Prime-time Advertising Auction Mirrors Robust Economy

Home>>Business

Last updated at: (Beijing Time) Wednesday, November 20, 2002

Prime-time Advertising Auction Mirrors Robust Economy

DISCUSSION

CHINESE

SEND TO FRIEND

Though few like to be bombarded by TV commercials, Monday's successful annual auction of prime-time advertising slots on China Central Television (CCTV) is still good news for it harbingers a booming market.

Under mounting pressure from local channels, CCTV netted a record 3.3 billion yuan (US$399 million) at this year's auction, an increase of about 700 million yuan (US$84.6 million) over last year.

That surely helps cement CCTV's dominant position in the TV industry.

But the significance of the auction goes far beyond that.

Labelled a barometer of the Chinese market, the auction attracted 125 leading companies, including both domestic giants and foreign multinationals.

The amazing bidding enthusiasm that has driven up advertising costs was clear proof of enterprises' confidence in rosier growth prospects for next year.

Such prevailing business optimism is not only recognition of the remarkable economic performance the country has achieved so far this year but also backing of the even faster growth forecast for the coming year.

The Chinese economy registered a better-than-expected 7.9 per cent growth rate year on year in the first three quarters of this year mainly thanks to robust growth in investment and exports.

It is evident that the country's entry into the World Trade Organization last December has improved its trade climate and lured more foreign investors.

Statistics showing a rocketing trade volume and foreign capital inflow underpinned well the prediction of an 8 per cent rise of gross domestic product in 2003, but the businesses' advertisement spree was more tangible support for such a buoyant spirit.

More than projecting an increasing economic vibrancy in the country, the bidding zest also indicates a return to rationality on the part of Chinese businesses.

Enterprises no longer try to seek immediate prominence at any cost by becoming the so-called "bidding king."

Though the total auction income soared through the roof, no enterprise attempted to emulate the record bid of 320 million yuan (US$38.7 million) set by a Chinese liquor brewer in 1997. That brewer shot to instant fame before vanishing from public view.

In this sense, the CCTV auction now serves as a record of the vicissitudes of Chinese enterprises as well as a litmus test of how they adapt to the market. (China Daily news)

Questions?Comments? Click here

TV Series to Show Three Rivers Sources Region

Chinese TV Series on World Famous Universities Screening

CCTV to Open DTV Channels, World Manufacturers Pouring in for Opportunities

Jiang Zemin Wins Respect for Absence in New Party Central Committee ( 2 Messages)

'Three Represents' to Become Party's Mission Statement ( 7 Messages)

Lured by Black Gold-Oil-- under Anti-Terrorism Banner ( 116 Messages)

China Objects US Blockade of Cuba ( 3 Messages)

China's Foreign Trade Totals 500 Billion US Dollars ( 4 Messages)