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.