Media in China
MindShare China
2003
Market Size
Population: billion
Area: million
4 Municipal Cities
23 Provinces
2 Special Administrative Regions ( Hong Kong, Macao )
5 Autonomous zones
259 cities at prefecture level
400 cities at county level
Media At a Glance
2002
TV 360
Radio 306
Newspaper 2,137
Magazine 9,029
**
Media Development Process
Moving from unregulated to regulated.
Rapid change & development in the market place…
But, media is still controlled by the Government.
Censorship is a must.
Buyers
Sellers
Regulated
Unregulated
1996
1997
2002
2005
Media Development
Immature / Messy
Sellers’ Market
Lack of research
Lack of systems
Advertising Price
- High inflation
- Pre-payment
- 3 tiers rate structure
Planning & buying based on gut feel & experience
Missing spots
More steady
Market oriented
Improved research
Systematic management
Advertising Price
Steady inflation
Improved payment terms
One tier rate
Room for negotiation
Systematic / Strategic Planning & buying
Higher guarantee on spot appearance
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Maturing market
Competitive market
More rounded research
Advertising Price
Inflation / deflation
Complete pricing &
payment system
Market & result oriented, ROI planning & buying Tools
High protection on client’s benefit
Evaluation of results
Annual %
Media Inflation Trend
Source: China Statistical Yearbook/MindShare
Media Merge
More Rounded Research Information
DATA TYPE SUPPLIER COVERAGE
TV Ratings People meter Nielsen Media Research 11 markets
Diary based Nielsen Media Research 11 markets
People meter CSM 19 markets
Diary based CSM 73 markets
Provincial Panel (diary) CSM 19 provinces
TV spot monitoring Nielsen Media Research 133 markets
CTR 177 markets
Ad Expenditure TV/Print Nielsen Media Research 133 markets
TV/Print CTR 177 markets
Media Habits TGI-CMMS Sinomonitor/BMRB 30 markets CNRS CTR 36 markets
*ACNielsen are now known as Nielsen Media Research
**
About Media Expenditure…
Advertising spend experienced a robust growth
Total : RMB 139,472 million
US$ billion
Source : Nielsen Media Research
Total : RMB 198,646 million
US$
**
2003 Top Ten Section
National
Pharmaceutical remained the leading
spending section in this market
Source : Nielsen Media Research
RMB (‘000)
**
2003 Top Ten Super Brands
RMB (‘000)
Source : Nielsen Media Research (National)
2 P&G brands in the top 10,
The others are local brands.
**
About media Scenario - by media...
City
(Local)
Province
Nation wide
Structure of China Mass Media
National Provincial Local
This structure applies to TV, Newspaper and Radio
Media Consumption Habits
Source: CMMS 2003 Spring, Target: Male 20-40
TV
TV is still a dominant medium in China
- highest coverage --- Average 90%
- highest share of spending among all media ---70%+
TV Coverage by Market
/Yesterday
%
Source: CMMS 2003 Spring (30 cities), Target: Male 20-40
TV - Basic statistics
No. of color TV sets/100HH in Urban areas 116
No. of TV sets/100HH in Rural areas 102
Television coverage of population 93%
Viewing Behaviour
In China, the prime time range is within 18:30 to 22:00
Higher viewership on weekends
with the exception in South China, . Guangzhou, where the viewership is higher on weekdays
Shanghai
Rating %
Source: Nielsen Media Research 29 July - 4 August
Beijing
Rating %
Source: Nielsen Media Research 29 July - 4 August
Guangzhou
Rating %
Source: Nielsen Media Research 29 July - 4 August
Watching TV - the key leisure activities
minute
minute
Source: CSM
Average 3 hours / day
No gender basis,
elder watch more
City TV
- City cable
- County TVs
Provincial Satellite TV
Provincial TV
- Cable
National TV
(CCTV)
Structure of TV
National Provincial Local
The National Channels
CCTV 1 News & General (新闻、综合)
CCTV 2 Economic, Life, Service (经济、生活、服务)
CCTV 3 Variety (综艺)
CCTV 4 International (国际)
CCTV 5 Sports (体育)
CCTV 6 Movies (电影)
CCTV 7 Children, Military, Agriculture (少儿、军事、文艺)
CCTV 8 Tele play (电视剧)
CCTV 9 English (英文)
CCTV 10 Technology, Education (科教)
CCTV 11 Drama (戏曲)
CCTV 12 West (西部)
CCTV News News (新闻)
Extent of coverage
CCTV 1-2 Nationwide coverage via terrestrial transmitter
CCTV 3-12 Coverage via cable network nationwide
Provincial Satellite Coverage via cable network nationwide
Provincial TV Provincial coverage via terrestrial transmitter
Prefecture City TV City and surrounding area
County City TV City and surrounding area
CCTV
Anhui
Buying TV in Anhui Province
AnhuiTV
Buying TV in Anhui Province
JiangsuTV
Buying TV in Anhui Province
Local HeifeiTV
Buying TV in Anhui Province
Prefecture City TV
Buying TV in Anhui Province
County City TV
Buying TV in Anhui Province
One city represents one TV market, therefore, there are 660+ TV markets across the country.
On the one hand, they are separated from each, on the other hand, they are inter-related because of national, provincial / regional spill over interference
A distinctive phenomenon...
