that existing market resources,technological resources and cultural resources of the advertising industry in China have laid a firm foundation for the development of the industry,and are not inferior to that of the industry in developed countries in any aspect.However,high-level operation of financial capital in the advertising industry in China is absent,which retards the development speed of the industry.In terms of media resources,there is a phenomenon of polarization.Traditional medial channels fall year by year,while emerging media resources enjoy great advantages,leading to the severe segmentation of media channels and influences the effect of advertisement injecting and the revenue of businesses.Human recourse structure features a flat model,indicating the lack of high-quality talents.Inappropriate human recourse allocation not only influences the improvement of international competitiveness of advertising companies,but also limits the development potential of the whole industry.Based on new institutionalism study of development economics,this research studies and discusses the status quo and problems of endogenous institution and external institutions of the advertising industry.By studying the external institution of advertising industry from the perspective of national policies,we can see that although after 40 years'development,management system of and laws and regulations set for the advertising industry of the country have become relatively mature and comprehensive.However,since incentive policies against the industry were released at a relatively late time,although there are certain macro plans,detailed requirements for relevant policies related to restructuring,allocation,investment and talent attracting need to be further stipulated,organizations responsible for advertisement management and law enforcement should be further identified and laws and regulations related to regulations on advertisement in the new media time should be further improved,in the purpose of preventing belated management,improve the efficiency of advertisement management and thereby maintaining a sound competing market environment for the industry.Endogenous institution,known of advertising agent system and self-regulation,becomes more and more subject to market regulation in recent years.Self-regulation,for example,gets separated from official regulation gradually under the encouraging policies of the country,and would become a new driving force for the development of advertising industry.On the basis of the above analysis,the paper,by analyzing the development characteristics of resources and systems of advertising industry in such developed countries as the United States,Japan and British,comparatively analyzed the late-starting advantages of the advertising industry in China,summarized the role of enhancing the development of capital,media,HR resources elements and institutional elements in promoting the advancement of the industry,and came to the following conclusions:promoting the integration of basic resource elements under political regulation and the guidance of national macro-economic strategy;optimizing the configuration of core resource elements under policy guidance;carry forward institutional innovation to improve policies and help the advertising industry in China achieve further development in the new era.