TV stations facing steep loss of revenue after ads banned

After ads for some products were banned, Chinese television stations are staring at a possible 60 percent decline in advertising revenue.

The ban on television and radio advertisements for weight loss, breast enlargement and other beauty products and treatments, was announced in July and became effective on Aug. 1. It was introduced by the State Administration of Radio, Film and Television (SARFT) and the State Administration of Industry and Commerce (SAIC) because of fears that such ads violate consumers' rights and endanger their health.

"The ban has shaken everyone in the industry, in TV stations, advertising companies and agencies," said a TV station staffer, who preferred to remain anonymous.

Chinese television stations are now hoping for more flexible policies on TV shopping. The staffer said TV stations may face economic difficulties if they are deprived of the highly profitable beauty ads. Advertising accounts for the lion's share of a TV station's revenue.

"The government should come up with a more flexible policy while curbing advertising of fraudulent products and misleading commercials," he said.

Source: Xinhua