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  • CTR Reports China Advertising Expenditure Increased 12% in the First 3 Quarters of 2009
  • Dec.02,2009  Beijing, China  


The total China measured advertising expenditure in the first 3 quarters grows 12% versus a year ago, to US$ 54 billion*, according to the latest figures released by CTR Market Research, the leading market information and insight provider in China.  As compared with China Q3 GDP reached at 7.7%, the continued faster growth of advertising expenditure is reinforced by the strong economic growth driven by domestic demand expansion, reflecting a stronger confidence of the marketers coming out of the downturn.

Ad Spending-Media
TV remained as the predominant media with a 78% in market share, grew faster than average at 14% in the first 3 quarters in 2009. With the SARFT (State of Administration of Radio, Film and Television) new regulation #61, limiting TV commercial airtime not exceeding 12 minutes per hour, will become effective on January 1, 2010. Mr. Tao Tian, Vice President of CTR comments: “We forecast TV advertising rate card will be increased at an averaged of 24% given the limitation of TV ad resources and there will be approximately a US$ 1.84 billion* worth of advertising expenditure outflow from TV media.” Unavoidably, TV media owners will have to shift their primary focus build on its media value rather than driving more eyeballs and increasing air time. With the consumption trends shifting to lower tier cities driven by the government economic stimulation policy, it becomes critical to gain in-depth understanding of target audience’s consumption behaviours, media habits，product & brand preferences in order to capture the new opportunity.

Outdoor media regained its growth at 6% following a sharp drop caused by regulation constrict during the several big national events in 2008. The newspaper and radio continued to show decelerated in growth while magazine dropped slightly as compared to the same period last year.


 
Ad Spending-Industry
In the first 3 quarters, ad spending for all the Top 5 sectors increased, especially for the beverage sector, where “Master Kong” and “Wahaha” put in heavy advertising placement, leading the beverage sector increased by 52% and received the biggest growth of the Top 5. The cosmetic / bathroom product sectors remained on the top leading place and picked up by 1% compared to the same period of last year.
 
Ad Spending-Advertiser
As listed in the Top10 advertisers for the first 3 quarters, the two biggest daily chemical group companies, P&G and Unilever, became the only two advertisers shrinking the ad spending, by 13.7% and 1.7% respectively. For food sector, Ting Hsing International Group took a great leap forward to the Top10 list with an increase by 105.1% and became an eye-catching advertiser in the first 3 quarters. And for the Health Supplements, the ad spending of Shanghai Gold Partner encountered the worst shrink by 42.1%, and disappeared in the Top10 list.
 
Notes to editor:
1.       Figures are in billions of US$ based on rate card without considering any kind of discount and free advertisement
2.       Measured media in China covers TV, newspaper, magazine, radio, outdoor (including subway)
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

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