⇨China's Advertising Market Will Maintain Slow Growth at 6 Percent in 2014....

♝ Ad spending
growth expected
to rise

By Wang Zhuoqiong (China Daily)
Updated: 2014-02-26 08:46

China's advertising market will maintain
slow growth at 6 percent in 2014, an
industry report forecast, pointing to
another year of bright opportunities for
Internet businesses and a struggle for
traditional outlets.
Total advertising spending through the
Internet grew 46 percent in 2013. It was
the fastest-growing medium last year,
according to the China Media and Market
Trends 2014 report, released by CTR and
Kantar Group, a leading market research,
insight and consultancy network.
Total advertising spending in 2013
increased by 6.4 percent year-on-year, a
slight recovery from 4.5 percent the year
before.
Advertising spending in the television
sector increased 9.6 percent last year,
with total advertising time down 7
percent, pushing up advertising prices and
creating rapid growth in multiple
advertisement formats such as inserts
and events.
The growth rate of traditional print media
such as newspapers and magazines
declined by 8 percent and 6.6 percent
respectively. Radio and outdoor ads
maintained a slight increase.
Last year the number of media outlets for
advertisers declined because different
platforms created clearer positioning.
CTR's research showed the percentage of
advertising companies that selected five
separate media outlets was down to 68
percent from 80 percent, revealing
further consolidation.
Benedicte Nilsson, strategy director and
head of live return on investment at
ZenithOptimedia China, said the
slowdown in the growth of advertising
expenditure could be a result of the
market shifting. "The slowdown is
mini mal," she said. "Digital and mobile
media are key areas and are very
promising."
Nilsson is confident about the advertising
market in China because growth is
assessed against the emerging Chinese
middle-class families who have more
purchasing power and are becoming
targets for advertisers. The growth of the
market is therefore led by sectors like
consumer goods and personal care
products,where both local and
international brands are competing for
their share of the pie.
ZenithOptimedia predicts global
advertising expenditures will grow by 5.3
percent in 2014, reaching $532 billion by
the end of the year. China is forecast to
be the second-largest contributor of new-
advertising expenditures, making up 16
percent of additional advertising dollars
from 2013 to 2016, behind the United
States' 26 percent of the $90 billion
expected to be added to global
advertising expenditures.
In 2013, total advertising expenditure in
China reached $40.94 billion, ranking it
No 3 in the top 10 market, according to
ZenithOptimedia.
The marketing consultancy has forecast
bright trends for digital media, highlighted
by the growth of online video, fueled by
people flocking to online video sites to
watch TV content rather than regular TV.
Mobile emerges as a key battlefield for
advertisers. They are targeting a higher-
income customer who can afford a
smartphone or tablet, ZenithOptimedai
said.
The arrival of 4G technology will
revolutionize users' interaction with
mobile phones, according to CTR's
findings, which showed 20 percent of
regular Internet users refresh their
mobiles 96 times a day, equivalent to an
average of six times every waking hour.
Nearly 70 percent of mobile users
regularly concentrate on just 10 mobile
applications.