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12 Jul 09 China Outdoor Advertising Market under the Economic Shocks(3)

Advertising industry ups and downs

In the economic climate of tight, short, frequent, fast mode of popular propaganda. Big pieces of the past legislation marked a LOGO, a cast image of the strategy for several years, in the round after round of training has been the impact of high pressure. Among them, the first to spread to large outdoor advertising is the real estate industry. Data show that the weak real estate invest, on the one hand the first time from Beijing ranked in the top ten out of the industry, on the other hand, in Guangzhou the same period last year also reduced the amount of four into.

Domestic automobile industry has not been an international brand impact of the insolvency crisis, but at the beginning of 2009 ushered in “暖春.” According to the National Bureau of Statistics data, from the end of last year, many countries introduced policies to stimulate the automotive consumer countries, as well as the beginning of the fuel tax reform in China, car sales rose year-on-year, inspired the confidence of automobile manufacturers. Transit data show car brand basic outdoor publicity strategy in line with sales trends, Beijing-type car ad trend has also shown up. In Shanghai and Guangzhou, despite the impact of demolition license, single and airport media obviously low budget, but the video media, an increase of 2 times higher than the same period last year.

Before and after the Spring Festival, posts and telecommunications industry to tighten the purse homeopathy – Beijing’s mobile phone brand and website advertising cut the same period last year, the website of Shanghai brand advertising and telecommunication services fell down the overall lead, Guangzhou Baiyun Airport in the mobile, telecommunications, image ads for the same period last year by八成. Nevertheless, the state’s liberalization of 3G services, indicates that the major network operators around the business started advertising the upcoming battle.

In clothing, home appliances, food and other industries have been transferred from the primary market advertising budget at the same time, the Shanghai advertising cosmetics and personal products are discharged into the top ten. According to Bureau of Statistics data, said some high-end consumer goods as a result of lower import tariffs, imports increased related products. Shanghai Automotive, watches, cosmetics, cameras and digital cameras and the amount of imports showed a high-speed growth. From the days of observation on the outdoor market, also can be seen, Shanghai cosmetics and watch the amount of outdoor advertising grew faster than advertising brand in Beijing and Guangzhou. Locked in the main target audience of white-collar subway, especially in cosmetics, the media in the subway, running as high as 130 percent year-on-year growth. (See Figure 7, Figure 8, Figure 9)

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09 Jul 09 China Outdoor Advertising Market under the Economic Shocks(2)

The status  can not be optimistic about the traditional outdoor

Training experience in 2008,global economic downturn, the Beijing vitality of outdoor media. Shanghai, the 2010 World Expo approaching, the Government issued a series of management regulations, the ship, private cars, aircraft carriers, such as advertising, as well as bus body, shelters and rail transport media 11 made a detailed definition and specification. According to Xinhua, said information, at present, Shanghai has a total clean-up all types of outdoor advertising regulations and licensing due more than 7000 pieces. Look at Guangzhou, according to Analysys International said that to meet the Asian Games, from the beginning of October 2008, the local urban management has been one after another to remove a total of 32,085 square meters of outdoor advertising.

The three traditional outdoor media delivery with the same period last year, a majority of negative growth, the media business is more dismal. Excluded from the scope of data collection and the media to expand the impact of price increases, Beijing outdoor media, the net increase in direct proportion to the only shelters and train stations. Early in 2009, shelters media promotions introduced, customers have increased to enlarge the budget, the actual running of the media, an increase of 3% of the net. In contrast, a single media, metro, airports and online media have dropped, put the net down 17% year-on-year, 27%, 30% and 46% respectively. (See Figure 4)

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Shanghai government clean-up of outdoor media and direct impact on the transformation of 1-quarter data. At present, apart from Hongqiao Airport to increase the number of the media, other media are in reducing the number of resources and reduced the media pulling prices. Chart shows, in addition to the airport, the other media have put the amount of negative growth. Among them, the shelters, railway stations and Internet media delivery shrinking net more serious, decline by 21%, 24% and 37% respectively. (See Figure 5)

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Guangzhou outdoor running with the media to reduce the number of continuously shrinking. Among them, a single media, metro, bus bodies and online media ads are net year-on-year decline in more than 15%. Station of the media put the amount of rise in the second half of 2008 primarily due to rising media prices, price published cases up 120 percent over the same period. High factors removed, the media, the actual net worth fell 31 percent year-on-year. (See Figure 6)
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06 Jul 09 China Outdoor Advertising Market under the Economic Shocks(1)

In January 2009 on the north wide outdoor -2 recalled the status quo of the 2008 Beijing Olympic Games has attracted worldwide attention so people excited, but also boost the advertising market of high growth, television media have reaped the profits. In 2009, according to Nielsen data released during the first quarter show, television, newspapers, magazines three major media advertising to reach 121 billion yuan total, in 2008 than two percent increase over the same period, television advertising accounted up to 85%.

Focused on the outdoor advertising market, Beijing in 2008 as the host, in addition to allowing a sponsor of the scenery, the majority of the brand because of the media reduced, limited delivery area and many other adverse factors, the volume of little ads.  According to transit data, January-February of 2009 put the net down 82% year-on-year, has plummeted.  Although the Shanghai and Guangzhou by the Olympic Games an opportunity to enlarge the same period last year advertising budget by 7% and 8%. May be the just-concluded Olympic Games, the two markets respectively under the banner of the Shanghai World Expo and Guangzhou Asian Games banner, follow the practice of the Beijing Olympics, the start of the outdoor media cleaning one by one.  In addition, government regulation of the global financial crisis struck, an outdoor market in even worse if the status quo.North month starting in 2009, extensive advertising share of the three places accounted for 49% of the total market, up four percentage points down. As follows (see Figure 1, Figure 2, Figure 3), Beijing, Shanghai and Guangzhou, all the way on sharp drop in the amount of running, outdoor ring cost more than 13 percent drop, respectively, 17% and 10%.

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