China lifts ad limit for state firms as TV revenues fall

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