Queries raised over ACNielsen 1999 adex figures for Taiwan

<p>The Taiwan advertising industry has raised doubts over ACNielsen's </p><p>regional adex report for 1999, which showed a 26 per cent drop over </p><p>1998. </p><p><BR><BR> </p><p>Despite the recession and the killer earthquake last year, most agencies </p><p>in Taiwan claim to have achieved billings growth, and are insisting that </p><p>ACNielsen's figures are unrealistic. </p><p><BR><BR> </p><p>"I don't know why negative 26 per cent growth was reported for the last </p><p>year," said Zenith Media general manager Susan Wang, noting that the </p><p>figure was not relevant to the actual scene. </p><p><BR><BR> </p><p>According to Brain magazine's income report for Taiwan's top 42 </p><p>agencies, average billings grew by 1.57 per cent and net income by 6.6 </p><p>per cent, compared to 1998's 8.65 per cent and 10.57 per cent </p><p>respectively. </p><p><BR><BR> </p><p>ACNielsen Asia-Pacific media relations director Terry Lee said: "The </p><p>earthquake took its toll on the advertising industry. If there wasn't an </p><p>earthquake, the drop would not have been as steep ... probably only 10 </p><p>per cent. Whatever the feedback, we stand by our figures." </p><p><BR><BR> </p><p>"Taiwan did indeed suffer from the (September) earthquake, but the </p><p>industry recovered very quickly," said Ms Wang, who added that Brain's </p><p>report was a closer depiction of the actual situation. </p><p><BR><BR> </p><p>Advertising is a reflection of the economy; Taiwan recorded 5.7 per cent </p><p>growth in GDP and private consumption in 1999, according to Merill </p><p>Lynch's economic report. </p><p><BR><BR> </p><p>Discrepancy in the research methods of the two reports may have caused </p><p>the difference, with ACNielsen accounting on media revenue and Brain </p><p>measuring agencies' income and billings. </p><p><BR><BR> </p><p>ACNielsen's adex report was conducted by local research company </p><p>Rainmaker, with the data based on media income. </p><p><BR><BR> </p><p>The number of media monitored by the study decreased compared to the </p><p>previous year, a factor which was reflected by the dip in the adex </p><p>report as well. </p><p><BR><BR> </p><p>In general, MindShare managing director Jonathan Chen said, Taiwan </p><p>adspend dropped by about 6.7 per cent in 1999, caused by the earthquake </p><p>and a sluggish real estate market. </p><p><BR><BR> </p><p>Adspend in the first three quarters grew, while the last quarter </p><p>decreased as a result of the earthquake, according to Mr Chen, who added </p><p>that media owners did not raise their ad rates in 1999. </p><p><BR><BR> </p><p>Advertising activity picked up again after December, buoyed by the </p><p>presidential election campaigns and booming dotcom and telecom </p><p>sectors. </p><p><BR><BR> </p><p>Zenith's Ms Wang said booking turned tight prior to the election, as </p><p>election campaigns got priority. </p><p><BR><BR> </p><p>In addition, she noted, some commercial campaigns for products were put </p><p>on hold during the election period to avoid the resulting clutter. </p><p><BR><BR> </p><p>Terrestrial television saw the biggest drop in terms of market share, </p><p>due to the growing preference for the cheaper cable TV, which has been </p><p>showing improved viewership figures. </p><p><BR><BR> </p><p>Adspend in the four terrestrial TV networks decreased 20.14 per to </p><p>NT$17.7 million, while cable TV rose 14.66 per cent to NT$14.6 million, according to Rainmaker's figures. </p><p><BR><BR> </p><p>Newspaper adspend recorded negative 10.87 per cent growth to NT$18.9 million, while magazines increased 3.61 per cent to NT$6.1 </p><p>million. </p><p><BR><BR> </p><p>Dentsu, Ogilvy & Mather, J. Walter Thompson were the top three </p><p>advertising agency in terms of income and billings, according to Brain's </p><p>report. </p><p><BR><BR> </p><p>Local agency United Advertising dropped respectively from the first and </p><p>second positions in 1997 and 1998 to fourth place in 1999, caused by the </p><p>loss of several big accounts. </p><p><BR><BR> </p><p>The best performers in 1999 were Ideology, with a 39 per cent jump in </p><p>net income, followed by Saatchi & Saatchi (31.23 per cent), Leo Burnett </p><p>(31.14 per cent), Toplan (30.15 per cent) and D'Arcy (28.57 per </p><p>cent). </p><p><BR><BR> </p><p>Agencies with the biggest dip in net income were: Hsu & Chen (-40.48 per </p><p>cent), DIK-Ocean (-33.96 per cent), United-Asatsu (-19.25 per cent), </p><p>DY&R (-16.67 per cent), Geo Sun (-16.67 per cent), Golden Flower (-16.67 </p><p>per cent), United (-11.54 per cent), Dentsu (-10.06 per cent), Proshine </p><p>(-7.41 per cent), Look (-6.67 per cent) Harvest (-4.42 per cent) and </p><p>BBDO (-1.96 per cent). </p><p><BR><BR> </p>