Asia spend shoots up 23pc in first quarter

ASIA-PACIFIC: Advertising spend in the Asia-Pacific region soared 23 per cent to US$8.7 billion in the first quarter of this year compared with the same period in 2001, according to figures released by Nielsen Media Research.

The jump was due in part to continued strong growth in China, where spend soared 32 per cent to $3.3 billion.

The figures bode well for the region, especially as China looks poised to post another year of robust economic expansion.

A spokesman for Nielsen Media Research said: "Categories such as shampoos and conditioners, skin care products and air conditioners will contribute substantial numbers for the second and third quarters."

He added that the World Cup soccer finals, the broadcast rights of which has been won by national broadcaster China Central Television, would give added impetus to China's 2002 growth rate.

Hong Kong, Singapore and Thailand each grew eight per cent to $937 million, $203 million and $304 million respectively. Hong Kong was helped higher by a rebound in the residential market, while Singapore rose on the back of new television channels and print publications fighting against the established players.

Thailand climbed higher because of the ongoing mobile telecom war, which is likely to become more intense when Hutchison joins the battle against AIS, DTAC and Orange.

The Philipines was the only Asian market to post a decline, down three per cent to $273 million. The fall was due to major telecom and fast moving consumer goods advertisers significantly cutting back on spending amid uncertainty over the near term. Telecom operators Globe and PLDT slashed their print placements by between 23 and 59 per cent. Nestle shaved 28 per cent from its budget while Unilever cut 22 per cent.

Media agencies, however, cautioned that the regional adspend figures were not likely to be as high as they were being reported because ACNielsen could not take discounts into account.

ASIA-PACIFIC ADSPEND (JAN-MAR, USDOLLARS 000s)

                  2002 Q1      2001 Q1       YOY
                                          Change
China           3,262,895    2,476,165       32%
Korea           1,168,250      999,282       17%
Hong Kong         936,959      869,614        8%
Australia         745,305      721,883        3%
Thailand          304,067      280,433        8%
Philippines       273,357      280,988       -3%
Indonesia         221,263      165,523       34%
Singapore         202,826      187,209        8%
Malaysia          194,425      182,212        7%
New Zealand       173,413      161,878        7%

Source: Nielsen Media Research