CCTV sells prime ad slots for US$2.3b
CHINA Central Television auctioned off its 2012 advertising slots last night for nearly 14.3 billion yuan (US$2.3 billion), the highest in 18 years and a 12.5 percent increase from this year.
Fierce competition among domestic spirit makers heated up the 12-hour annual auction, with Kweichow Moutai Co crowning all its bidding rivals by spending 443 million yuan as the ad sponsor of the countdown before the 7pm CCTV newscast, a slot considered the most prime in a day.
The ad sponsorship for the slot is divided into six sessions for 2012, with each lasting for two months. Kweichow Moutai won four sessions while Sichuan distiller Jiannanchun Group sealed one session for 130 million yuan, and the last went to rival China Yanghe.
Last year, Shanghai-listed Kweichow Moutai lost the ad bidding war to its rival Wuliangye Yibin Co, which paid 405 million yuan - the highest price paid for an ad space at that auction - for the slot before the evening newscast.
CCTV's curb on the number of ads by spirit companies also raised the prices. Starting next year, there will be not more than two commercials promoting wine and alcohol products aired during the prime period while not more than 12 of such ads will be allowed for the whole day.
Shenzhen-listed Anhui Gujing Distillery Co nailed the first ad slot in the 8pm TV drama period. Zong Yaoji, director of the firm's marketing division, said the ad slot costs more because of the fierce competition.
The Bank of China paid 76 million yuan for a 10-second ad right after the half-hour 7pm CCTV newscast.
Fierce competition among domestic spirit makers heated up the 12-hour annual auction, with Kweichow Moutai Co crowning all its bidding rivals by spending 443 million yuan as the ad sponsor of the countdown before the 7pm CCTV newscast, a slot considered the most prime in a day.
The ad sponsorship for the slot is divided into six sessions for 2012, with each lasting for two months. Kweichow Moutai won four sessions while Sichuan distiller Jiannanchun Group sealed one session for 130 million yuan, and the last went to rival China Yanghe.
Last year, Shanghai-listed Kweichow Moutai lost the ad bidding war to its rival Wuliangye Yibin Co, which paid 405 million yuan - the highest price paid for an ad space at that auction - for the slot before the evening newscast.
CCTV's curb on the number of ads by spirit companies also raised the prices. Starting next year, there will be not more than two commercials promoting wine and alcohol products aired during the prime period while not more than 12 of such ads will be allowed for the whole day.
Shenzhen-listed Anhui Gujing Distillery Co nailed the first ad slot in the 8pm TV drama period. Zong Yaoji, director of the firm's marketing division, said the ad slot costs more because of the fierce competition.
The Bank of China paid 76 million yuan for a 10-second ad right after the half-hour 7pm CCTV newscast.
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