Wednesday, 10 November 2010

Adspend growth in China

WARC News were featuring a report by research company CTR this morning in which they claim advertising expenditure levels are continuing to rise in China though the rate of increase has fallen to 14% for the first three quarters of 2010. Major advertisers such as P&G and L'Oreal continue to dominate adspend.

Television spend was up 12% with channels in China's provinces benefitting from new restrictions on state broadcaster CCTV.

Advertising expenditure on newspapers and magazines was up 19% for both media but the biggest surge in growth came in radio with more ad inventory becoming available (also up 19%)

The outdoor market has suffered a contraction in space because of new Chinese regulations but still grew by 19%.

What is it about 19? In the context of China my mind wandered to the Nineteen Ancient Poems believed to have been written between the times of the Emperors Shun or Xian nearly 2,000 years ago.

From the ancient world of five character poetry to the modern age of short-form messaging, I was surprised to see that the CTR report did not cover digital advertising growth. An eMarketer report predicts that online digital advertising in China will account for 11% of the total ad market by the end of 2010, compared with about 15% in the US.

Clearly we have seen huge digital growth in the UK and Europe. In the recent IPA Effectiveness Awards competition 78% of the papers entered show that clients had used the web in one form or another. You can do your own free analysis of our papers using the Idol (IPA Databank Online) site here.

Display still has the largest share of online ad spending in China but, again as in the UK, search revenue is showing huge growth with Baidu and of course Google dominating that sector.

I also came across this piece in China Digital Times which talks about China's burgeoning blogging and social media platforms and even a new acronym: IWOM (Internet word-of-mouth)

Chris Reiterman, President of OgilvyOne China quotes the 'massive number of bloggers in China' which is why blogging is seen as so important in that market. The China Internet Network Information Center (CNNIC) claims that over 182 million Chinese individuals have blogs and more than 102 million people regulaalry comment on forums and online bulletin boards (BBS) in China. According to their findings more than half of Chinese internet users say that they often expresss their opinions online.

What can we learn from them and what can they continue to learn from us?

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