Local ad firms caught in bloody price war
Published: 15/05/2011 05:00
Local ad agencies should stop undercutting each other and focus on improving the quality of their services so they can compete with foreign firms in the near future, industry insiders say. An executive of an advertising company who wished to remain unnamed said there is a disturbing trend of ad firm executives leaving their jobs after gaining some experience, usually to set up their own companies. “They directly compete with their former workplaces, luring customers that they’d dealt with when working for their old firms. They usually get new customers by offering cheaper prices, not more creativity,” he said. Nguyen Minh Huong, general director of the Golden Communication Group, said earnings for advertising agencies typically account for more than 17 percent of the ad package value in international markets. However, in Vietnam, many firms accept very low rates, of 3 percent and even less, she said. “Low prices, thin profit. As a result, the quality of services is in a downward spiral,” she said. Huong also said some firms are creating an environment of unhealthy competition by stealing ad ideas from others. “In the ad industry, creativity is an extremely important factor. Many agencies spend a lot of time and money to generate good ideas. However, not long after they use these ideas for TV commercials, they find that their ideas are copied by another company. “In some cases, the advertisement’s setting is copied while its content is changed a little bit. In other cases, some firms steal the first part of a company’s advertisement and another part from another agency’s creation. Such incidents are becoming increasingly common, but the public is apathetic and uncritical.” Huong said, local ad companies are “killing” each other with theft of creativity. Meanwhile, foreign ad agencies are able to maintain their larger share in the market even without lowering their prices by offering good quality services, she said. Foreign ad firms have close to 80 percent of the market share, according to the Vietnam Advertising Association. Trinh Bich Dung, director of TV commercial firm Bac Dau Production, said foreign companies win most high-value advertising packages, leaving local firms to compete for small ads or work as outsourcing agencies for foreign groups to do minor parts. Dung said domestic companies should target making whole ad packages to win a greater slice of the market pie. Vietnam is home to around 5,000 advertisement companies. Half of them are located in Ho Chi Minh City, the country’s economic hub. Dinh Quang Ngu, chairman of the Vietnam Advertising Association, said most of its members are engaged in outdoor advertising although this segment made up just 20 percent of total ad sales last year. The ad industry earned about US$1 billion in 2010, Ngu said. Source: TBKTSG |
Provide by Vietnam Travel
Local ad firms caught in bloody price war - Business - News | vietnam travel company
You can see more
- Vietnamese airlines plan to expand new international flights
- Kien Giang promotes tourist attraction
- Giant projects heat Phu Quoc Island’s property market
- AirAsia plans Vietnam venture on Southeast Asia travel boom
- Ho Chi Minh City targets tourism revenue of $5.3 billion
- Vietnam active in G20 senior official meeting in Germany
- Banks struggle to raise capital
- Vietnam Airlines inks tourism promotion deal, Hai Phong City
enews & updates
Sign up to receive breaking news as well as receive other site updates!
- Hanoi ranked top 3 cuisine in the world in 2023
- Beautiful resorts for a weekend escape close to Hanoi
- Travel trends in 2023
- In the spring, Moc Chau is covered in plum blossoms.
- The Most Wonderful Destinations In Sapa
- Top 3 Special festivals in Vietnam during Tet holiday - 2023
- 5 tourist hotspots expected to see a spike in visitors during Lunar New Year 2023
- How To Make Kitchen Cleaned
- Health benefits of lime
- Cooperation expanding between Havard University and Vietnamese universities
-
vietnam travel
http://www.vietnamtourism.org.vn " Vietnam Tourism: Vietnam Travel Guide, Culture, Travel, Entertainment, Guide, News, and...
-
Vietnam culture, culture travel
http://travel.org.vn " Vietnam culture
-
Vietnam travel, vietnam travel news, vietnam in photos
http://www.nccorp.vn " Vietnam travel, vietnam travel news, vietnam in photos
-
Vietnam tourism
http://www.vietnamtourism.org.vn " The official online information on culture, travel, entertainment, and including facts, maps,...
-
Vietnam Travel and Tourism
http://www.vietnamtourism.org.vn/ " Vietnam Travel, Entertainment, People, Agents, Company, Vietnam Tourism information.
-
Information travel online
http://www.travellive.org "Information travel online