According to the 'This Year, Next Year: China' report, which has been compiled using data supplied by GroupM parent WPP's constituent companies, the Beijing Olympics will be a significant factor in driving media investment growth of 22% to $35bn compared with 2007.
Beyond the games, the report predicts that 2009 adspend will grow 19.5% to $42bn.
Adam Smith, GroupM's futures director, said: "We're confident of strong media investment growth extending to 2009 as demand in China becomes an increasingly important source of growth for global marketers as well as Chinese companies focusing on brand-building."
"Growth in 2007 was relatively restrained, but we predict many marketers are conserving funds for the anticipated Olympic bonanza this year."
The report also claimed that last year, China replaced Germany as the world's third largest advertising market, behind the US and Japan, and is expected to overtake Japan and gain second place in 2010.
Smith said that China will supply 23% of an anticipated 5.8% growth in global ad spend in 2008 and 30% of an expected 4.5 percent global growth in 2009.
TV and the internet were identified as the main beneficiaries of China's increased spend, with the Olympics generating an estimated $400m in spending on CCTV -- China's national TV network.
The internet is expected to attract 7.3% of adspend in 2008, rising to 8.5% next year, the report said, noting that it is China's fastest-growing medium and is on track to become the second-largest advertising medium after TV within a few years.
"China has the world's largest internet community with more than 250 million users," Smith added. "That's an increase of more than 90 million from June of last year, representing a year-to-year growth of more than 55 per cent."