Olympics to spur media investment growth
The study revealed that Olympic-based content will be a big draw for advertisers with TV as the dominant medium accounting for more than 70% of all spends. FMCG categories will continue to be the mainstay of television particularly the growing beverage sector. Automobiles and mobile phones will also form a big component.
New media formats such as IPTV, pay channels and mobile marketing are likely to get a big boost from Beijing 2008 due to greater ad and subscription revenue as consumers may be more willing to pay for Olympics related content.
Reflecting the shift from traditional passive viewing behaviour to allowing consumers the individualization of viewing choices and media consumption in the digital space, internet and other digital media spends are likely to double in the next two years from US$1.07bn (HK$8.4bn) to US$2.2bn (HK$17.2bn).
Newspaper's share of total spend will decrease from 15% now to 11% by the end of 2008 while spend growth for magazines are expected to rise from 22% in 2007 to 28% in 2008.
Overall ratecard inflation will remain heavy at 15% this year, though this will vary by different markets. Estimates on TV inflation next year vary but the agency predicts 25%-30%.
"China is becoming increasingly important in the global economy. This is the first of an annual study specially commissioned to help our marketers navigate this increasingly crucial market," Bessie Lee, CEO for GroupM China said.
GroupM Related Stories:
- Industry mourns death of Meckoy Quiogue
- GroupM’s Menon to helm MSA
- The changing face of recruitment
- GroupM debuts mobile marketing system
- Mindshare ties up with Masscom on Unilever
- WPP brings audience buying firm to HK
- GroupM to speak at Talent Management 2013
- Puneet Arora to lead GroupM Philippines
- GroupM acquires Filmworks China
- Bessie Lee takes the reigns at WPP China
- Lower-tier cities obsessed with "face"
- GroupM: Don’t forget lower-tiered markets
- GroupM China launches mLab
- Helping HR become social
- Netbooster for WPP and GroupM
- GroupM China appoints chief of operations
- Branding doesn’t start with HR
- GroupM goes full-on digital creative
- Xaxis sets up shop in Malaysia
- China ad spend to hit RMB 440 billion