ChinaMediaLandscapeFebruary28,2000Source:Statisticalyearbook1999;WorldBankFactsataglance3rdlargestcountry(9.6MMsqkm)1/5worldspopulation(1.2B)1,000+dialects31Provinces/municipalities,autonomousregionsUrbanpopulation:30.4%Inflationrate:2.8%(CPI)GDPgrowthrate:7%for1999UrbanDisposableincome

PercapitaOver8,0007-8,0006-7,0005-6,0004-5,000NeimengguQinghaiXizangXinjiangNingxiaLiaoningJilinHeilongjiangGansuBeijingTianjinShanghaiSichuanYunnanHainanTaiwanHebeiShanxiShaanxiHenanHubeiHunanGuangdongGuangxiGuizhouJiangsuAnhuiZhejiangJiangxiFujianShandongAverageNationalDisposableIncomePerCapita:5,403RMBSource:ChinaStatisticalYearbook1999ChongqingPopulation

ByageandsexSource:ChinaStatisticalYearbook1999ChinaPopulationStatisticsYearbook1998Unit:’000person91102103102104111102=IndexM/F1.

Chinamediadevelopment2.

Currentresearchenvironment3.

MajormediaformsAgenda2.ChinaMediaDevelopmentChinamediadevelopmentEverythingbeganat1979whenDengXiaoPingannouncedtheeconomicreform...

Before1979Therewereonly10advertisingagenciesinChinaBasicallytherewasnoadvertisingonnewspaper,radio,orTV In1979ThefirstTVC,ShenGuiWine,wasairedbyShanghaiTVonJanuary28OnMarch15,thefirstJVTVC,RadaWatch,wasairedPeople’sDailybegantoacceptadvertisingonApril17InNovember,theCentralPropagandaDepartmenthasannouncedthenewregulationsforforeignadvertisementAndtherestishistory...Themediascenetoday…..

Medium

National

Provincial

City/Rural

Cable

Total

Television 1 33 800+ 2,000+ 2,900+

Radio 2 31 912+ 1,363+

Newspapers 20+ 31+ 1,900+ 2,000+

Magazines

Cinemas

Source:ZenithMedia7,000+146,000+ % %Medium AllAdults Aged15-29TV(yesterday’sviewing) 89 86TV(P7days) 96 95Radio(yesterday’slistenership) 41 44 Radio(P7days) 41 45Newspapers(daily) 67 65Magazines(monthly) 53 67Cinema(atleastonceamonth) 7 14Universe‘000s 37,875 14,492

ReachofmassmediaSource:CMMS’99(20cities)3.ResearchEnvironmentMediaresearchtoday3kindsofmediaresearchareavailableinChina:TVratingsAdvertisingmonitoringReadership/consumermediahabitsTVratingsUnderstandtheviewershipindifferentmarketsProvidearationalbaseformediaplanningBettermediaselection(channel,program,andtimeslot)andmorecost-efficientmediainvestmentCSM: Covers66diarycities,9provinces PeoplemetersinBJ,GZandSHACNielsen:Covers88channelsin10peoplemeter cities:BJ,SH,GZ,CD,WH,HZ,SY,NJ, TJ,FZAdvertisingmonitoringMonitoradvertisinginTVchannelsandPressKeeptrackofacompanyadvertisingdeliveryaswellascompetitiveactivities

X&L : Provideadmonitoringfor336TV channels,269newspapers,92 magazinesACNielsen : Cover220TVchannels,169 newspapers,47magazinesCVSC : Cover339TVchannelsand150 newspapersConsumerresearchThreesinglesourceresearchtoolsexistinChina,eachprovidingReadershipdatafordifferentnewspapersandmagazinesUnderstandingoftheprofileofselectedprintmediaandmediahabitsonaspecifictargetAbaseforothermediaselection(e.g.radio)Anunderstandingonproductusage/lifestyleofChineseconsumersChinaMedia&MarketingSurvey

ChinaNationalReadershipSurveyACNielsenMediaIndex(MilleniumReport)ChinaMedia&MarketSurveyResearchHouse: Sino-Monitor/BMRBFieldworkPeriod: CMMS99(Dec’98, Jun’99) CMMS2000(Feb-Jun‘00)CoverageArea: 20citiesSurveyMedia: TV,Radio,Newspaper, MagazineSample: 50,000forCMMS99and CMMS2000eachChinaNationalReadershipSurveyResearchHouse: CVSCFieldworkPeriod: Oct’98; continuousfromJuly’99CoverageArea: 60cities(98); 30cities(1999-2000)SurveyMedia: TV,Radio,Newspaper, MagazinesSample: 47,800(98); 71,500(1999-2000)ACNielsenMilleniumReportResearchHouse: ACNielsenFieldworkPeriod: May-Dec’99

CoverageArea: 30citiesSurveyMedia: TV,Radio,Newspaper, MagazineSample: 44,0004.OverviewofMajorMediaformsAdvertisingExpenditure1987-2002Source:ChinaAdvertisingAssociation;ZenithMediaMillionUS$Estimatedfiguresfor2000-2002TelevisionTVAdvertisingExpenditure1987-2002Source:ChinaAdvertisingAssociation;ZenithMediaMillionUS$EstimatedNationalvsLocalStations

