CCTV offers marketing loans to SMEs

The broadcaster said it would work with China Minsheng and China Merchants banks to underwrite advertising loans for the country's SMEs. The move comes as CCTV prepares for its annual airtime auction for 2005, slated for November. CCTV's head of advertising Guo Zhen-xi said CCTV, as a national broadcaster, was responsible for helping smaller players in emerging industries to grow. He believes smaller players in the automotive and insurance sectors would benefit from the finance scheme, based on the upside growth potential of both categories. Both the automotive and newly-liberalised finance and insurance categories have already shown sharp spending spikes this year. CTR Market Research noted that spend by the automotive sector had surged by 100 per cent to Rmb2.1 billion (US$254 million) between January and May this year over 2003, while the finance and investment categories grew 20 per cent to Rmb398 million in the same period. CCTV is believed to be the first media vendor in China to launch an advertising finance scheme in a market where media owners tend to charge cash upfront for advertising. Zoe Tan, ZenithOptimedia vice-president for strategic resources, China, said the measure was a significant development for the industry's continued expansion. "It will also generate PR value for the broadcaster. Through its innovations in the last two years, CCTV is making a positive impact in upgrading the entire TV industry in China, but the broadcaster also needs to bear the risks involved," she said.