CONTENTS

Foreword Chairman’s Message 4 AdAsia 2007 Congratulatory Address 6 Acknowledgments 8 A Few Words from the Coeditors 9

Chapter 1 Asian Advertising Congress (AdAsia) Chapter 2 Asian Federation of Advertising Associations (AFAA) Chapter 1 and Chapter 2 are included on the CD.

Chapter 3 Development of Asian Advertising 1958 2007 13 Development of Asian Advertising - Executive Summary 14 Development of Asian Advertising - Nepal 16 Development of Asian Advertising - 24 Development of Asian Advertising - India 46 Development of Asian Advertising - Indonesia 50 Development of Asian Advertising - Japan 72 Development of Asian Advertising - Korea 76 Development of Asian Advertising - Malaysia 82 Development of Asian Advertising - 94 Development of Asian Advertising - Taiwan 97 ASIAN Development of Asian Advertising - Thailand 102 ADVERTISING Development of Asian Advertising - China 109 Chapter 4 Current Status of Advertising 119 2007 Current Status of Advertising - Nepal 120 9th Floor Korea Advertising Culture Center, 7-11, Current Status of Advertising - Philippines 129 Sincheon-dong, Songpa-gu 138-921, Korea Current Status of Advertising - India 137 Tel 02-2144-0750 Fax 02-2144-0759 Current Status of Advertising - United Arab Emirates 146 Published in 2007 by Asia Federation of Advertising Current Status of Advertising - Japan 152 Associations (AFAA). Printed in the Republic of Korea (). Current Status of Advertising - Korea 165 Editorial design by TFT, Seoul, Korea Current Status of Advertising - Malaysia 178 Current Status of Advertising - Singapore 198 No part of this book may be reproduced in any form without permission in writing from the writers whose Current Status of Advertising - Taiwan 204 names appear in individual reports and at the back Current Status of Advertising - Thailand 220 of the book. Current Status of Advertising - China 228 This book was published with a grant from the Broadcasting Development Fund and DENTSU INC. Appendix Movers and Shakers in the Development of Asian Advertising 243 About the Writers 287 4 Asian Advertising - 2007 Chairman’s Message 5

▶ Chairman’s Message

Asian Advertising - 2007 is published in commemoration of 50 years of The survey is now conducted by a few leading media and research companies, among which the Asian Advertising Congress (AdAsia), held every other year, and 30 ZenithOptimedia is one. Its latest forecast (December 2006) shows that the 2007 Asia-Pacific share now years of the Asian Federation of Advertising Associations (AFAA). For stands at 21.3 percent of the world’s total. In volume, the Asia-Pacific region accounted for $96 billion of this reason, I wish to invite all our colleagues to reminisce a few minutes the total world, which stood at $451 billion. In short, the volume of advertising in the Asia-Pacific region on the development of Asian advertising during the last 50 years. grew by around 56 times while the total world figure showed roughly 15-times growth during the 40-year span of 1968 to 2007. Meanwhile, China and Vietnam, the two former socialist economies, have switched Half a century ago, in 1958, a few dedicated visionaries in marketing to the market economy. communications in Japan pulled their forces together and launched an Asian Advertising Conference in . Altogether, there were slightly With the support by the Asian advertising industry, AdFest is held in Pattaya, Thailand every March. It over 100 delegates, including eight from five foreign countries. Two years is not only an award-winning event but also a training ground for young aspiring advertising profession- later, 35 overseas delegates from five countries participated in the confer- als. The impressive event is only 10 years old but it has grown by leaps and bounds. When it was Sang Jo Nahm / Chairman ence. It became a congress instead of merely a conference. launched amidst the Asian financial crisis of 1998, it drew 200 professionals and the number of entries was 778. In 2006, there were 1,400 participants and 4,738 entries. Another noteworthy project is under- was the host city for the Third Congress, in 1962, followed by way: the Asia Pacific Media Forum, held annually in Bali, Indonesia. Only two years old, the APMF has a Hong Kong in 1964, and the Fifth Congress was held in Taipei and blessed bright future and draws future media professionals meeting the mounting challenges. by none other than Generalissimo Chiang Kai-shek, setting precedent for the chief-of-state to address the Congress. The Fifth Congress also adopted Asian Advertising - 2007 is a humble book (and CD), but it is a record of the tremendous development an important resolution calling for the formation of the Asia Pacific of Asia’s past 50 years of advertising. It is the result of hard work given voluntarily by AFAA representa- Advertising Association. The realization of this resolution took a while to tives, many writers, contributors and staff involved in the production. My sincere appreciation to all of materialize, but the idea bore fruit a little over a decade later and the Asian them. Federation of Advertising Associations (AFAA) was born in 1978, thanks to the late Antonio De Joya’s tireless and dedicated work. Before closing, I wish to express my deepest appreciation to Dentsu for its grant, without which this book would not have seen the light of day. On behalf of AFAA and its members, I wish you to join me in When the International Advertising Association, IAA, launched its land- congratulating the publication of Asian Advertising - 2007. mark survey on international advertising expenditures in 1960, there was only one country reported in Asia: Japan. Eight years later, the number of Viva Asian Advertising! countries included in this important report increased to twelve in Asia. The 1968 IAA survey showed total Asian advertising expenditures at US$1,719.8 million, of which 85 percent was for Japan, and Asia (called East Asia in the report) represented 6 percent of the world’s total advertis- Sang Jo Nahm ing, which amounted to $30,866 million. Chairman 6 Asian Advertising - 2007 AdAsia 2007 Congratulatory Address 7

▶ AdAsia 2007 Congratulatory Address

Dear Friends, I believe the international advertising community can learn a great deal from Asia: lessons on success- fully reaching ethnic communities, bridging cultural divides and retaining agility and speed without com- What an exciting time to be an ad man (or woman) in Asia. This is one promising on quality. I am confident this commemorative book will help spread those lessons around the of the largest, most exciting and promising markets worldwide for our world. industry, and I am thrilled to be thrust into the thick of it with the AdAsia 2007 forum in Jeju. I would like to thank AdAsia, first and foremost, for recording and sharing these lessons for the last 50 years - a half century of great work. What began with a small but prominent group of individuals has For the better part of the last century, AdAsia and the Asian Federation grown into an organization with representation in 15 nations. The first AdAsia conference in 1958 drew of Advertising Associations have convened these wonderful platforms for 130 Japanese delegates, and an addition 10 from five other countries. We certainly have come a long way the exchange of information and ideas, strategies and insight, in locations since then! as diverse and dynamic as India, the Philippines, Thailand, Taiwan and Joseph Ghossoub Singapore. I would also like to extend my congratulations to the Asian Federation of Advertising Associations Chairman and World President IAA (AAFA), for all that they have done and continue to do. The IAA has a history of cooperation with the I believe this same diversity and dynamism is what continues to propel AFAA over these last 30 years, and I look forward to reinforcing these bonds. the Asian marketing and advertising industry relentlessly forward, through the economic, political and social crises of recent years. Economic growth In closing, I would like to extend my appreciation to all those who worked to bring this conference to is good but twinned with the relentless drive to be ever better, to innovate fruition, and to thank our friends in the ad community in Korea and the Korean people for hosting us in and to keep pace with the cutting edge, it is unstoppable. this wonderful city.

There is no question about the quality of the creativity in this region. Thank you and congratulations From Cannes to Clio, Asian agencies and Asian advertising professionals continue to be singled out for top international accolades.

There is also no question about the growth potential in this region. Recent media consumption surveys show promising patterns with rapid take-up in online, and strong numbers in television, radio, newspapers and magazine. These factors, combined with the promise of Asia’s growing population, make for a heady combination indeed.

Joseph Ghossoub Chairman and World President IAA 8 Asian Advertising - 2007 Acknowledgement / A Few Words from the Coeditors 9

▶ Acknowledgments ▶ A Few Words from the Coeditors

First and foremost, we wish to thank the following writers and contributors (in the order in which they A few words are in order to help readers understand the book and CD. appear on the AFAA membership list) for Asian Advertising - 2007: Asian Advertising -2007 is published in commemoration of 50 years of the Asian Advertising Congress Dr. Pradeep Bhattarai, Nepal (AdAsia) and 30 years of the Asian Federation of Advertising Associations (AFAA). Asian Advertising - Ramon Faustino L. Dolor II, Cynthia S. Jacinto and Raymond K. Nacino, Philippines 2007 is composed of two parts: the book (orange cover) with the CD inserted in the jacket and another Ramesh Narayan, India book (blue cover). Indra Abidin, Indonesia Tanvir Kanji, UAE The book (orange cover) consists of: Japan Advertising Federation, Japan Chapter 1: Photo collections of Asian Advertising Congresses (AdAsia) In Sup Shin and Dong Hyun , Korea Chapter 2: Asian Federation of Advertising Associations (AFAA) Nantha Kumar, Malaysia Movers and Shakers featuring prominent persons who contributed to the development of advertising Eddie Chan, Singapore in Asia. Jonathon Chen and Cheng Tzu-leong, Ph.D., Taiwan About the Writers Saravudh Anantachart, Ph.D., Thailand Wen Chunying, Ph.D., China Another book (blue cover) consists of: Chapter 3: Asian Advertising Development since 1958 when the first conference (congress) was held We thank many AFAA representatives who gave their support to this significant publication. Also our in Tokyo, Japan sincere appreciation to contributors in the Movers and Shakers section, who played important roles for the Chapter 4: Current Status of Advertising development of advertising in Asia during the past half a century. The hard work of carrying out the many Movers and Shakers featuring prominent persons who contributed to the development of advertising tasks involved in coordinating this effort, carried out by James Matthews, AFAA Secretariat, deserves our in Asia. word of thanks. About the Writers We wish to express our deep appreciation to Mr. Hwan Kim, Deputy General Manager, and Miss Yeon Joo Lee of KFAA, who gladly gave so much of their time for the book far beyond their duties. Our appre- The book (orange cover) is more or less a collection of photographs of AdAsia held in different Asian ciation to Rector for his help and advice on English. countries and AFAA activities. The CD covers the entire text. A limitied number of the book (blue cover) Last but not the least, our sincere appreciation to Mr. Shinzo Okamoto, Senior Executive Officer, is published to help interested professionals and academia as well who prefer a book format. Corporate Communications Division, Dentsu, Japan, and his staff for their dedicated support in tracing Every effort has been made to include information on all 16 AFAA member organizations, but some and discovering archive records of the launch of Asian Advertising Conference in Tokyo 50 years ago in members have failed to respond and as a result there are countries missing in the book. This is true with 1958. A brief summary of the early records appears in a four-page article in “Asian Advertising Congress Chapter 1, which covers AdAsia. Although the biennial AdAsia has been held 25 times since 1958, there -How It Started.” are many congresses for which we were not able to obtain any records.

While the initial intention was to present articles in standardized format, we found it quite difficult to do so because of different stages of advertising development in various AFAA member countries. Also, we accepted the texts just as they were submitted by individual contributors. In Sup Shin Dong Hyun Kim Although China is not an AFAA member, we included China in view of its importance in Asian adver- Visiting Professor Vice Chairman tising development. Hallym University Korea Federation of Advertising Associations Coeditor Coeditor Meanwhile, coeditors tried to maintain the text as submitted unless they found factual errors, so as to keep the original “flavor” of the articles. 10 Asian Advertising - 2007

While coeditors primarily relied on articles and materials provided by writers arranged through AFAA representatives, they also used articles and materials collected or contributed by individuals. In such cases, the source is stated.

The order of texts in the book and the CD follows the AFAA member list.

AFAA Member List

1. Accredited Advertising Agencies Association Sri Lanka 2. Advertising Agencies Association of Bangladesh 3. Advertising Agencies Association of Nepal 4. Advertising Board of the Philippines (AdBoard) 5. Advertising Council of India 6. Indonesian Association of Advertising Agencies 7. International Advertising Association UAE Chapter 8. Japan Advertising Federation (JAF) 9. Korea Federation of Advertising Association (KFAA) 10. Malaysia Advertisers Association 11. Mongolian Advertising Association 12. Pakistan Advertising Association 13. Singapore Advertisers Association 14. Taipei Association of Advertising Agencies 15. The Advertising Associatiion of Thailand 16. The Association of Accredited Advertising Agents of Hong Kong

In Sup Shin Dong Hyun Kim Visiting Professor Vice Chairman Hallym University KFAA Coeditor Coeditor CHAPTER Development of Asian Advertising 1958 2007

Advertising Agencies Association of Nepal 3Advertising Board of the Philippines Advertising Council of India Indonesian Association of Advertising Agencies Japan Advertising Federation Korea Federation of Advertising Associations Malaysian Advertisers Association Singapore Advertisers Association Taipei Association of Advertising Agencies The Advertising Association of Thailand China 14 Asian Advertising - 2007 Development of Asian Advertising - Executive Summary 15

C H A P T E R 3 World Advertising Expenditures 1968 and 2006 by World Regions Advertising Expenditures, Million US$ (Share in %) Development of Asian Advertising Region 1968 Region 2006 Executive Summary U.S. and Canada 18,860 (61) North America 182,209 (43) Europe 8,531 (28) Europe 113,010 (26) East Asia 1,720 (6) Asia Pacific 88,819 (21) Latin America 1,092 (3) Latin America 19,754 (5) Australia/New Zealand 451 (1) Africa/Middle East/ 24,581 (6) This is a very brief look at the development of advertising expenditures for Asia Pacific were Middle East & Africa 211 (1) \ Rest of the World advertising industry in Asia since 1958 when the reported to be $88.8 billion according to Total 30,866 (100) Total 428,373 (100) first Asian Advertising Conference was held in Advertising Expenditure Forecasts (March 2006), Tokyo, Japan. a survey by ZenithOptimedia, a media agency Source: 1968- World Advertising Expenditures, IAA. 2006; Advertising Expenditures under the Publicis Groupe of France. Forecasts March 2006. ZenithOptimedia. Please note figures are rounded. In late 1950s, International Advertising Put it another way, Asia Pacific advertising Association (IAA) launched an ambitious project, recorded some 40 times growth in the four-decade a survey of world advertising expenditures. As it period while the world’s total ad expenditures turned out, Japan was the only country where increased to $428 billion from $30.9 billion, or 14 Another equally eye-opening development was for Europe, 21.4% for Asia Pacific and 11.5% for advertising expenditures data were available in times growth between 1968 and 2006. The the emergence of China. Its advertising expendi- Latin America and the rest of the world. As men- the whole of Asia, then. It was 106.5 billion yen ZenithOptimedia data include only seven media: tures in 1981, the first year when such data tioned earlier, the share of East Asia (Asia) in or around $296 million in 1958. newspapers, magazines, television, radio, outdoor, became available, were 118 million yuan or 1968 was 6% and Australia/New Zealand, 1%, or cinema and the Internet. Therefore, actual expen- US$40 million and 0.024% of GDP, probably the 7% for Asia Pacific. Growth of Asia Pacific is Cover page, IAA World Advertising Expenditures sur- Although IAA continued its survey on the ditures for all media should be higher than the lowest in the world. That figure truly galloped to indeed striking. In short, Asia Pacific is expected vey 1968. This brochure was world’s advertising expenditures, it was not until above figure. US$17 billion in 2005 and close to 1% of GDP to triple in its share of the world advertising out- the first study of world advertis- 1968 that findings on 64 countries were published making China probably the fifth largest advertis- lay in four decades between 1968 and 2008. Advertising Expenditures ing expenditures in 64 countries Forecasts, March 2006 of expressed in U.S. dollars. in U.S. dollars in a 38-page brochure. It was now A couple of significant developments during ing market in the world after U.S., Japan, ZenithOptimedia. possible to compare ad outlays in different coun- the past 50 years may be worth mentioning. The Germany and United Kingdom. Less striking in Despite such a growth, the region with an tries. first is the emergence of NICS (Newly number but still impressive is India, catching up exception of a few countries, is not without prob- Industrialized Countries) or Four Dragons in the fast on its advertising growth. Advertising started lems to reach the level of sophistication. East Asia, as the region was called at that time, 1970s: Hong Kong, Singapore, South Korea, and to thrive in Vietnam, too. included 11 countries. Australia and New Taiwan, as they were so called then. Total adver- In Sup Shin Dong Hyun Kim Zealand were listed under a separate region. The tising expenditures for the four countries in 1970 According to the survey published in March Coeditor Coeditor total advertising expenditures for the 11 stood at stood at around $126 million which increased to 2006 by ZenithOptimedia, world’s total in 2008 is around US$1.7 billion or 6% of the world’s total $1,036 million by 1980 reaching eventually estimated to be around $478 billion for 7 major of $30.9 billion. $5,572 million by 1990 according to IAA data, or media, newspaper, magazine, radio, television, 4,422% growth in a 20-year-period! cinema, outdoor and internet. Breakdown by Some 40 years later in 2007, the estimated region shows 41.4% for North America, 25.8% 16 Asian Advertising - 2007 Development of Asian Advertising - Nepal 17

C H A P T E R 3 Ancient Advertising non-commercial. As far as commercial advertis- ing is considered, we have the history of the peo- Although we don’t have the authentic history ple shouting aloud and selling their products in about when ancient advertising started in Nepal, the Haat bazaar. This can be treated as the start- the historians have a hunch that it might have ing point of commercial advertisements. The evo- Development of Asian Advertising - Nepal started from the practice of publicizing notices lution of ancient Nepalese advertising has also the from the kings. Customs like ‘jhyali pitaune’, same order of development, i.e., from voice medi- ‘Top Padkaune’, ‘Bigul Fukne’, etc. might have um to picture or graphical to the script medium. been the various practices in the development by Dr. Pradeep Bhattarai process of advertising. It is believed that the As for the era of this advertising, we can say beginning of ancient advertising in Nepal had also that starting before the documented era of adver- Nepal is a beautiful Himalayan country situated world and the Lord Buddha, the founder of been in the non-commercial form as it was in the tising, our ancestors had enjoyed the ancient con- in South Asian sub-continent, between China and Buddhism, which both belong to Nepal, then the history of world advertising. In fact, our advertis- cept of advertising, means and medium, whatever India. It is well known in Asia but in the West, misunderstanding of the minds end and people ing started from the ‘Bhat’ custom, which was the possibilities. there is still confusion, whether it is Naples of start to pay their respect towards Nepal. This con- Italy or it is a part of India. But, when we talk fusion is there either colonial factor of India about Everest, the highest mountain in the remaining in their minds or our limitations to fig- ure out our country in the West. Whatever the confusion or limitations, we Nepalese people proudly say that we belong to Nepal, the only one independent country in this sub-continent which was never a colony of any superpower of any era.

Basically, Nepal is a developing country based on agro-economy, not industrialized, and we must say somehow poverty is still there. This is the crux of the matter that we are not in a position to say that we have a substantially developed adver- tising industry. Now we are in a comfortable posi- tion to say that the Nepalese advertising industry is in an emerging state, ready to move forward in a very giant leap.

