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Advertising in China

JOUR240
by

Miles Ma

on 6 April 2012

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Transcript of Advertising in China

Advertising
in
China

Jon Segars
Miles Ma
Michael Bierman

Outline
History
Pre-WWII
Post-WWII
In the 21st Century
Nowadays
China's Economic System
Control & Regulation
Media
Advertising Agencies
Cases
CHN v.s. USA
Advertising Expense Differences
Comparison of Media Vehicles
Price spent annually on each
Income Ineq
Government regulations
ADs in China Today
Economic System
Control & Regulation
Media
Agencies
Cases
Economic System
China is a Socialist Country
Stocks & Market Economy
"One Country, Two Systems"
Socialist Market Economy Institution
WTO
World Trade Organization
Control & Regulation
Cuba
Laos
Vietnam
North
Korea
China
National People's Congress
the State Council
Approve
State
Administration for Industry and Commerce
Regional Administration for Industry and Commerce
One-Party State
Control
http://marketing-in-china.org/advertising-in-china.html
Advertising Law of the People's Republic of China
Media
Television
Newspaper
& Magazines
CCTV
Hunan TV
ifeng TV
Beijing TV
Beijing News
Guangzhou
Daily
ELLEChina
(cc) photo by theaucitron on Flickr
Others
Radio
Internet
Advertising Agencies in China
Sole proprietorship
Joint Venture
Local
Top Advertising Agencies in China [2009]
1. JWT - Bridge (Shanghai)
2. Leo Burnett (Shanghai)
3. Saatchi & Saatchi
4. McCann Erickson
5. Dentsu (Beijing)
6. DDB (Beijing)
7. Guangdong Advertising
8.Shanghai Advertising
9. Avic Culture (Beijing)
10. Effort Group (Fujian)
Pre-WWII
21st Century
Post-WWII
19th Century Advertising
Start of advertising
the Song Dynasty
960-1260 BCE
Before the 19th Century
Early 20th Century Advertising
The Slow Growth of Commercial Advertising
People's Republic of China
1949
Cultural Revolution [1966-1976]
Reemergence of commercial advertising
Open Door Policy [1970]
Revival of Commercial Advertising [1979-1981]
Regulation
Media
Vehicles
Television
Advertising expenses
Advertising in China vs. Advertising in America
TOTAL
China
> $89,500,000,000
America
$242,000,000,000
Income Inequality
Wealth Distribution
Inequality gap between rich and poor is expanding

Between 2008 and 2009 the number of Chinese millionaires with assets worth more than 10 million CNY rose from 825,000 to 875,000

The number of super rich increased by 4,000 during the same period, from 51,000 to 55,000. China even has some 2,000 billionaires with assets of more than 1 billion CNY and more than 100 mega rich worth more than 10 billion CNY.

Average botton 10% earns $5000 per year
Topics
Advertising expenses

Income Inequality
Regulation
Advertising Law of the People's Republic of China
The philosophy behind the law is among others to:
"be good for the physical and mental health of the people", and
conform to social, public and professional ethics and safeguard the dignity and interest of the state"
comparative advertising
Conclusion
Work Cited
Dynamic Ads
Static Ads
Saatchi & Saatchi
Dentsu - Beijing
Yakult Yogurt - "Too good to believe"
DDB - Shanghai
JWT - Shanghai
Leo Burnett - Shanghai
PEPSI
BESTURN
China
India
Media
USA
CHN
ANTA
Showbox Campaign
"Tolerence" Campaign
Nokia N8 - Bus Design

Chinese advertising law, has been in development since 1979 has been essentially conditioned by the Chinese political economy.
Recent Regulation
Few advertisements exist from before the 19th century
Why?
Article released November 28, 2011
China bans advertisement During TV dramas
Meant to "Uphold a Public Service"
Ads can run back to back between programming
Fragile paper
Recycling
Protection of the Chinese Language
First Opium War (1839-1842)
Treaties signed in 1842 opened 5 trade routes
Increased competition due to overlapping markets
5668.00

