Asian advertising

Asian advertising

The more than 1,000 advertising executives from Asia, Europe and the United States gathered at the 19th Asian Advertising Congress in Bali are predictably upbeat. The reason is obvious. Indonesia, the world's fourth most populous country, is not only located in the region with the world's most dynamic economies but also has had an annual growth rate of more than seven percent over the past two decades.

Advertising in Asia has been growing dramatically due to rapid economic expansion and the adoption of the market mechanism by most Asian countries. The unleashing of market forces sets off fierce competition which in turn has made advertising a US$75 billion industry in Asia.

Advertising provides information about the goods and services offered in the marketplace and allows consumers to make informed choices. Advertising can be considered an indispensable component of a healthy economy. Ads promote sales which in turn fuel economic growth and thereby create jobs.

However, as competition gets steadily fiercer, the industry sometimes goes overboard, or, as President Soeharto said when he opened the congress on Monday, is easily tempted to indulge in drawing public attention without considering cultural values and traditions.

Environmentalists and religious leaders have also questioned whether advertising has outgrown its legitimate role in human affairs. Ads are often accused of preying on the weakness of consumers, creating an insatiable hunger for material acquisition by selling lifestyles, attitudes and fantasies.

However, advertising is not the only catalyst promoting consumerism. National economic policies that favor consumption over savings and the dramatic progress in telecommunications technology also contribute to the trend.

The power of ads to influence perception and attitude, and the possible abuse of this power, has governments, environmentalists, consumer watchdog groups and religious leaders worried.

In many countries, advertisers have attempted to minimize excesses by adopting codes of ethics. Several mass media have voluntarily refused to carry ads promoting unhealthy products like cigarettes and alcohol. Others have been forced to drop ads by government regulations or strong pressure from social or consumer groups.

However, the steadily increasing use of ads and keener competition between most goods and services have increased the pressure on ad agencies to resort to unhealthy or unethical practices to remain in business. Small or upstart ad agencies may not be strong enough to turn down unreasonable requests from their clients.

Here lies the point of President Soeharto's suggestion to the Asian Federation of Advertising Associations that the ethical foundation of advertising be consolidated. The President wisely did not call for regulations. Heavy-handed rulings could bankrupt the mass media which depends on ads to maintain independence and freedom. The improvement and enforcement of ethics is the best way to minimize the excesses without resorting to state censorship or curtailing the flow of information. Advertisers industry should foster self-discipline, otherwise the government or public, through consumer organizations, will penalize the industry.