Reaching the Chinese Consumer – Don’t Forget About TV

“Television – with its sound, color, movement, ability to “break through” clutter and forge a brand’s identity – is an indispensible tool in new, untamed markets. Despite the growth of mobile phone and Internet usage in the PRC, China is still a mass market…The thirty-second television commercial still rules, and contrary to conventional wisdom, it will continue to rule long after today’s young generation ceases to be the New Generation (137).”

This quote from Tom Doctoroff’s Billions: Selling To The New Chinese Consumer captures the unique and powerful commercial role played by television in China today. Chinese television still lacks addictive dramas like 24 and Lost and some companies continue to waste their advertising budget on over-delivery. However, the television commercial remains an effective means of enticing Chinese consumers to buy particular products.

According to this recent Adweek.com article, China is set to become the fourth largest global ad market in 2010, with spending on television advertising set to increase. Key facts from the article include:

· In 2009, total advertising spending in China grew by 19% to approximately $129 billion

· Spending on TV advertising for the year increased by 20%, led by companies such as Proctor & Gamble, Unilever and L’Oreal

· Last year the top-spending advertisement categories in China were toiletries, business and services, foodstuffs, pharmaceuticals and beverages

Let’s take a look at two television advertisements in the toiletries and beverages industries.

The first advertisement below commemorates the 20th anniversary of Proctor & Gamble China. The 2-minute clip links a variety of P&G products ranging from its Olay skin cream, to Rejoice shampoo and Pringles potato chips. The segment does an excellent job of demonstrating how much P&G’s products have been incorporated into Chinese consumers’ lives – so much so that without prior knowledge of P&G the viewer may even mistake the company for a Chinese firm. (China Accessible Link – Tudou)

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The second clip is Coke’s television advertisement in celebration of the 2010 Chinese New Year. Like P&G, Coke has done an excellent job over the years localizing its ad campaigns for the Chinese mass market. It effectively links its campaigns with Chinese holidays and selects the hottest pop stars to star in its segments. This particular advertisement takes viewers through a Chinese New Year’s Eve featuring the popular Taiwanese boy band Fahrenheit. We fast-forward through the family’s traditional 团圆饭 tuanyuanfan or Chinese New Year family meal, gain a quick glimpse of them exchanging 红包 hongbao or red envelopes stuffed with cash, but then there is a contemporary twist when the members of Fahrenheit, while separated at their respective families’ homes, reunite via live webcam chat to ring in the new year together. (China Accessible Link – Tudou)

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