History of advertising in china ia

History of Advertising in China

International Advertising

Advertising in China

Why Chinese example?• China is the biggest market in the world

offering more consumers with purchase power than any other society.

• China went through Communism, Socialism and now selective Capitalism which makes it an interesting study.


• The most simple explanation of communism is a command economy and capitalism is a market economy.

• In communism the states owns everything and all goods and services are planned in a central bureaucracy.

• In capitalism the market controls what is produced and what’s its worth, services are also controlled by the market.

• Socialism is a political and economic theory which advocates that the means of production, distribution, and exchange should be regulated. It is a transitional state between the overthrow of capitalism and the realization of communism.


• The People's Republic of China is a single-party republic. The only political party is the Communist Party so even though there are "elections" in China, they are all members of the same political party. And even then, the Chinese people have a lot less say in who their leaders are than in a western-style democracy or republic.

• There is the concept of "One country, Two systems". Since the return of Hong Kong and Macau to China in 1997 and 1999. The Central government has granted the two special administrative regions some forms of political freedom, such as the democratic election of the Chief Executive in 2012 in Hong Kong.


Chinese Market offer a very good example ofhow international advertising evolved there.• In 1977 US and China trade was US$ 400 million.• In 1988 US-China trade volume jumped to $17

Billion.• In 1979 Coca Cola became the first US product

available in China.• In 1979 Chinese authorities allowed domestic

product advertising in china.


• In 1992 McDonalds opened in China. 700 seats and 29 cash registers. First day 13,214 transactions took place serving 40,000 customers.

• Chinese market size is 1.3 billion consumers. With 22 million customers added every year.

• 50% population is youth mainly middle class with the ability to buy foreign products.

• Yums own 716 outlets in China.


• China is world’s largest mobile phone market. Signup 4 million wireless users every month.

• Motorolla sales 13% in China.• Already no. 2 market for General Motors it is

likely to become No. 1 in 2025.• It represents 15% global growth.• China mainly manufactures goods which are

labor intensive. • 60% of world bicycles are made in China.

Advertising in China - History

• The Communist rise to power in 1949 ushered in a new age that ultimately saw advertising almost entirely disappear. Propaganda developed in its place—often occupying the same physical spaces where billboards and posters once displayed commercial advertisements. From 1949 through the late 1980s.

• Capitalist advertising and Western products disappeared. Cityscapes once lively with colorful posters and flashing neon became drab with repetitive handbills and red-inked posters:


• Neon signs for shops and products were destroyed… The likes of cosmetics, jewelry, Western-style dress, brand names, logos, and advertisements that evoked traditional cultural motifs and themes were also regarded as problematic. Many brands and stores adopted new names such as "Red Guard," "People," and "Workers and Peasants”.

• Many of the techniques used in commercial ads continued to be used in the production of propaganda posters, but obviously toward different ends.

Advertising in China - History • The Open Door Policy of the late 1970s reintroduced

commercial advertising in China. As Communist China created special capitalist economic zones and opened itself to increased foreign commerce. Commercial advertisements found a place in the society once again.

• The reintroduction of commercial advertising to China was announced indirectly in an editorial in a Shanghai newspaper in January 1979.

• Immediately after the publication of the editorial, advertising for both consumer and industrial products began to appear in the newspapers of large cities.

• As China sought to justify the reintroduction of something that it had previously halted. The direct borrowing of advertising from Western capitalistic societies was played down.


• During the 1980s, multinational advertising agencies based in New York, London, Paris, and Tokyo saw the enormous opportunities that China offered.

• The foreign companies were first required to operate in China as joint ventures with Chinese agencies.

• China abandoned the requirement that multinational agencies based in other countries operate as joint ventures with Chinese agencies in 2005. Multinational agencies may now operate as foreign-owned corporations and repatriate profits easily.


• Today, advertising in China compares favorably to advertising in New York, São Paulo, Milan, and other centers of cutting-edge advertising.

