Nielsen’s new Southeast Asia Digital Consumer Report examined the digital media habits and attitudes of consumers in Singapore, Thailand, Indonesia, Malaysia, Vietnam and the Philippines. Singaporeans led the region in online usage, spending more than a day (25 hours) online each week, while Filipinos and Malaysians came close behind, spending 21.5 hours and 19.8 hours a week online, respectively. Indonesians trailed the region, spending an average of 14 hours per week.

“The increasing availability and uptake of Internet-capable mobile devices is driving the surge in digital media usage across the region and bringing about considerable changes in the way media is consumed,” said Melanie Ingrey, APMEA Region Research Director. “More and more, consumers are accessing multiple media platforms simultaneously, such as accessing the Internet while watching TV.”

While PCs continue to be the primary way to access the Internet, smartphones are on track to supplant them: in four of the six SEA countries, ownership of mobile devices equals or exceeds owner ship of PCs, either desktop or laptop. In Indonesia, for example, more than three-quarters (78%) of consumers owned Internet-capable mobile phones compared to just 29 percent who owned notebook computers or 31 percent with desktops. Tablets are just starting to make their mark in the region, but they are likely to show rapid growth in several countries in the region in the year ahead.

Reading and sending email was the most popular activity for netizens in Malaysia, Singapore, Philippines and Thailand, while reading news was the favourite digital activity in Vietnam and Indonesia. Accessing social networks ranked in the top five activities for all of the countries except in Vietnam, with Facebook dominating the landscape in Indonesia, where 90 percent said that they maintained an active profile on the site, which was also popular in the Philippines and Malaysia. Facebook does not enjoy the same penetration in Thailand or Vietnam, however, with competitors such as 4Shared and Zing having significant popularity. YouTube ranked as one of the top five most popular sites in all six countries.

As in other parts of the world, social networking sites have become an increasingly important way for consumers to connect with the brands they like. In the Philippines, nearly two-thirds (65%) of respondents said they interacted with brands, products or companies via social media, while 60 percent of Malaysians and 56 percent of Singaporeans did the same.

Online engagement with brands is particularly important for consumers in making purchase decisions, with vast majorities of consumers in four of the six countries (Malaysia, Philippines, Singapore and Thailand) indicating that they read product reviews online. Majorities in those countries also post their own reviews of products and services purchased.

“Social media platforms offer myriad opportunities for organizations to engage with consumers, and it is becoming an increasingly critical means of influencing consumer decision making,” noted Ingrey. “As Southeast Asian digital consumers are becoming more familiar and comfortable using social media, their level of participation is also increasing. A significant proportion of consumers visit online discussion forums at least monthly and many are now starting to take an active role in these online discussions.”

Online advertising is still in its infancy in the region, with Singapore leading the way in terms of proportion of total ad spend in the channel at 6.9 percent; in Malaysia and Thailand, the figure is less than one percent. Digital consumers in Vietnam indicated the highest positivity toward online ads, while those in Thailand were less receptive. As always, creating ads that are relevant to the needs and interests of individual consumers is critical to gaining their interest.

“Online activity is only going to increase in the years ahead as more consumers obtain smartphones, and 3G and broadband access become more common and affordable. Marketers would be well-advised to examine how they can fully leverage these trends through innovative, creative and most importantly, relevant ad executions,” said Ingrey.

For more information, download The Digital Media Habits and Attitudes of Southeast Asian Consumers.

As inflationary concerns continue to mount across Asia Pacific, more shoppers are turning to promotional offers for some respite from the rising prices of fast-moving consumer goods (FMCGs), according to a Nielsen study on shopper trends. Shoppers in Vietnam and Malaysia were particularly motivated by promotions, followed by shoppers in China.

