SHANGHAI: The Chinese Government has raised the two per cent of sales
income limit that state-owned enterprises can spend on advertising to
eight per cent just months after the policy came into effect.
Media agency sources believe depressed television advertising revenue
may have prodded a rethink on the spending ceiling.
"This ties in with what TV stations are telling us, that they are down
on revenue targets this year although adspend is supposedly up for the
year," said a source. "It's a serious issue because TV stations are
largely seen as a revenue source for the Government."
It is understood that national broadcaster China Central Television
suffered a single-digit loss and Beijing TV was down by double-digits
for the first quarter.
Sources said the market is far less buoyant than ACNielsen figures of a
22 per cent gain in adspend for the first four months of 2001
suggest.
The two per cent limit and ban on prescription drug advertising have
been blamed for depressing overall spend.
