China's advertising industry saw a strong growth in the first quarter of 2024, the State Administration for Market Regulation said on Tuesday.
The result was based on a survey of 857 entities in the sector.
Advertising serves as a barometer for economic development, with its growth reflecting the vitality of consumer markets and the confidence of corporate investment to a significant extent.
From January to March, China's major 857 public institutions and enterprises in the sector generated a combined business revenue of 274.06 billion yuan (about 37.9 billion U.S. dollars), up 13.6 percent year on year. Among these entities, internet advertising revenue totaled 137.52 billion yuan (around 19 billion U.S. dollars), reflecting a 20.6 percent year-on-year growth and accounting for 77 percent of the total revenues, according to the administration.
The internet now is the leading advertising medium, serving as the primary platform for promoting goods and services. Traditional media are also undergoing digital transformation, with advertising revenue from public institutions such as broadcasting and TV stations and newspapers reaching 7.85 billion yuan (about 1.08 billion U.S. dollars), up 3.1 percent year on year. Remarkably, their internet advertising business experienced a significant year-on-year growth of 135.4 percent.
In 2023, the advertising revenue of the 857 entities, primarily platform enterprises, reportedly comprised 91.8 percent of the total revenues for national public institutions and enterprises above designated size. Notably, advertising revenue from leading platform enterprises exceeded 50 percent of their total operating income.
China's advertising industry sees strong growth in January-March
The depreciation of Japanese yen has caused an old coffee shop in Kofu City, Yamanashi Prefecture of Japan to suffer rising financial strain due to surging import costs.
The coffee shop, with a 50-year history, is facing fund squeeze. The owner, 82-year-olld Hajime Yoneyama said that the depreciation has led to increased prices for imported raw materials, particularly coffee beans sourced mainly from Brazil, Vietnam, and Colombia, resulting in a 20 percent surge in purchase costs.
"The purchase price (of coffee beans) has increased by 20 percent. I feel that the prices of vegetables and oil have also increased by at least 20 percent. Now the prices of these things continue to rise, with no sign of stopping. The expenditure situation of the store may become more severe in the future," said him.
Yoneyama said that he had to raise the prices to sustain the coffee shop's operation.
"Recently we had to raise the price. Previously, a cup of coffee cost 500 yen. It's no longer sustainable (without price increases) and now it's up to 600 yen," said the owner.
Furthermore, in an effort to cut costs, the elderly Yoneyama works with just one employee, yet the store business kept crippling. He said that a significant portion of his pension funds is used to cover store expenses and employee wages.
Locals worry that if the weak yen trend persists, the pressure on livelihoods will further intensify.
"The prices of everything are increasing, food, drink, vegetables. It would be great if there was a solution. Medical supplies are also an issue that needs to be considered. I do worry about what the future will bring," said a local resident.
"Not only are labor costs rising, but gas costs are also rising, so operators need to cut expenses, such as advertising expenses, and the work that they originally paid to hire people to do may now be borne entirely by the operators themselves," said another resident.
Japan’s time-honored coffee shop face fund squeeze due to weakening yen