In Vietnam, while FMCG retail sales grew the fastest in Asia Pacific during the first quarter of the year, a closer look at the numbers revealed that price increases accounted for the majority (75%) of that growth. Not surprisingly given that they have been hit harder by inflation than most other countries, almost 9 out of 10 Vietnamese shoppers claimed they were promotion-seekers, or those who say they will change brands on promotion, search for promotions or change stores due to promotions on offer. This represents an increase of 5 and 18 percentage points from 2009 and 2008 respectively.

Malaysian shoppers are hot on the heels of those in Vietnam, with 86 percent saying they seek promotions, up from 77 percent in 2008. For China, the increase has been more moderate: from 74 percent in 2008 to 80 percent last year. While the number of self-professed promotion-seekers increased in just about every market, one country bucked the trend: Korea. The country’s shoppers were actually less promotionally driven than the year before, with 61 percent of Koreans saying they were enticed by promotions compared to 70 percent the year before – well below the Asia Pacific average of 68 percent.

Apart from the impact of inflation, shoppers are being exposed to a greater number of creative promotional offers as retailers and brand owners step up the momentum to gain share and/or retain their customers. This level of activity is going to be the new ‘norm’ as long as inflation does not let up and as shoppers seek more value. The real opportunity however, lies in building shopper and brand loyalty.

Interestingly, while Vietnamese shoppers are most focused on promotions, they scored among the lowest in terms of price consciousness across the region. Just 56 percent of shoppers in the country say they know all the prices of items they buy regularly/know the prices of most items and notice prices changes, compared to the regional average of 60 percent.  Shoppers in India (88%) on the other hand, are the most price-conscious in the region, followed by Malaysian (68%) and Singaporean (62%) shoppers.

Male shoppers a bigger force to reckon with

As the number of male main shoppers grows steadily across the region, marketers will increasingly need to tailor their strategies to the needs and wants of this group. In particular, marketers should place more emphasis on markets like Malaysia, which currently still has the distinction of having the highest proportion of males who say they are the main shoppers for the household (37%), and the Philippines (33%).  China (32%), which saw the highest jump in the proportion of male “main shoppers” from previous levels, also warrants a good re-look.

Vietnamese males, however, are the most “traditional” compared to their regional counterparts, with only 4 percent saying they shoulder the responsibility of being the main shopper for the household, the lowest score in the region for the past seven years.

Who are the most “impulsive” shoppers?

Shoppers in India (33%), Hong Kong (30%) and the Philippines (29%) stand out as the most impulsive (i.e., they usually do not plan their shopping trips) shoppers in the region.  Across the region, an average of 20 percent of shoppers say they usually do not plan shopping trips. In these markets, retailers can re-evaluate their store layouts to encourage more ‘grab-and-go’ shopping, and devise strategies that suit the needs of the ‘impulsive’.

On the other side of the coin, Korean (98%) and Taiwanese (94%) shoppers were the most likely to plan their shopping trips.

Across the countries studied, shoppers in Hong Kong are also the most prolific “top-up” shoppers, averaging 10 such trips in a month, almost twice the regional average and more than thrice the monthly frequency of their “main” shopping trips.  A similar trend can be found in Singapore, where shoppers make an average of about 8 “top-up” trips a month, also three times more than their “main” trips, and Indonesia, with an average of 6.6 and 1.8 “top-up” and “main” trips respectively.

The retail marketplace continues to evolve rapidly, presenting significant opportunities for store owners even in challenging environments. The key is as always in knowing how to best leverage these trends via marketing, promotions and even store layout and understanding the needs and desires of today’s consumers.

With mobile broadband becoming more widely available and affordable, it’s not surprising that a growing number of Malaysians are accessing the Internet via notebooks and smartphones.  More than half of consumers (55%) are using laptops and netbooks while eleven percent said they are using smartphones – a nine point gain from 2009. Almost two in ten (19%) Malaysians aged 20-24 access the Internet via their mobile phones.

“Although mobile phones accounted for the smallest portion of the three devices, market share will increase due to the importance of three key consumer requirements: mobility, flexibility and accessibility anywhere and anytime,” said Luca Griseri, Director of Customized Research at The Nielsen Company.

