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Survey: China's Ads Market Surges 36%
Latest information from ACNielsen Media International shows that ads spending by Chinese industrial and commercial enterprises in 2000 had grown to 80 billion yuan. The first ten brands topping the list of ads spending are products all home produced: health food and Vitamins, patent medicine, real estate and rental deal, medicine for relieving cough and cold, telecom equipment and services, shampoos and hair conditioner, skin cream, Chinese wine, computer products, mobile phones and fittings.
China's ads spending in 2000 surged by 57 percent over 1999. Deducting the figures achieved in the areas expanded by ACNielsen, the actual growth was 36 percent.
Philip Rich, executive director of ACNielsen Media Management, said that the top ten brands with the largest amount of ads spending are all China native products, accounting for 70 percent of the market." Yet Coca-Cola, world famous brand, only ranks 20 in ads spending in China.
Rickety performance by network companies is still presented though their ads spending had been at a peak level in the second quarter of last year. For disputes rose over immoderate investment in network companies, ads spending by network companies took a sudden turn and became worse rapidly. Despite the fact that ads spending from April to June jumped by 231 percent over the first quarter of 2000, costs by the 3rd and 4th quarters fell 21 and 44 percent in succession.
Nevertheless, "network companies reported the quickest growth in their ads spending in China last year which invested 516.2 million yuan on TV programs and press advertising, seven times that of 1999". According to Philip Rich, "With the rising of investors' confidence after an adjustment made of stock markets, network companies' ads spending is expected to leave off gradually in the first half of 2001."
In terms of the entire market, medicine for health care will lead ads spending. Actually, three of the top ten advertisers are dealing with medicine for health care. Ads spending on health food and Vitamins have been up to 9 billion yuan, accounting for 12.5 percent of the entire ads market.
Background: AC Nielsen is a world famous company engaging in market research. It provides services in connection with market trends, consumers' behavior, tradition, rising media measurement and analyses in over 100 countries the world over.
By PD Online Staff Member Du Minghua
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