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China's business to business (B2B) advertising market is expected to top 9.3 billion yuan in 2007, up 25 percent, Analysys International said in a report.

Analysys said offline media, including trade publications and trade shows, dominated China's B2B market with a 72 percent share in 2006, while online media accounted for 25 percent.

"Contrary to common belief, online media spending does not dominate China's B2B media space... spending on traditional media accounted for well over double that of online media," said Analysys analyst Chen Haiying.

The consulting firm noted that foreign trade-related advertising accounted for around 70 percent of China B2B media revenue in 2006.

"China's domestic B2B market is still in its early stages... (with many) small players and focused on the online model, largely due to ease of entry," Chen said.

Chen noted that foreign B2B media have several hurdles to overcome in communicating with other domestic businesses, including distance, language, culture and customs.

"Consequently, both Chinese exporters and overseas buyers require more robust channels to communicate... (relying) heavily on specialized media, including trade publications and trade fairs, and online marketplaces," said Chen.

The report noted that suppliers serving the domestic market are shifting from competing on low price to focusing more on value-added services, a move that Analysys said will intensify competition among suppliers and drive demand for more sophisticated media solutions.

(US$1 = 7.63 yuan)