China is expected to become one of the top three ad markets by 2012, overtaking the UK and Germany in the process, according an an International Ad Forecast published by Warc.

The advertising spend in China is forecasted to grow by 12.5% this year and 14.5% next year with its total value exceeding $27 billion by the end of the period.

Warc data editor Suzy Young was quoted as saying:"The Chinese economy is expected to grow by almost 10% this year and rapidly-rising wages are boosting household consumption. As long as these fundamentals continue to be strong and the threat of inflation is kept at bay, Chinese advertising expenditure will forge ahead."

The United States remains the world's biggest market, whilst Japan is in second place.

Meanwhile, the smallest market in the report is also the fastest growing. It is project to grow by 19% in 2012 and 18.5% this year. The second fastest growing market is Russia.

The report also concluded that online advertising will grow at twice the rate of any other medium this year. For example it is forecasted to grow by 33% in China alone.