|
Advertisement firm optimistic about 2010
Unlike the previous year, when experts gave pessimistic forecasts about the advertisement market performance for 2009 amid the global economic crisis, they are now more optimistic when talking about business in 2010.
According to Nguyen Thanh Tam, a senior executive of Nielsen Vietnam, a market survey firm, the latest survey showed significant improvement in consumers’ confidence in economic recovery.
Enterprises hope that they will obtain a two digit growth rate in 2010. Fast moving consumer goods (FMCG) producers are certain that sharp increases in sales will occur in 2010.
Such good business performance will bring opportunities to the advertisement industry. Tam believes that enterprises will maintain current ad budget levels or increase them in 2010.
“It would not be at all surprised if big names like Unilever, Tan Hiep Phat or P&G expanded their ad campaigns, especially when Vietnam opens its market more widely under WTO commitments, creating stiffer competition for producers,” Tam remarked.
Media group Dat Viet VAC Deputy ChairmanDao Van Kinh also observed that Vietnam is an emerging economy, meaning the number of businesses will increase rapidly and this the demand for advertisement services will also increase. Kinh believes that marketing budgets will make up a bigger proportion in businesses’ total budget.
He noted that businesses now are changing the way they allocate funds for advertising. Previously, advertising budgets were based on the actual total sales, however, now only well known brand names use this method. Other enterprises are currently ready to base budgets on expected total sales.
As for FMCG, Kinh anticipated sharp increase in their advertising budgets.
Real estate developers will also have to expand advertising plans. In the past real estate investors could sell apartments without advertising, but now that time has passed. Increased competition will force real estate owners and agents to market their properties.
Kinh explained that telecommunication products, including mobile phones, must advertise due to stiff rivalry and rapid changes in technologies.
Advertising budgets for the banking and finance sector remains uncertain. Kinh added that domestic and foreign banks pursued diverse ad strategies. Domestic banks tend to build up and develop brands, while foreign banks try to access clients.
According to Nielsen, 50 percent of businesses polled said they will spend more on ads in the next 6-12 months, while 11 percent said they will spend less money.
54 percent of businesses said they will spend more money on Internet ads, 55 percent will increase advertisement at points of sale, and 29 percent will use video clips.
vietnamnet, tbktsg
|
