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27 May 2008
Taipei
Despite global financial markets’ concerns as the US Sub-Prime Mortgage crisis unfolded in the last quarter of 2007, global, regional and local advertisers invested a record US$88.5 billion in main media across 12 key markets in the Asia Pacific region.
Announcing the release of the Nielsen Asia Pacific AIS Report for 2007, Richard Basil-Jones, Managing Director of Asia-Pacific said, “Although confidence among the region’s financial sectors was shaken by early shockwaves from the US sub-prime Mortgage fall out, overall advertising growth across Television, Newspapers and Magazines finished well up on 2006”.
The medium of choice for advertising remained FTA Television, attracting a 69 percent share of media ad spending across the region. Although there was flat or declining advertising activity across some markets, this was more than offset by strong double digit growth in China and India (+16%), and three other markets (Malaysia, Indonesia, and Philippines). Strong advertising support for Newspaper, particularly in India (+50%) Indonesia (+31%) and the Philippines (+14%) helped deliver an impressive 11 percent growth result year on year. Although Magazines continue to develop a niche in some emerging markets, there was a bullish 11 percent lift in advertising spending in 2007, with all 12 markets enjoying positive growth over 2006.
“Driving the overall lift across the region was strong double digit gains across five markets, including rapidly expanding India, which saw a massive 31 percent year on year increase in FTA Television and Print. Although below its average growth in recent years, with a 15 percent lift in ad spending, China attracted a 62 percent share of the region’s entire main media advertising spend.
In fact, when reviewing FTA television and Print results across the region, only two of the 12 markets in our 2007 report - Singapore and Taiwan - actually registered declines (-1%), while Thailand showed flat results year on year,” commented Basil-Jones.
China Poised to Emerge as #2 Biggest Advertising Market Globally
“China’s booming economy and emerging consumerism has for several years now seen it labeled as an advertising juggernaut of the Asia Pacific region, almost out-spending by double all of the other eleven markets measured by Nielsen combined.
However, as a major driver of regional economic growth and with record advertising expenditure growth year on year, China’s status as an emerging advertising market has now been upgraded to being recognized as a major global player. In fact when compared with under two percent growth for three of the four global advertising Superpowers (United States, Japan and the UK) in 2007, China’s 15 percent growth, combined with incremental advertising from Sponsors and competitors during the 2008 Olympics year, should see it emerge in 2009 as the world’s 2nd largest advertising market.
“China and overseas companies were riding the Beijing 2008 Olympic wave during 2007, gaining momentum as the year unfolded. Sports related marketing became one of the most effective marketing strategies in China during 2007 and will continue so in the lead up to the Olympic Games in August 2008. In fact the 32 Olympic partners and sponsors advertising spending in main media reached US$2.34 billion, representing a 23 percent growth over 2006,” said Basil-Jones.
China Mobile, McDonald’s and Coca Cola were the top three advertisers among all partners and sponsors in 2007, accounting for 43 percent of total spending.” Basil-Jones commented.
About Nielsen Media Research
Nielsen Media Research is active in 40 countries worldwide, offering audience measurement, print readership and customized media research services. Nielsen Media Research also provides competitive advertising intelligence in 31 markets worldwide and through affiliates; coverage is extended to more than 70 countries, representing 85% of the world’s advertising spending.
In Asia Pacific
Nielsen Media Research and partners monitor advertising across 12 key markets in the Asia Pacific region: South Korea, China, Hong Kong, Taiwan, Philippines, India, Thailand, Malaysia, Singapore, Indonesia, Australia and New Zealand.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com
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