Liberalization won't affect ad industry<\/p>\n
JAKARTA (JP): Unlike other business sectors, the advertising
\nindustry has no worries about the impact of liberalization on the
\nworld's trades and services.<\/p>\n
Matari Advertising, one of the country's major advertising
\nagencies, for example, sees the liberalization as creating more
\npromises rather than threats.<\/p>\n
Matari's president, Paul W. Karmadi, said on Saturday that
\nglobalization, which will theoretically result in the entry of
\nmore multinational players into the country, will certainly
\ncreate a bigger market for local advertising agencies.<\/p>\n
In addition to the expected increase in foreign business
\ninterests, globalization will also give a new impetus to domestic
\ncompanies to capitalize on larger business opportunities abroad.<\/p>\n
"It means more business. The liberalization is, therefore, not
\nsomething to fear," he said in a business seminar held by a
\nmarketing and communications institute.<\/p>\n
Speakers at the seminar, which was held at the Imperial
\nCentury Hotel in the newly-developed township of Karawaci, west
\nof here, also included Raymond Toruan, The Jakarta Post's general
\nmanager, Eki Syachrudin, Pan Asia Research and Communication
\nService's president, and Budhi Sugarda, a noted communication
\nexpert.<\/p>\n
Raymond said that the liberalization in goods and services is
\nsomething that could not be avoided.<\/p>\n
"No body can stop the strong urge for globalization. Even
\ngovernments are powerless to slow down the process of
\nglobalization," he said.<\/p>\n
"So, every body has to face the reality," he added.<\/p>\n
Raymond said that rapid development in information technology
\nand communications industry has not only resulted in the rapid
\nchange in the people's lifestyle but also the vision and attitude
\nof business players.<\/p>\n
"This phenomenon, therefore, makes trade barriers no longer
\nimportant," he said,<\/p>\n
Budhi acknowledged that globalization will create a larger
\nbusiness pie both at home and overseas for local advertisement
\nplayers.<\/p>\n
"But for small players, globalization will be a disaster," he
\nwarned.<\/p>\n
He suggested that local advertising companies equip themselves
\nwith skills and information technology to enable them to survive
\nthe expected fiercer competition in the globalization era.<\/p>\n
Karmadi, however, said that local companies should not worry
\nabout the entry of foreign advertising companies because in many
\ncases, they could benefit from foreign players.<\/p>\n
"In fact, some foreign advertising agencies have already
\ninfiltrated the local advertising market despite the existing
\nrestrictions," he said.<\/p>\n
Karmadi saw a massive increase in advertising spending in both
\nprinted and electronic media in the globalization era as the
\nconsequence of the increase in trade volume and business
\nactivities.<\/p>\n
According to Matari, the advertising expenditures of global
\nbrands booked an increase of 236 percent in four years to Rp 588
\nbillion (US$255.65 million) last year from just Rp 175 billion in
\n1992.<\/p>\n
Advertising spending for local brands increased by 252 percent
\nin four years to over Rp 1.89 trillion in 1995 from Rp 536
\nbillion in 1994. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/liberalization-wont-affect-ad-industry-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}