Seoul--Marketers that advertise in China's state-owned media will benefit from the "authoritative" information that the media receives under the government's "guidance," Zhu Xinmin, the secretary general of The People's Daily newspaper, said at the 35th IAA World Advertising Congress.
Foreign marketers will also find that it costs little to advertise in mainland China, he said.
Since China began reforming its economy in 1978 by introducing a "socialist market economy", the number of state-owned TV and radio stations, newspapers and magazines has mushroomed.
"China's four major kinds of media are run by the state. They spread authentic, serious, scientific facts, fair and authoritative information under the state's overall guidance. They have won the people's trust for a long period of time. And as a result, advertisements carried in such media enjoy high prestige and have high impacts," he said.
The executive from China's largest daily newspaper said that some domestic businesses have increased their sales through advertising, including Kongfujia liquor, Li Ning brand sports clothing and Little Swan washing machines. However, not all local enterprises have embraced advertising. "There are still some Chinese companies not attaching great importance to advertising, thus providing a very good opportunity for the foreign companies to compete."
In the past advertising was viewed with suspicion, he said. "People used to think that advertised goods were over-stocked products. Nowadays they are gaining reference from advertisements to guide their consumption."