Nepalese advertising since its primitive stage can be divided into two parts by era, means and medium. Ancient Advertising Modern Advertising

Note: Text as provided by the writer except the years shown in Gregorian calendar. 18 Asian Advertising - 2007 Development of Asian Advertising - Nepal 19

Modern Advertising the cyber medium. Thahiti. In B.S. 1919 (1862), this press had pub- This is the first authentic advertisement in the lished Mokshasiddi, - a book by Krishna Giri on history of Nepalese advertisement. After that, to After the long practice of ancient means and Print Media whose cover page the very first print advertise- search the second ad we have to travel to B.S. medium of advertising, finally Nepal entered into To look at the history of modern advertising of ment in Nepal is found. The ad was as follows: 1945 (1888) when a book called “Hasya Manjar” the era of modern advertising, though it is very Nepal we have to go back to B.S.1908 (1851) was published from the Bharat Jeevan Press in much primitive if we observe it through the eyes when the then P.M. of Nepal Janga Bahadur Rana Banaras. On the cover page of this book, whose of the present state. brought Gidde Press from his official visit to cost was 3 ‘aanas,’ the following ad about Great Britain. But, this press only printed ‘Gorkha Bharat Jeevan’ was printed: The development of Nepalese modern advertis- envelopes, tickets and government papers and ing is the same as that of world advertising. If we didn’t contribute in making the history of adver- considered through means and medium’s point of tisement printing. view, Nepalese modern advertising has evolved The credit for printing the first advertisement in from print to radio and television and finally to Nepal goes to the Manoranjan Press situated in 20 Asian Advertising - 2007 Development of Asian Advertising - Nepal 21

Sharma and printed from Pasupati Press had the It took 11 years, after the second ad, for the following advertisement published: third ad to be printed. The last page of Pt. Kapildev Sharma’s book ‘Nalopakhyan’ which was published in 1956 (1899) contained the fol- lowing ad about the weekly paper “Sudha Sagar”: The three valid documents mentioned above were the advertisements in Nepalese print media before the publication of Gorkhapatra, the state owned newspaper. The publication of In between B.S. 1958 (1901) and B.S. 2014 Gorkhapatra began from Baisakh 4, 1958 (1901) (1957), various publications in Nepalese language B.S. as a weekly paper. The first issue of were published and there were various forms of Gorkhapatra edited by Pt. Naradev Motikrishna printing advertisements, whether it was as notice, order, or regulation. Under the chairmanship of Judge Krishna Prasad Chapagain the first Press Commission was formed on Magh 20, 2014 (1957) B.S. The document forwarded by this commission to the government on 31, Jestha, 2015 (1958) B.S. contained the 20-point advices. The 3rd point was:

‘Tundikhel.’ At that time, no one except the Ranas were permitted to own a radio set. This radio In this way, we have in between us, the history broadcast, permission for which was given to of government legally entering the advertisements Kashi Raj Pandey by P.M. Padma Samser, could in the print medium, after the advice of inflowing not be continued for more than two months due to government’s advertisements even when there the interference by other Ranas. During this time, were no business industries. After then, within whether any ads were broadcasted or not, there is these four decades there has been radical change no valid history. In 2004 (1947) B.S. the publics in the advertising business. The industrialization were permitted to keep radio sets to hear All India that has arisen along with the time has played an Radio but, to listen to the Nepalese radio they had important role in changing the nature of print to wait till the revolution of 2007 (1950) B.S. advertisement. which was against the contemporary Rana regime. The contemporaneous freedom fighters for the Advertising on Radio first time aired the voice of the public on Mangsir The history of radio broadcasting, in Nepal 20, 2007 (1950) B.S. from Bhojpur through a began in 2002 (1945) B.S. when the first test transmitter. The same transmitter was brought to transmission of radio was performed from the Biratnagar on Magh 17, 2007 (1950) B.S. and the ‘Bijuli Adda’ situated at the northeast of the then following request was aired from that radio 22 Asian Advertising - 2007 Development of Asian Advertising - Nepal 23

named as ‘Prajatantra Radio’: monopoly of Radio Nepal but also provided other occupied by the advertisements, now. In these between an advertisement, news, message, and opportunities for airing the radio ads. Today, there advertisements, 53% are national and the rest are notice. Whatever maybe, Nepalese Advertising are 53 FM Radios airing commercial and semi- international ads. has taken a big stride towards the bright direction, commercial advertisements and about a dozens of in the past 140 years. FM Radios are in the process of airing. After 2058 (2001) B.S., the era of government This radio, established in Raghupati Jute Mill, television entered into the age of private ones. Remarks Biratnagar, is guessed to have broadcasted a kind Advertisements in Films Before this, few private companies had bought of advertisement in the form of notices and Nepali movie history begins from 2006 (1949) NTV time and were broadcasting their programs As stated above, the modern advertising in requests but not commercial ads, though we can’t B.S. Janseva hall, the then ‘Sabhaghriha’ (Asse- and ads. But today, private channels like Kantipur Nepal come across a long away and finally we are find any authentic history. mbly Hall), with displaying Hindi films started TV, Channel Nepal, Image Metro Channel, Image in a position to say that Nepalese advertising is the exhibition of commercial films in Nepal. Channel and Nepal 1 are also airing advertise- world-class through all points of view. If there is Today’s Radio Nepal began its transmission on Tough, we don’t have this hall now, more than ments along with Nepal Television’s national any difference, that is only because of market and 20 Chaitra, 2007 (1950) B.S. as state-owned radio 500 halls have been established in Nepal and channel and Metro Channel. in some way skilled manpower and their tendency broadcasting medium with the name of Nepal these halls are showing advertising slides of dif- in such. Radio. The broadcasting of commercial advertise- ferent products. Since last couple of years, television because of ment must have begun thereafter, but it is almost its audio-visual beauty emerging as the prime In the development process of advertising in impossible to say which the first one was. The Which advertisement slide was the first to be medium of advertising. Nepal, advertising agencies, advertising personali- record available at Radio Nepal as the first Radio displayed in a cinema hall, is still a subject of ties, AAN (Advertising Association Nepal) as the Commercials in social notice form is: search. But, speculation is that the displaying of Advertising on the Internet apex body of advertising in Nepal, advertisers and slides began after the establishment of Janseva In the last four years of 20th century, advertise- the media sector have played a significant role. Hall in 2007 (1950) B.S. It is also guessed that the ments made a place in the Internet. Online ads But at the same time, we mustn't forget the first advertisement slide must have been the non- have begun in Nepal too. We cannot currently say popular movement and its outcome which provid- commercial one, that too in the form of notice. that its effect is decisive but it certainly is looking ed this open and competitive environment to Although, after the penetration of television in towards the positive direction. At present, about 2 move forward. Nepal there has been a bit of deficiency in film dozens Nepalese web sites are involved in cyber Now, Nepalese advertising industry is in - advertisement, we find the ads of daily used prod- advertisements. show, shows must be continued. At first Nepal Radio had not provided adver- ucts and social ads in sufficient manner. tising service, it was carried out by the Ratna Advertising in Other Media Recording Company, and this company paid Advertisements on Television In this state, where the world has stepped into Nepal Radio all in a single installment. But today The idea of having television in Nepal was the 21st century, a condition has been created to Radio Nepal has its own advertising service sown in 2041 (1984) B.S. Only after 6 months, sort out what can and what can’t be a medium for through this service, it has been transmitting vari- i.e., on 29 Shrawan, 2042 (1985) B.S. Nepal Advertising. Hoarding boards, display boards, ous types of advertisement. After 2051 (1994) Television began its test transmission. Probably, wall writing, pamphleteering, ‘miking,’ etc., all B.S., when Radio Nepal established FM the days of TV commercials must have begun in have become prevalent advertising mediums. Kathmandu under it, it has speeded the flow of those days (the days of test transmission). On this Beyond these, visiting cards, invitation cards and radio ads, however it is also felt that this has very day, Nepal Television Project became Nepal even various gifts are being used as advertising affected the flow of ads in AM broadcasting. Television Corporation and television broadcast- media. These types of development in the concept Later in 2055 (1998) B.S., the establishment of ing was started in regular manner. About 15.8% of and angle of advertisements have created such a Kantipur FM not only broke the 50-year long the total broadcast time of Nepal Television is chaos that one finds it difficult to distinguish 24 Asian Advertising - 2007 Development of Asian Advertising - Philippines 25

C H A P T E R 3 Emblazoned on the front page of the Diario de Manila (published and edited by Felipe del Pan) in June 1896, it showed a young Spanish girl holding a near-full beer mug. Although there was no mention of the beer brand, there is very strong Development of Asian Advertising - Philippines to believe that the ad belonged to San Miguel Corporation since it was the only company at that time which produced locally-made beer. by Cynthia S. Jacinto SMC actually went into print advertising early in its life. In a tourist brochure published in 1908, The Evolution of Philippine Advertising agencies did they have? What was the prevailing San Miguel Beer was billed as the best beer for concept of advertising at that time? the tropics as known to everybody. This brochure In this age of recession and a deteriorating eco- was published by the McKinney’s Eastern nomic situation, hopes for regaining financial sta- Although advertising as an industry formally Detective Agency for the visiting Atlantic Fleet. bility remain rather dim. Companies have closed began only in the 1920s, the earliest Filipino Another beer ad also came out in 1909 in the shop, business has gone from bad to worse, all traders who were engaged in barter and limited paper El 96 Rivisita Quincenal. that people talk about is high prices and the diffi- commerce with other Asian peoples before the As business and commerce boomed especially cult times. advent of the in 1521 were already in the American period, the need to use the papers using advertising in the crude, primitive forms - to popularize an idea or a product became more The advertising industry is not spared from all similar to those of the Greeks, Egyptians, and pronounced, marking the start of the real develop- these. Some small advertising agencies have Romans. Archaeological diggings prove that the ment of advertising as an industry in the stopped operation, people in the industry have early already used printed signs to com- Philippines. been retrenched. But the few of those who have municate their messages, believed to be the influ- weathered the storm - and continue to do so - have ence of the Malays, Chinese, Japanese, and other Advertising Before World War II proven that, despite the crisis, the industry can Asians who were among the first civilizations to The early 1920s saw the appearance of one- potent selling tool. From an originally media- and will survive. More so, it has developed itself come in contact with the Philippines. man organizations devoted to advertising in the advertiser activity, the advertising industry gradu- into a necessity that people active in business Philippines, mostly housed in one-room offices in ated to a more professional craft with the emer- today cannot very well do without. With the advent of the Spanish era, the use of Manila. The heads of these organizations were the gence of spaceman or space brokers. These were the printing press was introduced. This led to the ones who singly took charge of maintaining con- advertising solicitors whom newspapers hired to The industry, as a whole, has continued to be development and growth of newspapers which tact with advertisers, including the writing of the sell space to advertisers (similar to the present-day one of the more established and prominent formed the major means of public communica- advertising copy, presentation of layout and art- account executives). The spacemen were left to movers of the economy. The business seems to tion. With the development of printing and jour- work, and the delivery of the finished advertise- prepare their own layout, copy, and artwork. They have been here for years, very few really wonder nalism, advertising, likewise, ensued. Newspapers ments to the newspapers and magazines. These went direct to the advertisers and made the best of how this popular and distinguished craft of adver- then carried information on political views, busi- one-man organizations later became the forerun- their innate salesmanship powers to seek as much tising ever came about. It may be interesting to ness announcements, and product availability. ners of the modern advertising agencies. space as their quota demanded. Although newspa- recollect, at this point, the development of the pers had their own ad departments with artists and advertising industry here in the Philippines. Who One prime example is a beer ad presumed to be Gradually, the period saw the transition of layout men, the spacemen, nevertheless worked were the pioneers in the industry? What kind of the first of its kind in existence in this country. advertising from a stereotyped announcement to a on the copies using their own imagination and 26 Asian Advertising - 2007 Development of Asian Advertising - Philippines 27

conceptualizing innovative ideas to serve the per- Publicity Service Inc., managed by Edmund art department. sonal tastes of the clients. Bullis. It was followed shortly by the Philippine Agency Service Company founded by Theo S.S. Schier and Company and Braun and Even then, spacemen did not just sell space; Rogers, North W. Genkins and Frank Herrier, Rosedale were also among the popular agencies they sold circulation that attracted advertisers. Big with Francisco Velasco acting as assistant for of that era. circulation then - as it is now - depended on the administration and accounting. The clearing house Even in the pre-war advertising, competition editorial content of the publication. Those that for advertisements coming from the , was already part and parcel of the industry. One inspired public confidence by objective presenta- this agency later became the forerunner of Philads notable case is that between the Hale Shoe tion of the news, those that had attractive layout, - Media Representatives. Company, makers of Esco Shoes and the Hike those that had efficient circulation system and Shoe Company. Filipino Antonio Lagos who suc- reliable composing and printing departments; and While advertising agencies increased ads for ceeded American Clifford Butler as advertising those with respected and accepted publishing poli- products became widespread. At that time, around manager of the Hale Shoe Company engaged in cies, were accorded priority and redence by adver- 1928, San Miguel again came out with another his company as direct competitor in a public battle Source: First Quarter Storm, tisers. product - Magnolia Ice Cream - the first ad of of advertisements that lasted from the time he 4As 25th Anniversary which appeared in the Philippine Herald and took office in 1930 until 1934. The Lagos-Minton Advertising Summit, Souvenir Pioneer Agencies before the War another of which in the Excelsior Magazine in the Battle of Ads ended, with Lagos emerging as the Program, 2002. In 1921, the first recorded organized advertis- 30s. They showed Magnolia’s transformation victor and Esco Shoes making millions, while ing agency was established called the Philippine from a “sorbetes de cafe con hielo” to “el postre Hike Shoe Company had to accept defeat and, Herrier, however, resigned from Pacific ideal para completa una buena comida,” or sim- eventually, close shop. Commercial and was later hired by Alejandro ply as “es delicioso.” It was evident that even in Roces, Sr. to organize the first real advertising those times, San Miguel had already achievd its It was also before the war that an outstanding department for La Vanguardia-Taliba newspapers. heyday in the consumer market, as it continues to personality rose to prominence in the Philippine With a salary of P20,000 a year, Herrier became be a respected institution to this day. advertising scene. He was Frank J. Herrier, orga- the highest oaud advertising man in the pre-war nizer of the advertising and publicity department Philippines. In 1929, Florentino Garruz founded the of Pacific Commercial Company, then the largest Philippine Advertising Bureau after he resigned as export-import in the country and headed by Other pre-war name greats in the advertising advertising manager of the Herald newspaper. Horace B. Pond. An ad man and salesman with no were: Manuel Buenaventura, the first Filipino equal, he was dubbed as the Napoleon of advertising man to handle accounts for clients In 1930, Ros Chanco, the former staffer of the Advertising in the Philippines by Free Press editor including La Estrella del Norte, Estrella Auto H.E. Heacock Co. and of the Herald, founded an R. McCullock Dick, because of his successful Palaca, and J. Ysmael & Co.; Jorge Revilla, pre- agency bearing his name. advertising campaigns. In his staff were the best war advertising manager of Genato Commercial local talents available: Ramon Zamora, Federico Corporation; Jose Carcereny, advertising manager Subsequently, Pedro Escat and Ramon Zamora Calero, Jose Esperanza Cruz, Ireneo Miranda and of Botica Boie with Mary Navarro-Van Hoven as founded the International Advertising Agency, Pablo Amorsolo among others. Under Herrier’s his assistant; Martin Arroyo who later replaced which was later followed by the Jean Bisson leadership, Pacific Commercial spent more than Carcereny; Phil Novenario of Aguilnaldo’s; and Enterprises, as an agency founded by a French P1 million a year on advertising, making that Pedro E. Teodoro, pre-war advertising solicitor of Source: First Quarter Storm, 4As 25th Anniversary artist of that name. Finding the newly organized company the largest Philippine advertiser before the Journal of Education and then advertising Advertising Summit, Souvenir agency a threat to its business, the International the war. manager of Elizalde and Company. Program, 2002. Advertising Agency was forced to strengthen its 28 Asian Advertising - 2007 Development of Asian Advertising - Philippines 29

There were also pioneers in the media field - Philippines for it saw the development of advertis- ners, Harry Lee and Nick Kline, former officers of advertising people who represented the newspa- ing into a vital selling tool. the United States Navy, organized the Philippine pers and magazines before the war. Among them Advertising Associates, which was eventually were Benigno Manabat of ; None of the advertising agencies, however, sur- absorbed by the J. Walter Thompson Company. Gustavo Torres, former artist and advertising vived the ordeal of the Second World War. But solicitor of the Tribune; Lino Gimeno of the Free immediately after the country’s liberation in 1945, Grant Advertising was born in 1948 and was Press; Ramon Medina, advertising manager of the advertising efforts were revived, the industry organized by W.C. Grant and Tyler Stafford, fol- pre-war Banawag Magazine; Enriqueta David- slowly got back on its feet. lowed by the Gregorio Araneta Incorporated Perez; Ramon Tagle, pre-war manager of Bisaya- Advertising Department, which later became Ace Hiligaynon; Crispulo Meneses of Taliba; Cipriano Among the first to open an advertising agency Advertising, organized by the Aranetas and Jacinto of the Bulletin; Emilio F. Salazar, advertis- was Americam D.L. Brodt, former advertising Antonio de Joya. ing manager of the pre-war Liwayway; Arsenio director of The Tribune, which represented locally de Leon, M.M. de los Reyes and Marcelo S. the J. Walter Thompson agency in the States. He De Joya recalls that the industry was well- Reyes, all of Liwayway; and Efrain E. Carlos. set up his office at the Insular Life Building in developed for its time in terms of professionalism Manila. of its advertising men. The basic of advertising - Carlos, who worked under A. Roces Jr., as in defining the market, defining the product, Thibault and Brodt as advertising agencies were On June 15, 1945, an agency founded by Gene and in trying to establish as creative strategy to very few. Their services, technical know-how and Hubilla named the Commercial Advertising help meet these objectives - were already known facilities were a far cry from present-day agen- Company (Comacdo) was opened. With the influx and widely implemented. cies. Radio and color advertising were undevel- of American goods in the country, the agency In the ’50s, the marketing concept of advertis- oped then and television was unknown. It was a inevitably flourished. ing was already in existence and was clearly man- great era, however, for advertising in the ifested in the scientific application of companies One of the post-war organized agencies in the like PMC, now known as Procter and Gamble. country that has, up to this time, survived the With its active marketing research department, it times was founded by former advertising manager became the pioneer in brand management in the of Elizalde and Company Pedro E. Teodoro, and country. Alfredo Benitez in September 1945. The Philippine Promotions Bureau occupied the mez- Ace-Compton’s Senior Vice-President-Media zanine floor of the old building in Avenue. Director Vic San Pedro recalls Procter and This agency was later known as Philprom, Inc. Gamble’s first ad was the Camay Beautiful Girls ad, “Our campaign theme was Camay, the soap of In June 1946, another agency, Pan Pacific beautiful women and so we tapped the most beau- Advertisers was organized by Jess Chanco, Rafael tiful woman at that time to endorse the product. Hernandez, and Lyle Little. The same year also Then we branched out to radio commercials.” saw the birth of Advertising Associated, originally established as an outdoor company, which With the manufacture of Purico, Perla, Mayong branched out later to include print advertising ser- Cooking Oil and other products, Procter and vices to its clients. Source: First Quarter Storm, 4As 25th Anniversary Gamble embarked on a wider and more ambitious It was in 1947 that Velasco and American part- Advertising Summit, Souvenir Program, 2002. advertising scheme, launching the country’s first 30 Asian Advertising - 2007 Development of Asian Advertising - Philippines 31

soap operas nationwide. These soaps like Dr. country around the 1950s, radio was still the most Hail to the Mavericks! Ramon Selga, Gulong ng Palad, Ilaw ng Tahanan, widely-used medium for advertising. Movie Prinsipe Amante, and Aklat ng Pag-Ibig among advertising then ensued about five years later. others, aired daily in Manila radio stations, adver- By Raymond Kalaw Nacino tised products exclusively made by P&G. Fully Today, because of the glamour and the audio- sponsored by them, these was highly successful visual appeal of television to the public, it has Twenty-five individuals. Passionate, gifted, and above all, inspiring. that they eventually went to the extent of translat- developed into an equally good and much-used Our industry is crowded with talent. These twenty-five rise above the crowd. ing the Tagalog soaps into the dialects of the key vehicle for advertising. Radio, however, maintains We call them Mavericks. A maverick, a word used in the 19th century for an American pioneer provinces to carry their messages across more to be the most mass-based medium. who refused to brand his calves, is today’s nonconformist. effectively. While advertisements at that time may seem Refusing to be comfortable in industry convention, these mavericks questioned and discovered crude and primitive to advertising practitioners of surprising solutions. In the ’60s, laundry products like Perla, Wheel today, they, nevertheless, served the purpose of These mavericks were, and remain, visionaries. They saw beyond the fog of tradition. They saw soap, Tide, Breeze, and Drive and toilet soaps like effectively disseminating information, making the light at the end of the tunnel. Lifebuoy, Palmolive, and Lux saturated the mar- people aware of the existence of consumer items They changed industry paradigms. ket, revolutionizing the advertising industry in the and keeping the public abreast of relevant issues. Their contributions had impact beyond the industry, extending to the rest of society. Philippines. Bert Timbol of Philippine Refining Through the years, the industry has substantially Pioneers and innovators, they were driven by the pursuit of excellence, rising above sense of Company says that it was during this period that grown and tremendously improved. A new genre advertising became highly competitive with about of Filipino advertising has slowly become evident self, to a sense of duty to the profession they chose. 11 toilet soap brands bidding for recognition and that could very well come at par with the quality Their success and fortune were not handed to them on a silver platter. Pun intended, of course. consumer purchase. of advertising in order parts of the world. Many of them labored against demoralizing odds. Where weaker souls have foundered, these twenty-five found themselves in their true element. Even when television was introduced in the (Source: PATALASTAS, August 1984) The industry is grateful, and fortunate, to have lived during their time.

CREATIVE / Emily Abrera

Legend of Philippine advertising. Gives honor to her country by being both the first Filipino president and the first female president of a multina- tional advertising agency. Joined McCann Erickson Philippines, Inc. in 1987. Bagged the coveted Agency of the Year Award in 1997, 1998, and 2000. In 1999, assumed Chairmanship of the agency. In 1995 was Agora Awardee for Marketing Management. Recently honored with a Lifetime Achievement Award by the 4AsP Creative Guild. 32 Asian Advertising - 2007 Development of Asian Advertising - Philippines 33

AGENCY MANAGEMENT / Severo Alcantara PRESS / Eggie Apostol

A man who rose from the ranks. Started as part-time messenger/janitor A fighter, give her a good cause and she will fight. Breaking tradition - at Grant Advertising, then the newest American ad agency in the country Eggie enhanced the women’s pages of Manila times and the Manila in the 40’s. Twenty years later, “Sev” was running the now-multinational Chronicle with her usual flair and sense of fun, but she was also capable of company and became its major stockholder. In the ’90s, he served as Vice- depth and seriousness when the subject is about consumerism or about Governor, and later, Governor of Virac, Catanduanes. Today, “Sev”still sits press freedom and democracy. When Ninoy Aquino was shot, she came in the board as Chairman Emeritus. out with Anti-Marcos Mr. & Ms. which became the forerunner of the Philippine Daily Inquirer. When the corrupt regime of Through a foundation he has set up, “Sev” built a public library and needed to be thrown out, she published a tabloid, Pinoy Times. Hala bira! helps send needy but deserving high school graduates to college. “Pay back time,” he says while recounting that day in the late 40’s when he was blessed with a one-way train ticket to Manila.

RADIO PRODUCTION / James Black

Procter & Gamble’s archivist from 1965 to 1986. An American born in BROADCAST / Ben Aniceto Tondo, Jim started his career as a studio technician, recording Purico advertising, soundman of “Tawag ng Tanghalan” for nationwide airing. He A man - a voice - who has traveled far and wide. retired at the age of 65 as an in-house Broadcast Head of P&G.

From Lakandula Elementary School to UST, to radio announcer in DZPH to Asian Institute of Management to Bureau chief editor of Philippine News to Los Angeles, to General Manager of ABS-CBN and GAWAD CCP for Outstanding contributions to Broadcasting.

