CTR Report on CHINA'S ADSPEND in traditional media (2012)

Good morning, all! As I am writing a brief on Chinese advertising industry, I thought it was interesting to share with you this link:

Buongiorno a tutti! Sto scrivendo un brief sull'industria pubblicitaria in Cina e ho pensato di condividere con voi questo link interessante:

http://www.ctrchina.cn/ctrwebsite/en/News_Article.php?articleid=412

It is the latest report from CTE on China's Advertising Spend in 2012... I copy and paste it here. Briefly: in 2012 the traditional advertising annual growth was 4.5% (the lowest in the last five years). The top 5 industries to invest more were toiletries, business & services, beverages, foodstuff and pharmaceuticals. The TOP10 advertising spenders in 2012 were L’Oreal, KFC, Olay, Wahaha, Yili, China Mobile, JDB, Dali, McDonald’s and Master Kong. 

Si tratta dell'ultima ricerca, condotta da CTR, sulla spesa pubblicitaria nel 2012...copio e incollo. In sintesi: la spesa pubblicitaria cinese nei media tradizionali l'anno scorso ha visto un aumento del 4.5% (il più basso degli ultimi 5 anni). La televisione continua ad essere il medium con la spesa pubblicitaria più alta. I 5 settori che investono di più in pubblicità sono: igiene, business & servizi, bevande, alimentare e farmaceutico. I brand più "spendaccioni" sono: L’Oreal, KFC, Olay, Wahaha, Yili, China Mobile, JDB, Dali, McDonald’s e Master Kong.

China’s traditional media advertising market growth dropped below “5” in 2012

January 31, 2013 Beijing, China

The GDP growth rate in 2012 was 7.8%. This is the first time for the annual GDP growth rate lower than 8% since 1999, and the annual growth rate becomes the lowest since 1998. According to the latest CTR publication on China adspend data, traditional advertising annual growth in China market 2012 was 4.5% only, which was the lowest in the recent 5 years. With the influence from economic environment, the forecast on China advertising market depression in the beginning of 2012 came true eventually at the year-end.

Advertising expenditure-Media

TV media keeps its advantage on traditional media in 2012. Its advertising overwhelmed with large share steadily. The adspend had 6.4% growth over last year, whereas CCTV cut down 8.9% of advertising duration, comparing with last year. Its rate card expenditure indicated 1% of slight decline accordingly. Provincial satellite TV only reduced 2.1%, yet its rate card expenditure showed 16% of annual growth. The largest deduction for provincial terrestrial channels was 11%. On the contrary, its adspend continued climbing to 5.8% annual growth.

By political influence, the advertising capacity in TV drama from various channels dropped substantially. At the same time, it enhanced the growth of the advertising capacity in News/Current affair programs.

Radio continued leading the traditional media with 8.9% annual growth, but it appeared to sag sharply after 27.8% of accelerating growth last year. Under the economic environment and the shrinking consumption in automobile, there was an adjustment on the adspend of Business & Service and Automobiles. As the key industries in radio advertising, their adspends directly affected the entire radio advertising growth. The consecutive development in radio advertising resource should be attentive. It reduced 12.8% yearly in 2012 after the growth in previous years.

With the influence from 17.2% advertising resource reduction and the advertising depression in Real Estate, Business & Service and Automobiles, Newspaper rate card adspend fell 7.5% over last year. In Top 10 ranking on newspaper advertising, only pharmaceuticals and personal items were growing. The industries which had the fastest magazine advertising growth were Personal items (31.0%), Computer and Office Automation Products (14.7%) and Alcohol (66.2%). Eager advertising from these industries keeps building the elegant image in magazine.

The advertising growth in traditional outdoor media was exhausting, with 2.0% growth over 2011. With the rapid development of the urban railway system in Beijing, Shanghai and Guangzhou, Metro and light railway advertising showed high growth with 13.2% annual increase rate over 2011.

Although the result in new media varies in the whole 2012, its entire growth slowed down. Public transport TV and LCD building adspends were 2.2% and 14.8% respectively. Fast-food restaurant brands like the leading brand KFC still have the passion on new media advertising. On the other hand, some Internet brands like Shanghai Yi Supermarket, Alibaba Taobao and Zhenai were interested in new media advertising, while cosmetics/toiletries weaken their advertising on LCD building.

Advertising Expenditure-Industries

All industrial advertising in 2012 decelerated their growth, some of them even have negative growths. Only beverage and alcohol growths overtook 2011, by 12.4% and 31.9% respectively. Alcohol led the market contribution in all industries, by 33.0%. More and more alcohol brands began to concern on developing brand image, advertising become the first choice. 

Advertising Consumption-Brands

L’oreal became the top brand on traditional advertising with 24.5% growth. It was followed by KFC, which traditional advertising was slowed down, with 7.6% growth. McDonald grew 25.0% relatively in traditional advertising. These two Fast-food brands are competing intensely by different strategies. JDB was outstanding in 2012, from 7th position in Top 10 brands on traditional advertising and attractive growth (118.3%).

Editor’s note：Illustrations of the data background

1． Advertising aggregate in all years, mentioned in the report, is the absolute amount of the current year. The yearly growth is based on previous year.

2． The advertising expense is based on the media public price, excluding discount. 

3． Free Items are not included in the ad expense.

4． Monitoring Media includes: TV, Newspapers, magazines, radios, outdoor, metro etc.

5． The monitoring time on TV channel advertisements: 17:00—24:00