Hangzhou-based Zhongce Rubber, China's biggest state-owned tire maker, bid 47.2 million yuan ($6.9 million) for the ad space before the nightly CCTV news at 7 pm at the CCTV annual ad sales auction on Wednesday night.

"The price is higher higher that last year's, but I think it is still worth it," Ge Guorong, vice president of Zhongce Rubber said. The bid was won by Juren Group for 43.3 million yuan last year.

This is the first time the tire maker bid for the CCTV ads spot. Insiders say Zhongce's bid shows the exported-oriented tire giant is turning to the domestic market as China’s rubber industry is sanctioned by the United States and European countries for alleged dumping.

But Shen Jinrong, president of Zhongce Group, denied that in an interview with Hanghzou-based Daily Business.

"We are promoting our brand just as our foreign competitors do, for automobiles have become household consumer products in China," he said.

Domestic advertisers are eager to bid for CCTV ad space as they consider it the leading network in China, said Sally Deng, an account executive at the Ogilvy ad agency.

By Guo Changdong