China's Advertising Industry

CHAPTER 3

PROFILE OF THE INDUSTRY

3.1 An overview of advertising industry

Advertising is usually used to influence the consumers to consumer a product or service. Advertisers always try to establish brand image and loyalty through advertisements. Advertising is the communication tool; it is giving product or brand information to the consumers. Print Media (Newspaper, magazines), Television, Radio, Cinema, Outdoor and Internet are the main mediums used for advertising. Advertising is often located by an ad agency on behalf of a company. Advertisement is often placed anywhere audience can easily access information like walkway, railway stations, on the sides of buses (transit advertisements) etc…

Wall or rock painting and Papyrus were

The internet and Television frequency is increasing day by day, so that the companies can approach people very quickly. Digital revolution helps the companies for promoting their products globally. The advanced communication facilities are the major factors that are leading the world without boundaries. It is very essential for a company to communicate quickly with their consumers to prevent the increasing competition. New technology platforms will help the companies for quick communication.

United States, Germany, Spain, France, China, Japan, Canada, Italy, Belgium and the United Kingdom are the major worldwide advertising markets.

3.2.1 Recent trends

China’s advertising industry is expected to expand by 15% and close the gap on the US advertising industry. Chinese companies are increasingly investing in brand awareness; this will boost the demand for advertising. Pharmaceuticals are the most spending sector followed by clothing manufacturers.

In 2016, internet and Television advertising are projected to account 60% of total global advertising revenue. Television advertising will have the domination in developing countries. It can be used to reach rural areas.

The internet advertising is projected to generate 29% of revenue. Digitalization is the major reason for this

The present government is initiating some programmes for developing the rural people like, e-commerce players flipkart, snapdeal, patym have signed MoU with government to ensure the village reach as part of Digital India initiative.

The recent reports show that the print media expenditure is going down considerably. The print media expenses will be based on the circular volume of the newspaper. Print media is the best option for targeting local and regional markets. Now many companies are using Television as a prime advertising platform. Television advertisement cost will be based on the slots. If it is a prime slot, the cost will be very high. In India FMCG is the largest advertisement spending sector. All most 30% of advertisements are contributing by FMCG sector. FMCG players are investing heavily in television