Data

Ad Spend Surpasses $64 Billion During First Three Quarters of 2010

CTR Says Foreign Marketers Like P&G, L'Oreal, Unilever, KFC, and Pepsi Among the Top Spenders

By Published on .

Most Popular
BEIJING (AdAgeChina.com) -- Total ad spend in China reached a record-breaking $64.53 billion during the first three quarters of 2010, a 14% increase from the same period last year, according to CTR Market Research, a joint venture between CITVC and Kantar Group. CTR's estimates are based on rate card values without taking into consideration substantial volume discounts or rebates.

While the growth rate has slowed from 17% in the first half of 2010, that performance was higher than expected so CTR's full-year growth prediction, 14% for 2010, remains unchanged.

The top five ad categories during the third quarter of last year were led by toiletries with $10.07 billion in spending, followed by business services (including retail and beauty services) at $8.40 billion, beverages ($7.72 billion), food ($6.35 billion), and pharmaceuticals ($5.50 billion).

Most of the top 20 advertisers in China during the first three quarters of this year were fast- moving consumer goods manufacturers. During the first three quarters of 2010, Procter & Gamble Co. became the biggest advertiser on China Central Television (CCTV), while Unilever focused on three major provincial satellite TV stations, Hunan, Jiangsu and Anhui.

P&G remained the top advertiser in China during the third quarter, spending $3.75 billion, followed by L'Oreal Group ($1.36 billion), Unilever ($1.25 billion), KFC's parent company Yum Brands ($1.02 billion), Coca Cola Co. ($980 million), beverage maker Hangzhou Wahaha Group ($720 million), instant noodle maker Tinghsin International Group ($680 million), dairy giant Inner Mongolia Yili Industrial Group Co. ($620 million), China Mobile Telecom Group Co. ($600 million) and PepsiCo ($570 million).

A significant restructuring of China's TV market due to new government regulations and advertising and programming changes led to a 12% increase in TV spending. Radio stations were the biggest winner in the third quarter, with 33% growth, followed by newspapers, magazines and outdoor media, at 19% each.

Health food marketers cut spending, especially on TV, leading to a rare reduction in overall ad spend by China's food industry.

China's home appliance industry is the fastest-growing product category, followed by household goods and transportation, which is enjoying considerable policy support by China's government.

Return to the Ad Age China home page here

In this article: