Chinese adspend continues to rise

17 August 2009

BEIJING: Adspend levels across TV, print, radio and outdoor in China increased by 9% in the first half of this year on an annual basis, to a value of $34 billion (€24bn; £20bn), CTR Media Intelligence reports.

Television took a 79% share of the Chinese ad market in the opening six months of 2009, with spending through this medium rising by 12% year-on-year, while outdoor enjoyed an uptick of 3%.

However, print and radio expenditure fell in the period from January to June, largely as a result of declining budgets in the real estate sector.

By contrast, the country's three main telecoms companies – China Mobile, China Unicom and China Telecom – all heightened their newspaper and radio outlay, and are expected to continue to do so during the next two quarters.

Similarly, the beverage sector's expenditure across all of the previously mentioned forms of media grew by 50% year-on-year, as a result of "fierce market competition", particularly in the fruit and vegetable juice, carbonated drinks and tea categories.

The cosmetics and "bathroom accessories" segment had a market share of 15% in H1, but recorded a slowdown of 0.2% in this timeframe.

The real estate and "transportation" sectors also both posted double-digit decreases, having reached what CTR described as a "turning point" after long periods of sustained growth.

Wahaha, the beverage maker, was the biggest-spending brand in the first half of this year, having boosted its outlay by 135%.

L'Oréal also registered an uplift of 59%, overtaking Olay and moving into second place, after Procter & Gamble's skincare brand cut back.

In terms of consumer spending, CTR reported that the Chinese government's stimulus package "has generated huge domestic demand especially for those under-developed tier-2 and tier-3 cities."

Data sourced from Asia Media Journal; additional content by WARC staff