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28 January 2010
Taipei
The advertising market in Taiwan recorded a 7% decrease, to reach a new low of NT$39.42 billion in 2009 , according to the latest report from The Nielsen Company, Taiwan. This was a direct result of the financial crisis, coupled with the effect from an introduction of the Tobacco Hazards Prevention Act in 2009.
Due to the cut in advertising budget from the Real Estate industry, Luxury Goods and Tobacco Category, Magazine suffered the most, posting 16.4 percent decrease, followed by the ‘Out of Home’ category, which saw a decrease of 15.1%, and the newspaper sector also showed a decrease of 9.7%. In contrast, there was no great variance from both the Television and Radio sectors.
The Nielsen Company Taiwan reports that since the start of the economic crisis in the third quarter of 2008, the advertising industry has been shrinking over consecutive quarters. In the first three months of 2009, advertising expenditure was down by 18.4% compared with Q4 of 2008. However, since consumers’ confidence is beginning to increase and consumers are becoming more willing to spend; marketers increased their advertising investment by more than 20% in Q2 of 2009. In particular we saw an increase in spend occur in the Cable TV, Newspaper and Radio markets.
Both advertising expenditure and creative campaigns showed positive performances in Q3 and Q4 of 2009. This is largely due to an increase in advertising investment from Real Estate and FMCG advertisers, as well as a push for marketing via mass media, Pharmaceutical and Beauty industries and the government.
According to Nielsen Taiwan, though hit by the global financial crisis in early 2009, the Real Estate industry continues to be the number one sector employing advertising expenditure. It recorded NT$5.59 billion in spending in 2009, and this is mainly due to the loosening of cross strait restrictions during the second half of the year.
Even though these figures are impressive, it is still 10.7% (NT$ 670 million) less than figures seen from the previous year. This made it the sector which experienced the sharpest fall. Serious repercussions from economic crisis meant the Transportation industry cut back 17.9% (NT$510 million) of its advertising expenditure to NT$2.35 billion. Financial Services also shrank their budgets by 15.5% (NT$390 million), to produce a total profit of NT$2.12 billion.
The Pharmaceutical and Beauty industry is the 2nd biggest advertising sector, with NT$3.11 billion investment (up 17.7%), which also meant it was the number 1 growth sector in 2009, followed by the Food (5.3%) and Computer & Accessories sectors (4.7%).
Stimulated by the economic downturn, the Game Software/Online Game spend was NT$887 million for advertising alone in 2009, and registered a staggering 83.1% growth rate. Also within this sector, the Website Services category received a boost from Star Travel, Yes 123.com (an online job matching website), Yahoo! Shopping Mall, PayEasy and 1111 (an online job matching website), registering a NT$550 million in investment.
Interestingly enough, half of the top 10 growth advertising categories belonged to the Pharmaceutical/Beauty sector. These categories’ marketing investment was also illustrated in their sales performance figures. According to the Nielsen Retail Index; Health Food, Wheat Powder and Adult Cereal sales’ value had double-digit growth.
Though impacted by the financial crisis, Far Glory Group remained on top in 2009 with its NT$606 million in advertising expenditure. The Far Glory Group decreased its spending only slightly (1.1%), in comparison with 2008 figures. On the other hand, Jaysanliyn Real Estate & Advertising Co. cut 35.9% of its advertising spend (NT$148 million), becoming only the 13th biggest advertiser in 2009, down from being the 4th biggest advertiser in 2008.
P&G became the 2nd biggest advertiser in 2009, cutting nearly 23% of advertising expenditure to NT$ 486 million. L’OREAL, which had been among the top 10 advertisers in Taiwan for years, moved down to rank 11th place with NT$317 million advertising spend, a 9.1% fall from the previous year.
However, FMCG companies occupied several spaces in the top 20 advertisers’ list in 2009. Uni-President increased its advertising budget by more than 100% to NT$227 million in 2009 and became the 3rd placed advertiser. Unilever, another shining star, became the 5th placed advertiser, with 35.3% in advertising growth, to reach NT$ 373 million in 2009. Kao Taiwan, the 6th placed advertiser, also added 23.3% in advertising spend to reach NT$368 in 2009.
Standard Foods was another fast mover in 2009, due to various new product launches and its health supplement function foods. Its advertising investment grew by 25% to NT$334 million in 2009.
However, the top 3 telecommunication companies decreased their advertising budgets. Taiwan Mobile decreased its advertising expenditure by almost 32.2% and ranked at the bottom of the Top 20 advertiser list with only NT$225 million in spending. Far Eastone Telecommunications also cut its advertising spend by 22.8% and dropped to 19th place. Though ChungHwa Telecom was ranked as the number 4 advertiser in 2009 with its NT$381 million advertising expenditure, it decreased its spending significantly in 2009 dropping to 19.2% in comparison to 2008 figures.
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 The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com
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