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27 August 2008
Taipei
There seems to be light at the end of the tunnel for Taiwan’s advertising market in 2008. According to the latest report from Nielsen Advertising Information Service (AIS), the ad market in Taiwan recorded a marginal one percent growth in the 1st half of 2008, to reach NT$22.23 billion .
“While not substantial, the growth marks a ‘watershed’ for Taiwan’s ad market, which hasn’t seen any growth for some time. The growth was mainly contributed by political party advertising campaigns without which the 1st half of 2008 ad market would have been a decline of 0.7 percent,” said Tina Teng, Executive Director, Media Research, The Nielsen Company Taiwan Ltd.
Recording double-digit growth in advertising revenues, Radio (19%) and Terrestrial TV (12%) were the star performers in the first half, without which the total ad market would not have recorded its positive trend. Print and Out of Home, on the other hand, continue to struggle.
By category, Real Estate remains the category spending the most (NT$3.85 billion) and recorded an 11 percent increase over the same period last year.
Ranked 2nd, Transportation recorded a nine-percent decline. Meanwhile, the ‘Others’ sector achieved the biggest jump to become the third greatest advertising sector this time round, largely down to advertising campaigns for the two important elections—2008 Legislator Election and Presidential Election. This serves to explain why Kuomintang ranked 13th biggest advertiser with its NT$164 million investment (+2134%) in the first half of 2008. The Democratic Progressive Party also increased their spending by 2938 percent to NT$70 million comparing to the same period of 2007.
Meanwhile FarGlory Group continues to maintain its top advertiser position, spending NT$368 million in 1st half of 2008 despite a six percent decline. Jaysanlyn Real Estate & Advertising Co. and Highwealth Construction boosted their advertising budgets (+812% and +535% respectively) to become the third and ninth biggest advertisers.
The first half of 2008 appears to have been particularly lacklustre for personal care brands P&G and L’Oreal. Coming in at #2 position, P&G spent NT$268 million on advertising, but 15 percent down on the 1st half of 2007. Its rival L’Oreal Taiwan also slashed their spending by 20 percent, moving down from third to fifth position in the biggest spenders list. In contrast, Johnson & Johnson (5th) has substantially increased its ad spend by 50 percent and spent NT$75 million to support the launch of a new range of products from skin care, to shampoo, to disposable contact lenses.
As far as outdoor advertising is concerned, the Real Estate sector remains the major investor in the medium, while electronics brand Sony remains the top spending brand in out of home advertising, investing NT$71 million in OOH, followed by Nike (NT$34 million) and Nokia (NT$30 million).
“The global economy and local business environment will be critical to Taiwan’s advertising market maintaining its positive growth into the remainder of 2008,” Ms. Teng observed.
Note:
1. Adjusted weights:
2004:FTA0.1,Cable TV0.05,Newspaper0.58,Magazine0.44,Radio0.59,Out of Home1
2005:FTA0.09,Cable TV0.05,Newspaper0.48,Magazine0.44,Radio0.54,Out of Home1
2006:FTA0.09,Cable TV0.04,Newspaper0.45,Magazine0.43,Radio0.48,Out of Home1
2007:FTA0.111,Cable TV0.033,Newspaper0.39,Magazine0.425,Radio0.445,Out of Home1
2008:FTA0.113,Cable TV0.035,Newspaper0.38,Magazine0.44,Radio0.435,Out of Home1
2. Monitored media:
2004: 58 TV channels ?114 Newspapers, 138 Magazines, 10 Radio stations, 9 Out of Home agencies
2005: 61 TV channels, 111 Newspapers, 127 Magazines, 15 Radio stations, 11 Out of Home agencies
2006 : 69 TV channels, 109 Newspapers, 128 Magazines, 15 Radio stations, 13 Out of Home agencies
2007: 66 TV channels, 99 Newspapers, 124 Magazines, 15 Radio stations, 15 Out of Home agencies
2008: 63 TV channels, 99 Newspapers, 123 Magazines, 15 Radio stations, 16 Out of Home agencies
3.Advertising expenditure base on rate card. Using adjusted weights is suggested.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (Nielsen Online, which is comprised of NetRatings and BuzzMetrics), mobile insight (Nielsen Mobile), trade shows, and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com
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