Liberalization won't affect ad industry
Liberalization won't affect ad industry
JAKARTA (JP): Unlike other business sectors, the advertising industry has no worries about the impact of liberalization on the world's trades and services.
Matari Advertising, one of the country's major advertising agencies, for example, sees the liberalization as creating more promises rather than threats.
Matari's president, Paul W. Karmadi, said on Saturday that globalization, which will theoretically result in the entry of more multinational players into the country, will certainly create a bigger market for local advertising agencies.
In addition to the expected increase in foreign business interests, globalization will also give a new impetus to domestic companies to capitalize on larger business opportunities abroad.
"It means more business. The liberalization is, therefore, not something to fear," he said in a business seminar held by a marketing and communications institute.
Speakers at the seminar, which was held at the Imperial Century Hotel in the newly-developed township of Karawaci, west of here, also included Raymond Toruan, The Jakarta Post's general manager, Eki Syachrudin, Pan Asia Research and Communication Service's president, and Budhi Sugarda, a noted communication expert.
Raymond said that the liberalization in goods and services is something that could not be avoided.
"No body can stop the strong urge for globalization. Even governments are powerless to slow down the process of globalization," he said.
"So, every body has to face the reality," he added.
Raymond said that rapid development in information technology and communications industry has not only resulted in the rapid change in the people's lifestyle but also the vision and attitude of business players.
"This phenomenon, therefore, makes trade barriers no longer important," he said,
Budhi acknowledged that globalization will create a larger business pie both at home and overseas for local advertisement players.
"But for small players, globalization will be a disaster," he warned.
He suggested that local advertising companies equip themselves with skills and information technology to enable them to survive the expected fiercer competition in the globalization era.
Karmadi, however, said that local companies should not worry about the entry of foreign advertising companies because in many cases, they could benefit from foreign players.
"In fact, some foreign advertising agencies have already infiltrated the local advertising market despite the existing restrictions," he said.
Karmadi saw a massive increase in advertising spending in both printed and electronic media in the globalization era as the consequence of the increase in trade volume and business activities.
According to Matari, the advertising expenditures of global brands booked an increase of 236 percent in four years to Rp 588 billion (US$255.65 million) last year from just Rp 175 billion in 1992.
Advertising spending for local brands increased by 252 percent in four years to over Rp 1.89 trillion in 1995 from Rp 536 billion in 1994. (hen)