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2016 China Overview – TV

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2016 China Overview – TV TV © 2016 Beyond Summits 2 Summary： • TV media market has tended to be saturated with almost 99% coverage rate in 10 years. However, Chinese are losing their interests in watching TV. The average age of real TV audience is getting older. The biggest proportion of TV audience is constituted by audience aged over 45 years old. The older TV audience are more likely to be heavy TV users. • In terms of TV programs, Chinese TV content is mainly produced by CCTV and provincial satellite TVs. However, TV production and broadcasting will further separate in the future, and high-quality content will be incline to broadcast through Internet platforms. Eventually, the number of TV audience will decrease. More people will choose to watch videos online instead of on TV. • Since 2014, the advertising on TV has seen a dropping trend. In the first half of 2015, TV ads even showed a negative increase. CCTV and provincial satellite TVs were still two major platforms for business to place ads into. © 2016 Beyond Summits 3 Summary： • In 2015，TV programs were mainly broadcasting about TV series, news and various shows，accounting for 57.1% of all programs. The top five provincial TV channels swept most high-rating programs. • The watching length of TV variety shows had a significant increase in 2015. Hunan Sat-TV variety shows' average rating was the highest in 2015. With the rapid development of variety shows and IP TV dramas, a rising trend of title sponsorship and ads were seen in 2015. • What users watch on TV is quite similar with what they watch online. TV series, variety shows, movies and news were their favorites. • Those who watch TV everyday accounted for 57.4%. Watching TV becomes an emotional communication way for families. TV audience will turn to smart phones to connect with Internet friends when watching TV. © 2016 Beyond Summits 4 In 2015, TV media’s coverage rate tended to be saturated, close to 99%. TV Program’s Coverage Rate from 2005 to 2015 100% 99% 98.8% 98.6% 98.4% 99% 98.2% 98% 97.8% 97.6% 98% 97.2% 97.0% 97% 96.6% 97% 96.2% 96% 95.8% 96% 95% 95% 94% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source：National Bureau of Statistic © 2016 Beyond Summits 5 In the past five years, Chinese people tended to spend less time on TV. As of 2015, daily TV watching length was 156 minutes. Chinese Daily TV-watching Length (mins) 2011-2015 170 168 169 165 165 161 160 156 155 150 145 2011 2012 2013 2014 2015 Source：CSM Rating China TV market review 2015 © 2016 Beyond Summits 6 In the past five years, loyal TV viewers have remained long watching time, but the coverage rate of TV has been declining year by year, and the scale of TV viewers has continued to shrink. Chinese Daily TV-watching Length (mins) per Capita and TV Coverage Rate from 2005 to 2015(Loyal Audience) TV-watching length (mins) per capita Coverage Rate 260 75% 252 251 248 69.5% 247 70% 239 240 68.4% 66.6% 65% 64.0% 62.3% 60% 220 55% 200 50% 2011 2012 2013 2014 2015 Source：CSM Rating China TV market review 2015 © 2016 Beyond Summits 7 Audience aged over 45 took the largest proportion. In addition, the older audience are more likely to be heavy TV users. TV Audience Characteristics by Age in 2015 Age Proportion Concentration Rate% 25% 250 21.5% 20% 177.0 200 17.7% 15.5% 14.9% 14.9% 15% 163.0 150 130.0 10% 100 8.5% 7.0% 87.6 80.0 5% 68.1 50 60.0 0% 0 4-14 15-24 25-34 35-44 45-54 55-64 over 65 Source：CSM Rating China TV market review 2015 © 2016 Beyond Summits 8 For the audience under 54 years old, the TV-watching length per capita decreased year by year, while the number of audience aged over 55 were steadily rising. TV Watching Length for Audience of Different Ages in 2015 (mins/day) 2013 2014 2015 300 278 257 250 202 200 150 134 126 106 100 86 50 0 4-14 15-24 25-34 35-44 45-54 55-64 over 65 Source：CSM Rating China TV market review 2015 © 2016 Beyond Summits 9 In 2015, the viewing shares of CCTV and provincial sat-TV channels decreased rapidly, while the ground channels' viewing shares began to rise. Viewing Shares from 2013 to 2015 Viewing Shares During Prime Time from 2013 to 2015 2014 2015 2014 2015 40% 40% 33.2% 31.7% 32.3% 28.7% 29.8% 30% 28.2% 30% 