The penetration of 3G phones is a key factor in the increasing use of phones to access the Internet.  Almost half of Malaysians aged 20-34 own one. But almost half of these users do not use 3G functions, primarily due to cost. That should change, however, as service providers offer more competitive pricing schemes.

“The main trends started last year, such as the uptake of smartphones and the increasing usage of data will continue. At the same time, new trends, for example the success of tablet computers will further change the market and affect consumers’ expectations,” Griseri said. “Telecommunications players can position themselves to accommodate these changes by continuing to offer the latest products and services and focusing on the customer experience.  They need to adopt a focused approach around users’ needs by identifying differences among user groups and offer solutions for them. Flexibility and simplicity are key success factors.”

“With the jump in consumer confidence last year, advertisers joined in the race to capture opportunities that came from improved consumer sentiment. Large-scale events such as the World Cup, promotion for local festivals and aggressive product promotions also boosted advertising spend and led to a strong finish for the year,” said Danyal Abdul Malik, Managing Director, Nielsen Audience Measurement, The Nielsen Company.

Newspapers continued to attract the bulk of total ad spending, capturing 51 percent of all Ringgit spent and totaled RM 3.9 billion. Top spenders in the broadsheets were hypermarkets, local governments, universities and furniture retailers.

The total spent on TV advertising was RM 2.9 billion, driven by increases in categories such as laundry detergent, hair shampoo and conditioner, bath additives, fast food and hair care. Radio advertising spend hit RM 409 million, as players in banking/finance, university, automotive, non-alcoholic beverages as well as newspapers and magazines stepped up promotional activities in 2010. The main contributors to the jump in in-store advertising were growth categories such as laundry detergent, snacks and credit cards, while phone and accessories, mobile line services and real estate agent categories fueled the growth in Internet advertising growth.

On a category basis, mobile phone services pushed into first place in 2010, with local governments, women’s facial care, hair shampoo and conditioners and fast food restaurants rounding out the top five. Laundry detergent posted the highest growth during the year, up 61 percent in 2010 from the year before.

To get a better sense of where the fast moving consumer goods industry stands – and where it’s going – in Asia Pacific Nielsen has released its comprehensive mid-year report highlighting regional trends such as total FMCG category growth, the role of hypermarkets and the changing gender profile of shoppers as well as country highlights on retail trends in 14 key nations.

FMCG Growth
Volume growth in the industry was down across many Asia Pacific countries as consumers cut back during the recession.  But there were some standouts: India and Vietnam posted value sales rises of nearly 15%.  In China, where value sales had been posting double-digit gains for much of the decade, growth slowed to just 3% in 2009.  But thus far in 2010, the segment has rebounded nicely, with 11% in the sector in the first quarter of the year.

Modern vs. traditional
The traditional retail trade, both wet markets and counter service mom & pop stores, continues to play an integral role throughout much of Asia.  Even in countries experiencing rapid growth such as China, Vietnam, Indonesia and Malaysia, the wet market continues to be the main place for buying fresh food.  But modern grocery stores, such as hypermarkets and convenience stores are now an established presence in most urban areas, with the strongest growth for such formats seen in China and Korea.

Modern channels have continued to grow steadily and now account for 53% of all packaged grocery sales in the region, up from just 35% in 2000.  But that trend varies widely: almost all packaged grocery shopping was done in the modern market in Taiwan and Singapore (94% and 92%, respectively) while in India, just 5% went through self-service outlets.

China has been the most dynamic country over the past decade, with the modern trade growing from 34% in 2000 to 64% in 2009, the fastest retail ever seen with Korea fast on its heels, expanding from 63% in 2000 to 86%.

