The average monthly income of advertisers in China increased to 4,044 yuan (about 490 US dollars)in the third quarter this year, up 6 percent year-on-year, 2 percent lower from a year earlier, according to the Beijing-based Zhaopin.com, a well-known online headhunter.

"Slower development of Internet advertising in the past year had directly led to the slower income growth in the ads sector," Zhao Wei, an analyst with the Beijing-based Taihe Enterprise Management Consulting.

However, the ad industry remains among the top 10 highest-paid in China, according to figures from ChinaHR, a top human resourceswebsite in China.

Zhao also noted that the advertising sector showed an enlarged discrepancy of income growth rate among its different posts. Thosecreating ads and working in media resources recorded the highest income growth rates, while those in management and sales experienced lower growth due to drastic competition.

Peng Dongling from ChinaHR said she still saw great potential for the sector's income to rise, as ad consumption in China grows 20 to 30 percent each year.

Statistics from Zhaopin show, the average income of advertisingprofessionals in Beijing is the highest on the Chinese mainland, with a monthly salary of 5,560 yuan (about 670 dollars). Guangzhouis next at 5,470 yuan (about 660 dollars), and Shanghai third, at 5,210 yuan (about 630 dollars).

Since 1992, China's advertising industry has reported an annualgrowth rate of 31.48 percent in business turnover, which stood at 107.87 billion yuan (12.98 billion US dollars) in 2003.

The number of advertising companies around China has grown annually by 19.66 percent in the past 12 years since 1992, with their employees rising by 16.28 percent, noted the department.

By late 2003, China had 66,400 advertising companies with more than 870,000 employees, according to the Advertising Supervision and Administration Department under the country's General Administration for Industry and Commerce.

To fulfill its commitment to the WTO, in 2003 China allowed overseas investors to jointly fund advertising businesses in the country, and will permit the establishment of ad firms wholly owned by overseas investors in 2005.

But experts warned that China was in dire need of large advertising companies and professionals to face the coming fierce challenges from their giant overseas counterparts.