The creator of radio’s Beinte Cuatro Oras, Top Tunes on Parade, RADYO PATROL, such personalities as TIA DELY, Eddie JuniorDetektib FILM / (ED CLAUDIO) and TITA BETTY, among many others. A filmmaker, actor, social activist and widely considered as the most On TV, the first variety musical show - THE SENSATIONS and intro- prominent Filipino filmmaker who broke grounds for Philippine cinema duced HALALAN coverages live on CBN (on site reporting election internationally. Brocka was a trenchant critic of the Marcos government, ~ frauds, (Pre-Namfrel) during the Marcos-Osmena duel in 1969. And and despite being censored and imprisoned, he continued to fight for cen- NEWSBREAKS featuring lady reporters. sorship and agitate the Marcos regime in both life and his films - the truth about the dictatorship and the country’s poverty. In 1997, he was conferred Now, Ben is finishing the soon-to-be-published book on THE GOLDEN the posthumous distinction of National Artist for Film that fitly caps the YEARS OF PHILIPPINE RADIO. innumerable awards he bagged in his lifetime. 34 Asian Advertising - 2007 Development of Asian Advertising - Philippines 35

AGENCY MANAGEMENT / Javier J. Calero RESEARCH / Rosie Chew

Over 40 years of life in advertising and Javier J. Calero is still at it. He is The “Godmother” of market research in the Philippines. Gifted with a currently the Chairman and CEO of J. Walter Thompson Philippines, a keen and enterprising spirit, fondly known as RC to associates and staff, columnist for BusinessWorld, and director for the AdBoard of the spanning over 50 years. Has been dedicated to upgrading the market Philippines, the Association of Accredited Advertising Agencies of the research industry in the Philippines and training people to become cutting Philippines and Radio Research Council. edge research professionals.

He was born into the world of advertising in 1958 as the first account representative trainee with JWT. He attained JWT presidency by 1978 and was soon appointed Chairman and CEO after two years, resigning the posi- tion in 1997, only to be reappointed last August, 1999.

Taking his expertise beyond the industry, JJ is also actively involved in a NETWORK PROGRAMMING & SALES / Freddie Garcia number of community services and is Senior Media Advisor for the International Foundation of Election Systems which recently facilitated the “Visionary” of Philippine Broadcast. In earlier years, built Channel 9 by historical Indonesian election. wooing non-advertising clients like Elephant Katol, Ajinomoto and Tancho Tique, getting them to advertise by producing their TVC’s on video. During Martial Law, moved to Channel 7, repositioned DZBB as The Soap Opera Station. Aired prime mover in ABS-CBN’s resurrection. Genius behind public service greats like TV Patrol and Hoy, Gising. ABS-CBN’s MARKETING / Ben Chan President and COO, always in the service of the Filipino.

Pioneer in the use of the quiet but strong imagery in selling his brand. When “rowing” TV ad for Bench with as the central image hit the air waves of Manila, everybody found the quiet, no frills-no hard sell, uniquely original.

He place PACKAGING where it properly belongs - in the forefront of the merchandise. Bench packaging is a combination of wit, humor and practicality. AGENCY MANAGEMENT / Greg Garcia

Ben Chan succeeded in turning the lowly T-shirt into a status symbol. Together with Gil Yuzon, founded Hemisphere, later Hemisphere-Leo Before Bench, T-shirts were only worn as undershirts - not to be used as an Burnett. outer shirt in respectable places. But with good quality and excellent design that Bench introduced, it became accepted to wear the T-shirts as Creator of campaigns now immortal in the hearts of Filipinos. Inspirer outer wear. This revolutionary effect opened up a totally new industry that and moulder of hundreds of fresh minds that enriched the industry. The is devoted to the design and production of sporty wear that is symbolized voice of wisdom behind the formal founding of the Creative Guild that for- by the branded T-shirts. ever changed the face of Philippine advertising. 36 Asian Advertising - 2007 Development of Asian Advertising - Philippines 37

PRODUCTION / Tony Gloria Mon Jimenez

The production head who became the creative director, who became Fourteen years as a Vice-President and Executive Director of Ace supervising producer for Viva and created 12 mega-hits straight in a row. Saatchi & Saatchi, then made Jimenez & Partners a multinational company The discoverer of , Dina Bonnevie, , Raymond within three years which eventually became Jimenez D’Arcy in a change Lauchengco, before he created TVC which is now UNITEL, the of corporate name. Monj is jointly responsible for leading his shop into Production House of the Year for four straight years and number one pro- being one of the top 10 agencies in the country. Boasts effective campaigns duction house in the Philippines in size and reputation for the past 14 for Selecta Ice Cream, National Bookstore, Bench, Vicks Vaporub, Jag years. Jeans, Touch Mobile, Mead Johnson, and many more.

D’Arcy has recognized Jimenez D’Arcy as being the best D’Arcy office in the world with the conferment of the Jean Management Award for Management Excellence.

MEDIA / Minda Lansang

A woman called “MEDIA.” From a secretary in the media department, she moved up to the highest position of vice-president. Today, as a Managing Director of Mind Share Philippines, she is also credited for installing what is possibly the best AOR system. The system based on her AGENCY MANAGEMENT / Abby Jimenez professional philosophy of prompt documentation and transparency that benefits the partnership of both client and agency. Mon Jimenez pays personal tribute to his wife:

“Abby Lee-Jimenez is the founder of Jimenez D’Arcy

That says it all in an industry where many have wondered (or even COMMERCIAL FILM PRODUCTION / Gerry de Leon dreaded) how they would fare leaping away from their cushy, high-paying executive jobs with the big multinationals and starting from scratch. In the 50’s and 60’s, de Leon directed numerous films - many now regarded as Filipino classics such as “Ifugao,” “Daigdig ng mga Api,” Abby is always less afraid of failure than stagnation. Which is why “Noli Me Tangere,” “El Filibusterismo” and “Sisa.” working with her closely as I do, you get infected with the mania to make things happen - not tomorrow but today. He was the first serious full-length director to direct serous commercials for the products of Procter & Gamble Philippines, applying cinematic tech- Brave. Bold. Stunningly successful. niques and realistic portrayal of characters. You’ve just got to join her!” He was declared National Artist for Film in 1982. 38 Asian Advertising - 2007 Development of Asian Advertising - Philippines 39

MEDIA/TV / Eugenio Lopez, Jr. AGENCY MANAGEMENT / Louie Morales

In 1956, after graduating from Harvard Business School, he made his “What have you done for me today” is a perennial question being asked father’s broadcast concerns in the Philippines’ largest network with two by Louie Morales of his colleagues. To those who know him well, the television stations (Channels 2 and 4) and seven radio stations in Metro question has become a constant prodding to be productive... to accomplish Manila, three provincial TV and fourteen radio stations and three affiliate things... to go beyond what is standard... to excel. stations. Also implemented “Bridges on Air,” that sought to link together the Philippine islands through domestic satellite technology, making ABS- And excel Louie Morales himself did in his more than 35 years of CBN the country’s first true network by time control over the stations was advertising life. Starting with Philippine Advertising Counselors, Inc. wrested from the family in 1972. (PAC) as a management trainee in 1965, he rose to become its managing director, leading the company to become the number one ad agency in the 1970’s.

With PAC, Louie’s first account was Amon Trading where he is credited with the company’s “Nail” ad. Yet, he is better known to be the ad man responsible for some of the unforgettable San Miguel Beer campaigns (Mag-beer Muna Tayo; Isang Platitong Mani; So Good Ayos Na Ang Kasunod; Ito Ang Beer, etc.). Likewise, Louie revolutionized the way to make Marlboro a brand leader in the Philippines by introducing the “Tour BUSINESS MANAGEMENT / Tony Mercado of Luzon/Hulog ng Langit Promotions” and other below-the-line activities that the brand has become well-known for. Almost everyone hated Tony Mercado then, because nobody likes a Maverick, most especially while he was alive. But Louie Morales won’t be Louie Morales, the ad man, without appending to his passion the service to the ad industry. He helped put He conceptualized and implemented the idea of profit sharing when it together the 4As, served 7 times as AdBoard Chairman, led Ad Congresses was unheard of in the industry, and the idea of mini agencies as business and put up the Ad Foundation - all to help make a better organized - more units and called them foxholes. He also conceptualized the idea of effective ad industry. Continued Medical Education for Doctors using the cable TV idea. Louie’s zest for the advertising life is unceasing. With Image He was talking of media independent as early as 1992, and had a pro- Dimensions as his current venue, he still prods young and upcoming prac- posal that will eliminate the CP (Certificate of Performance) among radio titioners to excel. An invaluable contribution, indeed, to an industry... to stations using digital signals. This would mean faster, more accurate moni- life! toring of radio placements and faster billing and collection for networks. 40 Asian Advertising - 2007 Development of Asian Advertising - Philippines 41

CREATIVE / Ma. Yolanda Villanueva-Ong MARKETING / Socorro “Nanay Curing” Ramos

“Renaissance Woman,” no doubt. Founder and CEO of the advertising She pushed a cart of notebooks along Avenida Rizal every school open- agency, Campaigns & Grey (formerly Campaigns, Inc.) and its satellite ing season. The notebooks cam from Goodwill Bookstore. Chased by companies, CAMP Apple, CAMP Cebu and Campaigns Advocacy & PR, policeman for being sidewalk vendor. Dreamt of coming up with her own Inc. (CAPRI). First Filipino to judge in the Clio Awards, 1994. The bookstore. Later on, she became the famous voice behind National Outstanding Women in the Nation’s Service (TOWNS) Award, 1995. First Bookstore in Avenida saying to the crowd “Come up stairs, please.” She awardee in the field of Communications: Advertising (Social Marketing). printed books for grade school, elementary, high school, college, doctorate. National Bookstore has 500 branches all over the Philippines. Everyday, Co-writer for Anak ng Pasig, 1st message song to hit Platinum Record Nanay Curing still sells books. Song of the Year, Awit Awards, 1992. Founding President of the Creative Guild of the Philippines (1984-85). Editor of “The Science of Advertising,” Anvil Publishing, Inc., 2000.

After conquering the field of advertising, Yoly now sets her sights on another field, Public Administration, in which she holds a masteral degree MARKETING/MANUFACTURING / Johnny Santos from the Kennedy School of Government, Harvard University. Father of Nestle Philippines. Grew megabrands like Milo and Carnation Yoly graduated in June 2002 with two distinctions: Lucius N. Littauer amidst a major strike in the 80’s. Personally fought for better wages, bene- Award - one of the 10 awardees in a class of 210 graduates and Mason fits, built Nestle’s corporate culture and united the company operations. Fellows Award for Leadership and Service. Today, as Chairman and CEO, he is a father to a Nestle family of almost five thousand employees, embracing top brands in the Philippine market, ~ CREATIVE / Herminio G. Ordonez making Nestle one of the biggest advertisers in the Philippines.

If there were a National Artist for Advertising, it would surely go to Minyong Ordonez.~ His vast body of work was derived from his astute insight into the Filipino as consumer.

“Minyong” started his creative career in the ’60s by writing copy for Procter & Gamble brands. In the early ’70s he also worked as a copy chief MARKETING / Tony Tan in a Bangkok agency covering Vietnam and Cambodia. He was a sales and programming director of BBC Channel 2 in the Philippines in the late ’70s. Tan and his brothers, who grew up working in a Chinese restaurant, In 1978, he joined Basic Advertising as a partner and president. Minyong started Jollibee as an ice cream shop in 1975. Eventually they offered burg- pioneered Asian family values advertising genre in the Philippines 10 ers and other fast food. Now Jollibee is Asia-wide with over 300 stores and years ago. This strategy and its theatrical executions gave Basic the reputa- has moved to the U.S. recently opening in California. While Tan could eas- tion of a turnaround agency. Minyong is an apostle of what he terms as vis- ily afford to eat shark’s fin soup at every meal, he has Jollibee food three ceral communication. He calls its “hitting a raw nerve.” In 1996, Minyong times a week. “I still prefer burgers and chicken,” he says. So do millions was presented the Creative Guild of the Philippines the First Lifetime of Filipinos. Tan expanded the business, acquiring Greenwich and Achievement Award given to an advertising Creative Director. Chowking. 42 Asian Advertising - 2007 Development of Asian Advertising - Philippines 43

AGENCY MANAGEMENT / Pedro Teodro, Sr. The ADBOARD Story In January 1973, the Mass Media Council met with the heads of all communications associations Pillar of Philippine advertising and public relations. Pete Teodoro, It was the worst of times, it was certainly not in the Philippines to develop new and updated together with Alfredo Benitez, established the first Filipino advertising the best of times. On September 21, 1972, rules for the conduct of media advertising agen- agency in 1945., right after the Japanese invaders had fled Manila. It was President issued President cies. At that time, all media and advertising agen- renamed Philippine Promotions Bureau, later better known as Philprom. Decree 1081. With one stroke of the pen, the dic- cies were loosely classified as mass media. tator proclaimed emergency rule, and placed the Presiding over the meeting was Andres Cristobal In 1956, the agency, with nine others, formed the Association of entire country under Martial law. Cruz, director of the Bureau of Standards for Philippine Advertising Agencies, consisting of American-owned and local- Mass Media, an office of the Department of ly-owned advertising agencies. Teodoro was the first presidentof APAA. In The proclamation was timed near the end of his Public Information. the latter 70’s, the APAA merged with another new group, LAPPIS second and last legal term. With the obvious (Lapian ng mga Adbertaysing Praktisyoner na Pilipino sa Ikauunlad ng intent of perpetuating himself in power, Ferdinand Several councils were formed at the meeting, Sambayanan) to form what is now the 4As-P. Teodoro was voted again E. Marcos ostensibly used the engulfing menace among which was the Council for Advertising, president. of Communism as a reason for the imposition of Public Relations, Research and Sales Promotion. Martial Law. Among other acts, the dictatorial It was headed by entrepreneur Francisco R. Floro Apart from pioneering in advertising. Teodoro enhanced the perception government immediately moved to suspend of Floro Enterprises. A sub-committee was of practitioners that advertising should not be principally profit-oriented media operations. Due to the mass communica- formed under the Chairmanship of Lyle K. Little, but also cause-oriented. tion nature of advertising, the government needed who was then president of J. Walter Thompson. to control it. Television and radio stations and The aim was to forge a Code of Ethics as well as newspapers were closed, delivering a considerable Rules and Regulations governing all those blow to the advertising industry. Only one news engaged in advertising and sales promotions. paper, the crony-owned Daily Express, was allowed to operate after a one-day lapse. Media Participating in the sub-committee were repre- PRODUCT DEVELOPMENT / Jaime Augusto Zobel de Ayala leader ABS-CBN (Channels 2 and 4) which also sentatives from the Association of Philippine owned ABC (Channel 5), DZMT and DZWS, Advertising Agencies, Philippine Association of The Fearless Young Emperor. Took over the Philippines’ oldest and were all closed. With no media outlet available, National Advertisers, Kapisanan ng mga largest conglomerate in 1995, at age 36. Ditched the patient, prudent some advertisers enterprisingly resorted to imagi- Brodkaster ng Pilipinas, Lapian ng mga approach for a more aggressive stance - gobbling up everything from real native venues such as nightclub bands and enter- Adbertaysing Praktisyoners na Pilipino sa estate to retailing to information technology. Behind such powerhouse tainers singing their jingles. Ikauunlad ng Sambayanan, The Outdoor and and businessman is a man who passionately believes in advertising, making Cinema Advertising Associations of the great campaigns possible for Globe Telecom, Ayala Land and Ayala Malls. The Mass Media Council Philippines, Print Media Organization, the Office A dynamo bent on turning more grass to glass, he continues to grow his of Civil Relations, the Institute of Mass empire, subsequently funding charities like the Philippines’ Children and Soon after, Marcos directed the formation of Communications, and the Consumer Sector. Youth Foundation, and the global Worldwide Fund for Nature. the Mass Media Council, supervised jointly by the Secretary of Public Information, Fifteen months after the initial meeting, this and the Secretary of National Defense, Juan Council completed the Code of Ethics in March Ponce Enrile. In turn the Office of Civil Relations 1974, subsequently approved and ratified by all Photo credits: Philippine Daily Inquirer (Photo of Lino Brocka); CCP National Arist Program (Photo of Gerry de Leon) was assigned to coordinate all media activities, participating organizations. It was then submitted Source: First Quarter Storm, 4As 25th Anniversary Advertising Summit, Souvenir Program, 2002 then under the charge of Colonel Noel Andaya. for approval to the Secretary of Public 44 Asian Advertising - 2007 Development of Asian Advertising - Philippines 45

Information. Yen Makabenta, a member of the J. Llanes Escoda St., Malate. of accepted fair-trade practices or laws involving existing laws and/ or governmental rules and reg- DPI, was assigned to refine the code, and suggest the use of mass-media advertising brought before ulations relative to fair-trade practices in the use appropriate changes in terms of clarity and preci- Meanwhile Presidential Decree No. 756 of 9 the Department of Trade or any of its instrumen- of mass-media advertising. sion. November 1974 had created the Print Media talities be referred to the Philippine Board of Council and the Broadcast Media Council to advertising for proper hearing and adjudication; The Department feels that the implementation The Birth of the PBA replace the Media Advisory Council (successor of The PBA be authorized to screen all adver- of this basic agreement, which shall be covered by the Mass Media Council.) tising as may fall within the jurisdiction of the the necessary Department administrative Orders The existence of a Code of Ethics made promi- Department of Trade. In this connection, at least and Circulars, will enhance the development of nent the essential need for a formal organization This 1974 decree stated that: senior officials of the department of Trade shall be the concept of self-regulation of an industry vital that can unify the various sectors of the advertis- Since the abolition of the Mass Council and the appointed by the Secretary of trade who shall par- to the development of our national culture, in the ing industry. Thus, on May 6, 1974 the Philippine creation in its stead of the Media Advisory ticipate in the activities of the screening of the dissemination of information and in the conduct Board of Advertising (PBA) was organized, with Council, the various sectors of mass media have Philippine Board of advertising. of trade. the above-named associations comprising the shown capability for self-regulation and internal The Philippine Board of Advertising shall founding members. The secretary of Public infor- discipline within their ranks, and have demon- submit its screening procedures to the Department Finally, it is understood that this agreement is mation released the Code on April 4, 1975. strated responsibility for maintaining standards for of trade for endorsements. being formalized pursuant to the government's Because the Code was meant to be a living, professional conduct and excellence, The Print The sanctions provided for by law will be philosophy that self-regulation by an industry dynamic instrument responsive and sensitive to Media Group and the Broadcast Media Group are imposed by the Department of trade upon the rec- often serves to inculcate a greater sense of respon- the needs and changes of the time, additional hereby authorized to organize and determine the ommendation of the Philippine Board of sibility. modification would be made in succeeding years. composition of a body or council within each Advertising on parties found guilty of violating group, which shall be responsible for instituting On June 19, 1975, the PBA adopted a revised and formulating systems of self-regulation as well version of Code of Ethics which included certain as in the implementation and enforcement of the other modifications. More significantly, the PBA's decisions relative to the advertising revised Code identified and confirmed the PBA as screened?. the self-regulatory body referred to in that code. Based on its experience so far, the Philippine Francisco Floro - Founding Chairman Board of advertising has informed the Department of Trade that it needs a more direct involvement The PBA elected of the Department to more effectively coordinate Francisco as its founding all decisions made with reference to cases involv- chairman. Appointed as the ing violations of the industry --- promulgated First Executive Director was Code of Ethics and other existing laws on unfair Oscar P. Lagman, Jr.; Vice trade practices involving the use of mass-media Chairman, Antonio L. advertising. Cantero; Secretary Santiago D. Olbes; Treasurer, Pursuant, therefore to the powers vested upon Napoleon R. Cruz; Information Officer, Lyle K. me by law, I am hereby directing that: Little. The office was located at the 2nd Floor, National Federation of Women's Clubs Building, All cases and/ or cases of alleged violations 46 Asian Advertising - 2007 Development of Asian Advertising - India 47