• Multinational agencies operating in China have their own distinctive features. First, the majority of employees are Chinese nationals except for a few people in top management positions. This means that those who actually produce the advertising are native speakers of the language and are familiar with cultural traditions.


• Most people who work in foreign ad agencies speak both Chinese and English, with English being the administrative language at the top level and also a requirement to communicate with other offices of the global agency. Most of the non-Chinese know enough spoken Chinese for practical work situations, although few have mastered the complexities of Chinese writing.


• In 1979 a Chinese newspaper ran a Minolta Camera ad.

• Today it is US$ 20 Billion industry.• From four advertising agencies in China in the

early 20th century today there are estimated 90,000 advertising agencies.

• Employing about one million people in total.


• Xiamen University was the first tertiary institute in China to offer an advertising major in 1983.

• by the early 21st century approximately 100 universities offered the subject of advertising.

• There is now a formidable advertising research business in China with total database sizes of some 8,000+ television advertisements tested and catalogued and large print, outdoor and now digital advertisement databases.


• The Communist Party of the PRC continues to look upon advertising with some suspicion. After all, advertising promotes and glorifies both capitalism and consumption.

• Although both socialism and capitalism coexist in modern China, the booming commercial market is still perceived as a novelty in Chinese society and politics.


• With competition of international brands like McDonalds versus local brands such as Zhen Gongfu), sportswear (Nike and Adidas versus Li Ning and Anta), and Cola (Coke and Pepsi versus Future Cola) consumer advertising in China was also characterized by an ongoing debate concerning the need for a special Chineseness in the development of advertising creative and its execution.


• Some Chinese scholars believed that modern advertising theories, which originated in Western countries, cannot be applied to China once and for all due to the social, economical and cultural differences.

• We must establish advertising theories fit for the real conditions of China so that the rapid growth of our advertising industry would benefit the healthy development of commodity economy.


• Chinese attending the Cannes Advertising Festival in 1996 returned home dispirited at seeing first hand the large gap that existed between China’s advertising and foreign advertising. They were “crestfallen”.

• In the early 21st century, the four largest agencies in China by billing are foreign, and there exists a large gap between the top transnational ad agencies and the top domestic agencies – transnational are approximately double in billings compared to local agencies.

Media Outlets for Advertising in China

• China offers the same diversity of media found in Western countries. Advertisements appear in newspapers, magazines, billboards, buses, riverboats, radio, television, and the Internet.

• Additionally, the same innovative brand environments (only a single brand sponsorship of major athletic events and concerts, viral marketing, etc.) form the available conglomerate of outlets for advertising and marketing communications in China.


• Television presents an especially complex situation. There is only a single national network, CCTV, which began in 1958, and today offers 16 channels, 24 hours a day, everyday.

• Channel 1, which is the single channel broadcast all over the country, features mostly comedies and soap operas. Every regional station must reserve a few channels for this national network


• Commercials appear on both CCTV (where they reach a national audience) and local stations (where they reach regional audiences).

• All commercials must be approved by censors before they appear on television. National censors can only approve those shown on the CCTV national network. Otherwise, local censors must approve commercials for stations within their region.

• Foreign programming is not allowed during prime-time hours, but advertising for both domestic and imported products is allowed.


• In addition to TV, Internet advertising reaches a wide audience in China. The government restricts access to some sites (e.g., anti-government sites, pornographic sites, etc.).

• Nonetheless, the Internet (and Internet advertising) continues to bring the outside world to the awareness of many Chinese people.

Conclusion

The case of China is essential for understanding the global nature of contemporary advertising.

• First, it shows that the presumed link between advertising and a liberal democratic society is not essential. China has invented a new way to have both advertising and socialism.

• The success of advertising and commercialism in modern China shows that Western models are not the only ones in which advertising can play a key cultural and economic role.

Conclusion

• Second, it shows that government regulation can coexist with creative and effective advertising. Rather than making advertising bland, Chinese government restrictions pose creative challenges within which advertising messages need to be expressed

Ends

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History of advertising in china ia