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Ad spending jumps 9.3% in first half

Martin Guo

Editor-in-Chief, Kantar China Insights

TV & Movie 07.08.2018 / 18:14

TV sets in Great Wall 2 col

Growth fastest since first half of 2013. Coca Cola replaces P&G to become biggest advertising buyer in China.

In the first half of 2018, total ad spending in China jumped by 9.3% from a year ago, higher than 4.3% increase for the full year of 2017 and much faster than the 0.4% growth reported a year ago, according to CTR Media Intelligence data.

The report says that there was a “structural bottom-out rebound” in the first quarter, which contributed to the significant growth in the first half. As the growth rate is expected to return to normal level in the following months, the expansion in the second half will “show an obvious decline”. 

Across all media formats, traditional media grew 7.2% from a year ago. It is the biggest growth since the first half of 2013 (+8.3%) and the first return to black since first half of 2015 (-5.7%). 



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Among traditional media, ad spending on TV increased 9.4%, radio grew 10.0%, but newspaper lost 30.6%, magazine lost 7.8% and traditional out-of-home lost 11.3%.



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The ad revenue for TV increased 9.4%, while the advertising air time reversed its decline to increase 1.7%.

Last year, the Central TV Station (CCTV) channels rebounded from decline to increase. This year, the recovery has expanded to provincial level satellite TV stations and provincial level ground TV stations.



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Among the biggest TV ad buying industries, beverage (including infant formula) surpassed drug/healthcare to become the largest buyer. Hongmao Pharmaceutical, which was involved in nationwide negative media coverage from January till April, lowered its ad spending by 18.3% from a year ago. However, it was still the biggest TV ad buying brand in China. Also, among the top 10 TV ad buying brands, except Yili (No.4), Lancôme (No. 8) and Want-Want (No.9), all were drug/healthcare brands.

CN Top 10 TV Brands 

The dominance of drug/healthcare brands could be clearly felt among provincial level ground TV stations, where they occupied nine slots of the top 10 biggest ad buying brand ranking.

CN Top 10 TV Brands By Tiers

The growth rates of screen in lifts, poster in lifts and cinema pre-roll remained stable. They were all higher than a year ago.



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From the advertiser dimension, the top 20 ad buying companies accounted for 25.2% of all ad spending. P&G, which has been continuously cutting TV marketing expenses, further reduced its spending by 27% in the first half. Coca Cola, which appeared to be on the opposite direction, spent 21.6% more after increasing its ad spending 27% in the full year of 2017. Coke is now China’s largest ad buying company. Hongmao Pharmaceutical Co Ltd, which as a company reduced its spending by 16.2%, was surpassed by Guangzhou Pharmaceuticals Corporation (+15.1%).

CN Top 20 Companies 2018 H1

From the brand dimension, the top 20 biggest spending brands accounted for 19.5% of the total market. The top three brands were all from drug and healthcare industry: Hongmao Herbal Liquour, Gehong, Tongyitang Pharmaceutical.  

CN Top 20 Brands 2018 H1

 

Source: CTR

Editor's notes

* For detailed definition of ad spending volume, please check the Chinese version article.

* To know more information, data and analysis of China's advertising market, please contact us.

* Please subscribe to our newsletter to receive news alerts.

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