The measured advertising expenditures in the first six months of 2009 amounted to USD34.01 billion* based on rate cards, representing a growth of 9% as compared with the same period in 2008, according to the latest release from CTR Media Intelligence, the leading provider of strategic advertising and marketing information in China. “The global advertising market has showed all negative growth so far due to the enduring concerns about the economic conditions, however, the China market performed in line with expectations and our annual growth estimate at about 8% as forecasted by CTR earlier this year”, said Mr. Tian Tao, Vice President of CTR, “We believe that China advertising market is able to withstand the challenges during the financial crisis with the support of domestic stimulus package impact.”

 

Advertising Expenditure by Media

With over 79% in market share, TV kept the growing momentum at 12%. Newspapers, magazines and radios shrank, especially for print media, due to spending cut from real estate sector. However, the three major telecommunication operators increased advertising spending in newspapers and radios, of which, China Mobile still took the lead. CTR also forecasts that 3G telecom ads is expected to become a driving force for newspaper and radio media in the second half of the year. For outdoor media, ad placement rallied in the first half by 3% as compared to the same period last year.

 

Advertising Expenditure by Industry

As the leading industry with 15% market share, the cosmetic / bathroom accessories sector declined slightly by 0.2% and closely followed by the commercial and service sectors at 13% share of the total spending. Due to fierce market competition, the beverage sector experienced the fastest growth of 50%, driven mainly by fruit vegetable juice, carbonated drinks and tea drinks. For the real estate and transportation sector, the ad spending saw a “turning point” with a double-digit decline.

 

Advertising Expenditure by Brand

Wahaha took a great leap forward to the first place with 135% increase in ad placement as compared with the same period last year. OLAY shrank slightly to the third, overtaken by L’Oreal, which increased by 59%. China pharmaceutical brands, Sanjing and Gaizhonggai, greatly lowered their ad spending, but Jiangzhong ascended into the top 10 together with the food brand “Master Kong”.

 

The Chinese government stimulus package has generated huge domestic demand especially for those under-developed tier-2 and tier-3 cities. It has certainly offset the impact of decrease in of foreign export since earlier this year. Following the policy of “Home appliances going to the countryside” and sustained purchasing power in tier-2 and tier-3 cities has attracted many brands to penetrate into those under developed markets. “We should capitalize on the opportunities of domestic demand and sustained strong purchasing power of consumers.” added Mr. Tian Tao, “We believe that China advertising market will stay on the stable growth track for the second half and achieve the forecasted 8% annual increase at the end of 2009.”

 

Notes to editor:

1. Figures are based on CTR Media Intelligence monitoring network across CTR measured media, including TV, newspaper, magazine, radio, outdoor (including subway)

2. The expenditure is based on rate cards without considering discounts and free advertisements

3. TV monitored period: 17:00-24:00

4. *Exchange rate: 1 US$=6.83 RMB dated on Aug. 4, 2009

If you're a member of the media looking for data or commentary from our experts, please contact Linda Zhang at 86-10-82015388-8603 or zhangfengjuan@ctrchina.cn

• Next
• Preview