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5 February 2008
Shanghai
According to the latest figures from The Nielsen Company, advertising spending in China in 2007 recorded a 15 percent increase across the three mainstream media - TV, Newspapers and Magazines - reaching RMB441.5 billion compared to the previous year.
TV continues to take the lion’s share of China’s advertising pie, attracting 82 percent of total advertising budgets over the year and enjoying 16-percent growth, while Newspapers and Magazines accounted for a 16 and two percent share respectively.
Despite TV being the magnet for China’s ad dollars, advertising revenues for Newspapers and Magazines grew seven and 19 percent respectively from 2006, although for Magazines that represented a slow down compared to the 27 percent growth enjoyed in 2006.
"2007 was a fantastic year for China’s advertising market. With the fast-approaching Beijing 2008 Olympic Games, a multitude of international brands have swarmed into the China advertising market, and are fueling enormous growth,” said Ms Rita Chan, Executive Director, Media Services, The Nielsen Company, China.
Pharmaceuticals, Toiletries and Beverages were the top three advertised categories in 2007, accounting for almost half (46%) of China’s total ad market. With the exception of Office Equipment & Supplies, Tobacco, Industrial and Agriculture, all advertising sections enjoyed steady growth compared to 2006. Ads for Leisure related campaigns experienced a sharp increase of 120 percent over 2006, mirroring China’s burgeoning leisure industry.
Further category breakdowns reveal slight changes in ranking, with telecommunications and clothing taking a downturn in 2007, while a significant increase in advertising investment was seen across Finance/Banking (up 56%).
Advertising spend by category mirrored the trend in China’s first three quarters, where Pharmaceuticals, Health & Social, and Personal Hygiene & Health were the top three ad spenders, suggesting fierce competition in the categories of Medication, Hygiene and Health. Hair Care products and Female Skincare products ranked fourth and fifth respectively. In contrast, ad spending on Male Skincare products, Baby Products and Investment Services grew twice to five times as much as that of 2006.
In terms of advertising spend by brand, there was little change in 2007 when it came to the top 10 big spenders. With Huangjindadang and Wahaha joining the top 10 list, China’s domestic brands now comprise an equal share alongside international brands. It’s worth noting that in 2007 Sanchine Pharm and GaizhongGai climbed a few ranks higher over 2006, with a respective increase of 57 and 45 percent in ad spending. KFC on the other hand recorded the biggest growth of 55 percent among other foreign brands, mostly dedicated to its anniversary marketing activities themed “Grateful for the past twenty years”.
The above mentioned ad expenditure is calculated based on the published rate cards. Data sources: Nielsen Media Research Advertising Information Services 2007.
Advertising Expenditure in China and its Major Cities 2007
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