Data from CTR Market Research revealed that total adspend increased by nine per cent compared to 18 per cent growth in 2006. Meanwhile, Nielsen reports growth of 15 per cent in 2007.
The figures differ because of the varying methodology and coverage of the two research houses. Both agree, however, that this year will see strong growth, thanks to the Olympics.
The figures differ because of the varying methodology and coverage of the two research houses. Both agree, however, that this year will see strong growth, thanks to the Olympics.
Three key factors have been advanced by CTR for the relative downturn revealed by its data: the 2008 Beijing Olympics has seen many advertisers hold onto budgets for 2008, while enterprises also shifted adspend into equity investments to capitalise on the China stock market’s bull run in 2007. The China Government also brought in new regulations in the pharmaceutical and property industries, leading to less robust growth in these sectors.
“However, consumption patterns have become more upwardly mobile in China,” said CTR Market Research VP Tian Tao (pictured). “This is most noticeable in the categories of middle- to high-end cars, home appliances like plasma TVs and LCDs, and outbound travel, where advertising has grown substantially.”
TV captured the lion’s share of adspend at 79 per cent. Newspapers were the hardest hit, suffering a one per cent decline, while new media grew by almost 50 per cent.
Meanwhile, Taiwan’s adspend dropped over six per cent in 2007, according to Nielsen data, on the back of significant cutbacks from local advertisers.
Spend reached NT$45 billion (US$1.3 billion) compared to $48 billion one year earlier. Of Taiwan’s top 20 advertisers, 15 reduced spending, with locals Uni-President (down 34 per cent), China Motor Corp (less 33 per cent) and Far EasTone Telecommunications (which cut 31 per cent of spend) leading the stampede.
