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  • CTR Reports China Advertising Expenditures Grew 13.5% in 2009
  • Jan.28,2010  Beijing, China    

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China advertising market experienced a wave of rally after a nose dive in 2009, and the total measured advertising expenditure jumped by 13.5% versus a year ago, to US$ 74 billion* billion, according to the 7th consecutive annual report released by CTR Market Research, the leading market information and insight provider in China. “China achieved the minimum annual GDP goal of 8% in 2009, and the advertising market remains a 2-digit growth. However, in view of some government regulations that could bring certain impacts on the TV advertising, we expect a 10% of growth for China advertising market in 2010.”, said Mr. Tao Tian, Vice President of CTR.
 
 
Ad Spending-Media
With its superior competitive edge over the market average, TV remained as the predominant media grew 15%, far ahead of any other media in 2009. Under the implementation of the SARFT (State of Administration of Radio, Film and Television) new regulation #61, it is expected that an unprecedented renovation is to take on in the TV advertising market in 2010, where premium TV ads resources will be overwhelmingly demanded, and some new forms of advertising and partnership could be sought as the key market strategy for TV media in 2010.
 
Print media slowed down its growth pace. The Financial Crisis, as one of the Top 10 Most Concerned News Events in 2009 (according to CTR survey “Audience Survey on News Media Habit”), brought critical negative impacts on the print media adverting placements, mainly due to the shrinking ad spending from real estate and transportation sectors. However, outdoor media picked up its growth by 9% in 2009 following a sharp drop caused by regulation constriction and big national events.
 
 
Ad Spending-Industry and Brands
The TOP5 industry (toiletries, business and services, foodstuff, beverages and pharmaceuticals) still enjoyed solid increases in ad spending, where toiletries remained to take the lead but its growth acceleration reduced 9% versus the year 2008 (from 15% down to 6%). Beverages industry received the biggest growth of 52% in 2009.
 
In terms of brands, OLAY ad spending shrank by 5% to the second place, overtaken by L’Oreal with 65% increase. Master Kong and Wahaha took great advantage of “re-packaging” trump and became stars in the beverage industry of 2009. Besides, the ad spending allocated to brands under Harbin Pharmaceutical Group No. 6 Pharmaceutical Factory took turns. Calcium+Zinc Tablets enhanced the advertising placement for an increase by 1774%, ranking the 10th largest and taking the place of the brand Gaizhonggai under the same corporate umbrella.
 
As the economic crisis tails off and government’s policies to drive domestic economy and consumption, market revival has already taken on since the middle of 2009. FMCG industry is closely related to people’s daily life, such as beverages and foodstuff, kept a steady growth. The dairy industry, mostly cracked by melamine milk scandal, has also moved into the recovery stage following its tone-up PR campaigns to re-build the consumer confidence. On the other hand, the resident purchasing demand on the large-value consumer products boosted up. Consumer’s intentions to purchase a mobile phone and cars in the second half have doubled as compared to the first half of 2009 according to China National Resident Survey, pre-order rate from 21.4% to 41.2%).
 
And the policy of “home appliances going to the countryside” also unveiled the market warfare in Tier-2 and Tier-3 markets. As a result, the ad spending on home appliances in general increased for an average of 56%. Following the continuously enhanced policies for Tier-2, Tier-3 and countryside markets, a new wave of regional consumption and advertising placement can be expected in the forthcoming future.
 
China economic recovery in 2009 and the better-than-expectation advertising market trend have paved the solid stone way leading to the new height for advertising market in 2010. However, the new adverting policies rendered uncertainties to the market as well. As such, “media quality”, “advertising renovation” and “market shift” are likely to become the key words in 2010 for China adverting market that will move forward amidst “renovations”.
 
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 Jan. 26, 2010

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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