The latest research on advertising expenditures in China showed
a total of 283.7 billion yuan (US$34.3 billion) has been put into
TV, newspaper and magazine advertising last year in the mainland,
Taiwan and Hong Kong, an increase of 32 percent over the year
before.
Revealed by Beijing-based CVSC-TNS Research (CTR) Co Ltd, Hong
Kong-based admanGo and Taiwan-based Rainmaker Intl Group at a press
conference on Thursday in Beijing, the research results show the
advertising industry has already recovered from the damage caused
by the SARS (severe acute respiratory syndrome) epidemic last
spring.
The advertising expenditure in the three regions was 215.4
billion yuan (US$26 billion) in 2002, according to the
research.
"Our research shows that advertising is seeing an even more
vigorous trend this year," said Tian Tao, deputy general manager of
CTR at the news conference.
Tian was echoed by Derek Kwok, vice-president of ZenithOptimedia
Beijing, who said the prospect of advertising in China is "very
optimistic" this year.
He explained that his optimism was based on favorable factors
such as the Closer Economic Partnership Arrangement (CEPA), the
2008 Olympic Games and a growing economy.
According to the research, the Chinese mainland enjoyed over
half of the total advertising expenditure last year, or 154.4
billion yuan (US$18.6 billion), while Hong Kong and Taiwan covered
13 and 33 percent, respectively.
An interesting thing is that the three regions have shown
distinctive features in top five advertised brands and commodity
categories.
In the mainland, medicine and healthcare products have taken
four spots out of the five top brands that spent most in
advertising last year, while in Hong Kong retail and entertainment
business, and in Taiwan telecom service and cell phone products
have respectively accounted for most of the five top advertised
brands.
Experts noted that advertising on entertainment, vehicle and
banks has not accounted for a considerable amount in the mainland
market, which is different from the situation in Hong Kong and
Taiwan.
In the mainland, cosmetics/bath products, food, medicine, retail
and real estate are the top five categories that have put most into
advertising. But in Hong Kong and Taiwan, real estate took the
lead.
The research also showed three large cities in the mainland --
Beijing, Shanghai and Guangzhou -- have different advertising
patterns.
Entertainment businesses, listed in top five advertised
commodity categories in Shanghai but were missing from the list in
both Guangzhou and Beijing.
The research showed entertainment businesses are more prosperous
in Shanghai than in the other two.
On the contrary, telecom took third place among the top five
industries that invest most in advertising in Beijing and
Guangzhou.
According to the research, telecom providers and products
manufactures have more severe competition in the industry in these
two cities.
(China Daily February 7, 2004)