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27 July 2009
Taipei
The ad market in Taiwan recorded a 15.7 percent decrease to a new low of NT$18.38 billion in the 1st half of 2009 , according to the latest report from Nielsen Taiwan. This was a consequence of the financial crisis that struck in the second half of 2008 along with the introduction of the Tobacco Hazards Prevention Act earlier this year. Recording a double-digit decline in advertising revenues, Newspapers (26.2%), Out of Home (24.8%) and Magazines (23%) were the worse performers in the first half of 2009.
Nielsen Taiwan reports that since the outbreak of the economic crisis in the third quarter of 2008, the advertising industry has been shrinking for consecutive quarters. In the first three months of 2009, both advertising expenditure and the numbers of new ad campaigns were down 17 percent compared with Q4, 2008. However, marketers increased their advertising investment in Q2 2009, especially in Newspapers (38.8%) and Radio (22.9%), indicating a recovery could be imminent for the industry.
According to Nielsen, Real Estate is the top advertising expenditure sector, with a recorded NT$2.33 billion spending in first half of 2009. Yet it’s still 39 percent (NT$1.49 billion) down from a year earlier, making it the sector with the sharpest fall. Financial Services, with a 32.5 percent fall, comes next, followed by Transportation, with a shrink of 28.1 percent.
On the contrary, the Computer and Accessories sector was stimulated by the economic downturn, as many consumers would rather stay home to contain their spending. In the first half of 2009, it invested NT$1.34 billion—a 31.4 percent growth that brought the sector up to the third place in advertising spending. The Game Software/Online Game category spent NT$551 million in advertising in the first six months of 2009, registering a staggering 80 percent growth. Also within the sector, the Website Services category got a boost from Star Travel and Yes 123.com (an online job matching website), registering an NT$280 million investment.
Interestingly, the Pharmaceutical/Beauty sector increased its advertising spending to NT$1.56 billion and became the second biggest advertising sector, as various new health supplement products were launched during this period.
Compared with the same period last year, most of the top 20 advertisers showed a decrease in spending. Far Glory Group, although remaining on the top in 1H 2009 with its NT$256 million ad expenditure, decreased its spending significantly (30.4%), compared to 1H 2008. Jaysanliyn Real Estate & Advertising Co. also cut 44.5 percent of its advertising budget, becoming the No. 12 advertiser in 1H 2009.
The first half of 2009 appears to have been particularly lackluster for personal care brands P&G and L’Oreal. L’Oreal Taiwan, the second biggest advertiser in 1H 2009, also cut 10.3 percent ad expenditure to NT$195 million. P&G, which had been the top 2 advertiser in Taiwan for years, moved down to No. 7 with NT$180 million ad spending—a 31.1 percent cut from a year earlier.
On the other hand, Uni-President, Standard Foods and CHUANDA International Co. are the fastest movers in 1H 2009, showing 102.4 percent, 33.3 percent and 592.2 percent growth respectively in advertising investments. Kao Taiwan is another shining star that became the No. 6 advertiser with NT$182 million (+43%) advertising spending in 1H 2009.
Last but not least, Gamania Digital Entertainment Co. spent NT$110 million in advertisement in 1H 2009, which is an astounding 381.2 percent growth.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, 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 New York, USA. For more information, please visit, www.nielsen.com
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