24.5% 25.4% 24.2% 24.4% 21.3% 20.6% 20% 20% 12.4% 12.0% 9.4% 9.5% 10% 9.0% 8.6% 10% 7.1%7.9% 0% 0% CCTV provincial sat-TV provincial non- local channels other channels CCTV provincial sat-TV provincial non- local channels other channels sat TV sat TV Source：2015 TV and Video Dual-Screen Report © 2016 Beyond Summits 10 In 2015, CCTV-Comprehensive, Hunan Satellite TV, and CCTV-News(Chinese) still ranked Top 3. But the market shares of the two CCTV channels decreased, while Hunan TV's market share kept increasing significantly. Channel Market Share in 2014（%） Market Share in 2015（%） CCTV-Comprehensive 5.2 4.7 Hunan Satellite TV 3.4 4.0 CCTV-News(Chinese) 3.2 3.0 CCTV-Movie 2.6 2.9 Zhejiang Satellite TV 2.3 2.8 CCTV-Variety Shows 2.7 2.6 CCTV-International News 2.6 2.6 Jiangsu Satellite TV 2.5 2.2 CCTV-Sports 2.5 2.2 CCTV-Series 1.9 2.2 Source：2015 TV and Video Dual-Screen Report © 2016 Beyond Summits 11 Compared with other kinds of media, TV has absolute advantages in promoting the brand image and covering more audience. The Advantages of TV Broadcasting TV Internet Outdoor Radio Print Enhance The Brand Image 91% 12% 57% 13% 37% Wider Coverage 87% 31% 36% 21% 10% Effects Can Be Quantified / 30% 56% 13% 6% 8% Accumulated Transmission for a Second 28% 37% 18% 4% 23% Time High Return On Investment 20% 10% 9% 9% 3% Strong Ability Of Sales 17% 36% 17% 11% 4% Conversion Accurate Ad Placement 10% 69% 18% 24% 19% Creative And Flexible 8% 76% 18% 12% 22% Cheap Price 4% 13% 18% 51% 21% More Interactive 3% 84% 6% 15% 3% Source：CTR Media Intelligence "2016 advertisers marketing trend survey" © 2016 Beyond Summits 12 TV was still the most important media for advertisers, who have invested 37% of the total marketing budget into TV ads in 2016. Media Buying in 2016 Other, 7% TV, 37% Radio, 4% Print, 4% Outdoor, 12% Internet (PC), Internet (mobile), 16% 20% Source：CTR Media Intelligence "2016 advertisers marketing trend survey" © 2016 Beyond Summits 13 The total amount of TV ads continued to decline since 2013. TV Advertising in 2015 TV Ads Growth Rate 6,100 12% 6,045 6,050 6,024 10% 9.6% 6,000 8% 5,950 6% 5,900 4% 5,850 2% 5,800 5,760 0% 5,750 -0.5% 5,700 -2% 5,650 -4% -4.6% 5,600 -6% 2013 2014 2015 Source：CSM TV Advertising and Competitive © 2016 Beyond Summits 14 In 2015，The provincial satellite TV ads significantly increased. TV Ads in 2014 & 2015 (Billion Yuan) 2014 2015 300 250 239 235.5 200 177.1 158 150 98 100 91.6 59 49 48.2 50.0 50 0 CCTV Provincial TV Provincial Terrestrial Provincial Capital City Other Channels Channels Channels Source：CSM TV Advertising and Competitive © 2016 Beyond Summits 15 In 2015, among the Top 10 provincial TVs, Jiangsu satellite TV kept the leading position in ad placements. The ads placed on Top 10 provincial capital city TVs have dropped to different extent. 2014 2015 2014 2015 Provincial Ad Ad Provincial Ad Ad TV Placement Placement Capital Placeme Channel Channel Placement （billion （billion City TV Channel Channel nt （billion yuan） yuan） （billion yuan） Jiangsu Satellite Jiangsu Satellite yuan） 1 10.67 11.27 TV TV Guangzhou TV Guangzhou TV 1 8.95 5.35 2 Henan set 10.52 Hubei Satellite TV 10.44 Station Station 2 Hefei TV Station 4.76 Kunming TV Station 4.52 3 Hubei Satellite TV 8.76 Henan set 9.73 3 Kunming TV Station 4.66 Nanjing TV Station 4.21 Tianjing Satellite 4 Dragon TV 8.57 8.8 TV 4 Wuhan TV Station 4.31 Hefei TV Station 4.2 Shandong Satellite Shandong Satellite 5 8.52 8.77 TV TV Changsha TV 5 Nanjing TV Station 4.25 3.37 Tianjing Satellite Zhejiang Satellite Station 6 8.18 8.57 TV TV 6 Xi’an TV Station 3.74 Xi’an TV Station 3.09 Zhejiang Satellite 7 8.11 Yunnan set 8.55 TV Zhengzhou TV 7 3.34 Wuhan TV Station 3.07 Heilongjiang Fujian Southeast Station 8 7.94 8.17 Satellite TV TV Zhengzhou TV 8 Changsha TV Station 3.22 2.28 Guizhou Satellite Heilongjiang Station 9 7.87 8.06 Hangzhou TV TV Satellite TV 9 Taiyuan TV Station 2.34 1.96 Station 10 Anhui Satellite TV 6.53 Hunan Satellite TV 7.85 10 Hai’erbing TV Station 2.03 Nanning TV Station 1.92 Source：CSM Rating China TV market review 2015 © 2016 Beyond Summits 16 The number of hard-sell TV ads has declined, while the number of ads implanted in the content showed an increase of 30%, indicating the great potential of soft-sell TV ads.
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