In the past year, outdoor advertising expenditure has jumped by 126%, the largest increase of all types of advertising media. According to China Business (zhongguo jingying bao, Feb 23, 2004), ad-spend on outdoor media will maintain its high rate of growth in the coming years.
The reach rate of outdoor advertising is often said to be second highest after TV, with a much lower CPM (cost per thousand impressions).
Media placement costs for TV commercials increased in January this year, in some cases by as much as 100%, in accordance with new policies on TV and broadcasting.
According to the China Business article, consumers find TV commercials the most annoying type of ad, while outdoor is the most liked media. Many people stop watching TV for the duration of the commercial breaks.
In an era of ad budget squeezes, the higher prices of TV commercials will ensure that spending on outdoor media continues to grow. But it’s not yet clear how much outdoor is threatening the dominant position of the TV commercial.
-BM