On the Reform and Transformation of Traditional Media

Analysis on the Development of Advertising Industry in China

abstract:

Today's commodity society is a colorful advertising world. People can hear or see various forms of advertisements everywhere, whether in the streets, shops, or on radio, television, newspapers and magazines. With the development of market economy, products made in China are sold all over the world, and goods of foreign brands also sell well in the domestic market. Under such conditions, the advertising industry in China has developed rapidly.

With the relaxation of national policies, foreign advertising companies can set up wholly-owned subsidiaries in China, and multinational advertising companies begin to enter the advertising industry in China. Relying on mature experience, abundant funds, excellent talents and advanced operation management, they compete with local advertising companies for advertiser resources, which poses a strong competition and threat to local advertising companies. However, due to the late start, irregular operation and uneven level of advertising practitioners, the advertising industry in China is very weak.

After analyzing the development background, driving factors and strategic adjustment of China's advertising industry, how to promote the development of China's advertising companies as soon as possible has become an important problem to be solved urgently in China's advertising industry.

Key words:

China advertising industry

condition

develop

First, the background of the development of advertising industry in China

The healthy development of macro-economy has promoted the overall promotion of advertising industry in China.

In 2003, the national economy maintained rapid growth. With the growth of macro-economy, the advertising industry has reached a new height, and achieved good results of high growth rate and high GNP share. Since 1998, the growth rate of advertising industry in China fell below the bottom line of 1% for the first time, but it rose to 19.44% in 2003, achieving a historic breakthrough. The growth space of advertising market in this year mainly comes from two aspects: one is the adjustment of China's industrial structure, and the other is the structural breakthrough of national consumption pattern. Advertising is characterized by a substantial increase in advertising and a steady change in industry structure.

In 2003, the top five product categories of advertising were still real estate, medicine, food, household appliances and cosmetics. The continuous demand for residential consumption and automobile consumption continues to support the growth momentum of real estate advertising and automobile advertising. The "dark horse" in this year's advertisement is clothing, which jumped to the ninth place.

In short, the good situation of the national economy has directly promoted the healthy development of the advertising market. Judging from the current development trend of various industries in the national economy, the development of automobile, real estate, medical equipment, tourism, communication products and other industries is quite sustainable, and this good development momentum is the basic condition for the growth of the advertising market. With the escalating competition in the industry, the competition for the consumer market by advertisers will become increasingly fierce. Advertiser research shows that the interviewed enterprises first emphasize the importance of strategy combination, and secondly, among the most important marketing strategies of the interviewed enterprises, the selection rate of promotion strategy is second only to product strategy. In other words, in order to stay ahead in the competitive landscape, besides product strategy, promotional campaigns such as advertising will also be used as important marketing means by competitors, and the total amount of advertising will increase.

Second, the driving factors of the development of advertising industry in China

Advertising mainly accelerates the pace of integration in various fields and pursues large-scale survival.

After 1996, the development of advertising industry in China mainly benefited from the following two driving factors: First, the pursuit of economies of scale promoted the adjustment and upgrading of advertising structure. Second, the dominant position of advertisers has become increasingly prominent, which has promoted the adjustment of advertising business entities. Among them, there are two typical driving factors in the near future:

1. The large-scale survival of advertising companies

In 2002, two things attracted people's attention in the field of advertising companies. -is the disappearance of Delta High School; One is a joint venture between Shanghai and Guangzhou. Behind the two events, there are two trends: first, international advertising groups have carried out larger-scale mergers and alliances on a global scale; Second, the international advertising group "incorporated" local advertising companies. In the middle and late 1990s, multinational advertising companies devoted themselves to seeking a place in the mainland advertising market by integrating media resources. These large advertising companies are not only large in scale, but also have businesses all over the world. "Scale expansion" is the supporting force for their strong growth.