C H A P T E R 3 ognized as a leader among the developing coun- lished agencies merging, going out of business tries and the advertising industry had already and then as if from their ashes, emerged a string begun building fledgling Indian brands, and mak- of entrepreneurial ventures which were destined ing several foreign brands more relevant to Indian to leave an indelible mark of the advertising fir- consumers. mament for a long time to come. Development of Asian Advertising - India Meanwhile media was leading change in a The Stirring Sixties manner that was to alter the way the adverting industry presented itself radically. Television was by Ramesh Narayan Indian industry tried to hold its own in a social- born in India. 1978 saw a defining moment not ist economy which was the flavor of the decade just for the industry but to consumers all over the Communication is the lifeline of a mature soci- (which was to become Ogilvy & Mather) and J. and advertising was experimenting with bold cre- country. The first television commercial was tele- ety. It observes, chronicles and transmits history Walter Thompson rubbed shoulders with their ativity. The Government was persuaded to open cast. And life would never be the same again. in a plethora of ways, all designed to impact the Indian counterparts like B.Dattaram and Sistas up the State owned broadcast media and 1967 wit- audience. and are seen as the pioneers among conventional nessed the first radio commercial to be broadcast The seventies also saw advertising playing a advertising agencies. These had been joined by a on Vividh Bharati. A year after that, another major role in public service communication. At In a civilization as ancient as that of India, the host of advertising agencies and they had banded momentous event took place. India won the bid to that time, it was in the area of communicating the Vedas that are seen as the repository of knowledge themselves under the aegis of the Advertising host its first Advertising Congress (AdAsia) in benefits of family planning. The industry was to and the epics like the Ramayan and Mahabharat Agencies Association of India (AAAI). New Delhi in 1970. remain committed to its stellar role in creating have been unique examples of how society can meaningful public services messages in the years use different forms of communication over a span The burgeoning print media had organized that were to follow. of thousands of years, be it word-of-mouth, the- itself under the banner of the Indian and Eastern The Significant Seventies atre, dance forms, books and even television and Newspaper Society, which now exists as the cinema to communicate their contents to genera- Indian Newspapers Society (INS) and the Vividh 1970 saw the Seventh Asian Advertising The Eventful Eighties tions of Indians. Bharati (All India Radio), a Government con- Congress being hosted in India. It was also a new trolled radio network was already broadcasting to beginning where industry-specific associations A great milestone in the history of the Indian Fifty years is a blink of an eyelid in the lifetime the nation. representing advertisers, publishers and advertis- television industry was crossed when in 1982, of an industry. Yet by 1958, advertising as we ing agencies came together to jointly present India coinciding with the Asian Games that were held know it had long transcended its rudimentary India was among the first Asian countries to to the industry in Asia. It was to be the forerunner in New Delhi, color transmission was introduced. forms of expression. Print advertising, which recognise the importance of audited circulation of a collaborative era that would benefit all con- Consumers would now enjoy an all new and began in the eighteenth century in the Bengal figures for media planning. The Audit Bureau of stituents of the industry. An early manifestation of engrossing way of viewing news and entertain- Gazette had come of age and advertising had Circulations, India, has been in existence for over this collaborative nature was the conducting of ment at home. Almost immediately, for the first acquired a fair degree of sophistication. Several 50 years. Today the ABC conducts six monthly National Readership Surveys that pointed towards time, a private advertising agency, Mudra, spon- Indian and foreign-owned advertising agencies circulation audits for over 450 member publica- a more intelligent and focused way of reaching sored the first commercial telecast of a major had set up shop all over the country with Bombay tions across the country. As a member of IFABC, the consumer. sporting event, the cricket series between India (now Mumbai) becoming the commercial capital the Indian ABC has contributed to the launch of and the West Indies, and really put not just media of India, and also the capital of commercial cre- ABC organisations in other Asian countries. This was the decade where a degree of maturity planning, but sports sponsorship in the fast lane. ativity. International names like D.J.Keymer By 1958, the Republic of India was being rec- came about in the operation of advertising agen- cies. This tumultuous decade saw large and estab- The same year saw the advertising industry put 48 Asian Advertising - 2007 Development of Asian Advertising - India 49

on a greatly appreciated AdAsia 1982 in New in India, then the ‘Bold and the Beautiful’ marked world. Its vibrant democracy was being show- India is now poised on the brink of great econom- Delhi. David Ogilvy flew down to India for its the acceptance of a truly western orientation as a cased as a model other fast-growing economies ic and industrial growth. The coming decades inaugural session, and not just India, but Asia was recognizable niche in media planning. could emulate. The Asian elephant was dancing. could see her as one of the economic power hous- recognized as the tortoise who could pip the hare By 1996, Sun TV had become the first regional The media in India had attained a degree of es of the world and advertising would be the hand to the economic sweepstakes globally. The analo- channel (it operated out of the South Indian State sophistication that was on par with the best in the on the steering wheel. gy was to be prophetic. of Tamil Nadu then) to go live 24X7. world. The largest circulated English newspaper in the world was an Indian newspaper. Keeping in view the growing role of advertis- This period also saw the Indian economy, long ing in Society, the Indian advertising industry called the lumbering Asian elephant, being Against this backdrop, the AdAsia 2003 was proactively came together to form the Advertising opened up. Privatization and liberalization were held in Jaipur and seemed to encapsulate the quin- Standards Council of India (ASCI) in the mid more than buzz words, and the advertising indus- tessence of India... her regal past, her competitive eighties. A self regulatory body, recognised by the try rode the new wave with elan. The public sec- present and her great future. Hailed as one of the government of India, today it scans advertising to tor began leaning towards the private advertising best Asian Advertising Congresses ever orga- ensure that it adheres to its codes of conduct and agencies, corporates suddenly felt the need for a nized, this event was yet another signal to the has powers to ban advertising that violates its new identity, the cable and satellite industry pro- world that India had indeed arrived as a positive code. liferated and offered consumers a huge choice in force to reckon with. terms of languages and programs and rising litera- As a self regulatory institution, it remains one cy levels across the country gave rise a boom in Global interest was focused on the country and of a kind and could serve as a role model for any new titles in the print medium. took different shapes. Foreign direct investment in other Asian country. media, manufacturing companies and advertising The decade also saw international advertising agencies increased dramatically. Indians in the agency networks making decisive moves to play advertising agency domain were being looked at The Roaring Nineties an important role in the rapidly growing Indian as potential leaders. Many global networks advertising scenario. enlarged the scope of the heads of their Indian Everything seemed to be happening all at once operations and gave them charge of either their in India. The internet burst on the scene with the Indian and South East Asian operations or even promise of a brave new age. A promise that was The New Millennium the entire Asian operations. to take a considerable time to realize its true potential. India was finally making her slightly delayed More Indians were inducted onto the boards of tryst with destiny. The GDP was smartly cantering multinational advertising agencies and even The skies above India began to get crowded. In at a rate of 8% year on year. The country’s demo- international marketing giants like Unilever had 1991 Zee TV commenced telecast as the first graphic profile revealed that more than half the Indians in key leadership positions all over the satellite channel to target India and the neighbor- over billion people were below the age of 25, thus world. With even the Cannes jury being headed ing countries in its footprint. Soon afterward, making for an enormous human resource pool. by an Indian, it was clearly the beginning of an Satellite Transmission for the Asian Region India’s concentration on the core sector was era where the international Indian was becoming acquired an acronym that was to become very paying off in a big way. Its indigenous nuclear an accepted reality. popular, STAR TV. Programming was shifting energy program and satellite development pro- into high gear too. If the program “Tara” on Zee gram were being hailed globally. Its IT industry Economists, consulting firms and corporate was hailed as the first female-centric soap opera was being seen as a role model for the developed crystal ball gazers seem to agree on one thing. 50 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 51

C H A P T E R 3 Founding member companies were Azeta, 4.15). Advertising expenditure US$ 2 million in Elite, Garuda, Irab, Kilat, Kinibalu, Patriot, Pikat, Indonesia was predicted to increase consistently. Lingga, Titi, and Trio. 1972 1954 For the AdAsia Congress in Bangkok, Development of Asian Advertising - Indonesia The two organizations merged and became Indonesia sent 13 delegates. During this period, “Perserikatan Biro Reklame Indonesia” The the issues discussed on the concerns of foreign Chairman elected was F Brekhout. dominance in Asian advertising including Indonesia. The Indonesian delegation included by Indra Abidin 1956 Abdul Moeid Chandra, Christianto Wibisono, Muhammad Napis was elected Chairman. Ernst Katopo, Usamah, Yo Wijayakusumah, Reclamebureaux in Indonesia” / Perserikatan Biro Sjahrial Djalil, and Ken Sudarto. Advertising Institution Building Reklame Indonesia/The Advertising Agencies 1957 Association. The first Advertising Congress was held, the The AdAsia congress Bangkok 1972 awarded 1932 name again changed to “Persatuan Biro Reklame Indonesia to host the AdAsia 1974 in . Developing advertising standards, commenced The organization was founded by Dutch practi- Indonesia.” during the Dutch colonial period and the estab- tioners, including De La Maar, Berk Franklijn, 1972 lishment of “Dagbladdirecteurenbond” / The and Bergomer. 1960 The Advertising Agencies Association/PPPI Association of Publishers Executives in Solo. For almost a decade, the country’s advertising had 30 members. 1952 was dormant. Indonesia entered the “Guided During this period, protecting the interests of During this period Samuel de Heer from An advertising company worth to be noted in democracy and guided economy” period. the responsible advertising, PPPI tried to establish “Publiciteitbureau Arta” was given the task to history is the Balai Pustaka in Bandung - West accreditation for the member agencies, to differ- develop a long term plan of the Press and Java, established in 1952 by Tjetje Senaputra, a “Modern advertising” started when the country entiate with those who were non members. Advertising industry. company that started servicing local sundry opened doors to Foreign investment in 1968. shops/retail. Until 1960, they were mainly han- Since then, multinational companies introduced The accredited agencies received education, 1938 dling classified advertising, sales of cars, housing, its products and services into the local market. professional trainings, credit and other facilities It is important to note Unilever have already and lodgings for students. Their performance con- The economic growth since the “”, from the media and suppliers. seriously developed advertising by setting up tinuously increased. steadily increased, and Indonesia became a major Lintas (Lever International Advertising Services) Asian market for American, Japanese, European 1972 as their In-house Agency. In 1960 their advertising billings Rp 24 Million and also Asian brands. Abdul Moeid Chandra was elected Chairman grew to Rp 50 million in 1967. Most of their of the Advertising Agencies Association/PPPI Lintas became independent in 1980. From media placements were using the provincial news- 1970 (1972-1977). Other board members were Savrinus Lintas came advertising practitioners that have paper Pikiran Rakyat. According to the book 1970 World Advertising Suardi, Sjahrial Djalil, and Yo Wijayakusumah. made their own names including “Cabe Rawit” Expenditures; Indonesia was ranked smallest in Princip Ad. 1953 advertising expenditure amongst the 75 countries December 1972, the association name changed Another association called Serikat Biro surveyed. to Persatuan Perusahaan Periklanan Indonesia. 1949 Reklame Nasional/SBRN was established to fur- The name was changed with the consideration 4 years after proclaiming independence, the ther accommodate the indigenous agencies’ inter- USA advertising ranked highest with US$ that the term “Reklame bureaux” was a word advertising agencies established “Bond Van ests. 75/capita compared to Indonesia US$ 0.01 (Rp mostly used by the outdoor companies, and media 52 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 53

brokers. television experts. 1970 cy, the appearance of foreign businessmen have Used modest techniques, rolling technique, like Fortune Indonesia was founded by a senior created local practitioners’concerns including Indonesia was entering a new modern era to produce cartoon films. journalist Mochtar Lubis. He called upon Fortune Mohamad Napis, Chairman of Persatuan Biro since Indonesia opened the doors for foreign International based in Australia to start up in Reklame Indonesia-PBRI. investment. Advertising also needed to adjust to InterVista Advertising and Nuradi were the Indonesia. Their first clients included Cathay He even threatened to close his company as a the definition of modern marketing, and modern first to introduce creative, production, account Pacific. protest. The dominance of foreign experts also advertising using the full services of communica- management, media planning, research, and other created the disappointment of Nuradi. He com- tions, market, consumer, product research, and functions. This was different to the other agencies 1977, Fortune Indonesia suffered losses. The mented that the presence of foreign experts should other advertising management tools. which did not use the new standard practice. The company management was handed over to Indra be limited to 3 functions only: Advertising others mostly were self learners, or from the mass Abidin a local entrepreneur. Fortune then regained Consultant, Advertising Technical, and advertis- media. the confidence of its clients, and grew. They were ing manager. “Modern Advertising” then appointed as the Agency for Dancow/Nestle, InterVista Advertising also introduced “copy- and Condom 25. After 10 years since their estab- There were suspicions and accusations that 1963 writing” to be converted to tin plates, and other lishment, Fortune was always leading in the 2nd many of these local agencies affiliated with multi- The pioneer of “Modern Advertising” was metal plates for printing to get better quality or 3rd largest agency ranking. national agencies have illegally been bought out Intervista Advertising agency, founded by Nuradi. results. In the creative, InterVista Advertising pio- or were fully owned by multinational agencies. A Diplomat by background from the Foreign neered TV Commercials in the only Television sta- 2002, Fortune became the first and only public The Minister of Trade Soemitro Djodojhadikoe Service Institute of the US State Department, tion owned by the government: TVRI. Most well company, listed in the Jakarta Stock Exchange. soemo (Read Sumitro Joyohadikusumo) then Washington DC, and Public Administration in known advertising campaigns at the time were issued a decree in 4 December 1970 Harvard, Cambridge Massachusetts. After his Cipayung Hotel, Masayu - Heavy Equipment 1971 No 314/KP/XII/70, establishing that foreign working experience in SH Benson UK, Nuradi Company. They stood out because of its moderni- Matari, founded by Ken Sudarto saw the advertising companies were disallowed to operate was attracted to advertising and decided to resign ty, and yet still preserving the local culture. demand for advertising services since the country in Indonesia. and that the use of foreign expatri- from the prestigious position. His career started in opened its doors to foreign investment. ates were limited to Advertising Manager, SH Benson Singapore 1962. Although InterVista Advertising closed shop in 1980, Matari was the first Indonesian advertis- Technical Advisor, and Management Consultant. the 1990’s, they have laid down the foundations ing agency to win the Finalist - Clio Award with This new regulation was received well by the 1963, Nuradi left the company to set up his of “Modern advertising” which was adopted and the Public Service Advertisement theme of envi- local practitioners. own in Jakarta, Indonesia called InterVista followed by the other advertising agencies. ronment. Advertising. Nuradi was awarded “The Father of modern 1976 Indonesian advertising” During the “Reform Era” of 1999s Matari was 73% of products advertised were imported This was then called the first “Modern Some of Nuradi well-known landmarks include: also the first agency to handle the political party products. Advertising” Agency in Indonesia starting with Sweet Condensed Milk : Indomilk... sedaap/ campaign for the General Elections. The availability of foreign products contributed only 15 employees, located in a small house with Indomilk... delicious Matari was always ranked amongst the top 5 to the economic growth, and was felt by the local 3 rooms, the Account Executives, Directors, and Anker Beer: Ini Bir baru, ini baru bir.../Anker, Agencies in the country together with the multina- advertising agencies. the Studio. The operation used modest equipment. this is the new beer, this is the real beer. tionals: Perwanal/DMM, IndoAd/Ogilvy, In a study made by Bhineka agency in 1971, Employees rotated without any specialization. Cigarette: Makin Mesra dengan Maskot/More AdForce/JWT, Fortune Indonesia, Polyama, total market was Rp 2.5 billion (Indonesian cur- One time he can be working in the production, romantic with Maskot. Artek, Larisa. rency Rupiah) and then moved to marketing, and so on. With this Motorcycle: Lebih baik naik Vespa. / Better set up InterVista was able to produce TV riding with Vespa. 1970 Newspaper 49.0% Commercials. For that they contracted artists and Since the Foreign investment open doors poli- Magazines 1.5% 54 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 55

Cinema 13.0% Needham India, ABS Gardner Dixon Hall/TBWA Bisnis Indonesia, , Bali Post, optimism and new economic improvements. The TVRI 11.0% (Government TV Station) Srilanka. In 1993 DM Pratama affiliated with Pikiran Rakyat, Fajar, Suara Merdeka. agencies breathed new fresh air, Radio 3.5% Bozell Worldwide, 6th largest advertising agency 2000, advertising billings increased to Rp 7.9 Outdoor 9.0%. in USA. With a small advertising market cake in the Trillion (Indonesian Currency Rupiah) 2001, This relationship terminated in 2002, and DM areas/provinces, competition was fierce, and cut increasing again to Rp 9.717 Trillion. At the time Bhineka advertising billings were Pratama decided to go on its own since then. throats. Especially on price competition, some 2002, reached to Rp 12 trillion. Rp 126 Million. even offered their services at Zero Fee. This was 1983 counterproductive to the industry since, it would This growth opportunity was again then, taken 1974 Newspaper was the largest, followed backfire to them eventually. There were provincial by multinational agencies, entering with affilia- During the Advertising Agencies Association by Sinar Harapan, Pikiran Rakyat, Suara agencies exporting this unhealthy practice to tions with the local agencies. Slowly the multina- Congress, a compromise was reached to allow Merdeka, Surabaya Post, and Pos Kota. Jawa Pos Jakarta by offering national advertisers very tional agencies dominated the market. Based on foreign experts to complement the local expertise; is as success phenomenon. From a middle player, unhealthy terms and conditions. Many companies the PPPI Persatuan Perusahaan Periklanan during that time, still lacking in quantity and qual- Jawa Pos gradually became 2nd next to Kompas. using this short term suicidal methods went bank- Indonesia (Indonesian Advertising Agencies ity. Foreign advertising companies operating in rupt. Association); foreign affiliated agencies ranked Indonesia were disallowed. In 1978, the govern- 1984 top 10 amongst the 25 largest agencies. Matari ment further regulated the advertising industry PPPI presence expanded to West Java, Central 1990 was the only 1 categorized as local agency ranked specifically on ownership, affiliations, and rela- Java, East Java, West Sumatra, North Sumatra. After a 10 year ban on Television advertising; No.3. tionships. Since then, PPPI became the national organiza- the new fresh change when the government No.1 was Lowe with Rp 347 Billion, and No. 2 Since then many new advertising companies tion. announced the deregulation policies on television JWT at Rp 261 billion. The multinational agen- mushroomed, and affiliated with multinational media, opening possibilities of private television cies also dominated the Citra Pariwara Creative agencies. The main reasons were to be able to In some areas where there were no advertising stations operating. This triggered the advertising Awards, the prestigious local creative awards. secure competitiveness, learn how to handle agencies, the print media and radio had to develop billings growth. multinational advertisers, also to learn more from their own marketing. They set up their account In 1990, advertising billings reached Rp 639 its counterparts. executives. Billion (Indonesian Currency Rupiah) In the provinces, data and market information The practitioners immediately jumped to this As the economy developed, the industry grew, were difficult to access. Some were made of encouraging development. there were small and large advertising agencies in assumptions, estimates coming from the local the capital city and in the provinces. As a national media including Kedaulatan Rakyat-Jogyakarta, 1993 organization, PPPI was faced with the responsibil- Suara Merdeka-Semarang, and Pikiran Rakyat- New agencies appeared MAC909, a separatist ity to embrace all advertising agencies wherever Bandung. of IndoAd/Ogilvy&Mather, CCHQ in 1996, they operate. They were the major local print media originat- AdFokus in 1992, Avicom Airvestising in 1995, ing from the provinces, and they successfully Belcomm or Gobel Communications in 1994 1981 expanded to other areas competing with the large which was originally an In-house agency for Despite the ban on Television advertising and national media. National-Panasonic Electronics. And Cabe Rawit equity distribution policies; agencies continued to in 1992. emerge in Indonesia including JC&K, DM AC Nielsen/Media Scene, a research company Pratama reported that there were many local/regional/ 2000 Dwi Sapta Pratama. DM Pratama founded by provincial media increasing their presence becom- With the post economic crisis in Asia also Maria Indriyani, started her career in DDB ing national. They include Media Indonesia, Indonesia over, the winds of change brought new 56 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 57

The agencies recorded were 2001 298 1981 Penyalur Pemerataan Periklanan Nasional/BPMN 2002 356 President Soeharto, issued a decree to ban with members representing the Publishers Television advertising, in the only television sta- Association, Newspapers Printers Association, No. Company Affiliation Country To harmonize the practices and relationship tion in Indonesia - TVRI. Journalists Association and Advertising Agencies 1 AdForce-JWT JWT USA between advertisers, agencies, and media, PPPI With this decree it was expected that the insti- Association. The body aims to further equity dis- 2 Adwork Euro RSG Europe issued and came into effect the “Standar Usaha tution building of the press can be ensured tribute the advertising cake both amongst the larg- 3 Amirati Puris-Lintas APL Worldwide USA Periklanan Indonesia”/ Advertising Business through the advertising cake, ensuring a better er print media and the weak/smaller print media 4 Bates Indonesia Bates USA Practice Standards. equity distribution of the advertising cake special- giving better opportunities for all the print media 5 Dian Mentari Pratama Bozel USA Complementing the Indonesian Advertising ly amongst the weaker and smaller print media. to grow. 6 Dentsu Y&R DYR USA Code of Ethics and Code of Practice. Print media was considered vital to the dissem- This Advertising Business Practice Standards The presidential decree was based also from ination of information, education, and communi- 7 Fortune Indonesia DDB Needham USA covered the practice of agency selection/pitching, concerns from various sources of the people cation for the people across the country. 8 Grafik McCann-Erickson Mc Cann-Erickson USA transfers of clients, confidentiality of client’s including the Yayasan Lembaga Konsumen/con- 9 Hikmad & Chusen Chusenko Japan information, recruitments and employee’s remu- sumerists association. During that period advertising was concentrated 10 Indo Ad Ogilvy & Mather USA neration, portfolios, agency presentations, infor- in 2 newspapers Kompas and Sinar Harapan/Suara 11 Inter Admark Dentsu Inc. Japan mation, concepts and others. Laid down also were Another study made by the National Defense Pembaruan and the other national media. 12 Kreasindo Leo Burnett USA standards on Conflict resolutions, and arbitrage. Council, that TV advertising reach capabilities Provincial newspapers received 5 % including 13 Komunika BBDO USA through the satellite was national. Advertising can Pikiran Rakyat-Bandung, Suara Merdeka- 14 Perwalan DMB&B DMB&B USA be seen by villagers in the remote jungles of the Semarang, and Suara Indonesia Baru-Medan. 15 Rama PErwira Grey USA Becoming Member of the Press Family country. Many have never even seen a car, and Magazines were only enjoyed by the national cir- 16 Tata Binar Warna Arti Jkt. TBWA USA many other products that were being advertised culated magazines. De Witz De Witz 1974 through TV. The study concluded that with all 17 Tata Kelir Europe Rouzee This issue became a hot topic during the commercial exposures to those in the remote areas Advertising expenditure by Media 1983 1986 18 Spektrum Kencana Mukti The First Edition Malaysia Publishers Association 5-8 June 1974; where it amongst people who cannot afford these products was agreed to regulate the ratio of advertising could create social jealousy, instability. Billion Rupiah 19 Adhivisi Prokomunika LabTYB International Malaysia 30% and news 70% each edition for magazine

