CCTV annual ad auction draws banner response

An auctioneer, center, runs a bidding at the CCTV 2014 Prime-Time Advertising Auction in Beijing, China, 18 November 2013. [Photo/icpress.cn]

The annual landmark advertisement auction by China Central Television, the country's sole national TV station, drew active bids from companies targeting China's consumer market, with consumption playing an increasing role in driving the nation's economy.

The auction is widely seen as a barometer of China's economic situation and has gained steady sales growth over the past two decades.

The broadcaster, however, declined to reveal specific bids at this year's auction.

He Haiming, director of CCTV's advertising center, said he expects the auction will reap satisfactory results with a growth rate similar to the pace of China's economic development.

The 10-second ad slot for the daily 7:00pm evening news program was sold for more than 3.5 billion yuan ($570 million) for the year, according to stcn.com.

All the major automobile brands, for example, were present at Monday's auction. Companies such as Volkswagen AG and Audi AG retained a strong presence in CCTV's platform, while newcomers like Daimler AG have begun to seek exposure.

"Because CCTV's advertisements directly influence hundreds of millions of Chinese consumers, we are seeing a trend toward more consumer-oriented companies," said Li Guangdou, a Beijing-based branding expert.

For 131 million yuan ($21.48 million), Gome Electrical Appliances Holding Ltd claimed an exclusive naming right for a variety show, which promotes attendance at the Chinese Spring Festival Gala.

Zhang Rongzhong, vice-president of Hefei Rongshida Sanyo Electric Co Ltd, a home appliance manufacturer, said his company spent 150 million yuan on ad slots between the weather forecast and Topics in Focus programs.

"CCTV has the highest audience coverage rate, the best audience rating and authority as a national TV station," Zhang told China Daily after the bidding.

"The golden resources in the golden time is what we are looking for," he said.