BIZCHINA / Culture & Media
10th Five-Year Plan
Updated: 2006-04-18 16:51
The Tenth Five-Year Plan of the advertising Industry and its Development
China's Tenth Five-Year Plan (2001-05) emphasizes a vigorous development
of the service industry towards the directions of market-orientation,
industrialization and socialization.The industry structure will be
further perfected; the sphere will be expanded and employment will be
increased..
The Tenth Five-Year Plan provides detailed guidelines for the future
development of advertisement industry, such as the descriptions of
"bringing various kinds of media organizations into full play in
promoting the circulation of agricultural products", "increasing the
service standard and technical content of modern service industry,
striving for the development of information industry", widely spreading
the use of information technology in society, facing customers and
providing multi-positioned information products as well as network
service", "creating an environment of mutual competition for the
development of various enterprises, supporting, encouraging and guiding
the healthy development of privately-owned and individual enterprises
especially those science- and technology-oriented medium- and small-sized
enterprises ".
These expositions are all crucial to the development of advertisement
industry.
General situation of advertisement development
In 2001, China's ad industry continued to grow rapidly. There were 78,300
units conducting ad business all over the country, up 10.7 percent over
the previous year; a total of 71,000 people working in the trade, up 10.6
percent and the turnover reached 79.49 billion yuan , up 11.5 percent.
The proportion of ad companies in the total units conducting ad business
is on the rise annually. In 2001, there were 46,900 ad companies,
accounting for 60 percent of the total units conducting ad business, the
business value reached 37.1 billion yuan, accounting for 46.6 percent of
the total business value of ad units.
In 2001, there were 37,900 individual and private ad units, up 22.6
percent over the previous year, accounting for 48.4 percent of the total
ad units; the turnover reached 13.95 billion yuan, up 35.4 percent. The
turnover of state-owned ad enterprises and institutions decreased while
the turnover of collectively-owned ad enterprises and institutions
increased .
In 2001, there were 329 ad units with foreign investment, down 13.4
percent from the previous year; but the turnover was 7.44 billion yuan,
up 64 percent. The turnover of individual and private enterprises,
collective enterprises and institutions and foreign-funded enterprises
increased aggressively.
In 2001, medicine, food, real estate, home electrical appliance and
cosmetics were listed into the top 5 sectors for their ad expenditure,
among which, the ad expenses from the medicine industry was 9.67 billion
yuan, up 28.9 percent over the previous year; the ad on food was 8.99
billion yuan, up 29.9 percent; the ad on real estate was 6.95 billion
yuan, up 16.6 percent; the ad on home electrical appliance was 6.59
billion yuan, down 10.4 percent while the ad on cosmetics was 6.33
billion yuan, up 33.4percent.
In 2002, the ad spending by the home electrical appliance sector dropped
to the fourth place from the second in 2001, real estate rises to the
third place from the fourth. The proportion of ads on alcohol increases
remarkably, up 69.3 percent, rising from the eighth in 2001 to the sixth.
The proportion of ads on tourism realized an increase of 22.5 percent,
making tourism one of the fastest growing industries.
In 2001, ad turnover of the coastal areas (including Beijing, Tianjin,
Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong,
Guangdong, Guangxi and Hainan ) accounted for 80.5 percent of China's
total ad turnover. The total ad turnover of the top 10 provinces,
autonomous regions and municipal cities ( including Shanghai, Guangdong,
Beijing, Zhejiang, Jiangsu, Shandong, Tianjin, Liaoning, Fujian, Sichuan)
accounted for 73.7 percent of the total value.
The total ad turnover of Beijing, Shanghai and Guangdong accounted for
50.1 percent of the total value. The ad turnover of 10 provinces,
autonomous regions and municipalities in the western areas accounted for
9 percent of the total. The gap between ad business value of the western
areas and the coastal areas is reducing gradually despite of the
conspicuous differences.
(For more biz stories, please visit Industry Updates)
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