Published on June 15, 2008
The People’s Republic of China 1.33 Billion people 385.5 million households 56 Ethnic groups 31 Provincial level administrative region 2700 TV channels TV penetration is 96.6% of all households
There are 8 non-communist parties but the communist party is in power Media is a state controlled industry On behalf of the state the “State Administration of Radio Film and TV (SARFT) has controlling power on all media and MII (Ministry of Information Industries)
China copyright, right to copy...... ore not?! Advertising in china contributes 13.7 billion US towards the 850 TV stations (2700 Tv channels) 4.5 million US of ﬁnes is collected for abuses in adverting industry. Specially in miss leading advertising in the healthcare and pharmaceutical industry. (weight-loss, breast enlargement and height increasing products, drugs and medical equipment) In 2006 and 2007: 436 cases, were broadcasters shown TV programs without paying compensation, were uncovered. In a market were more then 100.000 hours of TV is broadcasted per week, it shows that IP is taken seriously.
YES there are rules for advertising, and yes there are NO rules for advertising A couple of rules are: It’s not allowed to advertise (woman) sanitary products during dinner time Unnecessary and lengthy smoking scenes must be banned (36% of produced drama in the last two years contained smoking actors) But it is only a recommendation: no laws to forbid it! Indecent themes, bloody and explicit scenes should be avoided Programs about plastic surgery or sex-change operations are not welcome A couple of possibilities are: If you like to build a branded entertainment platform on TV, it’s no problem If your brand is FORD and you like to introduce your new car in a stunning reality show, you can do that, just the way you like (cars were sold out in one month, after introduction) If you are a producer and you develop a drama series, which you like to ﬁll with product placement, you free to do that It all has to do with; Common sense and self censorship
China Case One of china’s most successful cases was in 2005/06. A milk factory from mongolia sponsored a talent show on a local station, Hunan. When Super voice girl was on his high, their were watched by over 400 mio people and the nation never forget Mengiu Milk Not bad for a budget of 900.000 euro It’s good case of how the market outperform the regulations (talent show were more regulated, after this success); Basically, the government guide the development and progress in the market, They don’t control it in full extend and this last “Virgin” market of China is opening up. Since their are no laws on branded entertainment, it’s paradise for the advertiser who implements it into his communication strategy. But as said before: common sense; self regulation is key
Branded TV content the West versus East Since western markets are strongly developed, these developments have restricted the development of advertiser funded programing To many layers and companies involved protecting their own specialism; difﬁculties to get all parties in one line Media laws are not supportive, either clear, on the regulations for implementing sponsors into branded entertainment TV platforms In China the market is open: The system: Tv stations give hard ad- time and the right to implement sponsors to the producer. Producer is more then only creative content provider, he coordinate the whole process between advertiser and Tv station: one stop shop Media laws don’t restrict “seconds” you bring a brand into picture
Advertising agencies “miss the boat”, as well in China as in Europe Advertising agencies, rarely enough, cannot think out of the box anymore, they focus their “old fashion” ways: TV commercial, radio commercials, print ads. Surprisingly, if you consider that they have responsibility for brand image in the market, that they not focus this, very efﬁcient and often much cheaper way of advertising more often. Agencies would be the appointed “one stop shop” for branded TV programs, but they miss the specialism and know how; To start with: they have no creative people who can think longer then 30 seconds spots, let alone people who can integrate, coordinate and set up sponsored TV programs, with all activities around it. It requires a seldom combination of business and creative sense.
Sierk Vojacek and Partners Beijing-Amsterdam-Shanghai SVP is founded in 1986 by Sierk Vojacek. Entered China (forbidden) media market in 1996. SVP is from origin a commercial producing company. As a director Sierk Vojacek was the ﬁrst Foreign commercial director working in China. His commercial-ﬁlm production company (which he left in 2003) belongs in China to the top 3. In 2000 SVP become the ﬁrst foreign media company which was licensed with a Wholly Owned Foreign Enterprise (wofe) in China. Sierk Vojacek is granted in 2004, during a ceremony held in “the People’s Hall” at Tian man square, the honer full title “Peace Ambassador from China” The company, start focussing the Chinese TV industry, since 2000, with a business model which combines advertisers interests (AFP) with Chinese broadcasters.
SVP Cases One of the very ﬁrst reality shows in china sponsored by FORD 10 episodes, distributed in 18 provinces Sponsored Child care program Weekly on CCTV The Academy (in cooperation with IDTV NL) Daily on SMG & syndicated to 12 provinces
SVP team thanks you for your time and attention For more information please visit: SierkVojacekandpartners.com