Boozy bidders

Boozy bidders

If you are looking for bullish China data, try CCTV’s latest auction for its 2013 advertising slots. Fierce competition saw frenzied bidding, leading to the state broadcaster securing Rmb15.88 billion ($2.55 billion) of ad revenue. That was up 11.4% on last year’s auction. The China Daily thought that the record spending highlighted that Chinese businesses were confident that consumer spending would grow next year – even in spite slowing GDP growth.

The biggest spender at the auction was JNC Group, maker of the liquor Jian Nanchun. It paid Rmb608 million to place its logo on the clock appearing before news bulletins on CCTV 13 (of which there are four per day). Wuliangye, the Sichuan-based liquor maker, also spent Rmb499 million for another prominent spot ahead of CCTV’s flagship news programme Xinwen Lianbo. In fact, booze was a big theme among the big spenders, with liquor brands spending Rmb3.66 billion during the 12-hour auction. How much of an indicator is the auction data? Interestingly, a local analyst told the China Daily that CCTV’s ad revenue has grown faster in percentage terms than China’s GDP for the last 18 years.

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