The research shows that this record high spend represented a 36% rise in real growth terms over that for the year 1999. However, it also indicated a 21% rise in ad value as a result of ACNielsen’s monitoring expansion within the fast-growing China market.

Philip Rich, executive director (China/Hong Kong), commented that, "The confidence and assertiveness shown by local enterprises are especially encouraging. Their heavy investments in advertising indicate the growing sophistication of the local manufacturers. They have come out of the shadow of foreign brands, who are infinitely more experienced in marketing, to become a force to be reckoned with. All top 10 advertising products are local brands. Together, they account for 7% of total advertising in China."

Data analysis by sector reveals that, in the typical roller coaster style of e-business, dotcom advertising climaxed in the March quarter of 2000. It then proceeded to enter a free fall for the rest of the year, as dotcom investors expressed concerns over the cash-burn rates of the companies. In this sense, the 2nd quarter of 2000 saw dotcom AdEx shooting up 231% over the 1st quarter, but the subsequent 3rd and 4th quarter registered a decline of 21% and 44% respectively. Local Chinese dotcoms also dominated the technology ad scene, with the top 10 advertisers all being China-based hosts. Leading the league were Netease, Chinese.com and Sina.com.

Speaking about this dotcom advertising, Rich noted that, "dotcoms emerged as the fastest growing sector last year, pouring RMB516.2 million in TV and print advertising, representing a six-fold increase over 1999. We expect the sector to stabilise in first half of 2001 as entrepreneurs regain confidence from the shock therapy." Across all industry sectors, pharmaceuticals remained the leader within China, accounting for three of the top 10 top product categories. Tracking figures show that tonics and vitamins alone accounted for over RMB10 billion, or 12.5% of all advertising in China. Last year, the category grew 120% over 1999 and has enjoyed continuous growth since 1998 but there was a decline in the last two quarters of 2000.