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Ad revenue still on the increase

DOMESTIC advertisers spent 520.3 billion yuan (US$76.16 billion) on TV, newspaper and magazine ads last year, according to statistics released by the Nielson Co yesterday.

Advertising spending rose 17 percent year on year, Nielson said. The growth rate was higher than the 15-percent growth in 2007 but below the 23-percent growth in 2006.

"The Olympics didn't deliver the expected advertising boom, and most of China's advertisers took a serious ad break during August," said Jed Meyer, Nielson China's managing director in charge of media services, without giving a reason.

Television continued to take the largest share of spending and made up 83 percent of the total, while newspapers mopped up 15 percent, and magazines 2 percent.

Travel and transport ads grew 56 percent from a year earlier. The other big spenders last year were pharmaceuticals and health companies, toiletries and beverages, which posted annual growth of 18 percent, 12 percent and 20 percent respectively.

"Brand owners will continue to invest in advertising in 2009 to keep their brands at the front of their consumers' minds," said Meyer.

However, Tian Tao, vice president of CTR, a Chinese market research firm, said the economic downturn would reduce ad spending in the financial, automobile and real estate sectors.


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