Vietnamese advertising companies needed to be more professional with animproved attitude to customer services so they could compete withinternational firms.
This opinion was voiced by Do Kim Dung, director of the Vietnam Advertising Research and Training Institute.
Vietnam is considered a potential market for the advertisingindustry, shown by the presence of six leading global advertising andcommunications groups – WPP, Ominicom, Dentsu, Publicis, Interpublic andHavas.
However, with about 5,000 advertising companies,Vietnam 's advertising industry is losing out in the domestic marketdue to the presence of these international giants.
Whileforeign companies usually draw up advertising strategies for customersand earn 10-15 percent of contract value, domestic companies play theroles of outsourcers or advertising service providers.
Moreover,when an international advertising company enters the Vietnamese market,it usually brings heavyweight clients with it who already operate here.
At an industry workshop held last week by the Dien dandoanh nghiep (Business Forum) and Tien Phong (Vanguard) newspapers, Dungsaid that while foreign companies were successful because of theirstrategic thinking, domestic firms just thought about "following theright direction", or in other words, they worked for bigger companies.Dung said that domestic advertising companies were unaware of the needto improve and create their own value to make clients come to them.
In future, advertisers needed to put the task of gaining consumers' trust in front of everything else, including market share.
Headded that until now, most companies just concentrated on satisfyingclients' requirements, and instead of working together, domesticadvertisers competed closely with each other.
Thecompetition has become tougher over the last few years after theeconomic crisis forced many enterprises to cut advertising budgets.
Accordingto the Vietnam Advertising Association, domestic advertising revenuehad increased on an average of 40 percent each year, but growth wasbecoming slower and slower.
Last year, the revenue reachednearly one billion USD, just one sixth or one seventh compared toneighbouring countries like Indonesia and Thailand.
InVietnam, newspaper advertising accounts for about 1 percent,magazines 7 percent, TV 78 percent, internet 9 percent and outdooradvertising 4 percent.
However, last year, newspaper advertising revenue dropped sharply, falling 1.3 percent while other media fared much better.
This has left many newspapers struggling to survive because of reduced revenues.
Presidentof the association Dinh Quang Ngu said that communication forms wereconstantly changing and modernising with integrated advancedtechnologies.
Newspaper advertising dropped because it wasseen as simple, uninteractive and less attractive than the alternatives,he said, adding that it was a common trend around the world.
Vicechairman of the Vietnam IB Communications Group Phan Le Khoi said thatadvertising should be part of an enterprise's marketing strategy, and intough economic times, they should find alternative, cheaper meanswithout losing effectiveness, such as social networks or TVC[Televicentro] Online.-VNA
This opinion was voiced by Do Kim Dung, director of the Vietnam Advertising Research and Training Institute.
Vietnam is considered a potential market for the advertisingindustry, shown by the presence of six leading global advertising andcommunications groups – WPP, Ominicom, Dentsu, Publicis, Interpublic andHavas.
However, with about 5,000 advertising companies,Vietnam 's advertising industry is losing out in the domestic marketdue to the presence of these international giants.
Whileforeign companies usually draw up advertising strategies for customersand earn 10-15 percent of contract value, domestic companies play theroles of outsourcers or advertising service providers.
Moreover,when an international advertising company enters the Vietnamese market,it usually brings heavyweight clients with it who already operate here.
At an industry workshop held last week by the Dien dandoanh nghiep (Business Forum) and Tien Phong (Vanguard) newspapers, Dungsaid that while foreign companies were successful because of theirstrategic thinking, domestic firms just thought about "following theright direction", or in other words, they worked for bigger companies.Dung said that domestic advertising companies were unaware of the needto improve and create their own value to make clients come to them.
In future, advertisers needed to put the task of gaining consumers' trust in front of everything else, including market share.
Headded that until now, most companies just concentrated on satisfyingclients' requirements, and instead of working together, domesticadvertisers competed closely with each other.
Thecompetition has become tougher over the last few years after theeconomic crisis forced many enterprises to cut advertising budgets.
Accordingto the Vietnam Advertising Association, domestic advertising revenuehad increased on an average of 40 percent each year, but growth wasbecoming slower and slower.
Last year, the revenue reachednearly one billion USD, just one sixth or one seventh compared toneighbouring countries like Indonesia and Thailand.
InVietnam, newspaper advertising accounts for about 1 percent,magazines 7 percent, TV 78 percent, internet 9 percent and outdooradvertising 4 percent.
However, last year, newspaper advertising revenue dropped sharply, falling 1.3 percent while other media fared much better.
This has left many newspapers struggling to survive because of reduced revenues.
Presidentof the association Dinh Quang Ngu said that communication forms wereconstantly changing and modernising with integrated advancedtechnologies.
Newspaper advertising dropped because it wasseen as simple, uninteractive and less attractive than the alternatives,he said, adding that it was a common trend around the world.
Vicechairman of the Vietnam IB Communications Group Phan Le Khoi said thatadvertising should be part of an enterprise's marketing strategy, and intough economic times, they should find alternative, cheaper meanswithout losing effectiveness, such as social networks or TVC[Televicentro] Online.-VNA
