BEIJING Global MNCs have laid out a record Rmb 1.18 billion (US$150 million) at CCTV's annual airtime auction, which netted the national broadcaster a total of Rmb 6.7 billion, a 15.7 per cent increase on 2005 figures.
Leading the MNC charge for the third consecutive year was Procter & Gamble, which spent Rmb 240 million, as international brands seek to ramp up their presence leading up to the 2008 Beijing Olympic Games. Other global brands which took part for the first time included Motorola, Colgate-Palmolive, Nike, Volkswagen and Avon.
"Multinational companies are starting to gain a foothold in the market, and the CCTV auction results show that China is becoming a regional powerhouse,"said Paul Maher, South China, Taiwan and Hong Kong CEO of Starcom, which handles P&G's media business on the mainland. "There was a huge amount of bidding on packages around the Olympics, and there's going to be a huge amount of interest in the Games over the next 18 months."
While there was a significant increase in interest from MNCs, China-based brands continued to dominate the auction. Herbal beverage brand Wang Lao Ji claimed the number two spot with Rmb 320 million. The banking sector, meanwhile, saw the biggest jump in activity, with China Bank, ZhaoShang Bank, Ming Sheng Bank and Citic leading the way.
"It was a direct response to the step-by-step opening up of the financial services sector to foreign competition as part of the WTO agreements,"said Christine Qian, managing director, China Media Consulting Group.
See Media 3, page 14