4962.05

4218.95

3685.90

3674.16

2255.96

2050.24

1318.15

1117.18

1000.00
Western Influence
AGENCY
REVENUE
Products
ex. oil lamps, clocks
Advertising Strategies
posters
b/w newpaper ads
later, color calendar ads
Increased movement of ads into public spaces
Socialist Economics
Socialist Reform [1953-1956]
market based resource allocation -->
government based resource allocation
underdevelopment of commercial market
rise in propaganda
socialist ideals
political ads
some commercial advertisements still present
effort to unite urban and rural china through trade
advertising agencies put under joint state and private control
new regulations to advertising
Continued Construction of Socialism [1957-1956]
International Advertising Conference (1957)
First TV station (1958)
Ministry of Commerce calls for increased
international trade with China (1959)
Commercial Advertising Conference (1959)
21 cities opened for international trade
The Decline of Commercial Advertising
"The Dark Ages of Advertising in China"
Movement to do away with the "Four olds"
(Ideas, culture, customs, and habits)
commodity system dissolved
regulatory agencies removed
commercial ads completely replaced with propaganda
promote socialist ideals and "revolution"
businesses and brands associated with "old culture
forced to change names
Creation of special capitalist economic zones
Increased foreign commerce
Increased commercial advertising
"Gang of Four" Captured
Movement away from the ideals of the Cultural Revolution
Focus on market based economy
High spending on manufacturing and advertising
Joint ownership of ad agencies breaks down
Foreign agencies move into China
Advertising Boom [1982-Present]
Increased competition, market niche,
consumer demand
China joins the World Trade
Organization (WTO) (2001)
Examples
Examples
Earliest pictoral evidenceof advertising
http://muse.jhu.edu/journals/asr/v008/8.3unit14.html
http://www.adafaa.org/index.php?option=com_content&view=article&id=60:china&catid=7:development-of-asian-advertising&Itemid=19
http://www.maopost.com/
History of Chinese Advertising
Before WWII
After WWII
In the 21st Century

Static
Dynamic
Categories
TV
Internet
Newspaper
Magazines
Posters
Radio
Public Service Advertising
Posters
Outdoor Ad
TV Ad
Siemens - Vacuum Tech
TV Ad
PHILIPS
TV Ad
TV Ad
BBDO
Ariel
Outdoor Ad
Timeline of China's Advertising History
Status Quo of Advertising in China
Comparing & Contrast Advertising Between China and America
Exaggerations and the use of superlatives are not allowed.
http://wenku.baidu.com/view/b514949b51e79b8968022661.html
China is a Socialist Country yet combined with Capital Economy
The crucial department of regulation is the Regional Administration of Commerce and Industry
Advertising in China spread through diverse media
Top Advertising Agencies in China are joint venture companies
Cases of diverse advertisement in China today
Growth of advertising leading up to WWII
Overall decline in advertsing during the
short period after WWII
Change in leadership and policy after the
Cultural Revolution led to the advertising boom
China's population of 1,341,403,687 - vs. US 308,745,538 - is one of the main compelling factors that attract the foreign trader to China
China's world ad market is currently #3
Forcasted that by the end of 2012 will overtake Japan's market
By 2016, China's ad market will almost double the size of Japan's
TV is the main advertising vehicle at 79% of total ad market
Only 26% in America
CCTV raised $2.25 billion USD at annual ad auction
Up 12% from last years auction

China's bottom 10% only earn 5,000
Create enormous inequality gap between the rich poor
Regulation philosophy
"Be good for the physical and mental health of the people"
No comparative advertising
No exaggerations or use of superlatives
Thank You!
[million CNY]
http://www.bobd.cn/design/graphic/news/news/201008/43261_4.html
http://www.adbrands.net/cn/
http://www.agency-directory.asia/advertising/china/c-390
http://www.ad163.com/salon/salon.php?aid=14633
http://muse.jhu.edu/journals/asr/v008/8.3unit14.html
TV Promotion
CCTV - "Power of Brand"
Besturn 2012
"Let Love Back Home"
Chongqing Adervertising
TV Ad
Public Service Ad
"Parents Are The Best Teachers of Their Children"
Retailers
Outdoor
Full transcript