Industry leaders believe the rally is sustainable, but caution that the Q1 rebound is misleading.
“2009 Q1 marked the depth of the recession, so the 2010 Q1 rebound is measured against the bottom,” said Tina Teng, executive director media research, Nielsen Taiwan.
“Advertisers began spending more late last year,” said Teng. “For real estate, the number one adspend category, spend has doubled. Finance and insurance companies are back in the top 10. Adspend for skin care increased 37 per cent and automotive 35 per cent.”
In terms of media, the strongest gains were for newspapers (32.9 per cent), radio (30.2 per cent) and cable TV (27.7 per cent). Weaker growth was experienced by terrestrial TV (10.9 per cent), OOH (10.1 per cent) and magazines (6.7 per cent).
Alvin Tsui, CEO at United Advertising, says the recovery is based on marketing fundamentals. “Spending increased in nearly all product categories,” said Tsui. “It is driven by consumer spending. People started buying again, and marketers want to guide their choices.”
Nielsen's consumer confidence index for Taiwan rose from 63 in 2009 Q1 to 71 in 2009 04.
The return of confidence is good news as Taiwan, unlike most of Asia, suffered a 'psychological' recession through most of the aughts, despite healthy annual GDP growth. Industry sources have attributed it to concerns over the rise of neighbour China's economic and political might.
Teng also pointed to the island's trade. “Both exports and imports are increasing according to customs data,” said Teng.
Roger Chiang, strategic resources, associate vice president at Carat in Taiwan, pointed to these same figures. “The whole macroeconomic environment is improving, and at Carat we have high expectations for the year. Everyone thinks this might be a turnaround.”
There is one gloomy note, however. “The return of demand for advertising will create a shortage of TV spots, especially during peak hours,” he said.
During the past six months, Taiwan media agencies have struggled against wild fluctuations in prices for TV spots, and the Media Agency Association (MAA) has begun a dialog with TV broadcasters in the hopes of ending these practices.
“2009 Q1 marked the depth of the recession, so the 2010 Q1 rebound is measured against the bottom,” said Tina Teng, executive director media research, Nielsen Taiwan.
“Advertisers began spending more late last year,” said Teng. “For real estate, the number one adspend category, spend has doubled. Finance and insurance companies are back in the top 10. Adspend for skin care increased 37 per cent and automotive 35 per cent.”
In terms of media, the strongest gains were for newspapers (32.9 per cent), radio (30.2 per cent) and cable TV (27.7 per cent). Weaker growth was experienced by terrestrial TV (10.9 per cent), OOH (10.1 per cent) and magazines (6.7 per cent).
Alvin Tsui, CEO at United Advertising, says the recovery is based on marketing fundamentals. “Spending increased in nearly all product categories,” said Tsui. “It is driven by consumer spending. People started buying again, and marketers want to guide their choices.”
Nielsen's consumer confidence index for Taiwan rose from 63 in 2009 Q1 to 71 in 2009 04.
The return of confidence is good news as Taiwan, unlike most of Asia, suffered a 'psychological' recession through most of the aughts, despite healthy annual GDP growth. Industry sources have attributed it to concerns over the rise of neighbour China's economic and political might.
Teng also pointed to the island's trade. “Both exports and imports are increasing according to customs data,” said Teng.
Roger Chiang, strategic resources, associate vice president at Carat in Taiwan, pointed to these same figures. “The whole macroeconomic environment is improving, and at Carat we have high expectations for the year. Everyone thinks this might be a turnaround.”
There is one gloomy note, however. “The return of demand for advertising will create a shortage of TV spots, especially during peak hours,” he said.
During the past six months, Taiwan media agencies have struggled against wild fluctuations in prices for TV spots, and the Media Agency Association (MAA) has begun a dialog with TV broadcasters in the hopes of ending these practices.
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