Glenn Smith
Aug 29, 2008

Taiwan adspend bump fails to materialise

TAIPEI - Taiwan's first look at post-election adspend demonstrates a negligible boost in spend, despite the promise of a new economic era.

Taiwan adspend bump fails to materialise
According to Nielsen, Taiwan adspend totalled NT$22.2 billion (US$704 million) for the first half of this year, a one per cent increase compared the same quarter of 2007.

While Nielsen media research executive director Tina Teng hailed the event as a “watershed”, she pointed out that, without political advertising, spend would have registered a drop of 0.7 per cent.

Excluding political advertising, the product categories with the strongest growth were top-ranked real estate, which grew 10.6 per cent to NT$3.9 billion, and sixth-place financial services, which grew 8.9 per cent to NT$1.3 billion.

Real estate saw middle-tier companies such as Jaysanlyn Real Estate and Highwealth Construction increase budgets significantly.

“These companies came out of nowhere, said Tsuyoshi Suganami, president/CEO at Media Palette. “Already they are cutting back because the boom in China investment in Taiwan property has not gained much from the new direct flights.”

Suganami offers more gloom. Taiwan’s second biggest adspend category - transport - might face a drastic drop later this year.

“The Taiwan car industry expects sales of 240,000 units this year - the same level as 20 years ago,” he said.

“Car makers may cut ad budgets in the second half, and Taiwan’s ad industry might face the toughest situation ever later this year.”
Source:
Campaign China
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