Source: National Symposium: Advertising Education, and newspaper. The newspaper was then further The television ban, impacted to the closure of Media 1983 1984 1985 1986 regulated and limited to 12 pages per publication. many advertising companies who were dependent Advertising Council, 24-26 September 1998. Newspapers 86 83 117 110 from television advertising. The loss was felt also Magazines 40 36 47 47 The issue of equity distribution of the advertis- by the industry that had to suddenly stop promo- Radio 30 14 19 23 ing cake further increased its importance with the tion due to the loss of television as a medium. increasing advertising share was being taken by Cinema 4 4 4 5 With the autonomy and decentralization, television; reducing the advertising share of the 1981 Others 16 43 28 41 PPPI/The Indonesian Advertising Agencies press/print media. March, The press council opened the portion of Total 176 180 215 226 Association members grew from The print media owners demanded advertising advertising regulations to ensure their share of the cake along And changed from 30:70 to advertising 35% 1998 194 agencies with the steady growth of the advertising expendi- and News 65% each edition for magazine and 1999 226 ture/billings. newspaper. The press council also formed a Body 2000 257 for Advertising Equity distribution/Badan 58 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 59

1982 billings can be better distributed amongst the to create a self regulating industry, supervising the use of local skills, production house, and local tal- The advertising became regulated under the media. practice of advertising ethics. To create and devel- ents. Press Law (Undang Undang Pokok Pres, and for- op advertising that is culture sensitive and up mally established advertising as part of the press This situation, and with increasing rates, creat- keeping the local values. Membership of the Institution. PPPI As the Advertising organization ed a very high cost print advertising in the world. Advertising Commission includes: International Participation became member of the press family together with Advertisers Association/Aspindo - Asosiasi the PWI/journalists, SPS/publishers, SGP/Press Although the BPMN was fully endorsed by the Pemrakrasa dan Penyantun Iklan Indonesia, 1970 printers association. government, it failed to meet the objectives. Their Advertising Agencies Association/PPPI, The “The New Order” triggered the engine of plead to the advertisers to place advertising in the Publishers Association/BPMN-SPS, Private growth, and emergence of many multinational PPPI since then interacts with the press Council small and weaker media was ignored. The rates Commercial Radio Broadcasters Association, companies. This was the start of “modern adver- as the highest body for the press, accompanying disparity between the strong media and weak Cinema Owners Assocation/GPBSI, Outdoor tising” that is market economy oriented, following the government in the national development of the media still exists. As an example the advertising Media Association/AMLI, TV Foundation/Yayasan the economic development strategy; the “New press. rate for Sinar Harapan/Suara Pembaruan was Rp TVRI, Private TV Stations Association/ATVSI. Order” government invited the presence of for- 6.000/millimeter column compared to Fajar in eign capitals. The flow of foreign capital support- PPPI/ Advertising Agencies Association as a Sulawesi was Rp 50/ millimeter column. 2004, The Advertising Commission, changed ed by strong political stability. The presence of formal institution governed by Law, was able to name to Advertising Council foreign capital, created a positive impact for the strengthen its presence and communications with Where to place, which media to be used for advertising business in the country, considering various organizations horizontally and vertically. your advertising was based on corporate, and mar- 1999 the production and services processing must be Including the conflict resolutions of practices and keting objectives, how many people that can be A new Press Law 1999 was issued regulating balanced by good sound and modern marketing ethics. Opportunity was also created for the adver- reached by each media, geographic area coverage, the advertising replacing the previous. strategies. What was not anticipated with the tising industry to enter the legislative positions. appearance, and profile of the newspaper. Advertising prohibits to use; SARA/ Racial, arrival of foreign capital was the challenge and Savrinus Suardi former chairman of the Advertising must deliver, be accountable in terms Social disparity, Religion, and Ethnic differences. unbalanced competition between the multination- PPPI/Advertising Agencies Association (1975- of effectiveness, and efficiency to achieve market- Also prohibits Alcoholic drinks, drugs/narcotics, als and locals. 1981) became Member of Parliament in 1987- ing communication targets established for the addictive components, also the use of cigarette, 1997. interest of the advertiser/client. and consumption of cigarettes. During the same time, multinational advertis- ing companies also penetrated other Asian coun- The Press Law also prohibits foreign owner- Eventually, equity distribution was directed to The Broadcasting Law 2002 further regulated tries, including Malaysia, Thailand, Singapore, ship of an advertising company. The Law also government corporations advertising programs, advertising, including limiting advertising to Thailand, and Philippines, Asian Advertising aims to create better distribution of the cake of announcements. BPMN functions as the source of Commercial Airtime to 15 % for public/govern- Congresses often witnessed / heard the voices of advertising billings. Advertising ethics and good information, and give advice to the government ment stations, and 20% for private stations. concerns on this issue. practices became the responsibility of PPPI/The advertisers to place their advertising in the provin- And private stations will allocate 10% for pub- The feeling of being threatened by the multina- Advertising Agencies Association to formulate cial, weaker and smaller media also. lic service advertising of their commercial air- tional advertising companies existed strongly. and apply within the industry players. time; 30 % of government stations’ commercial This Asian Advertising Congresses aimed to cre- A national advertising symposium was held 19- airtime. ate cooperation, between Asian advertising indus- 20 June 1980 formulating the code of ethics and Self Regulation The Broadcast stations were obliged to allocate tries to face their common issues, code of practice. some of their profits for the production of public Exchange information, exchange of experience 1982 service advertising materials. for the betterment of Asian advertising standards. The next issue for the Press Council was called The Advertising Commission which was estab- upon to formulate, how the cake of advertising lished. It is an independent, non government body, The new Broadcasting Law also regulated the The spirit to make indigenous companies as 60 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 61

“host” in their own home countries, came to sur- President Soeharto was the 1st Head of State to focusing developments for rural population of Asia. Beijing and Taipei several times with no results. face since the first Asian Advertising Congress in open the 8th AdAsia Congress in Jakarta. This He was convinced that Asia belonged to Tokyo 1958. Founded by senior practitioners protocol was followed by the other congresses Asians. Participants from Indonesia, Israel, 1995 including Hideo Yoshida, President of Dentsu, a afterwards. Malaysia, Singapore, and Taiwan agreed to form Preparations for AdAsia 1995 started five years leading advertising company and Domen To organize the event, Persatuan Perusahaan and establish AFAA during the plenary session in immediately after AdAsia Kuala Lumpur President of Ajinomoto. Attended initially by 10 Periklanan Indonesia/PPPI- The Indonesian Manila 1978. Since then AFAA stakeholders Malaysia. AdAsia XIX Congress was held 6-9 foreign delegates and 120 Host country delegates. Advertising Agencies Association solicited sup- expanded not only from Asians, AFAA members November 1995 in the Nusa Dua Convention cen- With the aims of increasing the standards of port from the Indonesian Chamber Of Commerce also were from Australia, and New Zealand. ter Bali. Themed “Uptrends in Asia” attracted Asian advertising, Asian Advertising Congresses - and Department Of Trade/Kamar Dagang With the establishment of AFAA, besides over 1200 delegates from 18 countries from Asia AdAsia was held biannually in different places of Indonesia-KADIN. AdAsia Congresses, AFAA expanded its activities Pacific. The Opening ceremony was officiated by Asia. This continued without an umbrella organi- Themed “Modern Advertising and its social to education/professional trainings, publications the President Soeharto, 21 years since his last zation permanently overseeing the congresses, responsibilities in developing countries.” were activated independently, and enriching the opening for AdAsia 1974 in Jakarta. thus lacking in consistency, quality and continuity. congresses. The Congress discussed various issues includ- AdAsia 1995 Bali Congress speakers Allen In 1978, Asian Federation Of Advertising ing the equity distribution of advertising, 1990s Roshenshine President of BBDO Worldwide and Associations was formed as the Umbrella organi- Multinational advertising companies operating in Vietnam joined AFAA, and immediately Roger Fidler, an American Research expert and zation of AdAsia Congresses. Indonesia was one Asia, and commercial advertising business prac- opened their opportunities to increase their stan- author of Metamorphosis: “Understanding the of the founding members of AFAA; and attended tices. At that time, PPPI only had 30 members, dards through various forums and networking new media”; they were convinced that all the AdAsia Congresses every two years. compared to today over 400. Also today partici- with other AFAA members. From the economic indicators, Asia Pacific pants of AdAsia Congresses reach up to 2.000 will be the main world advertising contributor. 1980 Singapore, themed “Communications participants. Politics cannot be completely out of AFAA And that Asia Pacific will be the largest profit Towards 21st century” however hard they distance from politics. In contributor for multinational advertising agencies. 1982 New Delhi, themed “Advertising - an Philippines were selected to host the XI 1993-1995 the amendments of the AFAA essential input for economic growth.” AdAsia Congress in 1978, themed “Responding Constitution were made; as decided during the JWT President Director of Asia Pacific was 1984 Seoul, “Advertising helping Asia grow” to the Imperatives Of Change in Asia” The Asian meeting Kuala Lumpur Malaysia in 1990. It was quoted that 25% of consolidated profits were from 1986 Bangkok, “Ad-Venture in the Asian Federation of Advertising Associations was proposed that countries representation, to be Asia. This was larger than Europe. economy” founded in Manila, a body accommodating larger changed to area representations. It was during that At this rate, North America was believed to be 1988 Lahore “Together towards tomorrow” scopes, hopes and aspirations compared to the period, Taiwan joined AFAA membership. China exceeded within the next 3 years. East Asia was 1990 Kuala Lumpur “Advertising to power AdAsia congresses held every two years, dis- immediately sent out a letter protesting the deci- believed to grow 30% each year. China and India tomorrow’s power house” cussing working papers. sion to accept Taiwan. China objected the use of even higher, each 100% and 50%. Amongst Asian The concept of AFAA came from Antonio De the name of the Taiwan delegation: Taipei countries, China, Indonesia, and Thailand were Joya the Chairman Organizing Committee of XI Association of Accredited Advertising Agencies. the Most potential markets. Meeting West’s Presence AdAsia Congress. To realize the establishment of They were on the principle of One China Policy This growth created pressure in Indonesia lack- the body, Antonio approached various countries that is “China -Taipei.” ing of local experts. Many made shortcuts by hir- 1970 for two years. As a protest, China decided to be non-active, ing foreign experts. On record, the first Indonesian delegates stopped sending delegates to AdAsia Congress in attended the AdAsia forums 1970 in New Delhi. For the next six years, Antonio was heavily Bali 1995. 1995 During the 7th AdAsia 1972 in Bangkok, involved in exchange of information, experience AFAA Chairman Yusca Ismail tried hard to Another new policy came into effect. The sepa- Indonesia was selected to host the AdAsia 1974. and techniques of Developmental Communications mediate and reach a resolution with China. Visited ration of the AFAA Chairmanship and AdAsia 62 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 63

Organizing Committee Chairmanship. advertising is not a matter of offering products 1981 In the past these positions were held by one and services; it must also communicate with the The convention was finally reached and agreed person meaning legislative and executive func- majority of the people with respect. by all organizations related to advertising, by tions in one hand. signing the Code Of Ethics and Code Of Practice. It was becoming more and more difficult to 1978 organize AdAsia congresses, and at the same time September, the process towards the creation of hold AFAA chairmanship by the same person. the advertising code of ethics and code of practice started with the establishment of The Advertising Council. Note : Translated, exerpts taken and edited from the Book : Formulating the Ethics, The Working Committee consisting of the Cakap Kecap (1972-2003) Developing the Advertising PPPI/Advertising Agencies Association, Publication ISBN 979-3627-20-4 Publishers Association/SPS, TVRI & RRI Published by: Persatuan Perusahaan Peirklanan Indonesia 1976 Government Television & Radio , GPBSI/Cinema www.pppi.or.id Djoko Lelono, a senior practitioner former Owners Association, ASPINDO/Advertisers www.citrapariwara.com managing director of Bates Indonesia and Lever Association. Industrial Advertising Agency (Lintas) illustrated Chairman Indra Abidin/PPPI, Vice Chairman Notes : US$ Currency exchange rate advertising in Indonesia as “The wild, wild West” Daradjad 1950 US $ 1 = Rp 20.19- Advertising situation during that time was consid- Advisors were T. Atmadi from the Department 1960 US $ 1 = Rp 256.25- ered, wild behavior, mean, and disorganized, In of Information and M. Panggabean from 1965 US $ 1 = Rp 10,354.17- National crisis that situation, conflicts frequently occurred. Department Of Trade. 1970 US $ 1 = Rp 379.00- The Advertising Council was the Indonesian 1976 US $ 1 = Rp 415.00,- This brought the burden to Abdul Moeid representative to AFAA. 1977 US $ 1 = Rp 415.17- Chandra, Chairman PPPI-Advertising Agencies 1981 US $ 1 = Rp 636.58,- Association. In 1972 he stated that the advertising 1980 1990 US $ 1 = Rp 1,849.99,- can create a negative influence to the culture, and 19-20 June, Seminar was held to formulate the 1996 US $ 1 = Rp 2,385.00,- values of life. the advertising code of ethics and code of prac- 1997 US $ 1 = Rp 5,700.00,- This accusation reflected the commercial self- tice. Supported and participated by 1998 US $ 1 = Rp 16,085.00 June Asia Economic Crisis ishness, ignorance amongst advertising practition- PPPI/Advertising Agencies Association, 2000 US $ 1 = Rp 9,406.00,- ers, towards packaging their commercial mes- Publishers Association/SPS, TVRI&RRI sages, and their roles in the dissemination of Government Television & Radio, GPBSI/Cinema information to the masses. Owners Association, PRSSNI/Private Radio Advertising is not a simple work process that Broadcasting Station Association, and ASPIN- can be done in an amateurish manner. It is a work DO/Advertisers Association. process that must be practiced responsibly. Seminar with 150 participants accommodated Considering well on the positive negatives, and inputs from all participants regarding the ethics impacts to the society. These considered, must and practice of advertising acceptable to all, for- preserve the values, beliefs, and observe behav- mulated a Code of Ethics and Code of Practice ioral attitudes of a community within a specific towards a self regulating industry. area, and certain period of time. In other words 64 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 65

Indonesia 1970 2000

An Advertising Odyssey? Maybe. An illustrious photo collections showcasing the Asian advertising 1978 AdAsia Manila, Reception in development through ’70s and ’80s contributed by Mr. Indra Abidin, AFAA representative and a member Manila Indra Abidin,Philippine of AFAA International Council. delegate,S. Suardi, Indonesian delegate,Mrs Aristides Katoipo, Mr by Indra Abidin Aristides Katopo Indonesian Delegate. All picture captions are from left to right

1976 Abdul Moeid Chandra, Past Chairman Advertising Agencies Association/PPPI, Savrinus Suardi, Chairman Advertis - 1980 Symposium Code of Ethics, ing Agencies Association/PPPI, Vice President Republic of Indonesia Indra Abidin, Secretary General greeted by Indra Abidin Advertising Agencies Association Committee Chairman Symposium. /PPPI.

1980 Symposium Code of Ethics, Opening, Director General Yoop Ave, Director General Sukarno, Vice President ROI Adam Malik, Indra 1978 AdAsia Manila, Reception in Abidin, Anak Agung Gde Agung, Maila. Miranty Abidin, Indra Abidin, Chairman Advertisers Association. A.M. Chandra Past Chairman PPPI, 2 Philippine delegates. 66 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 67

1981 1985, Establishment of Advertis-ing Commission for Code of Ethics and Code of Practice: Indra Abidin Chairman of Advertiisng Agencies Associaiton, Agus Tagore Chairman Private Radio Broadcasting 1980 Symposium Code of Ethics, Stations Association, Sukarno Director Director General Yoop Ave greeted by General Ministry of Information, Indra Abidin. Harmoko Minsiter of Information.

1981 1985, After a hearing session with Parliament members. G. Anom 1981 1985, Indra Abidin Chairman Secretary General, Treasurer, Ahmad Adv Commission Code of Ethics and Exec Secretary,Indra Abidin, Srikandi Code of Practice, Ahadin Chairman Hakim International Relations, Baty Cinema Owners Association, and Subakti Vice Chairman. guest during reception.

1981 1985, Courtesy Call to Director general Ministry of Informaiton, Indra Abidin,Ahadin, Sukarno, Sunardi Chairman of Publisahers Association, 1982 1985, Advertising Agencies Ahmad Executive Secretary Adv Assoc Courtesy Call to Vice President Agencies Ass, Board Member of Republic of Indonesia Adam Malik. (5 Cinema Owners Ass, Exec Secretary from right) Publsihers Ass. 68 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 69

1981 1985, West Java Chapter Adv Agencies Ass courtesy call to Press Family: Chairlady West Java Chater Adv Agencies Ass, Sunardi Chairman Publishers Association, Zulharmans Secretary General Journalsits Ass, Indra Abidin Chairman Adv Agencies Ass.

1981 1985, Advertising Seminarin Jakarta , Emil Salim Minister of Environment and Population, Harmoko Chairman Journalists Association, Indra Abidin Chairman Adv Agencies Association.

1981 1985, Mr. Mohamad Napis, Former Chairman Advertising Agencies Association 1956~1972.

1981 1985, Courtesy call to Mayor of Padang City for formation of West Sumatra Chapter Adv Agencies Ass. 1981 1985, Advertising Agencies Association national conference. 70 Asian Advertising - 2007 Development of Asian Advertising - Indonesia 71

1990 AdAsia Malaysia, Sigapore delegate, Bruce McCormack Australia, Indra Abidin, Syahrir Djalil Indonesia.

1996 Seminar Broadcasting Law, Senyon Kim in middle, Javed Jabbar Pakistan standing.

1990 AdAsia Malaysia, Indonesian delegates with Dato Mohamad Djafar Chairman of AFAA. (wearing suit & tie in middle)

1996 Seminar Broadcasting Law, Yanti Sugarda, Aristides Katopo, Senyon Kim, George Islan, Miranty Abidin. 1996 Seminar Broadcasting Law, Javed Jabbar, and Senyon Kim with Indonesian practitioners. 72 Asian Advertising - 2007 Development of Asian Advertising - Japan 73

C H A P T E R 3 held in 1964. And the last wave came with the Thanks to such factors as the growth of the Japan World Exposition 1970 in Osaka. During domestic market, the introduction of large-size this time, we saw the penetration of the “3 Cs” new products (including automobiles, home appli- color TV, car and cooler. ances and overseas leisure trips), the diversifica- tion of activities within business organizations, Development of Asian Advertising - Japan During the period between 1965 and 1970, and the demand for labor due to the shortage of with the growth of the four major media and the manpower and loosening of restrictions, enterpris- introduction of new products, advertising made es were active in carrying out advertising and by Japan Advertising Federation gains not only in quantity but also in the improve- sales promotion activities. Moreover during this ment of its position as a marketing activity. period, newspaper pages were increased for more Creative approaches improved greatly. A wide advertising space, numerous new magazines were Advertising expenditure in Japan has grown after another commercial radio and TV stations range of creative execution approaches was intro- launched, and more radio and TV stations were hand in hand with economic growth. When the were opened 6 new radio stations in 1951, 12 in duced. From the later half of 1960, TV set owner- opened. A large number of expositions, exhibi- Japanese economy is doing well, the growth rate 1952, 14 in 1953 and 8 in 1954. By 1954, the ship penetrated rapidly and the value of TV as a tions and events were held. We saw the significant of advertising expenditure is much higher than number of radio stations was 39. In the case of medium increased tremendously. This resulted in development of not only mass media advertising that of economic growth. When the economy TV, one station opened in 1953 and a few stations the change of media position TV advertising but also of DM, outdoor displays, posters, POP slows down, naturally the growth rate of advertis- opened in the following years until 1959 when 21 expenditure surpassed newspaper advertising and other means of communications. Media mix ing expenditure drops and it is normally lower TV stations were opened. The total number of TV expenditure in 1975 and ever since then, TV has plans became important business for advertising than that of the previous year. However, on aver- stations was 38 by 1959. 1956 witnessed the been the leading medium. agencies. Agencies’ business domains expanded age, advertising expenditure has been able to introduction of various weekly magazines follow- too. Sometimes agencies were involved with exhi- maintain 1.1% of Gross Domestic Product (GDP). ing the successful launching of weekly magazines In the period after 1970, the growth of the bitions and other large-scale events. Let us now look at the development of the by the established publishing companies. So by Japanese economy fell sharply due to a series of Japanese economy and advertising industry after 1959, four major media newspapers, TV, radio incidents which all worked against it: the dollar Then came the burst of “bubble economy.” 1950. and magazines were well established. shock of 1971, the first oil shock in 1974, the sec- With the consumption tax introduction (1989), the ond oil shock in 1980 and the yen shock of 1985 Gulf Crisis (1990) and the sharp falls in stock and The Japanese economy together with advertis- as a result of the Plaza Accord. As a result, the land values, the Japanese economy suffered set- Development of Media ing expenditure made giant strides over the 15 advertising industry was affected greatly and backs from 1991 to 1993. Advertising expenditure years from 1954 until 1970. There were four advertising expenditures dropped sharply. suffered the same fate. From 1993 to 1997, a Without media, advertising cannot grow, thus waves of economic boom in this period, each hav- modest economic recovery was evident but the making the development of media essential. Due ing the introduction of new products or a major increase of the consumption tax rate and bank- to a severe shortage of paper after World War II, event as an engine. The first wave came between Development of Advertising in Japan ruptcy of financial institutions worked negatively the government controlled usage of paper for 1954 and 1957, with the penetration of household and resulted in another stagnant economy. The newspapers, which then could not afford to offer electric products the washing machine, refriger- The period between 1986 and 1990 was that of Nagano Olympic Winter Games (1998) and finan- much space for advertising. This situation lasted ator and electric vacuum cleaner (and a little later, the ‘Bubble Economy’ when Japan experienced cial institution big bangs brought increases in until 1951. With the abolishment of government the black & white TV set). The next wave came high economic growth backed by rising land and advertising volume but overall, advertising expen- controls in 1951, newspapers regained their main- between 1958 and 1961 with the wedding of the stock values. The advertising industry benefited diture decreased. The economy started an IT busi- stream position as a medium. The same year, crown prince, the present emperor. This occasion greatly from the ‘bubble economy’ and advertis- ness-led recovery from 1999 to 2000. From 2000, commercial radio broadcasting was launched fol- promoted the sales of TV sets. The third wave ing expenditure increased at a double figure rate, advertising expenditure sharply increased, particu- lowed by TV broadcasting three years later. One came in 1963-64 with the Tokyo Olympic Games accounting for as much as 1.26% of GDP in 1990. larly in the information and communications 74 Asian Advertising - 2007 Development of Asian Advertising - Japan 75

industries, and insurance companies carried out a products digital cameras, mobile phones, the standard of the advertising industry in Asia. With large volume of advertising. Overall advertising internet, liquid crystal TVs and DVD recorders the same objective, the 2nd Congress (1960) and expenditure increased by 107.2% over the previ- manufacturers have been aggressively advertising the 18th (1993) were hosted in Tokyo. ous year. This was the first increase in three years their products in a competitive market. Also and total advertising expenditure was the highest helped by ATHENS 2004 Olympic Games, adver- Major changes are taking place in Japan ever. tising expenditure increased for the first time in globalization and structural reform of the econo- four years. 2005 saw an increase in advertising my, development of an information-centered soci- But the good times didn’t last. The economy expenditure thanks to a sharp increase in internet ety, easing of regulations, reorganization of indus- started to slow down after 9/11 and setbacks in the advertising, the 2005 World Exposition, Aichi, tries, the arrival of the aged society, increased IT business. Despite the world’s biggest sports Japan and other events. numbers of female workers, and the development event, 2002 FIFA World Cup Korea/Japan, of new media, etc. and these are expected to advertising expenditure dropped. The ten years Japan took initiatives in organizing the Asian continue at an accelerated pace. The advertising after the ‘Burst of the Bubble Economy’ is Advertising Congress for the internationalization industry cannot be immune to these changes. In referred to as the ‘Ten Lost Years’. Since 2002, of the advertising industry. The 1st Congress was order to cope, the industry will go through a major the Japanese economy has been making a recov- held in Tokyo in 1958 to provide a forum for structural transformation. ery, overcoming the ‘Ten Lost Years’. With the those engaging in advertising activities to introduction of technologically advanced digital exchange information and views to improve the Advertising Expenditure Components by Medium Unit : %

