TV still the winner in China’s advertising market

Tuesday 02 Aug 2011
Among five communication outlets studied by leading advertising agency Charm Communications Inc, television remains the most popular for advertisers in China, China Daily reported.

During the first quarter, television advertisement generated 81.4 percent (121 billion yuan/US$18.8 billion) of the total advertisement market revenue.

The report found that an increase in viewers led to an increase in the price of provincial channel advertisement slots. Demand for national television (CCTV) airtime increased more than the demand for slots on provincial TV channels. Last year, CCTV generated nine percent (40 billion yuan/US$6.2 billion) of revenue in the TV advertisement market.

“Since television is still the most trusted media platform, advertising on television can increase the credibility of group-buying sites,” the analysts said.

Internet advertising has also increased rapidly with the advent of smart phones and 3G availability. Chinese people are spending more time browsing the Internet everywhere. Similarly, advertisement revenue for Internet sites saw an increase of 35.5 percent increase from 2010’s first quarter.

According to a 2009 report researched by the China Internet Network Information Centre, around 200 million Internet users watch television less frequently than before. Analysts suggested if the brand targets urban and/or young customers, it should advertise on Internet television. However, television is still the first choice for many corporate advertisers because it still enjoys a larger audience base, better credibility and shows better original programmes.

Analysts suggested that rather than competing with each other, Internet television and traditional television should complement each other.