The mid-quarter jump was enough to push Q2 adspend into positive territory. Nielsen tallied a 21.5 per cent increase in adspend to NT$10 billion for Q2, compared to NT$8.3 billion in Q1.
The surge follows a similar trend to Hong Kong, which has also seen
The surge follows a similar trend to Hong Kong, which has also seen
signs of recovery.
Summer prices for airtime are up 100 per cent compared to February and March. Year-on-year prices increased by 20 to 50 per cent depending on the TV channel.
“Advertisers waited for summer to spend because they want the best timing,” said Robert Hsieh, CEO of ZenithOptimedia. “Few have raised budgets for 2009. Instead they held off spending in Q1 and most of Q2.”
The turnaround follows a sharp decline in Taiwan adspend lasting several months. The upswing began in May, said Hsieh, but skyrocketed in July, especially for TV ads. Current spending levels are “almost double” that for February and March. Hsieh anticipates a slowdown by September.
“Now advertisers and media agencies are suffering from a serious shortage in supply for TV spots,” added Hsieh.
Vince Cheng, managing director, MEC, said: “People in the industry 10 or even 20 years are saying they’ve never seen anything like this.”
Nielsen data for Q2 showed a 22 per cent increase for cable TV to NT$3.4 billion (US$104 million) and 5.7 per cent for free-to-air (NT$1.1 billion) while newspapers jumped 38.8 per cent (NT$2.7 billion) and magazines grew 11.9 per cent (NT$1.2 billion).
TV channels are raising prices, sometimes three times in a single day. “They just call and tell you by phone,” said Cheng. “They don’t want to issue an official letter. They are afraid they will be punished when the slowdown comes.”
Ironically, this drastic jump in airtime prices comes at a time when viewership is dropping as audiences migrate to the internet. “Clients are paying more and getting a lower GRP,” said Cheng.
Summer prices for airtime are up 100 per cent compared to February and March. Year-on-year prices increased by 20 to 50 per cent depending on the TV channel.
“Advertisers waited for summer to spend because they want the best timing,” said Robert Hsieh, CEO of ZenithOptimedia. “Few have raised budgets for 2009. Instead they held off spending in Q1 and most of Q2.”
The turnaround follows a sharp decline in Taiwan adspend lasting several months. The upswing began in May, said Hsieh, but skyrocketed in July, especially for TV ads. Current spending levels are “almost double” that for February and March. Hsieh anticipates a slowdown by September.
“Now advertisers and media agencies are suffering from a serious shortage in supply for TV spots,” added Hsieh.
Vince Cheng, managing director, MEC, said: “People in the industry 10 or even 20 years are saying they’ve never seen anything like this.”
Nielsen data for Q2 showed a 22 per cent increase for cable TV to NT$3.4 billion (US$104 million) and 5.7 per cent for free-to-air (NT$1.1 billion) while newspapers jumped 38.8 per cent (NT$2.7 billion) and magazines grew 11.9 per cent (NT$1.2 billion).
TV channels are raising prices, sometimes three times in a single day. “They just call and tell you by phone,” said Cheng. “They don’t want to issue an official letter. They are afraid they will be punished when the slowdown comes.”
Ironically, this drastic jump in airtime prices comes at a time when viewership is dropping as audiences migrate to the internet. “Clients are paying more and getting a lower GRP,” said Cheng.
