22 July 2010
There is light at the end of the tunnel for Taiwan’s advertising market as seen in the first half of 2010. According to the latest report from Nielsen’s Advertising Information Service (AIS), the main media ad market in Taiwan recorded a big jump, with 24 percent growth in the first half of 2010*, to reach NT$22.27 billion.
Recording double digit growth in advertising revenue, Newspaper (30%) is the shining star and best performer from the first half, followed by Television (25%) and Radio (24.8%). Overall, all main media enjoyed the benefit of double digit growth.
According to the Nielsen AIS report, the advertising expenditure growth in the first half of 2010 was mainly contributed by Real Estate, Finance/Investment/Banking and Transportation. The growth of Television advertising revenue was led by the dramatic increase in investments from Finance/Banking, Household Products and Transportation sectors. Due to advertisers from the Transportation, Real Estate and Finance/Investment/Banking sectors dramatically increasing their ad expenditure in Newspaper, the total advertising income for Newspaper reached NT$5.7 billion. Magazine’s good performance was also driven by the Transportation, Real Estate, and Finance/Investment/Banking sectors, recording close to 15 percent growth. Radio enjoys a 24.8 percent increase due to Reat Estate and Finance/Investment/Banking advertisers, while Out of Home media has to give thanks to Finance/Investment/Banking and Building advertisers, but also to Film/Media advertisers’ contribution to the 13.5 percent growth.
By industry sector, Real Estate remains the sector spending the most (NT$3.8 billion), and recorded a 71 percent increase over the same period compared with last year, and more than double that of the second biggest advertising sector - Pharmaceuticals/Beauty which recorded NT$1.75 billion (+13.7%). Ranked third, Finance/Investment/Banking invests NT1.52 billion and sees the highest growth rate (71.5%) among the top 10 sector leaders. Transportation and Beauty Aid/Cosmetics spent more than NT$1.3 billion in the first half of 2010, ranked fourth and fifth within the advertising sectors. Computers and Accessories are the only declining ad spending industry. The year-end election will also contribute the growth in the advertising market in the second half 2010.
Building is the number 1 advertising category in the first half of 2010 with NT$3.24 billion ad investment, 73.4 percent growth (NT$1.37 billion increase), followed by Government Institution’s NT$ 570 million (+31.5%) and Automobile’s NT$530 million (+54.7%) increase. This shows that even without the Taiwanese government’s NT$30,000 commodity tax remitted, motor companies are still quite confident for the coming economic recovery. Financial Institution Service is another optimistic category because of increasing NT$190 million advertising expenditure to NT$ 410 million in the first half of 2010. Among the top 10 advertising sector list, PC Game/Online Games is the only sector which cuts back by a 21 percent advertising budget, while there is an economic recovery sign.
Among top 100 advertising categories in the first half of 2010, benefited by the ‘well-being’ trend, Essence occupies the number 1 position of growth rate in advertising spending, with close to 4 times that of the first half of 2009’s spend. The second position is occupied by Investment Agencies.
P&G returns to its top advertising position, spending NT$382 million (+113.9%), followed by the former number 1 advertiser - FarGlory Group’s NT$346 million, and Jaysanlyn Real Estate & Advertising Co.’s NT$307 million (+119.1%).
The first half of 2010 appears to have been particularly positive for FMCG brands. Quaker Taiwan, aggressively communicated with consumers by boosting its advertising investment to NT$251 million (+80.8%), from number 12 in the first half of 2009. Another two FMCG kings, 5th and 7th advertisers, Kao and Unilever also spent NT$236 million and NT$219 million respectively from advertising their products. Hawley & Hazel Chemical also increased its ad budget by 70.5 percent to NT$175 million and became the 13th advertiser.
1. Source:Nielsen Media Research Advertising Information Service (AIS)?
2. Advertising expenditure base on rate card. Using adjusted weights is highly recommended. Please note that the above data is the estimated figures based on the average adjusted weights and the real spending of every specific media or advertisers might be various.
3. Adjusted weights:
2004:FTA 0.1,Cable TV0.05,Newspaper0.58,Magazine0.44,Radio0.59,Out of Home1.00
2005:FTA 0.09,Cable TV0.05,Newspaper0.48,Magazine0.44,Radio0.54,Out of Home1.00
2006:FTA 0.09,Cable TV0.04,Newspaper0.45,Magazine0.43,Radio0.48,Out of Home1.00
2007:FTA 0.111,Cable TV0.033,Newspaper0.39,Magazine0.425,Radio0.445,Out of Home1.00
2008:FTA 0.109,Cable TV0.034,Newspaper0.38,Magazine0.435,Radio0.41,Out of Home1.00
2009:FTA 0.097,Cable TV0.033,Newspaper0.37,Magazine0.435,Radio0.40,Out of Home1.00
2010:FTA 0.111,Cable TV0.035,Newspaper0.385,Magazine0.455,Radio0.40,Out of Home1.00
4. Monitored media:
2004: 58 TV channels ?20 Newspapers, 138 Magazines, 10 Radio stations, 10 Out of Home agencies
2005: 61 TV channels, 20 Newspapers, 127 Magazines, 10 Radio stations, 8 Out of Home agencies
2006 : 69 TV channels, 169 Newspapers, 128 Magazines, 15 Radio stations, 10 Out of Home agencies
2007: 66 TV channels, 15 Newspapers, 124 Magazines, 15 Radio stations, 11 Out of Home agencies
2008: 63 TV channels, 15 Newspapers, 114 Magazines, 15 Radio stations, 12 Out of Home agencies
2009: 62 TV channels, 14 Newspapers, 108 Magazines, 15 Radio stations, 12 Out of Home agencies
2010: 61 TV channels, 11 Newspapers, 106 Magazines, 15 Radio stations, 12 Out of Home agencies
About The Nielsen Company
The Nielsen Company is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related assets. The privately held company has a presence in approximately 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com.
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