Format Wars
The expansion of hypermarkets has been a boon for many shoppers, especially those in urban areas.  Today, this format is the strongest modern trade channel, accounting for 28% of packaged grocery sales in China.  In Shanghai, 77% of shoppers use hypermarkets as their main store, while in Beijing, 45% do the same.  In Korea, the channel accounts for 31% of trade.  Meanwhile, in Southeast Asia, Hypermarkets are strongest in Thailand with 90% of urban shoppers using them regularly, there has also been significant development in Malaysia where nearly 40% of shoppers spend most in this format.

In many of these countries, the traditional grocery store has been in slow decline as it has faced increased competition.  In Korea, the traditional channel posted a closure rate of 5% per year, accounting for more than 50,000 store closures over the course of the decade.  Although the hypermarket is making huge gains in Malaysia, most shoppers (over 70%) still visit traditional grocery stores two to three times a week. Asian shoppers now have a wide portfolio of alternative shopping channels to meet different shopping needs and occasions including both traditional and modern stores.

Any visitor to Asia will notice the surge of small format stores, both convenience stores and mini-marts, with some intersections boasting two or more such stores on the corner.  Convenience stores such as 7-Eleven, Familymart and Circle K have continued to grow strongly throughout the region, with shoppers attracted by their convenient location and food service offer.

Indonesia has seen explosive growth in mini-markets, small modern grocery stores, with local chains leading this change.  With just 2,000 such stores at the start of the decade, the nation now boasts more than 11,500, and this channel’s now accounts for more than 17% of grocery sales.

Tapping the Potential of Private Label
In North America and Europe, private label goods have experienced strong growth, especially during the recession.  What’s more, consumers in those regions say that they expect to continue buying private label goods even after the recession is over.   The story is very different in Asia.  The private label concept has yet to make a significant dent in sales, and only in Hong Kong do they have above 5% share of sales.  Retailers across the region have been investing in the development of Private Labels but still have a lot of work to do to convince shoppers of the quality and value of these products compared to leading brands.

What’s Ahead
The changes shaping the retail scene in Asia Pacific go beyond store size and format.  Nielsen has identified a number of trends that will affect retailers and manufacturers in the next decade, including:

• The growing role of the male shopper – Tradition still leads the way in most countries in the region, but an increasing number of men are becoming involved in grocery shopping.  Only in India and Indonesia do housewives dominate, and Korea and Vietnam also still strongly adhere to traditional roles.  Across the region, 22% of the “main” grocery shoppers for households are now male, up from 14% a decade ago.

While there are signs of change in Korea, likely driven by the development of Hypermarkets, only 11% of men claim to be the main shopper for their families.  In Vietnam, the percentage is likely to stay low for a while as long as the traditional Wet Market channel continues to dominate packaged grocery sales.

• Hypermarket growth stalls as multi-format strategy gains – Smaller formats that offer shoppers a more convenient way to “top-up” shopping have gained in popularity, many being opened by the leading hypermarket chains themselves.
• Shopping outside the store – Shopping done via the TV or Internet is gaining traction in Asia Pacific, with Korea leading the online shopping sector.   Koreans have embraced this “format,” with 4% of shoppers saying they use the Internet for the majority of their grocery shopping and 71% saying they use it regularly to purchase groceries and personal care items.  An additional 30% say they use TV shopping.

These and other trends are discussed in the 2010 APAC shopper trends report.

In the clearest sign yet that economic prospects are improving rapidly across the region, six of the ten most confident consumer markets globally are from Asia Pacific, with positive consumer confidence level increases in the Q1 2010 Nielsen Global Consumer Confidence Index.

Richard Basil-Jones, Managing Director, Nielsen Media Asia Pacific comments “The latest Nielsen findings are the sign that marketers, manufacturers and retailers have been eagerly waiting for, as consumers’ spending intentions are turning into actual spending reality. In Q1 2010 global consumer confidence rebounded to the highest level since Q3 2007, however the positive news for marketers in Asia Pacific is that consumers are already upbeat on how they will utilize their spare cash, including 41% on holidays / vacations, 35% new clothes, out of home entertainment 29% and new technology 30%.

