Record ad sales for China’s state TV network >> Financial Times

CCTV has reported record ad sales on its prime time slots for the coming year. These reports come amidst the China economic slowdown and my previous post on worldwide advertising spending cuts. The announcement came even more as a surprise since most Olympic host countries have been reported to experience advertising cuts following the games. Yet, the golden spot of the year went to Midea, who was reported to bid as high as 47Mn RMB; the evening news spot was bagged by Giant Interactive (an online game company headed by 史玉柱, and listed on the NYSE) with 43.3 Mn RMB.

With 359Mn households within reach, CCTV commands more than 3 times the reach of foreign counterparts in the likes of CBC, NBC and Fox. Yet earnings in 2006 which amounted $1.8Mn fell short of the foreign broadcasters. Given the media dynamics in China, CCTV is the only broadcaster capable of reaching the entire nation. The alternative, is of course online hubs such as Sohu, Baidu and Sina. Looking at the vitality of the ad sales, one can reconfirm his doubts that the Chinese domestic demand continues to churn out hefty revenues for its local producers. And with this confidence in place, Online ad dollars should not expect to plunge off the mark of traditional media. Perhaps it'll still be a good year for Chinese online advertising services.

On another note, with the economy expected to pick up in the 2nd Quarter of 2009, it may be a good opportunity for Chinese startups to gain momentum in the relatively decoupled Chinese market in the coming year, then subsequently prepare for a launch into the worldwide spotlight as the world economy recovers.

Full FT Article Here