According to the 2003 annual advertising ecological survey, 80% of the companies surveyed said that they have expansion plans in the coming year, and more than half of them plan to adopt the expansion mode of "establishing strategic alliances with other advertising companies". The cooperation between advertising companies will be carried out in various ways, including business cooperation, equity cooperation and regional alliance.

According to the 2003 ecological survey of advertising industry, advertising companies generally agree with the following three modes: first, collectivization with the goal of business complementarity or upstream and downstream cooperation; Secondly, it is collectivization with the scale of media resources as the main goal; Third, collectivization with regional integration as the main goal.

2. Capital operation and scale expansion

Like the development of other industries, when it comes to scale expansion, it is necessary to talk about capital operation. At present, the capital operation forms of advertising industry mainly include investment and financing between advertising companies, investment by advertisers and media outside the industry, and financing by advertising companies through listing.

Obtaining funds is an important prerequisite for advertising companies to expand mergers and acquisitions. The development funds of most advertising companies come from the self-accumulation of the company. In this regard, multinational advertising companies have obvious capital advantages and strong desire to expand, and the trend of large-scale mergers and acquisitions and equity participation in local advertising companies will intensify, which will remain the leading force in the capital operation of China advertising market for some time to come. In order to strengthen the strength against multinational companies, local advertising companies will also raise more development funds and expand the company scale through equity cooperation, foreign investment absorption and listing. Capital operation is regarded by advertising companies as an important way to achieve breakthrough development and has high hopes.

Third, the adjustment of China's advertising strategy.

With the increasingly clear dominant position of advertisers, advertising companies and media will take the provision of professional services as their core concepts and efforts, and further adjust and cultivate their core competitiveness.

A series of studies on advertisers' marketing activities and investigations on advertising ecology show that the advertising dominant position in the advertising market has gradually developed from "symptom" to "dominant position". With the gradual completion of this "homing", advertisers will play a role in the upstream and core position of the advertising industry. As the "rice squad leader" of the advertising industry, advertisers will promote the consolidation of the advertising market.

One of the manifestations is the adjustment of media advertising management strategy.

With the spread and expansion of the media for several times in the past 20 years, the situation of tight media resources has been improved; In this process, with the maturity and differentiation of the consumer market, the "media view" of advertisers has also changed greatly. They tend to use a variety of media comprehensively, actively develop new media, and change the situation of relying on four traditional media. All these have directly led to the weakening of the leading position of the media as the "boss" of the advertising market. Since 1996, the media has changed from "business-oriented" to "business-oriented", emphasizing customer orientation and professional services, which reflects the strategic adjustment of media advertising management.

The second performance is the professional survival of advertising companies.

Competition in most industries, especially in fast-moving consumer goods, is becoming more and more fierce. Advertisers are becoming more and more mature in the fierce competition, and have accumulated rich marketing experience on the basis of "spelling" the market, and have higher and higher professional requirements for advertising companies. Both multinational advertising companies and local advertising companies are facing the challenge of being selected and cooperating in a short time, which is also the direct result and performance of advertisers mastering the right to speak. Most international advertising companies in China claim to be good at integrated marketing and communication services. However, with the understanding of enterprises and markets in China, they will also emphasize their advantages in a certain link in order to meet the needs of local advertisers, and look forward to cooperation in some individual fields. However, local advertising companies present two typical ecosystems: one is a business structure that has reached a considerable scale, making a fortune with a special service, such as media agency, and gradually entering multiple service fields to provide additional functions, thus forming a comprehensive service; The other is represented by new advertising companies, which are limited by their own resources. In order to survive, they will focus on a certain service field, or provide offline services, or base themselves on the development of new media advertising resources. In short, it is to emphasize a special service function and strive for further development in a certain field. In short, no matter what kind of "ecology" it is, providing professional services is its purpose and attitude towards survival.

How to promote the development of China advertising company as soon as possible and how to stabilize the development of China advertising industry has become an important problem to be solved urgently in China advertising industry.