Why does P&G favor CCTV’s “Biao Wang”?

Before Procter & Gamble won the top spot in 2005, CCTV’s top bidders were all domestic companies. Looking back at the history of CCTV's bid for the title in the ten years from 1995 to 2004, seven companies shared the title of winner in these ten years, but only two of the seven companies are still operating normally. It can be seen that CCTV The king of bids is a fairly high-risk position. However, Procter & Gamble has invested huge sums of money to occupy the top spot in CCTV advertising for two consecutive years. Is it because Procter & Gamble is not afraid of danger? Obviously no one thinks so.

In mainland China, only CCTV is the only TV station that truly covers the whole country. Only through CCTV's advertising can the company's products and brands be penetrated into the hearts of consumers across the country in the fastest and most effective way. It is precisely because of CCTV's coverage and monopoly resources that it provides a powerful promotion platform for mass consumer goods, and therefore it has become the preferred media for the promotion of mass consumer goods.

Domestic companies have actually benefited from CCTV’s advertising and promotion capabilities for a long time, so Qinchi, BBK, Wahaha and other companies have successively competed for the top spot. However, it is precisely because the promotion ability of CCTV advertising is so powerful that the production and sales of Biaowang Enterprises grow too fast. At this time, enterprises often encounter problems of shortage of funds. At the same time, enterprises also encounter management problems caused by excessive growth in scale, resulting in enterprises There are various discomforts in various aspects. On the one hand, it is necessary to invest huge sums of money to compete for the best bidders, and on the other hand, funds are needed to expand the market size. It is in this kind of internal and external difficulties that some bidder kings have declined.

Now, as foreign companies gradually understand the domestic consumer market, they begin to increase their investment in CCTV. Foreign-funded enterprises, especially foreign giants, understand and grasp the market far better than domestic enterprises that are just starting out. When they first enter the Chinese market, they will not rashly invest huge sums of money to win the top spot. However, as they become more familiar with the characteristics of the Chinese market and the consumption level of Chinese residents improves, foreign-funded enterprises have also begun to change their market strategies, and the coverage of their products has gradually expanded. At this time, they need the powerful power of CCTV to promote mass consumer goods. It is natural for foreign-funded enterprises to invest heavily in purchasing CCTV advertisements.

Once domestic companies compete with foreign-funded companies for the market, they will naturally have to compete for product promotion channels. As China's best mass consumer goods promotion channel, CCTV advertising has naturally become a battleground for businesses. However, the only thing needed for this kind of competition is strength. Although Chinese companies, especially mass consumer goods companies, have achieved considerable strength after years of development, compared with world-class giants like Procter & Gamble, they have considerable limitations in terms of funds and management. gap. Moreover, as the income of Chinese residents increases, more and more foreign giants will focus on CCTV, a geomantic treasure land, and related domestic companies are likely to move further and further away from the position of standard king.

Therefore, CCTV’s bid will not only reflect CCTV’s revenue, but also reflect the competition between Chinese and foreign companies in the mass consumer goods market. If Chinese companies want to win in the market, they cannot blindly compete with foreign companies for financial strength to compete for CCTV's advertising resources. At the same time, to allow domestic and foreign companies to have the opportunity to compete on an equal footing, CCTV also needs to lower the advertising threshold, reduce the broadcast time of a single advertisement, prevent a few companies from overly occupying advertising resources, and allow domestic companies to have more opportunities to take advantage of CCTV's advertising platform. .