Satellite Advertising Expenditures by Medium Sales Year Newspapers Magazines Radio Television Related Internet Total Promotion Unit : 100 million Media

Newspapers Magazines Radio Television Sales Promotion Satellite Media Internet 2000 20.4 7.2 3.4 34.0 33.6 0.4 1.0 100.0 Ad Compared Ad Compared Ad Compared Ad Compared Ad Compared Ad Compared Ad Compared 2001 19.9 6.9 3.3 34.1 33.8 0.8 1.2 100.0 Year Expendi- to Expendi- to Expendi- to Expendi- to Expendi- to Expendi- to Expendi- to 2002 18.8 7.1 3.2 33.9 34.8 0.7 1.5 100.0 tures Previous tures Previous tures Previous tures Previous tures Previous tures Previous tures Previous Year % Year % Year % Year % Year % Year % Year % 2003 18.5 7.1 3.2 34.3 34.1 0.7 2.1 100.0 2000 12,474 108.1 4,369104.4 2,071101.4 20,793108.7 20,539104.5 266118.2 590 244.8 2004 18.0 6.8 3.1 34.9 33.4 0.7 3.1 100.0 2001 12,027 96.4 4,18095.7 1,99896.5 20,68199.5 20,48899.8 471177.1 735 124.6 2005 17.4 6.5 3.0 34.2 33.3 0.8 4.7 100.0 2002 10,707 89.0 4,05196.9 1,83791.9 19,35193.6 19,81696.7 42590.2 845 115.0 Source: Advertising Expenditures in Japan, Dentsu Inc. 2003 10,500 98.1 4,03599.6 1,80798.4 19,480100.7 19,41798.0 41998.6 1,183 140.0 2004 10,559 100.6 3,97098.4 1,79599.3 20,436104.9 19,561100.7 436104.1 1,814 153.3 2005 10,377 98.3 3,94599.4 1,77899.1 20,41199.9 19,819101.3 487111.7 2,808 154.8

Source: Advertising Expenditures in Japan, Dentsu Inc. 76 Asian Advertising - 2007 Development of Asian Advertising - Korea 77

C H A P T E R 3 much other advertising news to Korea. In the Korea’s first radio jingle in 1959. meantime, radio commercial jingles had their hey- The Jinro Soju jingle became a smashing hit with the introduc- day as radio sets proliferated. Overall, this was a tion of commercial radio in the product era, and you could sell as much as you late 1950s. produced. All you needed was to mention your Development of Asian Advertising - Korea product. Consumers gladly bought your product without any question. The roaring ’70s followed next, starting from by In Sup Shin / Dong Hyun Kim the entry of Coke and Pepsi in 1968. A couple of oil companies were also in the Korean market fighting for market share until 1973, when the The Republic of Korea, better known as South was extremely curtailed, and television switched first oil shock hit the world. Four major advertis- Korea to the rest of the world, is divided. The to color in 1981. The controversial Korea ing agencies were born one after another from southern half of the Korean Peninsula is the free, Broadcasting Advertising Corporation (Kobaco) 1968 to 1974. In addition, half a dozen smaller democratic and prosperous South. The communist was established in the same year and exercised a shops also opened, signaling the launch of the North, feared to possess nuclear weapons, has no monopoly over sales of advertising time on radio agency service era. Hapdong, Manbosa, Cheil, advertising. and television. The fourth and last period is what and Union, the four major agencies, were might be called a liberalization period. launched in succession. All of them had the back- Korean advertising since 1958 can probably ing of media and advertisers, and this type of best be summarized in four periods. Let us now take a brief look at each period. backing became a unique characteristic of adver- The introduction of Coca Cola to the Korean market in 1968 ush- tising agencies in Korea. ered in the truly modern advertis- The first period runs from 1958 to 1968, when In 1961, General Chung Hee Park took power ing campaign and agency ser- vice. Korea slowly recovered from the devastation of in a bloodless coup. The economy started to grow A survey of Korean advertising expenditures the Korean War. Commercial radio and television fast, but Korea was still a very poor country with was carried out in 1967 by Hapdong, one of the were introduced. The second period is from 1968 per-capita GNP increasing from $80 to $169 new agencies. Later, Mr. In Sup Shin continued through 1980, when the Korean economy grew by between 1958 and 1968. Although commercial this venture almost single-handedly until 1976, leaps and bounds. The entry of multinational radio and television were introduced by mid-60s, when Cheil Communications, the largest agency brands such as Coke and Pepsi marked this peri- newspapers were still the dominant medium in Korea, took over the task. od. The third period starts from 1980 and lasts despite the fact that the number of pages per issue A tremendous growth in black-and-white tele- until 1988. During this time, freedom of the press was a meager four to eight. Pharmaceutical prod- vision sets marked this period. TV penetration ucts and movies (mostly imported from America) was 3.9 percent in 1969 and reached 81.5 percent Advertisement for Festal, a accounted for the majority of advertising volume. in 1980. The 480 km-long Seoul- Express- digestive pill, in the 1960s reflects the Korean society of Agency service was still at an infant stage. A few way was completed in 1970, creating a boom in those times: sumptuous food universities offered advertising courses. A short- outdoor advertising. The Seoul subway paved the and drink were a dream and diet was an unknown word. lived advertising journal was launched in 1960, way for public transportation advertising in 1974. introducing the Audit Bureau of Circulations, the Industry associations were born in succession: the International Advertising Association, award-win- IAA Korea Chapter in 1968; the Documentary ning television commercials from Japan, and Film Producers Association in 1969; the Korea Council of Advertising Studies, predecessor of the 78 Asian Advertising - 2007 Development of Asian Advertising - Korea 79

Advertising Expenditures by Media under heavy censorship as typified, for example, Hyundai Motor’s introductory by forced mergers, which reduced the number of advertisement in 1986. The Units: billions of Korea won & millions of US dollars name, Hyundai was still dailies from 36 in 1979 to 29 in 1980, also forcing unknown in America. most of broadcast media to change from private to Year Newsp. Magaz. Radio TV Others Total Won Total US$ US$1.00=Won public service and effectively putting them under 1968 45.0%% 6.1 18.6 % 13.4 % 15.9 % 9.2 32.7 281.5 government control. 1970 46.8 6.5 20.6 14.1 12.0 12.7 40.1 316.6 1974 36.3 5.4 19.3 29.2 9.8 33.0 68.2 484.0 TV switched to color in 1981. Daily newspa- pers were allowed to publish twelve pages per 1977 31.4 3.1 14.5 34.1 17.9 120.3 248.6 484.0 issue, four more than the previous eight pages per 1980 35.9 3.9 12.5 19.8 17.8 275.3 417.2 659.9 issue. The Korea Broadcasting Advertising Source: (1) Expenditures in US dollars were calculated based on the Bank of Korea rate of exchange. Corporation, better known by its acronym, (2) Advertising expenditures--In Sup Shin/B. S. Seo. History & Development of Advertising in Korea (Korean). (1998). Seoul: Nanam. p.346. (3) Exchange rate-Korea’s Foot Prints through Statistics (Korean). (1995). Office of National Statistics. p,355. Kobaco, was born as a government agency in 1981 to manage nearly all matters related to broadcast advertising, including monopoly sales rights for terrestrial broadcast advertising time, present Korea Federation of Advertising Yearbook in 1979. setting agency recognition criteria and agency Associations (KFAA) in 1971; the TV As Korea’s per capita GNP reached $1,000 and commission rates for radio and television, and Commercial Producers Association in 1974; and its exports hit $10 billion in 1977, Korean con- operating broadcast advertising censorship among Seoul Copywriters Club in 1976. Large agencies glomerates started to advertise in leading business other things. Many of Kobaco functions have started to publish their house organs, which great- journals around the world. been curtailed or delegated to other organizations 1988 Seoul Olympics carried a political impact. ly contributed to propagating the services of ad since 1988, when liberalization started, but it still Liberalization, both internal and external, became agencies and advertising in general. Leading The third period, from 1980 to 1988, was “a remains the exclusive sales representative for all a fact of life and also a keyword. media companies started to establish advertising step backward” as far as freedom of press is con- terrestrial broadcast media. Liberalization pervaded every facet of Korean awards. Chung-Ang University in Seoul estab- cerned. Admittedly, advertising outlay grew to society, not just mass media and advertising. The lished an advertising and public relations depart- $1.2 billion thanks to continued economic The fourth and last period began in 1988. The advertising market was liberalized in 1991. ment for the first time in Korea in 1974. Cheil growth. By the mid-80s advertising reached 1 per- Communications initiated the Korea Advertising cent of the GDP . However, mass media came Trends of Print Media An advertising battle raged for black-and-white television sets in the early 1970s, and the pene- Year Daily News Agency Weekly Monthly Others Total tration of television reached 50 percent by 1975. 1987 30 2 226 1,298 865 2,421 1988 65 2 496 1,733 1,092 3,388 1994 126 2 2,561 3,376 2,659 8,724

Source: Ministry of Culture/Tourism 80 Asian Advertising - 2007 Development of Asian Advertising - Korea 81

Korea hosted the 35th IAA The economy was booming. So was advertis- BIBLIOGRAPHY World Advertising Congress at ing. Advertising expenditures in 1996 reached 5.6 the KOEX for the first time in June 1996. trillion Korean won, or $6.65 billion. But the 1) Advertising Yearbook, published annually by Cheil Communications. 1,384 pages (2005). Language: Korean. Asian financial crisis hit Korea hard in 1997, and Sold at leading bookstores. The Yearbook covers all the current advertising matters and data. Historical data are also included. A must for advertising organizations/institutes with an interest in the Korean advertising market. per-capita GDP dropped from $10,000 to around $6,000 in 1998. Advertising plunged to 3.5 trillion 2) Advertising Information, a monthly house organ published by the Korea Broadcasting Advertising Corporation won, a decrease of around 36 percent. Recovery, (Kobaco). Language: Korean. Free, controlled circulation. In addition to regular advertising articles, Advertising however, was fairly quick, and ad outlay returned Information carries monthly data on television advertising. to the 1996 level by 2000. Such hi-tech giants as What happened to broadcast media was no less Samsung, LG and SK dominated the advertising 3) Korea Creative Yearbook, published by the Korea Association of Advertising Agencies (KAAA). Language: Korean and English (titles only). Sold at leading bookstores. striking than what happened to print media. market during the last five years, expanding to the Private radio and television stations were allowed world market. Each of them now spends over 4) Advertising Yearbook, the bi-annual book published in English by KAAA. Excellent reference with tables on in 1991 and the privately owned SBS TV/Radio US$100 million for advertising in print and all advertising industry data. Free, controlled. Station was born. Cable TV was launched in 1995 broadcast media in the Korean market alone. along with private TV in major cities. Satellite 5) Advertising Trends, a monthly published by the Korea Federation of Advertising Associations (KFAA). Language: Korean. Free, controlled. Each month the journal covers specific issues, i.e., its March issue covered broadcasting followed suit. The Internet became Universities followed the trend, offering adver- advertising agencies with billings broken down by media, number of staff, etc. the emerging new medium in the mid-90s. tising and public relations as major courses. TV rating service was introduced in 1991. The bitter 6) Advertising in Korea, 4th edition (2005), co-authored by In Sup Shin and Kie H. Shin and published by This Samsung cell phone ad pill of 1997 taught Korean conglomerates how Communications Books, is the only English-language book on Korea advertising. The 174-page book has 10 chapters symbolized Korea’s emergence important brand is in the global market. Five glob- covering nearly all advertising matters of interest to foreigners. in the IT world. al communications groups, Omnicom, WPP, 7) Korea Statistical Yearbook, published by the Korea National Statistical Office. The 972-page Yearbook (2005) Interpublic, Publicis, and Dentsu launched M&A is naturally crammed with statistics in Korea. Tables are bi-lingual, Korean and English. Indexes are both in Korean activities. WPP for example acquired controlling and English and can be found at the back part of the book. Sold in major bookstores and government publications stocks in LG Ad and Diamond, the No.2 and No.3 stores. agencies in Korea in the early 2000s. 8) Social Indicators in Korea is an annual also published by the Korea National Statistical Office. The 752-page SIK 2005 is another excellent source of data for global marketers and advertising agencies. Contents and tables are While the figures may look rosy, there are bilingual (Korean and English). Sold in major bookstores. thorny spots, too. The antiquated print media practices and the existence of the Kobaco monop- For academics, there are a few quarterlies : The Korean Journal of Advertising, The Korean Journal of oly are two such examples. Also alarming is the Advertising/Public Relations, published by academic bodies. In addition, Kobaco publishes a quarterly. There are looming return by chaebols to in-house agencies also other academic journals. which, in the long run, will be detrimental to the (See Advertising Journals at the end of Current Status of Korea Advertising.) healthy growth of advertising. 82 Asian Advertising - 2007 Development of Asian Advertising - Malaysia 83

C H A P T E R 3 largest globally) - has been geared to play the gen- hold expenditures (Carat Media Facts 2006/2007). erous hosts to the millions flocking to the country in 2007. It is the unique composition of the Malaysian public - segmented into three major Economy Summary Development of Asian Advertising - Malaysia races of Malay, Chinese and Indian - and the mix of their various cultures that makes the nation a Malaysia’s GDP in 2005 was estimated at The history of advertising in Malaysia huge tourist draw. US$290.7 billion, in an overall growth of 5.3%, while per capita income was calculated to stand at by Nantha Kumar Approximately 80% of the population resides US$11,200, which is the 61st highest in the world. in Peninsular Malaysia, with the rest divided The nation’s economy was expected to expand at Malaysia in Brief tourists this year - in conjunction with the “Visit almost equally between Sabah and Sarawak in the a slightly higher rate of 6%, which is an additional Malaysia Year” - as they prepare to welcome the north of Borneo, where the indigenous people 0.5% above the growth figure that was released Malaysia celebrates her 50th year of indepen- return of economic boom time. make up the dominant races. Sabah and Sarawak by the Ministry of Finance in September, 2005. dence in 2007 and it is a milestone that would not are part of the 14 states that make up Malaysia go unnoticed at home and internationally. The Malaysia’s population - which was expected to and it is this variety again that provides the dis- This projection is based largely on the more nation has prepared to welcome an influx of have reached 26.8 million in 2006 (the 33rd tinctive cultural mix that sets the nation apart robust exports and elastic domestic demand. from the rest in the continent. Malaysia, in common with the rest of the markets in the world, was not spared of fluctuating oil Even though Kuala Lumpur is the hub of all prices; constricting fiscal policies and the contin- commercial and governmental activities, each ued concerns over security and political instability state has their own “governments” which endeav- in 2006. our to be the local trade centres. Malaysia’s rapid Gross Domestic Product By Sector. economic expansion throughout the 1990s to achieve the status of first world nation has seen her transform from an exporter of natural resources to one specialising in light and heavy industry, in line with the economic boom in Asia.

Malaysia’s average household income was US$8,900 in 2001, compared to US$5,271 in 1990, a jump that is indicative of the nation’s con- version from an agriculture-based economy to industrialisation. The number of affluent house- holds, bracketed as those with annual earnings above US$15,900, is increasing, with 13.4% of all Malaysian households deemed affluent and accounted for 41% of all household expenditures. In 2006, the percentage of affluent households will be 17.7%, contributing 48.2% of all house- 84 Asian Advertising - 2007 Development of Asian Advertising - Malaysia 85

The main drivers of the economy would still be and is a contrast to the expansion in the last boards as the principal platform for advertising cal and advertising industries. His products made private investments and services, supplementing decade when the adex “outperformed” the GDP and carried maritime related items and catered for him a fortune and it was estimated that he invest- the manufacturing sector which has been the pri- figures. the men in the shipping business in Singapore and ed 20,000 every year in advertising alone. The mary source of growth since the 1980s. Electrical other Malayan ports. success of Holloway’s Pills and Holloway’s and electronic products form the bulk of exports; The highest growth among top ten spending Ointment also inspired other brand names such as followed by other manufactured goods; chemicals categories was in Face Care (Women), which The first advertisement appeared in the nation’s Perry’s Cordial Balm of Syriacum; Revalenta and plastic products; petroleum goods and iron, leapt from fifth to third place, with a rise of 18% first newspaper, Prince of Wales Island’s Gazette, Arabica Food and Dinnefords Pure Fluid steel and metal products (January - July 2005; in spending. This mirrored the positional changes published in Penang in 1805. The print media of Magnesia to leap to the fore through advertise- Carat Media Facts 2006/2007). in the top ten ranking where Procter & Gamble newspapers and magazines had made their debut ments. progressed from third to the summit of the chart, in trading centres in Penang, Malacca and Information and communications technology overshadowing the hard spending telecommunica- Singapore and almost exclusively featured adver- Though medicinal advertisements were to plus a more aggressive approach in securing out- tion companies (telcos) which have been driving tisements related to the shipping trade and was at remain the mainstay of advertising space for the sourcing jobs was again be the focus in the ser- the adex up in at least the last three years. the disposal of businessmen within this sector. next decade, the hotel industry also rose into vices sector in 2006 while the government’s aim prominence in the early decades of the advertising would be on diversification and high value-added Newspaper remains a primary media avenue The inaugural issue of the Straits Times in era. Trade in the major ports grew in leaps and products in the manufacturing industry (Carat for advertiser and maintained its 61% grip on 1845 front paged shipping news and carried bounds and hoteliers wasted no time in spotting Media Facts 2006/2007). adex by outgrowing free-to-air television adex advertisements that called into attention freight, and total adex with a 4% growth (RM2.8 billion). storage and cargo matters. Another prominent Terrestrial television failed to reproduce its advertising feature in this period were announce- Advertising Expenditure (Current Adex) upward form in 2004, which saw it register a 30% ments of lodging stops for seamen and their ser- growth, and only managed a disappointing 1% vices targeted at departing vessels while depart- The growth of advertising expenditure in 2005, adex rise to attain RM1.3 billion. The adex is pro- mental stores such as Little and Cursetjee and Malaysian Advertising Market. at 3%, underperformed the GDP growth of 5.3% jected to reach RM4.9b in 2006. Company almost had exclusive use of the first page of Straits Times.

