31 Jan 2013

China's traditional media advertising market growth dropped below '5' in 2012

The GDP growth rate in 2012 was 7.8%. This is the first time for the annual GDP growth rate lower than 8% since 1999, and the annual growth rate becomes the lowest since 1998. According to the latest CTR publication on China adspend data, traditional advertising annual growth in China market 2012 was 4.5% only, which was the lowest in the recent 5 years. With the influence from economic environment, the forecast on China advertising market depression in the beginning of 2012 came true eventually at the year-end.

The advertising growth in traditional outdoor media was exhausting, with 2.0% growth over 2011. With the rapid development of the urban railway system in Beijing, Shanghai and Guangzhou, Metro and light railway advertising showed high growth with 13.2% annual increase rate over 2011.

Although the result in new media varies in the whole 2012, its entire growth slowed down. Public transport TV and LCD building adspends were 2.2% and 14.8% respectively. Fast-food restaurant brands like the leading brand KFC still have the passion on new media advertising. On the other hand, some Internet brands like Shanghai Yi Supermarket, Alibaba Taobao and Zhenai were interested in new media advertising, while cosmetics/toiletries weaken their advertising on LCD building.
Advertising Expenditure-Industries

All industrial advertising in 2012 decelerated their growth, some of them even have negative growths. Only beverage and alcohol growths overtook 2011, by 12.4% and 31.9% respectively. Alcohol led the market contribution in all industries, by 33.0%. More and more alcohol brands began to concern on developing brand image, advertising become the first choice.