These discretionary spending considerations showed significant growth over the same findings in Q1 2009 and this is not lost on most marketers who are now back in growth mode. This is translating into advertising activity rapidly returning to pre GFC levels; where we now see the second consecutive quarter of media advertising growth across all 12 markets in Asia Pacific (compared to the same period in 2009)”.

“Based on the most recent ad spending results, the outlook for main media advertising across the remainder of 2010 appears extremely positive in all 12 markets.

The challenge for marketers however, will be strengthening their brand awareness and positioning where visibility diminished during the downturn. Consumers are out there spending and intending to loosen up their purse strings, so the onus is now on marketers to ensure their products and services return to top of mind” Basil-Jones summarised.

Qtr 1 2010 compared to Qtr 1 2009

• Ad spending in main media* across the region lifted to US$31.16 billion, an overall increase of 18%
• For the first quarter since Q3 2008, all 12 markets across the region recorded strong to bullish ad spend growth.
• Signs of a strong advertising recovery with second consecutive quarter of growth for all 12 markets across the region.
• Double digit ad spend growth across 10 markets drove overall growth in Q1 2010; led by India, Indonesia, Hong Kong, Philippines, Malaysia and Taiwan.
• In a quarter of bullish revenue growth, China dominated with 69% share of all main media ad spending.

12 months to March 2010 & YOY

• Overall ad spending results showed a YOY increase of 15%, to US$132.38 billion.
• As the advertising recession faded, increases YOY were evident across 9 Asia Pacific markets, including double digit increases in 6 markets.
• Still absorbing the impact of advertising downturns of 2009, declines YOY were recorded across 2 markets – Australia and South Korea.
• Television was the main driver of growth (+16%), Newspapers (+14%) and Magazines increased by 4% YOY.

Value has become a main focus for Asian shoppers, partly driven by the economic situation and partly as a result of increased retailer activity focused around price and promotions. According to Nielsen’s Asia Pacific Retail and Shopper Trends 2009 Report, more than 70 percent of shoppers claim to have become more price sensitive compared to last year. The effect: shoppers are more inclined to buy only what they need, spending their money on essentials rather than on treats or what they now consider ‘nice-to-haves’. They’re also consciously trying to cut down on the quantity purchased and are actively seeking out products on promotion.

Over the course of 2008 in Asia, grocery markets continued to show volume growth, led by India (+9%), China (+9%) and Vietnam (+18%), with only Taiwan (-7%) experiencing a decline in sales. Value sales increased by double figures in many markets on the back of high inflation for key food categories. But with inflation falling in all markets, we have seen value growth drop sharply in 2009, although overall volume growth in many markets has held up reasonably well with shoppers not cutting back significantly on grocery categories.

Traditional trade continues to lose share

As expected, the traditional counter service trade continued to lose share in Asia, with overall share of trade dropping another percentage point to 47 percent in 2008. At the same time, the absolute number of traditional grocery stores in the region grew by one percent to over 12.3 million stores. In most developed countries, traditional store numbers fell by five percentage points or more. In Korea, where traditional store numbers dropped by nine percentage points, the share of trade decreased from 15.9 to 13.9 percent, while in Taiwan the traditional trade now accounts for just over six percent of sales, having lost 1.5 percent share in the last 12 months.

The retail landscape looks very different in Southeast and South Asia, however, where traditional store numbers actually grew year on year, and even though share of total grocery sales continues to decline slowly, the majority of shoppers in all markets continue to shop at this trade channel. The traditional channel continues to meets shoppers’ needs for everyday convenience, personal service and affordability – being able to buy the smallest sizes and quantities.

Growth of small modern trade outlets

Globally, many large retailers such as Wal-Mart, Tesco and Carrefour have embraced a multi-format strategy that includes the development of smaller neighborhood stores. Similar growth in small modern trade outlets is also being seen across Asia, with mini-markets/small supermarket store numbers increasing by 17 percent in 2008 to over 100,000 stores.

