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Advertising Expenditure Reaches US$34.3 Billion in 2003

Spending on advertising reached some 283.7 billion yuan (US$34.3 billion) in the Chinese mainland, Hong Kong and Taiwan last year, according to a recent CVSC-TNS Research (CTR) report.

CTR, a leading mainland research firm, released a report early this month jointly with Hong Kong-based AdmanGo and Taiwan-based Rainmaker International Group saying that last year's advertising expenditures in this region, not including the money spent on radio and outdoor advertisement, soared by 32 percent over 2002.

"The figure not only showed the country's advertising has moved out of the impact of SARS but also the vigorous economy here," said Tian Tao, CTR vice general manager.

The Chinese mainland contributed to 54 percent of the advertising spending while Hong Kong took up 13 percent and Taiwan accounted for 33 percent, the report said.

The advertising expenditure increased by 39 percent to 154.4 billion yuan last year in the Chinese mainland, among which cosmetics accounted for the most, followed by foods, medicine, retailing and real estates.

Hong Kong reported spending of 35.6 billion yuan on TV and publication ads last year and Taiwan spent 93.7 billion yuan, according to the report.

Pushed by the CEPA (Closer Economic Partnership Arrangement), the coming Olympic Games and the strong economic growth, advertising in this region will see a favorable year in 2004, said Guo Zhiming, vice president of Zenith Optimedia's Beijing office.

CTR, a joint venture of the China International TV Corp. (CITVC)and Taylor Nelson Sofres (TNS), had first announced a report with Hong Kong and Taiwan research firms.

The three companies will cooperate to provide marketing research service covering the Chinese mainland, Hong Kong and Taiwan, CTR said.

The company has just announced that it plans to list in Hong Kong stock market but released no detailed information and timetable.

(Xinhua News Agency February 13, 2004)

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