Traditional ad market sees 2.9% drop in 2015
Last Updated: 2016-11-07 10:09 |
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By She Ying

According to Report on China's 2015 Advertising Market released by China Advertising Association, China's advertising market ended its year of 2015 by a drop rate of 2.9 percent, which is the first decrease since the data release by CTR Market Research. Wherein, the traditional media saw the major decrease and its decreased revenue by 7.2 percent further enlarged compared with that in 2014. On the contrast, costs of Internet advertising, commercial building advertising and cinema media advertising increased by 22 percent, 17.1 percent and 63.8 percent respectively which marks that new magnates of advertising channels are arising.

The traditional media experienced a hard time in 2015. The advertising revenues of newspaper, television, radio, magazines and traditional outdoor billboard all fell down. Under the dramatic impact of transformed information model, the spending on television advertising, magazine advertising and newspaper advertising fell off a cliff by 4.6 percent, 19.8 percent and 35.4 percent separately. Meanwhile, the advertising on e-commerce platforms and radio also dropped after enjoying the bonus produced by private cars.

By contrast, the rising momentum of Internet and commercial building advertising has maintained and especially the cinema media representing the present entertainment demands has outshined others and stood out from the sluggish advertising industry, achieving a significant increase of 63.8 percent in 2015 compared with that in 2014. Community and elevator poster advertisements have also seen rapid increase.

"Generally speaking, the lower the interference degree is in the advertising space, the higher the acceptability passivity of the audience will be, given the users are forced to focus on the ads in such a circumstance", expressed Chen Yan, chief strategy officer of Focus Media. "Such media as cinemas and elevators are all highly enclosed coupling with the features of network distribution and high-frequency exposure, which is also an important factor for advertisers to favor such media."

The preference to advertising in enclosed spaces will expect a long-term increase trend. According to Chen, such outdoor advertising resources as cinema, metro, building, airport, high-speed railway and bus have arisen to the first outdoor media choice of advertisers and in particular, the cinema resources are at the most bullish back in 2016 by advertisers whose selection preference greatly increased to 53 percent from 49 percent in 2015. In addition, even most advertisers expressed that they would take cinema as the first choice for outdoor advertising when the advertising distribution budge is enough.

Internet advertising is in full swing at present. According to Annual Monitoring Report on China's Internet Advertising in 2016 released by iResearch, China's Internet advertising market in 2015 was valued at roughly RMB 209.37 billion yuan, an increase of 36 percent year on year and it is expected to surpass RMB 400 billion yuan up to 2018.

However, the Internet advertising itself has also shown a differentiated development trend and in terms of specific channels, the growth of the mobile end is more promising. In 2015, China's mobile advertising market scale reached RMB 90.13 billion yuan, a year-on-year increase of 178.3 percent, showing a robust growth trend. The overall growth rate of mobile adverting is far higher than that of the Internet advertising market. It is expected that the market scale of China's mobile advertising will surpass RMB 300 billion yuan by 2018 and that the penetration rate of the Internet advertising market will be around 80 percent.

According to chairman Yang Hongfeng of China Advertising Association, the proportion of advertisers selecting the mobile end for Internet advertising is approaching that of the PC end and most advertisers expressed that preference would be given to mobile-end advertising if there are increased budget.

From the perspective of form, the Internet advertising is also experiencing differentiation. In 2015, search advertising took the largest share in Internet advertising with a proportion of 32.6 percent, followed by e-commerce advertising with a proportion of 28.1 percent. Pre-movie advertising kept rising with a proportion of 8.2 percent. In the following years, search engine, e-commerce website and display advertising of other types will share the market.

However, Chen also reminded that the simple hard advertisement effect is declining. "Propagation has broken people's time and attention into pieces and people's life scene has entered a new era of changing sceneries. Placed hard ads by force leads to poor user attention and acceptance and tend to be ignored immediately, thus generating rather limited brand propagation effect", said Chen. He also mentioned that it is necessary to guide users' interest, construct access and massive exposure based on different scenes while fully respecting consumers' use experience.

Zhang Guohua, Director of Advertising Department of SAIC, cautioned the advertising publishers and advertisers to keep on the right track while changing from "hard" to "soft" to avoid deflection. The Interim Measures on Management of Internet Advertising has been enforced since September 1 this year and included the ads released on WeChat, Tou Tiao and other client terminal into the regulation scope of Internet advertising. "The Advertising Law has expressly banned the release of advertorial. Where an ad is released in the form of original graphics through a public number, "ad" must be marked, or else punishment will be given", said Zhang Guohua. At present, SAIC and Tencent have concluded an agreement to monitor and supervise ads released on WeChat public numbers.

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