China's TV programmes make fortunes in ad auctions

The annual landmark advertisement auction by China Central Television, the country's only national TV network, is going to take place on Sunday, which is expected to draw record bids as other local TVs have had brilliant outcomes from their auctions, reports Chinese-language newspaper the First Financial Daily.

The state broadcaster CCTV estimated the auction will reach 15.3 billion yuan (US$2.45 billion) this year after a record of 14.2 billion yuan (US$2.25 billion) in 2011.

The ad auction has become a money-spinner for a number of TV broadcasters in the country. Zhejiang Satellite TV, who held its ad auction for first time last year, sold out ads of 1.67 billion yuan (US$267 million) this year, which was 89% higher than the reserve price of 880 million yuan (US$141 million). The top seller was "Voice of China," a Chinese reality talent show that premiered in July 2012, drawing ads of 1.04 billion yuan (US$166.7 million), which accounted for 60% of the total sales.

Anhui Satellite TV also made fortune in the ad auction last week, attracting nearly 40 companies to participate in the bidding, which reached 766 million yuan (US$123 million), 161% higher than the reserve price of 293 million yuan (US$47 million).

Facing keen competition from new media outlets, the ad market for TV broadcasters is not bad as we expected, Ling Ping, chief editor of Chinese magazine the Advertising Marketing Media Report, told the newspaper.

The booming in TV ad market may be contributed to the diversity of program types.