China among world top 3 in ad spending

China's total expenditure in advertising in 2005 reached 243.9 billion yuan. Although the lowest in the past three years, advertising spending on credit cards, foreign alcoholic beverages and some new luxury products surged, thus putting China among the world top three following the US and Japan, according to a report released yesterday by Beijing-based CTR Market Research.

The report indicates that China has entered into a slow growth period in advertising spending, but the growth in some luxury products is quite amazing, advertising spent on credit cards grew 80% to 900 million yuan and foreign alcoholic beverages surged 156% to reach 1.1 billion yuan in 2005.

As WTO accession runs deep in China, tariff on imported alcoholic beverages declined, China's huge market capacity and young Chinese pursuit of foreign brands have attracted a lot of foreign wine dealers to make ads in China.

With economic development, China's middle class is being formed. They are in some degree influenced by western culture and in pursuit of western lifestyle. Luxury goods will become a new heat in future market, according to Tian Tao, vice president of CTR.

Although traditional media like TV, newspapers still dominate advertising market, newspapers are losing market share to TV, radio, outdoor and other media. Advertising expenditure in newspapers declined by 1% in 2005 while TV advertising increased by 19%.

Outdoor advertising showed a prosperous trend last year as a series of new media forms like LCD TV in buildings and mobile TV emerged. Expenditure in outside advertising reached 13.2 billion yuan, up 79% in 2005.

By People's Daily Online