The combination of industrial clustering and policy support has propelled the robust growth of the digital advertising industry in Putuo district, Shanghai. The district has now won a three-year pilot program to develop one of China's first national-level digital advertisement pilot zones — and the only one in Shanghai.

The designation is backed by the district's solid industrial foundation. The International Digital Advertisement Zone Shanghai was established in Putuo's Zhenru Sub-center in April 2023. At that time, the district's annual advertising revenue was less than 20 billion yuan ($2.9 billion). Since then, however, the industry's scale has rapidly expanded, reaching 30 billion yuan in 2024 and surpassing 40 billion yuan in 2025.

As of June, over 1,700 digital advertising companies had clustered in Putuo, with 311 enterprises setting up within the park itself. Leading firms like LEO Digital, Vision Star, and Toutiao are spearheading growth, establishing a comprehensive ecosystem covering content marketing, e-commerce integration, MCN influencer operations, and data-driven creative services.

Behind the rapid growth of the industry is policy support from Shanghai's "AI+Digital Advertising" initiative, which provides robust backing in technological innovation, industry networking, financial support, and talent acquisition.

Leveraging the Shanghai-Nanjing Industrial Innovation Belt, which involves eight cities in Jiangsu province, Putuo strives to foster a reciprocal flow of resources and complementary industrial strengths, positioning itself as a vital player in the global digital advertising sector.

The national pilot zone in Putuo is set to represent Shanghai and even the Yangtze River Delta region in both national and global digital advertising competition, observers said.

Yu Yaguang, director of the Putuo District Administration for Market Regulation, said the pilot zone is crucial for Shanghai's ambition to become an "international digital advertising capital". The three-year trial is just the beginning, with long-term development needed for industry maturity, Yu said.

Source: Official WeChat account of Shanghai Putuo Media Center