National(CCTV) LocalCoverage National SpecificregionProgramType Information-oriented: Moreentertainment e.g.news,educational, oriented:e.g.drama. documentary,etc. Flexible,negotiable, Conservative,strict, welcomedforeign mainlylocalproduced orlocalprogram exchangeLanguage Mandarin MainlyMandarin,but dialectsmaybe usedAdvertisingenvironmentMostcommercialbreaksareoutsideprogramFordramaandlongprograms(e.g.sportsgame,varietyshow)insideprogrambreaksaremorelikelyOtherinsideprogramopportunity:ProgramandSyndication(P&S)Nostrictgovernmentalregulationontotalcommercials.Formoststations25-30minutesinprimetime(1900-2300);timeslotslengthenedforgooddramasAnaveragebreakhas5-8minutes.However,itcanbeaslongas15minutesinsomeimporteddramaSincemostGDcablestationstransmitthe4HKchannels,theircommercialbreakpatternwouldfollowHK:3-5minutesbreakforeveryother15minutesAdvertisingenvironment...Theremaybemissingspots(hasbeendroppedfrom8%in96tolessthan0.6%in99)ThelengthoftheTVCmaybeshorterdueto:Thestationsaccepttoomanyadvertisersforabreak:sometimesintentional,sometimesnotPoorqualitycontrolThereisnosuchthingascategoryprotection.AdvertisingishighlyconcentratedintheprimetimeProgramsponsorsandinternationalagencies(likeourselves)normallygetbetteradposition(first3/last3)Thereisratecardinflationeveryyear;morefrequentlyforsomestationsCCTVEstablishedonMay1958Thereare8channelsLocalstationshavetobroadcastChannel1and2,normallythroughmicrowaveItisthe“voiceofthegovernment”.Therefore,alltheprograms/commercialsarestrictlycensoredAlthoughCCTVdoesnothaveanylegalauthorityonlocalstations,theyrespectitastheheadNotonlytheaddepartmentacceptsbookingsbutalso:Someprogramdepartments,e.g.thesportsdivision(CCTV-5)Somebrokerswhichbuyoutalltheairtimeofaspecifictime-slotSatelliteTVinChina

ForeignStarTVwasbannedin1993afterthestationwassoldtoMurdochPheonixTVwaslaunchedinMarch1996asaJVchannelLimiteddistributionisallowedforentertainment(e.g.MTV),sports(e.g.ESPN),andselectivebusinesschannel(e.g.CNBC) Local31ProvincialTVsarebroadcastviasatelliteHowever,thoughthesignalisthere,distributionisstillakeyissueTheexistingdistributionmethods:ProvidedecoderforlocaldistributorsPayasupplementforlocaldistributorsBarterdealwithotherSatelliteProvincialTVsCableTVinChinaThereareover2,000cableoperatorsatdifferentlevels:provincial,city,andcounty,spreadingfromthecoastalprovincestotheinlandGovernmentbegantocontrolthenumbersofstationslastyear(e.g.Shandongin1998)Moreover,thetransformationoftheMRFTalsointroducedabalancingforcetolimitthepowerofGARFTtodevelopcablenetworksinChinaToptelevisionadvertisers

Bycategory

Spending(US$‘000)Category

Jan99-Dec99Tonic 340,291Shampoo 200,642ChineseWine&Spirits 184,883SkinCareProduct 168,914LaundryProduct 119,979SoftDrink 111,459Toothpaste 101,714CDVideo 96,141AirConditioner 92,574Beer 78,736Source:X&LMonitoringServicesTVviewership

WeekdaysSource:CMMS99(20cities)NewspapersNewspapers2,000+titlesthoughLocalpapersstilldominantEditorialcontentimprovingManylocalnewspapershavediversifiedtheireditorialtocatertoreadersneeds(e.g.socialcommentary,health,finance)Launchofweekendeditionfocusingonleisure&lifestylewithimprovedcolorreproductionPushingweekendcirculationNewlaunchesfocusedonspecialinterestse.g.LiveWeekly,ShoppingGuideAlltitlesareun-auditedandtheirclaimedcirculationsaregrosslyinflatedTopnewspaperadvertisersBycategory

Spending(US$‘000)Category Jan99-Dec99

Villa 153,310Computers 81,677MobilePhone 55,053Tonic 44,818 DepartmentStore 39,150TelecommunicationCo. 34,114AirConditioner 32,534Mansion 26,802Computer-peripherals 25,243Computersdealer-retailer-manufacture 24,078Source:X&LMonitoringServicesNewspapers