The Origins of Advertising Medicine and doctor’s service was the other advertising favourite. One of the world’s largest It is impossible to separate Malaysia and advertisers then was Holloway, which traded Singapore in various aspects that include advertis- Holloway’s Pills and Holloway’s Ointment in ing. Singapore was a primary trading port for markets from the United Kingdom to India to Malaysian goods as the latter, with abundant nat- Hong Kong to the Philippines and Australia. A ural resources, made use of her southern neigh- popular advertising trend - which is still the case - bours for centuries to transport the products out to was to pair the advertisements with testimonials the outside world. (or affidavits as they were then known) from sat- isfied customers. It is no surprise that the advertisements for good and service in the early days reflected this Holloway was also the first advertiser to take commercial necessity. Newspaper cast a huge out full page advertisements and went on to shadow over posters, handbills and sandwich become a leading name in both the pharmaceuti- 86 Asian Advertising - 2007 Development of Asian Advertising - Malaysia 87

opportunities with the influx of sailors into payable would correspond with the specified 1897 to commemorate the Diamond Jubilee for In 1919, advertising agents and agencies Malaya and Singapore. number of lines that announce the advertisement. Queen Victoria. There were six pages of colour in manned by locals and “foreigners” mushroomed The Straits Times outlined its advertising rates in the advertising supplement, printed ion England, to aid clients with their advertising problems. The 1894. containing 46 colour advertisements. It was typi- after effects of the First World War were eventual- Advertising Rates, Styles and Colours cal for advertisements to be accompanied by pic- ly countered by the growth of motor industry and Before the end of 1910, the advertising rates tures of the advertisers or business proprietors by 1927 motor and motor trade advertising was While there was no direct mention of advertis- were prepaid at $1 per-four lines for one or two themselves. providing the bulk of advertising material in ing rates in the debut issue of the Straits Times, it insertions while reduced rates were offered for the newspapers. did indicate that nominal charges were applicable. second and subsequent months. This was a con- In common in those times, all enquiries regarding siderable increase form the $0.15 per-insertion Advertising Campaigns There was also greater subtlety in advertising advertisements were directed to the newspaper that was offered in 1894. The Straits Times of approach, from luring consumers to purchase (printer) rather than the advertisers. The first February 24, 1910, which announced these rates, The first advertising campaign in record was goods that they did not need to help them realise appearance of advertising rates was in the also carried an advertisement for beer; cigarette initiated by an Australian patent medicine firm what they want and . Many complaints on adver- Singapore Free Press which stated that the sum and car companies. By 1911, the motor car firms W.E. Woods and Company, which embarked on a tising-especially those issued by medicine adver- were a vital part of advertising in Singapore and promotion in 1905 for their “Woods Great tisers - centred on their loud and obtrusive manner Malaya and the Straits Times featured a motor Peppermint Cure” that lasted several months and and the situation called for refinement in the pre- column, supported by motor advertisements. was one of the biggest campaigns in Malaya and sentation of advertisements. The maturity of con- Singapore and even South East Asia. sumers due to better access to education had also A standard type will be used for all advertise- rendered the old irrelevant and out of place. ments unless the advertisers requested their adver- The promotion featured original “tail-piece” tisements to be displayed in an “effective” style. advertisements-with rhyming lines and which While the general public had accepted advertis- In the absence of advertising expertise, the news- were copied by other advertisers even before ing as a way of life, new methods needed to be papers resorted to vary the type settings as the Woods campaign was over - at the end of the col- devised and other techniques had to be invented if only method of distinguishing one advertisement umn of each news story while quarter size stand- advertisers wanted the desired sales. The advertis- from another. The lack of guidance on advertising alone Woods advertisements listed out the bene- ers appreciated that they could no longer rely on also resulted in comically misleading advertise- fits of their products and their availability in stores their instincts and basic knowledge to push their ments and blunted the effectiveness of certain in Singapore, Kuala Lumpur, Ipoh and Penang. products and services in an increasingly competi- advertisements. tive environment. In addition to this realisation, There was also a fresh look at medicinal adver- advertisers believed that advertising directed at In less than 20 years into last century, a vast tising: Woods did away with testimonials from consumers in Malaya and Singapore should have variety of types were employed, which indicated a customers as they deemed them “questionable their unique edge. rapid change in the printing business, and the practice” Apart from this newspaper blitz and sev- usage of pictorial illustrations, in place of sketch- eral puzzle competitions in print, Woods hit the Advertisements to the consumers in these mar- es, increased in advertising. The Straits Times of ground with handbills and hoardings as part of the kets should convey a special meaning but to this period still featured a full front page of adver- campaign. achieve this objective represented an early hurdle tisements. for the business community which largely sourced their goods and services from England and else- The first full-colour advertisement appeared in Advertising Agents where abroad. The link between the manufacturer a supplement of the Straits Times in October 1, across the seas and his local agent was not well 88 Asian Advertising - 2007 Development of Asian Advertising - Malaysia 89

established and resulted in poor representations of ing business that sought public approval and legit- the tail end of 1964 and full colour television in cies in Malaysia” below for further details). products and the issue of reputable exporters lend- imacy. The 1920s were also boom time for con- 1978. ing their names to ill-designed advertising. sumer-led spending not only as the generally pros- The 4As and 2As Joint Media Committee was perous community indulged in leisure activities The number of agencies that shot up during this established in the early 1970s to engage the gov- An acknowledged problem was the scarcity of (movie-going and watching spectator sports era remains the leading names today: Ogilvy and ernment on various issues in the advertising artists, block makers and insufficient type choices became a routine) but embraced radio. Mather plus McCann-Erickson amongst them, industry. These concerns included-and still for which the short-term solution was proper and while others such as Ted Bates and Lintas also include-rules and policies imposed by the authori- early advertising planning. Underpinning all the Before 1934 ended, there were 17 companies made their presence felt. In 1965 when Singapore ties and also to verify and recommend advertising difficulties that arose was the degree of coopera- involved in advertising, publicity and marketing seceded from Malaysia, the agencies split into two rate increases and other conditions laid down by tion between the manufacturer and his local agent in Malaya and Singapore. Cathay, Grant, Master, entities as well while advertising expenditure media organisations. in devising advertising that would address the Benson and Young were among the pioneering (adex) swelled. appeal of their products and their marketability. advertising agencies and traded their expertise The 4As-2As alliance was instrumental in aim- The consensus was to leave this task in the hands within the main media that was available then: The hundred million ringgit mark was attained ing for self-regulation through the formation of of specialists. newspapers; magazines; radio and rediffusion. in the 1970s and 1980s and the billion dollar bar- the Advertising Standards Authority of Malaysia rier was swept aside in 1991. Within five years, (ASAM; now known as just ASA) in 1977. ASA, These specialists would have the best ideas on Nion Art Studio, which had been in existence the two billion level was exceed and a decade which is made up of representatives from 4As, art work, layout and copy while the exporters since the 1940s, was the first agency to take up later, the adex more than doubled to in excess of 2As, media owners and later the Federation of would be able to advise them-and the local advertising work which then consisted of design- RM4.6b. Malaysian Consumer Associations (FOMCA; agents-on the peculiarities of their market. ing and printing posters, banners and leaflets. The which left the ASA in 1978), went on to create the Forward planning for advertising was practiced Second World War halted advertising activities Malaysian Code of Advertising Practice as a regu- and certain negative habits were scrapped. Cheap which resumed after the Japanese Occupation in Associations and Regulatory Bodies latory guide for advertising industry. advertising space in Malaya and Singapore as 1944 and this decade also marked a new chapter compared with that in England, for example, had in the advertising industry. The Association of Accredited Advertising Prior to this development, and in a move to encouraged the same set of advertisements to Agents (4As) was founded in Singapore - which seek transparency and accountability within the alternate without change in a year. An increase in marketing and advertising work was then part of Malaya - and seven years later, industry, figureheads from the advertising agen- was registered after Malaya was declared an inde- the Malaysian Advertisers’ Association (2As) was cies, advertisers and media publishers initiated the The advertisers assumed that since the room pendent nation in 1957 and attracted foreign established with similar aims of protecting and Audit Bureau of Circulation (ABC). The ABC for advertising is inexpensive, the cost involved in investment. This, and the subsequent proliferation promoting the interests of advertising agencies was charged with the responsibility of auditing preparing the advertising must be equally low. of media, resulted in more multinational agencies and advertisers. print media circulations through a uniform This again, however, precludes economical, cul- seeking Malaysia. method. tural and social conditions of the markets in The actual boon for the advertising only Malaya and Singapore and the need to distance Even though the newspapers and magazines occurred after foreign advertising agencies, with The 4As, with the support of 2As, have been manufacturers from swindling advertisers. In this were the prime advertising media, the cinema rose their technical know-how and experience, set up instrumental in championing the advertising environment, a homogenous application will not as an option for advertisers, with slides plus 30- offices in Kuala Lumpur and Singapore in the industry. The Media Committee was formed by suffice and may lead to setbacks which the manu- and-60 second commercials. At this time, jingles mid-1950s. As of 1996, there were 54 fully the 4As with the objective of being the industry facturers or agents could the least afford. have become a popular form of advertising over accredited advertising agencies in Malaysia, out representative for the media and research sectors. radio and rediffusion and the advertising industry of which 60% were locally owned while the The Committee, which is manned by senior and A different look at advertising, marketing and braced for the biggest change with the advent of remainder were partnerships with foreign agen- experienced figures from member agencies, acts promotion was required in an emergent advertis- black and white television in Malaysia towards cies (Run Spot Run; 1997; see “Advertising agen- as both consultant and watchdog on media and 90 Asian Advertising - 2007 Development of Asian Advertising - Malaysia 91

research issues. sumption of alcohol, the authorities cater to the Government interventions in advertising activi- needs of a racially diverse society. As such, these ties are normally designed to protect the values The 4As, as the recognised industy body, are limitations only apply to national mass media outlined above and to defend the interests of the also engaged by the government and policy-mak- such as television and prints which are targeted at local advertising community. The authorities ing bodies on a variety of matters through meet- Muslims. English, Chinese and Indian language would decide on how goods and services are ings, forums and dialogues. The input from the newspapers are free to carry advertisements on advertised while imposing limitations on the 4As has been very useful in revising the gambling and alcohol provided that they do not importing of advertising materials and the Advertising Code and other regulations as they encourage readers to increase their utilisation of employment of foreigners - even if they were only continue to pursue a closer relationship with the alcohol and to gamble. to endorse products or services - to helm adver- government. tisements. Efforts to safeguard Malaysia’s cultural identity Other commendable initiatives of the 4As and exercise sensitivity on various issues that Strict advertising guidelines rule over the include aiding the rise of skilled and sophisticated affect these cultural groups form the basis of legal advertising of pharmaceutical; infant and health advertising workforce. The establishment of the constraints that govern many aspects of business product advertising and various approvals must be Institute of Advertising Communication Training and day-to-day affairs. Advertisers have always sought from the relevant regulatory bodies and Islam, which is practiced by 605 of the Malaysian (IACT) in 1990, which offers diploma and certifi- been aware of the restrictions on the type of media ministries to obtain clearance for such advertise- population. For these purposes, Advertising Code cate courses on a part-and-full time basis, have to be used for their goods (the promotion of tobac- ments. There are, as of 1996, a minimum of 90 for Television and Radio was introduced by the eased the path of thousands of new personnel into co and alcohol products, for example, is prohibit- sets of legislations at Federal and State levels that Ministry of Information, which supervises and the advertising field. The IACT also encourages ed in electronic media); advertising images, pro- regulate the advertising industry, which range regulates advertising practices, in 1990. other members of the industry to enroll into tective policies and government regulations. from the Broadcasting Act 338 1988 to Indecent refresher courses or participating in seminars and Advertisement Act 1953 (Revised 1981). The code states that “advertisements must pro- company training programmes to enhance their These limitations have rendered global adver- These laws are reinforced with official guide- ject the Malaysian culture, identity, reflect the skills (Run Spot Run, 1997). tising campaigns embarked upon by multinational lines, with the most important being the Radio multiracial character of the population and advo- companies to reconsider their approach in markets Television Malaysia (RTM) Code of Advertising cate the philosophy of Rukunegara.” The view- such as Malaysia’s which calls for customisation (Advertising Code for Television and Radio) and point under Rukunegara, a national ideology that Advertising Controls and Constraints to suit local taste and acceptance. Advertisements various others on advertising cigarettes; liquor stresses a way of life guided by five tenets that of racy nature or those which contain nudity, anti- and food. These rules and regulations are supple- range from belief in God to good behaviour and Malaysia, in common with her fellow Asian social behaviour, racist and sexist images are con- mented by the Malaysian Code of Advertising morality, is also part of the guiding principle nations, has her own set of cultural and social val- sidered offensive and would invite the full force Practice (Run Spot Run; 1997). behind the code. ues that set forth a different business environment of the law. and regulations from that of the western world. Though the implications of the code are broad, The practice of a number of faiths - Islam being Marketing activities are also determined by the The Advertising Code there are certain advertisements and images that the dominant and official religion of Malaysia - practice of various religions; diversity in lan- are entirely blanked out. Suggestive and sexually and the usage of many languages and dialects, guages and multiple ethnic groups which would The government-and the people within the provocative scenes are barred from television. although Bahasa Melayu is the national language, require advertisers to tailor make advertisements advertising industry-realise that their policies are Commercials for pork and pork products, liquor make for an interesting mix and challenge for or campaigns to target a range of consumers. This meant to harness the potential of advertising activ- and alcohol beverages, which are all prohibited in advertisers. may necessitate a separate advertising strategy to ities in building not just a consumer base but a Islam, are also off the list. cater to Malaysia or even a unique variation of just society aspiring to accepted national cultural Though Islam outlaws gambling and the con- products for the market. and social values while ascribing to the values of Over the years, the code has been amended to 92 Asian Advertising - 2007 Development of Asian Advertising - Malaysia 93

reflect the changing cultural and social landscape 2003, the money-making Formula One grand prix rule was introduced in the early 1970s to min- by any nation in the Asian continent at the festival of Malaysia. As early as 1991, complaints from was provisionally exempted from it, pending fur- imise foreign cultural aspects in advertising and in 2006 - including traditional giants such as the public and industry leaders over certain grey ther developments. encourage home-grown talent to produce adver- Japan and Thailand. areas in the code led to the ban on advertisements tisements for local consumption. The regulation that glorify western values and promote lifestyles Another example of effective public lobbying, stipulated that the talent, creative team and pro- that are inconsistent with national aspirations. which was the reverse of the stand taken on tobac- duction personnel must be Malaysians and that New Media co advertising, would be the change in attitude foreign footage and technology can only be used These issues are addressed in the Advertising towards suggestive and intimate scenes and after clearance from the Ministry of Information. The proliferation of media since the 1990s has Code under “adaptation and projection of foreign images. The jump in sexually transmitted diseases In such cases, approval will only be granted if the resulted in a number of issues for the authorities culture which is not acceptable to a cross section in the 1990s, especially AIDS, prompted the gov- technology and scenes are not available in in Malaysia. As a general rule, the government of the major communities ... either in the forms of ernment to loosen up restrictions on sex-related Malaysia. does not impede the content published over the words, slogans, clothing, activity or behaviour.” advertisements that are meant to educate the pub- Internet as it would contradict its pledge of non- As an added shield, the Advertising Code also lic on the hazards of AIDS, and not to promote There are claims that this policy-in addition to interference and promise of no censorship on the cautions against the portrayal of “ways of life that promiscuity. the various rules and regulations-suppresses Internet. This is in line with the government’s are against or totally different from the ways of advertising creativity while the public and con- ambition to be a leading multimedia proponent in life followed by Malaysians.” But both statements Cultural sensitivity in advertisements is sumer associations charge that they are inade- the world. are open to interpretation as Malaysian culture required under the Advertising Code, which disal- quate. But the general consensus is that the dual and social values evolve, as could be seen from lows advertisements that carry “statements and effect of the Advertising Code and the ASA’s Though this is a relatively new medium for the early amendment to the Advertising Code. suggestions that which may offend the religious, Code of Advertising Practice on advertising prac- Malaysians and the government is incapable of racial, political or sentimental susceptibilities of tices is sufficient for the industry. The Advertising effectively controlling the content, the Internet has There were drawbacks in the Advertising Code any section of the community.” Such conditions, it Code is operates essentially as the letter of the law become an immensely popular mode of communi- that were tolerated and even ignored. Principally, must be understood, are necessary to achieve while the self-regulation sought by the advertising cations. Products and services which are would this concerned the barely subtle manner in which racial and national harmony in Malaysia’s mul- industry through the Code of Advertising Practice not find space in traditional mass media have the advertisements on tobacco logos were allowed to tiracial environment. reflects the spirit of the law. opportunities to reach their audience through the slip through under the guises of men’s wear; holi- Internet. day packages; cologne and camping gear. Members of the public, trade and consumers’ It is worth noting too that these long-standing Tobacco advertisements were banned on televi- association are encouraged to write to the limitations have not repressed the work of creative While there is enough legislation to bring their sion in 1982 but in excess of 30% of the total Advertising Standards Authority of Malaysia individuals in the advertising arena here or acted force to bear upon such “rebel” advertisers, it is a advertising expenditure was dominated by ciga- (ASA) with their grouses. Upon receipt of their as a hindrance to their pursuit of excellence in moot point where the authorities would draw the rette brand advertisers. complaints, the ASA would commence investiga- their chosen trade, as seen by the number of major line. It would be very difficult to impose controls tions and, in cases of breach, are empowered to international advertising awards won by on a global phenomenon such as the Internet but The lobbying for its entire exclusion from tele- deny advertising space or airtime from guilty Malaysian talent since the 1990s until this year the sharp rise in advertising on the Internet across vision gathered pace after Europe, with the advertisers and adverse publicity (Run Spot Run, (2006), including the prestigious Cannes Lion the world and its growing share of global advertis- European Union a driving force, and the World 1997). Grand Prix in 2004. ing expenditure share would bring forth a new set Health Organisation took a tougher stance against of challenges. At this point in time, such matters tobacco advertisers in the 1990s and called for a The pinnacle was attained last year when would be best left to advertisers acting responsi- total ban by 2006. Though Malaysia agreed to a Protectionist Policy on Advertising Malaysia took five Gold; three Silver and three bly and agreeing on the benefits and importance complete prohibition on direct and indirect ciga- Bronze in the 53rd Cannes International of self-regulation. rette advertising and sponsorship in January, The often debated Made-in-Malaysia (MIM) Advertising Festival. This was the best medal haul 94 Asian Advertising - 2007 Development of Asian Advertising - Singapore 95

C H A P T E R 3 increased, advertising was recognized as an Leo Burnett started operating in Singapore both to important component of selling and marketing. protect their international clients as well as get a The major advertisers were cigarette manufactur- share of the pie in this fast developing region. A ers, beverages, cars and household items. With the number of smaller local agencies were acquired Development of Asian Advertising - Singapore growing size of the various market segments, so the international agencies could get themselves advertisers invested more in advertising both up to speed to serve their clients. With these major Singapore transformed itself into an above and below the line. agencies came an influx of foreign talents. Together with the demand for sophisticated important advertising hub in five decades However, in 1963, Singapore merged with research surveys and discussion groups, the pro- Malaysia and this triggered a 3-year period of fessional quality in advertising took a quantum by Eddie Chan confrontation by Indonesia. There were also polit- leap. In 1958, Singapore was still a British colony by letterpress. For good reproduction, line draw- ical unrests and racial riots in Singapore and and its economy depended very much on entrepot ings were used for illustrations as photographs did Malaysia. In 1965, Singapore was rejected out of In the meantime tertiary institutions offered trade. After the Second World War, the economy not print well on newsprint. The best artwork was Malaysia and became an independent nation, the courses in mass communications and creative arts began to pick up and a number of trading houses scraperboard which would give good details of a economy was badly affected. Singapore’s survival and the pool of local talents grew rapidly. Given exported rubber, tin and other commodities from car or the close-up of a watch but it was very was at stake having lost Malaysia as its heather the opportunity to work in international agencies the neighbouring countries such as Malaysia and expensive and time consuming to render. Slide land. At the same time the British closed its naval and exposed to foreign competition, Singapore’s Thailand. In turn these trading houses imported advertising on cinema was another popular medi- base and 60,000 jobs were lost overnight. The advertising and creative standards surged ahead. consumer goods such as cars, refrigerators, watch- um as the production costs of cinema commer- change in political power also caused concerns Many good creative people were assigned over- es, pens and packaged goods for both local and cials were too prohibitive about the future and Singapore slipped into a peri- seas for attachments and they polished their skills regional markets. od of recession and slowed down progress in mar- learning from the best in the industry. Then in the ’60s advertising on radio became keting and advertising. Naturally, the advertising scenario was relative- popular. Ex-journalists were employed as copy- The ’80s and early ’90s were the golden years ly primitive as purchasing power of the average writers and ex-radio announcers as script and jin- By early, 1970s, the confidence to survival and in advertising as the business grew in tandem with worker was very limited (the British naval base gle writers. After radio, came television and sud- future of Singapore returned and many jobs were the economy. Singapore earned a reputation for its here alone employed 60,000 workers).There were denly these new media required more sophisticat- created with multinational companies setting up high professional and creative standards. With the only a handful of advertising agencies then, the ed advertising and production techniques. Many factories on the island. Many foreign companies introduction of computers and digital technolo- larger ones such as Masters, Papineau, Cathay & talents were brought in from UK, USA and such as Philips, Sony, and Sanyo took advantage gies, the advertising industry was challenged to Grants were owned and managed by British expa- Australia to help fill the creative roles. A number of pioneer status incentive offered by the adopt these new technologies quickly to gain triates who stayed on after the war. The local of production houses started operation to cater for Government which meant tax free for 10 years on competitive advantage over its neighbouring com- agencies such as Fortune were acting more as the special production needs of radio, television their investment profits. petitors. Artworks for print media no longer media owners and representatives of outdoor and cinema commercials. Newspapers also require colour separations, but are transmitted hoardings than professional advertising agents. upgraded themselves by going offset and colour This acted as an impetus, since these interna- electronically. Emails and mobile phones become printing on better quality newsprint which tional companies invested heavily on their brands the mode of communications. Hence the time for In the late ’50s and early ’60s, the main adver- allowed for quality reproduction of photographs with large budgets on advertising to grow their the production process had been compacted and tising media were newspapers, magazines and as well. market shares. The heady growth in advertising greater efficiency was achieved. In mid 1990, outdoor hoardings. Even the Straits Times, the attracted a slew of international advertising agen- cable vision was introduced into Singapore offer- major newspaper was printed in black and white As the purchasing power of the consumers cies to set up shop in Singapore. Agencies such as ing another medium for niche advertising. Dentsu, Ogilvy & Mather, JWT, McCann, and 96 Asian Advertising - 2007 Development of Asian Advertising - Taiwan 97

