he ad world continues to be fascinated with China. The industry has grown from virtually nothing in 1979, when the communist government lifted a ban on ads, to as much as $16 billion last year - an increase of at least 20 per cent over 2003, according to MindShare. By 2006, China will be the third-largest ad market in the world, and the numbers are predicted to keep climbing as the nation gears up for the 2008 Beijing Olympics.

The potential has international ad agencies scrambling for position. Since the market opened 26 years ago, virtually every major industry player has set up shop in China. Until now they have been confined to operating joint ventures with local partners. That restriction, though, will be lifted at the end of this year. The rule change "will be liberating for a lot of (agencies) that have been boxed in with a bad or mediocre partner," says David Droga, global creative director for Publicis Group.... more