LeadingtitlesSource:CMMS99(20cities)MagazinesMagazines6,000+titles,primarilyskewedtowardkeyurbanareasTrendtowardincreasedjointventurepartnershipswithoverseaspublishinghousesenteringChinamarketAmericanBaby,Elle,Women’sDay,Cosmopolitan,Look,etcTargettoanichegroupwithlimitedcirculationHamperedbylimitedqualityofresearch,lackofcirculationauditTop10nationalmagazinesTitle Circulation’000s(claimed)Readers 3,850BosomFriend 3,200Family 3,000TheFamilyDoctor 1,900Securities 1,000Love 900ShanghaiStyle 900TravellingScope 833ModernFamily 500WorldVision 460 Source:MediaOwnerRadioRadio1,363+stationsacrossChinaBroadcastingcateredtothemassesthoughalreadyexpandingintonichecastinginkeycitiesFinancial,music,traffic,kids,etc.Contemporarybroadcastingformat,youthappealingFlexibleopportunitiesforprogramsponsorshipNewsandmusicprogramsstillattractthehighestlistenershipMajorinternationalsyndicatorentriestoChinae.g.JoyFM,EasyFM,etcRatingsdatanotavailable;stillbuyingonspotsNationalradiostationsRadiolistenership

WeekdaysSource:CMMS99(20cities)Yesterdaycoverage(%)OutdoorOutdoorDevelopmentinPublicTransportationnetworkbyimportedmediafirmsasMPI,TopResult,Metro,etc.AmongthemostclutteredmarketsintheworldAnythinggoesanywhere(e.g.rooftop,constructionsites,streetfurniture,etc)Increasedgovernmentregulationsinplacetocontrolthe‘clutter’Increasingusedbyinternational/JVadvertisers(e.g.ShanghaiGM,Nokia,Coke,Pepsi,etc)Goodlocationsarealwayshighindemandandpremiumsofbetween20-50%areoftenleviedonsitesAvailableformsofoutdoorRooftopbillboardsNeonsBuses/bussheltersStreetlevellightboxesWallsignBanner/balloonsMetropostersTelephoneboothsTaxisToptenoutdooradvertisers

19981. BAT2.ChinaTelecom3.CocaCola4.Ericssion5.Motorola6.Nokia7.PepsiCola8.PhilipMorris9.SHVolkswagen10.UnicomSource:PosterLink,NoadexavailableRisksandchallengesofoutdoorNofixedratecardRegulationsvarybycityLackofAfter-SaleServiceConcept(Maintenance,Monitoring,etc)NoresearchdataavailableNoindustryassociationUnprofessionalbrokersAveragecostofoutdoorBillboardUS$26.5-US$42persqmetre/permonthBusUS$1,000perbus/permonthCinemaCinemaEstimated100,000+cinemasacrossChina4,000well-equipped(mini-theatre)Dominatedbylocalfilm,about150-200peryearAllowedtoimport10-15Internationalmoviesperyear(Average40-50daysperinternationalmovie)Average6showsperdayLackofresearch,qualitycontrolAttendanceindeclineduetotherisingpopularityofotherformsofentertainment(e.g.VCDs)Opportunityforadvertising

Commercialtransmittedbeforemoviesstart(approx.5mins,max2.5minsforaadvertiser)Standardizedposition(learningfrom“Titanic”)AllowareabuyAdvertisingcostvariesineachareaandsubjecttodemand/supplyBookinglead-time:atleastonemonthbefore (Longerleadtimeneededformorepopularforeigntitles)Movie12345678910NationalRegionalPositionInternetInternetSupplierbyEndof1999Totalnumberof:ChinaURL(.) 15,153Serviceprovider 350+Contentprovider 250+Searchengines 50+IncreasingbandwideandcontentBandWidetoUSNo.OfChinaURLMSource:CNNICReportInternetuserdoubledevery6monthsSource:CNNICReport‘000Source:BDA-TheInternetinChina…ButisjustthebeginningtotakeoffMPageviewincreasedquicklySource:Sina//Netease/SohuDailyPageviewYear1999Source:TheSFeb14,2000InternetRegulationinChina-StillUnclearInDecember1999,controloftheInternetwasmovedfromtheMinistryofInformationIndustryto"relevantgovernmentdepartments”.Bannedthediscussionof"statesecrets"overtheInternet.Rulesfore-commerce,onlineauctionsandadvertisingarerumoredtobeintheworks.AfterJan.31,Chinawouldrestricttheuse,saleandmanufactureofproductsthatuseoverseasencryptiontechnology.ButaccordingtoForeignMinistryspokesmanZhuBangzao,thelawwillnot"hamper...foreigncompaniesenteringChina."Thestatisticsofinternetusers-byage(‘97/10-’99/6)Source:CNNICReportThestatisticsofinternetusers-byregionSource:CNNICReport‘99SurferaremoreconcentratedinBJ,SHandGD(total45%)whicharedevelopedareaThestatisticofinternetusers--byincome64%peoplehave1,000+PMISource:CNNICReportThestatisticsofinternetusers--bysexSource:CNNICReportMorefemalethanbefore,butstillmaleskewedThestatisticsofinternetusers--WherepeoplesurfSource:CNNICReport‘9937%issurf-at-work,Internetisoneofthefewmediacanreachpeopleduringwork.84%internetusershavecollegedegreeoraboveinChinaThestatisticsofinternetusers--byeducationSource:CNNICReport1999toptenpopularwebsitesSource:CNNICReportAdvertisingCost

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