Indonesia has led the way over the last 10 years and in 2008 more than 1,500 new stores opened, taking the total to over 10,500. These stores now account for more than 16 percent of total packaged grocery sales. Shoppers in Indonesia are continuing to embrace the convenient location, relatively good service and acceptably low prices offered at mini-markets.

Retailers in China are also investing in this store format, with store numbers growing by 22 percent in 2008 to more than 70,000 stores, accounting for more than three-quarters of all modern self-service outlets.

In South Korea we are also seeing the leading Hypermarket operators expanding into small supermarket formats, or ‘Super Supermarkets’ as they are known in South Korea. Samsung Tesco is now operating over 150 SSM Homeplus Express stores and E-mart is planning to open 30 or 40 small, 300 square meter E-Mart Everyday stores. The expansion of these large chains into the small store arena has led to concerns regarding competition with small store owners, and the South Korean government is considering introducing a bill to regulate the opening of small supermarkets.

Toward the end of 2008, the global downturn was adversely impacting advertising spending throughout many key markets around the world, with Europe and the Americas struggling more than others.  The exception to this was Asia Pacific (APAC), which appeared to be relatively impervious to the worst of the downturn. Beginning in late 2008, and escalating as the first quarter of 2009 unfolded, the majority of APAC markets were finally succumbing to declining economic conditions with substantial declines in advertising activity. Hand-in-hand with consumer confidence declining further in the new year, most APAC countries witnessed substantial ad spend cutbacks; although still not resembling the severity of those experienced in some other regions.

“While the flow on effect of the financial meltdown on individual countries’ advertising was beginning to bite across several markets late in 2008, it is the sobering results for the first quarter of 2009 which present a clearer picture of how advertising expenditure across the region was faltering. Main media measured across all markets, defined by Nielsen as free to air TV, newspapers and magazines, stalled at 0 percent growth compared to the first quarter of 2008. Even China, the juggernaut of advertising growth globally over recent years, was not immune to the faltering economic outlook, recording just 2 percent growth over the same period in 2008 and recording 17 percent growth in the fourth quarter of 2008,” said Richard Basil-Jones, Managing Director for Asia Pacific, Nielsen Media International.

“Although six markets recorded declines in the fourth quarter of 2008, overall growth was 10%; however, with nine countries now in decline in 2009, the zero growth in ad spending was not unexpected. On a slightly more positive note, all “other media” tracked by Nielsen across various countries (radio, outdoor, pay TV, cinema and other combined) posted an overall 1.3 percent increase in Q1 2009,” he added.

 Nine countries recorded declines in Q1 ‘09 ad spend versus Q1 ‘08:

• Thailand        -1% 
• Malaysia        -3%
• New Zealand  -4%
• India             -6%
• Australia        -11%
• Singapore      -14%
• South Korea   -19%
• Taiwan          -22%
• Hong Kong     -5%

Just three countries showed growth in Q1 ‘09 ad spend versus Q1 ‘08:

• Indonesia (20%)
• China (2%)
• Philippines (8%)

Other key findings:

•  Across the twelve markets monitored, a total of US$23.5 billion was spent on advertising in Q1 ‘09
• A total of US$109.16 billion was spent on “Main Media” advertising in the 12 months to March ‘09 (+9%) YOY, with television comprising 71 percent of expenditures.
• FTA Television ad spending grew 9 percent YOY; with six countries posting double-digit growth as four countries recorded declines.
• Newspaper ad spending recorded a modest 2 percent growth YOY, even though the medium experienced declines in six countries.
• Magazine ad spending, despite declines in 7 countries, increased 2 percent YOY, with high double digit growth in 4 countries.
• Radio dominated the “all other media” tracked by Nielsen, with a 51 percent share of spend and a 5 percent increase YOY.

INDONESIA

Leading the group was Indonesia, where ad spending increased 19 percent in 2008 over the previous year, and all four quarter showed growth.

