ANALYSIS: Live issue - China showing early signs of advertising fatigue. A Zenith Media study finds China facing an early case of ad fatigue

China's advertising clutter quotient has shot up to such an extent

that huge sectors of its population are showing classic symptoms of

advertising fatigue.

A Zenith Media study uncovered some startling truths about the Chinese

consumer - 52 per cent of respondents in Beijing and Shanghai now pay

little or no attention to television commercials in sharp contrast to

attitudes 10 years ago when TVCs were seen as something new and

novel.

Few advertisers had expected to see the problem crop up this early in

China. Advertising fatigue is an issue associated with more developed

Western markets.

However, the emergence of advertising fatigue in so short a period of

time demonstrates that China's rapid economic development over the past

15 years has accelerated the rise of consumerism. And with it, a more

sophisticated audience, who demand fresh and novel advertising.

In a market suffering from over-capacity in just about every category,

this latest insight will turn up the heat on marketers. They will now

need to stay ahead in advertising and constantly refresh their

brands.

Against this backdrop, product placements within TV shows and programme

sponsorships have gained in popularity as advertisers struggle to break

out of the rut. The Zenith survey found that these new approaches

increased brand awareness significantly, however it cautioned that their

use should be considered in the context of the whole strategy. For

instance, the research shows that product placement alone will not spark

strong ad recall.

The secret to success lies in striking the right combination of such

options and the placement of conventional TVCs within certain

programmes.

Zoe Tan, Zenith China's director of strategic resources, says: "Product

placement or title sponsorship exerts impact only when it is supported

by regular commercial breaks, while the choice of the right programme

for the right product is also a key to success."

Product sponsorships are becoming increasingly popular to the point

where some TV shows are cluttered with multiple brands jostling for

audience attention.

Depending on the popularity of a show and the number of TV stations it

is syndicated to, title sponsorship can cost from three to 15 million

Rmb for a weekly show. Despite its rising popularity and costs, little

has been done, until now, to shed light on the effectiveness of

sponsorship deals.

While TV is still considered the most effective way of reaching the mass

audience, TV station rates have rocketed in recent years, prompting

advertisers to move into less measurable advertising areas. The Zenith

Media research report makes a first attempt to examine how effective the

new television advertising forms are and how clients can make best use

of the tools.

"Title sponsorship can very effectively increase brand recall, however

research also shows that title sponsorship is most effective during the

mid life cycle of a product and not at the beginning of a product life

cycle unless it is supported by a TV commercial," explains Tan.