Chinese Ad Market Enjoys Bumper 2000

28 March 2001

Chinese adspend, much like adspend elsewhere, enjoyed a bumper year in 2000, rising to a record high of RMB80 billion according to AdEx figures from ACNielsen Media International.

The research also found real growth of 36% over 1999, much of which was driven by increasing expenditure from Chinese companies. “The confidence and assertiveness shown by local enterprises are especially encouraging,” explained Philip Rich, the research firm’s executive director for China and Hong Kong.

“Their heavy investments in advertising indicate the growing sophistication of the local manufacturers. They have come out of the shadow of foreign brands, who are infinitely more experienced in marketing, to become a force to be reckoned with. All top 10 advertising products are local brands. Together, they account for 7% of total advertising in China.”

Dotcom adspend had a typically unpredictable year, jumping 231% between the first and second quarters before plummeting 21% and 44% in Q3 and Q4 respectively. Again the leading advertisers were local – the technology ad market’s top ten spenders were all Chinese hosts, with Netease, and out in front.

Commented Rich: “Dotcoms emerged as the fastest growing sector last year, pouring RMB516.2 million in TV and print advertising, representing a six-fold increase over 1999. We expect the sector to stabilise in first half of 2001 as entrepreneurs regain confidence from the shock therapy.”

Meanwhile, pharmaceuticals dominated the ad market as a whole, with adspend in this category jumping 120% on 1999. Tonics and vitamins alone saw RMB10bn of expenditure last year, some 12.5% of all China’s advertising.

News source: Daily Research News Online