The development comes as Nokia China’s pitch for its US$10 million outdoor media planning and buying duties attracts an array of suitors, with five agencies contesting the brief.
No initial explanation was given for the decision to halt the approval and review of new outdoor advertising, which took place without warning last month.
No initial explanation was given for the decision to halt the approval and review of new outdoor advertising, which took place without warning last month.
A Government spokesperson later declared that it was part of a clean-up effort in preparation for the World Expo, due to be held in Shanghai in 2010.
A similar decree last year saw all outdoor campaigns terminated in Beijing, leaving the city’s billboards bare ahead of the Olympics.
The Shanghai announcement sparked concern among advertisers and agencies that the local authorities may be seeking to impose an excessively restrictive format on outdoor media.
“The situation is serious,” said a media agency source.
“If the Government doesn’t renew the licences, it will gain the right to restructure everything. It wants to have more flexibility.”
The source also said that clients were faced with the challenge of planning alternative advertising strategies.
“Outdoor is not like TV, where you can just pick another channel,” the source said.
Jay Lin, chief executive of Heartland China, said while media agencies had yet to be notably affected - since advertisements approved prior to the ban had not been discontinued - there was considerable consternation.
Lin said a collective had begun lobbying the Government, and had created a website bearing the image of an empty rice bowl to symbolise the threat to the livelihood of workers in the industry should the ban continue or drastic restrictions be imposed.
“How determined the Government wants to be remains to be seen.”
The Nokia pitch, meanwhile, is thought to include OMD, Portland, CMX, Starcom and incumbent Heartland, which has held the account for three years.
In China’s competitive and rapidly consolidating OOH market, pricing is believed to be a central consideration in the pitch document.
But contenders are far from deterred as a source noted. “Anyone who has a billboard business with enough scope in China is pitching for this account. Of course they are; it’s a high-profile account with a lot of billings.”
Representatives for Nokia refused to comment on the pitch, or on speculation that media buying and planning for TV and digital may also be reviewed.
Results for the OOH pitch are expected to be complete by the end of this month.
Additional reporting by Ella Fitzsimmons