The top 10 ad spending categories combined represent 77 percent of all main media spending in Indonesia.  The office equipment/computers/communications category led spending in value terms and posted 53 percent growth on a year-to-year basis.   Medicines/pharmaceuticals and toiletries & cosmetics were laggards in the top 10, posting no growth in ad spend for the year. As in other Asian countries, telecom brands dominated the top 10 advertisers, with Excelcomindo – GSM Card leading the way.

MALAYSIA

Malaysia came in second, with ad spending up 12 percent for the year. The fourth quarter did experience a slow-down, with increases at just 2.4 percent versus the same period a year earlier.

All ten of the top ad spend categories – -which account for 64 percent of all Malaysia media activity – registered gains. Retail, the top category by value, recorded 24 percent growth, while pharmaceuticals posted 32 percent growth.  Financial ads posted the lowest growth of the top ten, eking out just a 2 percent increase.  The three largest advertisers, which represented 57 percent of the total top 10 activity, were telecoms, led by Celcom.

PHILIPPINES

Coming in third was the Philippines, which posted 11 percent growth across all media.  Ad spending remained solid over the year, showing a slight slow-down in the fourth quarter.

The top ten categories represent almost half of all main media advertising, and is led in value terms by hair shampoos/hairdressing products.  That category, however, showed a decline of 7 percent in ad spending compared to 2007.  The biggest growth – 61 percent – came in the proprietary drugs/other than vitamins and tonics category.  Of the top ten brands advertised in 2008, five were hair care and two were dental hygiene products, with Colgate Maximum Cavity Protection toothpaste leading the way.

SINGAPORE

Moving west to Singapore, ad spending finished 2008 with 7 percent growth, although spending actually declined in the fourth quarter after three previous quarters of consistent growth.

Entertainment, the top category in value terms, showed 18 percent growth for the year. Education showed the most improvement – 21 percent – while retail was the only declining category in the top ten (-1%).  The leading advertiser was Courts, a retailer, followed by Tiger Beer/Asia Pacific Breweries.

THAILAND

The only country in Southeast Asia to show a decline in ad spending in 2008 was Thailand, which was affected by the slowing economy and civil unrest.  Ad spending was down 3 percent compared to 2007.  Only the second quarter showed any growth, a relatively modest 4.6 percent.

Only two categories of the top ten showed any growth – motor vehicles and non-alcoholic beverages.  The top category in total spent was skin-care preparations, which recorded a 6 percent decline on a year-to-year basis.  Skin care, autos and communications products dominated the top ten brands advertised in the year, with Ponds Facial Skincare Product leading followed by PTT Public Co., a gas company and Toyota pickups.

Main media, defined by Nielsen as free to air TV, newspapers and magazines, increased 13 percent in 2008, while all other media (radio, outdoor, pay TV, cinema and other) posted an 8 percent increase for the year.

In 2008, three markets recorded declines in ad spend versus 2007, while another posted no growth:

• Taiwan (-11%)
• South Korea (-8%)
• Thailand (-4%)
• New Zealand (0%)

Meanwhile, five countries showed solid double-digit growth:

• India (29%)
• Indonesia (19%)
• China (17%)
• Malaysia (12%)
• Philippines (11%)

Other key findings from Nielsen’s research:

• A total of US$115.2 billion was spent on advertising in the twelve markets monitored.
• A total of US$108.4 billion was spent on “Main Media” advertising, with television comprising 70 percent of expenditures.
• Television ad spend grew 15 percent. Only three countries recorded declines in TV ad spend, while five countries posted solid double-digit growth in this category.
• Although Americans are being deluged with stories of newspapers closing, cutting back and filing for bankruptcy, the medium recorded 9 percent growth, with declines in four countries.
• Magazine ad spends, while still comparatively small, increased 10 percent, with India leading the way.
• Radio dominated “all other media” with a 47 percent share of spend and a 12 percent increase for the year.

Over the next few days, Nielsen Wire will dig deeper into the numbers for Australia and New Zealand, East Asia, Southeast Asia and India.