The introduction of new regulations to limit commercial airtime across China is likely to result in a 24 percent jump in TV advertising rates.
Starting Jan 1., the State of Administration of Radio, Film & Television will reduce commercial airtime to 12 minutes per hour.
Tao Tian, vice president of CTR Market Research, expects the TV ad rates to jump 24 percent after the new rules are implemented.
“We forecast that TV advertising rate cards will be increased at an average of 24 percent, given the limitation of TV ad resources,” he said, adding approximately $1.84 billion worth of advertising expenditures would go elsewhere.
His warnings come as China’s overall advertising expenditures for the first three quarters of 2009 jumped 12 percent to $54 billion, outpacing the country’s 7.7 percent GDP.
CTR data shows that advertising growth is being reinforced by domestic demand expansion, reflecting the confidence of the marketers coming out of the downturn.
Topping the ad spending charts is a who’s who of multinational clients including Procter & Gamble and Unilever, which spent $2 billion and $1.3 billion, respectively.
In the first three quarters, TV remained the strongest medium, with a 78 percent share of the media market. TV also recorded the strongest growth of 14 percent.
Outdoor media regained its growth at 6 percent following a sharp drop caused by restrictions during several big national events, including the Beijing Olympic Games, in 2008.
The newspaper and radio sectors continued to show decelerated in growth, while magazines dropped slightly as compared to the same period last year.