Newspaper
Newspaper is a high penetration medium in China
- high coverage --- 70%
- improving medium in terms of printing quality and range of variety
Newspaper Coverage
/Yesterday
Source: CMMS 2003 Spring, Target: Male 20-40
City
circulated
Provincial
circulated
Nation wide
circulated
Structure of the Newspaper
National Provincial Local
Newspaper Today
Over 2,000 titles published
Evening titles are more popular than morning titles
Local titles gained importance
More relevant to local life style
More tailor made for local interest
Nation-wide / provincial titles loosing popularity
More of government propaganda
Improvement in printing quality and higher flexibility in creative format
No circulation audit
Strict & subjective editorial / ad. censorship
TV + Newspaper Dominant media in China
Over 80% coverage in most markets
98% share of total adex
Other media Underdeveloped, developing or forgotten
Magazine
A medium with high development potential
- International publication are continuing to expand in China which leads to increased media vehicles and improved print and editorial quality
- Majority of the titles are nationally circulated and thus not as
locally focussed as TV and Newspapers
Magazine Coverage
/Past Month
Source: CMMS 2003 Spring, Target: Male 20-40
Magazine Today
Local Titles
Long booking lead-time: can be 6 to 12 months for cover positions
Not as creative & flexible as international counterparts
Very limited auditing
Reproduction quality improving
Local titles have higher circulation and readership because of long history
However, the overall situation is gradually improving because of high competitiveness
International Titles / JV Titles
More and more entering the market
Standardised booking & Material lead-times
Open for creative ideas and negotiation
Some with audit figures.
Circulation /readership is not as strong as the local titles.
More qualitative consideration
Partner with advertiser or agency on surveys
Fast growing and potential medium
to reach specific target group
Magazine Today
Pictures
Local Titles
International Titles / JV Titles
Improving out look
International adaptation plus
relevant local content
Radio
A forgotten medium
- However, very local focus and performance varied city by city.
- Performance picks up in some cities because of new transmission channels - can have radio broadcast in public transportation
Radio Coverage
/Yesterday
Source: CMMS 2003 Spring, Target: Male 20-40
%
Radio Today
Strong local appeal.
Niche-casting is starting to expand into cities:
Financial, Music, Kids, Traffic channels
Listenership picks up in some cities because of new transmission channels - broadcast in public transportation
Contemporary format, youth appeal
Program sponsorship is growing . music programs
Call-in programs are also increasing
Generally strong amongst the youth.
Morning news programs in general are most popular with highest listenership.
Cinema
Very on target medium for young and more affluent groups.
- However, VCD piracy is the key problem effecting cinema visit rate
Cinema Visited in Past 3 Months
Source: CMMS 2003 Spring, Target: Male 20-40
%
Cinema Today
63,000 cinemas in China but development on declining trend
20 Hollywood movies annually allowed in China (expected to change after WTO entry?)
Chinese comedies (CNY movies) are increasing in popularity
Audiences are young and tend to be affluent
Key problem is VCD piracy reaching streets very quickly
Early release of Harry Potter in 2002 helped reduce this
Outdoor
A developing medium still lacks of organization and system.
- plays a key role for both developed markets (for reaching the mobile population because of the changing life style) and developing markets (for building exposure in a primitive environment)
Outdoor Types in China
Spectacular
Billboard
Neon
Giant lightbox
Wall ad
Crossover/ Bridge
Pedestrian
Bus/Taxi shelter
Pedestrian lightbox
Hanging lightbox
Telephone booth
Transit
Vehicle
Station/ Terminal
Airport/Pier
Subway
Rural
Brick Wall
Umbrella
Outdoor Types in China
Outdoor Coverage
/Past Week
Source: CMMS 2003 Spring, Target: Male 20-40
%
Types of Outdoor Seen in Past Week
Source: CMMS 2003 Spring, Target: Male 20-40
%
Outdoor Today
Negatives
Lack of organization & clarity
Government interference
Lack of sophisticated research
Spiraling inflation (a seller’s market)
High clutter environment
High ‘risk’
Positives
Network buys increasingly available
Putting order in industry
More information and spending data is released
High creative potential, create talk of the town
More innovative formats are foreseeable
More and more new formats are available in the market place.
Still a high potential medium to be explored
Internet
A fast growing medium in short time frame but growth rate has slowed down
- extremely high potential but cannot be fully explored because of the limitation of China infrastructure.
As expected, user base has been gradually expanding
In Million
Source: CNNIC
Gender split remained steady
Data Source : CNNIC
Users Distribution by Province
Source: CNNIC Dec -2002
Top 10 cities comprised close to
65% of internet users
Top 10 Sites in Key Cities
Source : CMMS, 2002
P20-34 College+
ranked amongst
top 3 sites across 3 cities
Internet Today
Ad spending is growing, especially for World Cup in 2002
Online media market remains high potential especially for the niche target group
Online media in China is a buyer’s market
Webvertising formats are highly flexible depending on advertisers’ requests ( superstitials, interstitials, extended buttons, etc.)
The China Media Landscape
Provincial Radio
Channels
National Radio
Channels
Local
National
Dominant
Forgotten
National TV
channels
Local TV
channels
National
Newspaper
Provincial TV
channels
Provincial
Newspaper
Local
newspapers
Magazine
Local Radio
Channels
Cinema
Internet
In summary...
The China market is unique….
Huge population
Geographically very diverse
Huge number of media owners
Rapidly-changing media scene
Unstructured negotiations
Poorly developed research
Developing IT infrastructure
…in fact some of this may have already changed!
