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Nielsen China Forum China Ad Spending Growth Slows in Third Quarter
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Nielsen China Forum China Ad Spending Growth Slows in Third Quarter

Chinese advertising spending in third quarter 2010 increased 3% compared to the previous quarter and 7% compared to year ago, reaching 175 billion RMB. This rate of increase, however, slowed considerably after showing double-digit increases in the previous two quarters. The slowdown can be attributed to a number of factors including the effects of the expiration of domestic stimulus policies and sluggish economic conditions in other parts of the world.

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Top 10 Total Ad Spending Industries (TV/Newspaper/Magazine/Radio)

While total ad spending (combined TV, Newspaper, Magazine and Radio) in the toiletries, beverages and pharmaceuticals industries topped the list for the biggest quarterly outlay, the automotive industry tops the list for the biggest year-over-year increase of 37%. Ad spending in the Foodstuffs, Retail & Service and Household industries are also showing healthy increases compared to year ago spending.

The pharmaceutical industry decreased spending in quarters one and two, down 11% and 2% respectively, due largely to a cutback on television advertisements.

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Top 10s by Advertising Sector

Top 10 TV Advertising Spending Industries Ad Spend (Million RMB) Year-Over-Year Quarter-over-Quarter
1 Toiletries 27,560 25% 4%
2 Beverage 23,091 3% -13%
3 Pharmaceutical & Health Product 19,871 -12% -1%
4 Business/Industrial/Agriculture 14,257 6% 0%
5 Foodstuffs 11,128 34% 11%
6 Retail & Service 6,734 23% 10%
7 Household 6,649 17% -10%
8 Automotives 5,210 39% 10%
9 Telecommunication 3,467 -26% -7%
10 Clothing & Accessories 3,288 -13% 1%
Others 18,333 5% 23%
Source: The Nielsen Company.

Top 10 Radio Advertising Spending Industries Ad Spend (Million RMB) Year-Over-Year Quarter-over-Quarter
1 Automotives 553 72% 14%
2 Retail & Service 329 24% 14%
3 Finance/Investment/Banking 329 40% 18%
4 Pharmaceutical & Health Product 237 24% -5%
5 Telecommunication 229 21% 18%
6 Beverage 196 -1% -12%
7 Entertainment & Media 182 -19% -1%
8 Property 178 45% -4%
9 Business/Industrial/Agriculture 152 3% 1%
10 Household 107 47% -2%
Others 438 4% 14%
Source: The Nielsen Company.