Thursday, November 28, 2013

TV Ads Slowdown in China

CCTV one of China's most powerful T.V. advertising companies shocked companies from all over the world as it failed to display its financial statements this past week. The company has thrived on T.V. advertisements for several years, but it seems as if the lack of openness comes from a not so successful year. Apparently companies are not using as much of their budgets on T.V. advertisings because less of the Chinese population is watching T.V.
Because of the easy access to the internet, a survey done locally by a research institute showed that many people watch t.v. only on weekends. Furthermore the survey also concluded that some people have changed and refrained completely from watching t.v.
I find that the change in consumer preference is due to the fact that there are so many devices such as smartphones and computers that have increased their popularity among the Chinese population. People are soon to realize that they can watch their favorite t.v. shows through the internet, or can have a more personal experience with websites such as YouTube that can tailor the videos to a person's specific preference. While the amount of t.v. viewers is still significant, as internet becomes more readily available, paying for cable television will be on the decline. It will be important for companies to start shifting their advertising money towards internet advertising as it is apparently the new trend in China.


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