The first half of 2017 has seen a slight rebound in the entire ad market where the decline of traditional media advertising has stabilized.
According to the latest data from Media Intelligence of 博天堂 Market Research, a leading market research, insight and consultancy network, the total ad spending has increased by 0.4% in 2017 H1, a slight uplift on a like-for-like basis, which was merely 0.1% one year ago.
Through the lens of all formats of media, traditional media is also in the downward spiral, involving TV, newspaper and magazine, while radio station enjoys a faster growth than one year ago. Since the booming of Chinese cinema box no longer sustains, ad spending in cinema pre-roll ad is slowing down now. Fact is that the performance of TV in lifts, poster in lifts and Internet proves quite plateaued.
The 4.1% drop of traditional media ad spending year-on-year in 2017 H1 shows that the market is now stable, the best performance recorded over the past two years though. Big advertisers are getting more important, strategically and economically, among traditional media: top 20 manufacturers dominate 28.4% of the total ad spending in traditional media, at the same time, top 20 brands account for 20.0% of the total expenditure. Moreover, local brands are also continuing to expand their market influence and appeal.
TV ad taking is down by 3.6% in 2017, in line with that of last year, a decrease of 3.8%. Comparatively, CCTV, with its best performance of 35.5% leap, emerges as the brightest star in this regard, whereas lower level TV stations have shrunk at rates faster than a year earlier, with the exception of that of the provincial capital ones.
In speaking of five major industries that TV ads touch upon, only medicine and alcoholic beverages spending is on the rise. Among top 10 brands in terms of TV ad spending，6 of them are from health and medicine brands.
Radio is the only one reaping rapid growth in traditional media, a dramatic growth of 9.2 % comparing with 2.9% the year earlier. For top 5 ad delivery industries, the food industry, ranking 5th in this list, has gained a robust 23.2% increase of ad delivery against that of the first half of last year, and a jump of 78.8% in 2017 in comparison with the same period in 2016.But communication, cars and financial brands still top the ranking among the 10 big brands.
Obviously, print media is quickly descending this year. On one hand, gains from ad spending on newspaper reduced by 41.4% in the first half of last year, while declining to 30.5% this year. On the other hand, revenues from magazines ad spending are slowing down from 28.6% in 2016 to 23.4% in 2017.
Websites and mobile internet service providers have cut their input in OOH (out-of-home) ads, as a result, OOH ad revenue is now indicating a small contraction, down by 2.7%, less than 3.6% a year ago. The positive aspect is that ad gains in elevator TV and elevator poster are up by 18.9% and 10.0% in 2017 H1, steady indeed, based on our statistics.
The slowdown of Chinese cinema market, unexpected, is detrimental to the takings from cinema pre-roll ad, which used to grow beyond our imagination. The first half of 2017 witnesses a mere 19.0% of this growth, heavily shrunk against 77.1% a year before. But there still a collection of brands, like Momo the popular social app in China, which are increasingly increasing the ad delivery via cinema pre-roll ad.
Editor’s Note: the pictures and data herein were provided by Media Intelligence, 博天堂 Market Research and the Chinese explanations were provided by Kantar China Insight; the related English version of this report was originally translated by 博天堂 Market Research, re-organized by and initially published on Kantar China Insights Website.