However, in 1997, Singapore together with the more on outsourcing and freelancers in order to be C H A P T E R 3 whole Asian region was hit a financial crisis more nimble and flexible to fast changing market which triggered a prolonged recession till 2003. conditions. During this period, the business was bad, and many companies downsized and this in turn In 2004, Singapore ad spends hit a record of caused high unemployment rate. Consumers, S$2 billion as the economy surged ahead. Development of Asian Advertising - Taiwan uncertain of their future curtailed their spending Poaching of good staff was rampant as there were which was a vicious cycle of cutting overheads, limited talents available due to the neglect of the reduced production, job loss and poor sales. previous years. In 2005, the ad spend in Singapore shrank back to S$1.86 billion but that was due to by Cheng Tzu-leong, Ph.D. As advertisers slashed their advertising bud- the merger of TV stations and the demise of a free gets, agencies had to retrench staff and restructure distribution tabloid newspaper. It is expected that Japan’s occupation of Taiwan lasted 50 years opment of a society, and the Japanese occupation to survive this crisis. Also with the advent of in 2006 ad spend will be back at around S$2 bil- (1895-1945), stretching over three Japanese impe- of Taiwan was an act of capitalist expansion in media houses, many advertisers did away with the lion mark as the Singapore advertising market is rial dynasties, the Meiji, Taisho and Showa. which economic gain was one of the principal services of full agencies. They would use creative quite matured and should continue to grow around During this period a number of mass media were motivating factors. Japan is very close to Taiwan, shops to prepare their campaigns and go to media 5 to 10% per annum barring any serious regional established in Taiwan, including modern newspa- and another factor beside national capitalism was houses directly to place their media buys thus crisis. Singapore has just started its trial of high pers, radio and movies. At the same time elements the easy access that Japanese businessmen had to enjoy the benefit of substantial savings. Agencies definition television broadcasts and hopes to of Western culture also began to creep into Taiwan, meaning they could apply the lessons reacted by restructuring their organizations into implement this service later this year. Taiwan through these media, helping to slowly they learned from doing business in Japan. The specialist units, offering creative, account plan- transform Taiwanese society and bringing a more newspaper advertisements of the time show a lot ning, media and promotion services separately - modern way of life to the people of Taiwan. about perceptions in society back then. Western each unit accountable for its own profitability. influences like bicycles, automobiles, perfumes Attrition rate in agencies was high and staffs leav- A look at advertising in Taiwanese newspapers and pale-faced women beauties were common in ing were not replaced. Training of staff was from the Japanese period shows that they already newspaper ads by the Meiji Period. Changes were neglected and morale in the industry was all time contained many of the basic elements of modern also occurring in eating and drinking habits with low. Many smaller local agencies had to shut advertising as well as a certain style which still the growing popularity of sake, pickled foods and down as they could not sustain themselves, as persists even today. They generally have a title Western style foods such as beef, milk, condensed payments were slow and some of their clients also and subtitle together with a body, accompanied by milk, chocolate, candy, grape wine and other wound up. Many who left these agencies went images, charts, business information and advertis- products, all of which were supported by newspa- into other industries or started their small busi- ing esentials including brand names and address- per advertising ness. es, as well as discount coupons and borders. These elements are present in most of the early After 2003, the economy for the whole region newspaper ads. There are also hints of marketing The Advertisers Flood in: 1958 - 1965 was back on track and the advertising began to concepts such as market segmentation, advertising expand again. However the whole nature of the spokespersons, brand concepts, promotional ideas World War Two ended in 1945, the business had changed quite drastically. Agency and other basic marketing tools. Kuomintang took control of Taiwan in 1949, and remunerations are no longer based on 15% com- in 1958 C.H. Wen founded Eastern Advertising mission but many worked on a fee basis. Many Advertising can have an impact on the devel- the first general advertising agency in Taiwan. In agencies having learned the hard lesson depended 98 Asian Advertising - 2007 Development of Asian Advertising - Taiwan 99

1960 Taiwan sent its first delegation to the 2nd Congress in Tokyo in 1960 saw Taiwan’s first del- establishment of the Taipei Association of involving appeared in Taiwan with the organiza- Asian Advertising Congress, and a number of par- egation of participants. During the Congress they Advertising Agencies in 1975 marked the culmi- tion of a course in the second-year level at Hsing- ticipants decided to set up advertising agencies listened to Hideo Yoshida, president of Japan’s nation of a period of dynamic growth and devel- wu Commercial College. H.L. Liu taught the upon their return to the island. 1961 saw the birth largest advertising agency Dentsu, as he extolled opment for the advertising industry in Taiwan. “Commercial Advertising” course, and while he of Taiwan Advertising under F.W. Chen and Kwo- the value of advertising in stimulating growth and termed the class an ‘experiment’ course, it was hwa Advertising under B.J. Hsu. This was fol- pledged to help congress delegates set up new The Taipei Association of Advertising indeed a full-blown college course. Unfortunately lowed in 1962 by International Commercial agencies which several of the attendees prompt- Agencies was established in 1975, and although a the program was dropped after going through only Communications founded by Y.P. Li, Yi-chih Liu ly did on their return to Taiwan. The encourage- Taipei Advertising Agent Association had been four cycles. and W.F. Chang. China Commercial Advertising ment from Yoshida, the impetus from Taiwan’s set up as early as 1958, the older organization was founded by T.J. Chien; and Tai-yang Television economic growth and the appearance of TTV on composed mostly of advertising technicians and During this period the economy of Taiwan con- Enterprise (later Tai-yang Advertising), founded the scene were all key factors in the early devel- advertising sign makers and was thus different in tinued to grow (hitting an annual growth rate of by C.H. Yang. These six agencies are collectively opment of Taiwan’s advertising industry. nature from the later association. Thus in 1973 13% between 1971 and 1973). At the same time known as the “Original Six” agencies in Taiwan’s P.T. Hsu, who was then with Kwo-hwa the nation’s diplomatic relations worsened with its advertising industry. Advertising began finding its way into Advertising, brought together several other large withdrawal from the United Nations in 1971, the Taiwan’s academic world during this period. In agencies including Tai-yang, Hsin-hsin, Eastern, cutting of relations with Japan in 1972 and curtail- C.H. Wen’s Eastern Advertising was the first 1957 Professor L.S. Song of National Chengchih Tung-hai, China Commercial, International ment of air links to Japan in 1974. The break in general advertising agency in Taiwan. Wen was University began teaching a course labeled “Prin- Commercial Communications and Taiwan Taiwan-Japan relations and a subsequent boycott born in Hengchun in far south Taiwan in 1922 and ciples of Advertising” ; his position was taken Advertising to form the Taipei Group of Eight of Japanese goods had a tremendous effect on earned a business degree from Kanagawa over by Y.Y. Yu the following year. Also in 1958 Advertising Agencies or “Group of Eight”, hold- advertising in Taiwan. Advertising revenues for University in Japan. Planning and preliminary set- Taiwan Provincial Law Academy, the forerunner ing their first collective meeting on September 24. Japanese brands had long been a source of sold, up for Eastern took place in 1958 and the agency of today’s Chung-hsing University, initiated an was chosen to head the organization that was the growing income, and during the early stages of was granted an operating license in January 1959, advertising course in its Business Department precursor to today’s Taipei Association of the boycott the resulting loss of income from and Wen and his wife began business with a staff under T.S. Wang Advertising Agencies. Japanese advertisers had a profound effect on of seven persons. By August 1960 the agency had Taiwan’s ad industry. 15 staff and had moved to Chungking S. Rd. in It was during this time that large numbers of In 1966 the 5th Asian Advertising Congress Taipei. In August 1960 Eastern re-located once advertising-related books became available in was held in Taipei. The opening ceremonies took At the same time a great deal of interest was more to Po-ai Road and changed its name to Taiwan. The first locally-produced book on adver- place on November 4 at the Ambassador Hotel being generated toward television by the broad- Eastern Advertising Ltd. tising was probably C.H. Wen’s “Product with M.Y. Yu, Director of the TAAA, as Master of cast of shows like the serial drama ‘Jing-jing’ on Marketing” which was published in 1958. The Ceremonies. The event drew a total of 413 atten- CTV (China Television) and ‘Yun-chou Ta-ru- In the years following 1961 several more key first book written specifically for an advertising dees from 14 different countries throughout the hsia’ puppet theater drama shown on TTV. This agencies made their way into Taiwan’s advertising class was “Advertising” by T.S. Wang which region. In the following years Taiwan’s uncertain led to dramatic growth in ad revenues for televi- industry, appearing largely for three main reasons: came out in 1963. international status made it difficult to attract the sion as the people of the island spent more and congress back for a second time. Finally in 1997 a more time in front of the tube and Taiwan entered First, Taiwan’s economy began to take off group from Taiwan regaled delegates from 20th an era when TV became one of the major media. around this time, and the business outlook was Growth and Development: 1966 - 1975 Asian Advertising Congress at Manila with a pro- very rosy; second, the establishment of Taiwan gram title “It Must Be Taipei”, got the bid to host Heightened Competition: 1976 - 1988 Television Network (TTV) opened the door for an Taiwan hosted the 5th Asian Advertising the 22nd Asian Advertising Congress in Taipei. entirely new medium for reaching Taiwan’s con- Congress in 1966, and TTV held the “Golden During the competitive era the advertising sumers; and third, the 2nd Asian Advertising Tower Awards” for the first time in 1968. The In 1968 the first genuine educational program industry saw advertising agencies pitted against 100 Asian Advertising - 2007 Development of Asian Advertising - Taiwan 101

each other as well as different types of media pit- 50’ scooter for women, the first time a Taiwanese More Diversified Advertising: While multi- social differentiation in advertising recognizes ted against each other; and at the same time com- agency had filmed overseas. The women’s scooter national agencies have won widespread approval that consumers in Taiwan have many different petition between home-grown and multi-national was a symbol of the increasing freedom enjoyed for the manner in which they operate in Taiwan, faces and many different types of behavior. This business began to grow. This period also saw the by women in Taiwan. It meant that women were local agencies have also shown that they have a in turn calls for different approaches to reach the founding of Brain magazine in 1977, the first increasingly self-reliant and did not need to have rightful place in the market. Large agencies serve spectrum of consumers in the market. annual China Times Advertising Awards in 1978, their fathers, husbands or boyfriends take them the complex needs of international brands while the founding of an AAAA chapter in 1987 and the wherever they needed to go. one-person workshops can cater to the whims of Diversified Advertising Depictions: Computer most significant development of all the 1984 smaller clients. Some advertisers who first saw processing has added to completely new dimen- decision by the government to allow foreign the light of day in Taiwan have expanded to take sion to post-production technology in producing investment in Taiwan’s advertising industry. Diversification: 1989 - Present in the market of mainland China, where the adver- advertisements, while Internet advertising has tising industry has made great strides in recent bridged the gap between print advertising and the In the face of diplomatic isolation, the opening There were a number of major developments in years - in no small part due to input from Taiwan. electronic media. Public relations activities and of this sector of the market placed an emphasis on the advertising world during this period. In 1989 event marketing have taken the place of a large liberalization and internationalization in Taiwan’s TAAA published its “ROC Advertising Annual As agencies have diversified the number of segment of traditional advertising, and product economy and helped spur an invasion of multina- Report” for the first time. In 1994 the Advertising available services has expanded so that advertisers placement is an accepted part of TV dramas and tional agencies. This in turn raised the level of Department of National Chengchi University pub- regularly have access to expert skills in public entertainment programs. Advertising now reaches competition in the market as it became more lished its study of the advertising industry, called relations, media purchasing, Internet advertising out in many different ways to touch consumers, internationalized. In 1981 Cathay Advertising “Research in Advertising.” 1997 saw National production, audience rating surveys and advertis- reaching people in different segments of the mar- entered into a technical agreement with Ogilvy & Chengchi University accepting candidates for a ing effectiveness research. ket by ‘segmenting’ its approach. Mather; this was further strengthened in 1985 Master’s degree in Advertising, the first graduate when O&M raised its stake in the partnership to program for advertising in Taiwan. In 2001 Diversified Media: The rigid “three TV stations 62% against Cathay’s 38% and reformed the Taiwan hosted the 22nd Asian Advertising and two newspapers” regime maintained under agency as O&M Taiwan, becoming the first multi- Congress. The end of the 1990s saw the rise of the Chiang Kai-shek and his son came to an end when national advertising agency on the island. Internet and its new opportunities for advertising. President Lee Teng-hui liberalized the laws gov- Finally, in 2004 the five terrestrial TV stations erning media. The number of TV channels and A steady influx of multinational agencies put (TTV, CTV, CTS, FTV and PTS) began digital radio station frequencies was greatly enlarged increasing pressure on local companies in the broadcasting. even as the number of newspapers and the num- advertising industry. These multinational agencies ber of pages they are allowed to print were were all involved in global advertising strategies The period from 1989 to the present has expanded. The resultant media revolution has led and international network transfer strategies. The brought tremendous diversification in the adver- to the establishment of more than a hundred TV latter meant that when an advertiser gave an tising industry in Taiwan. The market now channels and similar growth in other media. The account to an ad agency in its home country, it includes multinational as well as local agencies, largest problem faced by these new media has also transferred its accounts in other markets to and agencies range from huge enterprises to one- been scrambling to win advertising revenue in the local branches of the same advertising agency. person operations. At the same time, the media face of intense competition. This was to have a severe impact on many of have developed in several directions so that even Taiwan’s native agencies. media buying is vastly more complex and sophis- Diversified Consumers: The mass approach to ticated than before. Finally, consumers have advertising no longer applies, and advertisers can- In 1979 Taiwan Advertising sent a crew to become much more complicated and segmented not rely on a single message or medium to reach France to film commercials for Piaggio’s ‘Bai-ji in the buying and consumption habits. consumers throughout the market. The use of 102 Asian Advertising - 2007 Development of Asian Advertising - Thailand 103

C H A P T E R 3 advertising did occur in this period when the Advertising Association of Thailand (AAT) was established in 1966. It became one of the most important professional associations with an aim to gather all practitioners together and help heighten- Development of Asian Advertising - Thailand ing the standard of Thai advertising professional- ism.

by Saravudh Anantachart, Ph.D.

The history of development of modern adver- Since 1958 to present, we can try dividing the tising in Thailand is a young one. Though this development into five important periods: Starting, Southeast Asian country has taken prides of its Leaping, Adjusting, Blossoming and Readjusting long history in various aspects since its first periods. Development of the AAT's Logo. Kingdom of Sukhothai was founded in 1257, oral communications and sign boards seemed to be the only two common ways available for publicizing The Starting Period: 1958 to 1967 The Leaping Period: 1967 to 1977 information at that time. This is not until 1844 when Dan B. Bradley, an American missionary, The idea of turning the country’s economy As a result of the continuing support received made public The Bangkok Recorder, a newspaper from agricultural-based to industrial-based began from the government, business expansions were which allows "the first piece of advertisement" to in this period. It became one of the key factors proliferated during this period. Numerous goods appear in this land of the freedom, Thailand. that pushed the Thai government to develop the from Western countries were introduced to Thai Since then, this country started to enjoy its early first National Economic and Social Development market. Advertising budget received priority and years of advertising. It gradually developed print Plan in 1961. With that, industries were funded Colgate - Toothpaste Magazine Advertisement in 1960. became enormous in the end. No doubt that all Source: Nawigamune, A. (2000). Thai advertisements (vol. 1). and broadcast media and found its way to the and business projects were supported. However, Bangkok, Thailand: Nora, p. 131. advertising agencies would still have to fight prosperous modern advertising of today. most businesses were those came from outside against each other for their presence in the busi- world, giving one of the reasons why advertising ness. The so-called modern advertising in Thailand agencies appeared at that time were almost all Further to that, even when these non-Thai can be traced back to just about 50 years ago. Two owned by foreigners. This was just so that they agencies gradually accommodated themselves in During this period, Thai government realized main factors urged to the turn of Thai advertising. worked well to support their counterpart business- Thailand, top management remained foreigners. the increasing business power of foreigners and One is the conclusion of the World War II that es, while others even created their own advertis- They were normally sent over from their head- decided for issuing quite a few laws to control for- allowed Westerners to flux into this Eastern coun- ing department or an in-house agency. A few local quarters. Appointing a Thai to these positions was eign businesses and reserve certain occupations try, like many others, with their business ideas. advertising agencies was set up though; however, just rare. Anyhow, one truth was that Thais that for Thai. Jobs in advertising were included. These The other one is when His Majesty the King by not being able to compete with the internation- actually got into agencies did not have the direct regulations had forced pure international advertis- Rama IX came to the throne. Under his protec- al ones, many had to close themselves down not knowledge in this field anyway. No university ing agencies to find Thai partners and to convert tion, development flowered to every aspect of the long after. offered such related degree at that time. themselves into joint ventures. Nonetheless, this country; advertising was just among one of them. did not at all affect U.S. businesses as they had a However, one important development of Thai privilege to benefit from a special agreement their 104 Asian Advertising - 2007 Development of Asian Advertising - Thailand 105

country had done with Thailand. In any case, all By the middle of this period, in 1972, Thailand products, hoping their sales volume would only in advertising. They were graduates from the first that occurred did urge agencies to replace their hosted the 8th Asian Advertising Congress go up. Pitching also became more common advertising program at Chulalongkorn University. foreign executives with locals, while some Thai (AdAsia) which became internationally known because it allowed companies to get the most they This gave path to other universities to start open- practitioners, after having gained experiences among countries in Asia. Four years later, with the wanted from advertising services but with the ing up their own advertising curriculum. from foreign agencies, decided to quit and set up cooperation between two Thai universities, same amount of money. their own business instead. together with the support from the AAT, the first Many other developments occurred in this age, Another thing worth mentioning was when the advertising contest was organized, namely Top Many advertising agencies at that time also including the found of the Bangkok Art Directors' two new free television stations were allowed to Advertising Contest of Thailand (TACT) Awards. began to go on expansion. Personnel shortage Association (BAD). This was when Thai practi- open their doors. This equaled higher competition This turned to be the only Thai advertising practi- became a problem, due to the over demand of the tioners joined hands in 1985 to 1) organize BAD among stations, and also among marketers who tioners' stage for the next 20 years. sector. Experienced personnel could therefore Awards, a contest purely for creativity and pro- craved to reach their targets through the channels. boost up their salaries as they moved from one ductions, and 2) to run student workshops to pre- Press media and radio remained being popular Toward the end of this period, two critical inci- agency to another. Some stepped up to be on top pare future creative people for the industry. Then, choices for companies to put their advertisement, dents hindered the growth of Thai economy, while others decided to run their own agency. only a year later, Bangkok hosted successfully the unlike the media in cinema that showed a rapid affecting unavoidably advertising industry. The Noted during this period were the presence of new 15th Asian Advertising Congress, and gained a lot decline in popularity. It was also observed that the first one was in 1973 when the oil crisis hit all departments in agencies offerings advertising- of interest from professionals around the world. main role of media department in agencies was of countries around the world. The situation got even related services like, marketing research and buying rather than planning media ahead worst when Thailand itself had to face a political direct marketing. This resulted from the fact that instability. That was during the year 1973 to 1976, more and more people were better educated with The Blossoming Period: 1987 to 1997 something that almost wiped all foreign business- more marketing-oriented ideas. es out the country. From 1988 to 1990, the Thai annual economic The change did not stop just that, because growth rate went up to 11.5 percent; what was when new technologies started to step into Thai considered the highest in the world. It was there- The Adjusting Period: 1977 to 1987 lifestyle and help advancing its communication fore expected to be the “Fifth Tiger” of Asia, fol- system, consumers' behavior were radically modi- lowing Taiwan, Hong Kong, Singapore, and The world’s economic downturn continued as fied. Media like television received vast interest South Korea. New businesses and investments the oil crisis recurred in 1979. Thai economy causing a severe increase in media costs. That was flooded into the country, for the overall confi- became unstable. The government took measures a good reason for advertising people to struggle in dence was good and the economic conditions in trying to handle the situation: increasing taxes finding for the first time alternative media. It was were excellent. Big real estate projects were and tariffs, controlling prices of basic products when out-of-home media like billboards found developed all over the city. The advertising indus- and also monitoring financial credit issuance. their place in the market in order to catch on-the- try was also happy with the double digit growth However the situation came out to be not as bad move folk. rate as the number of their clients and their as expected. This was because, when comparing billings soared. Meanwhile marketers became to other countries of the same region, Thailand During this period, the Consumer Protection well-educated in marketing and were ready to remained an interesting place for investment. For Board was established under the Consumer approve unconventional advertisements. advertising sector, the industry could even gener- Protection Act of 1979 with an objective to guard Computer graphic became popular for turning ate more revenues and enjoyed excellent growth. consumers from deceptive, misleading, or offen- what was once just an imagination into reality. White Lion - Toothpaste Used as Its Presenter in This was due to the fact that businesses kept sive advertising that could appear in any media. A 1967 Advertisement. maintaining the advertising budget, not ignoring year later, Thai advertising history was delighted In this period, the concept of integrated market- Source: Nawigamune, A. (2000). Thai advertisements (vol. 1). the importance of reminding consumers of their in welcoming the new generation of professionals ing communications (IMC) was introduced and Bangkok, Thailand: Nora, p. 16. 106 Asian Advertising - 2007 Development of Asian Advertising - Thailand 107

accepted in this country. Agency's organizational increased. The non-performing loans (NPL) mul- cerned. Family size was reduced resulting in the can be anywhere outside home. Though educa- structure quickly modified itself in response to the tiplied while the economic growth suffered a rapid change of their lifestyles, leaving more time for tional institutions kept producing future profes- IMC and business expansion. This also led to the drop. Problems got worst when the "bubble" news. Information was easily accessed by then. sionals for this sector, the personnel shortage idea of having specialized team for a specific job. economy that heavily relied on the foreign invest- remained an important problem for the advertising For example, WPP Group by Ogilvy & Mather ment, technology and also markets, eventually got As the economy became more stable, the industry. Advertising started Ogilvy & Mather Direct and blown away in 1996. A year later, Thai govern- advertising industry started to grow again. Once Ogilvy Public Relations. Agencies kept fighting ment had to decide on floating its currency, the more, in 1999, Thailand hosted the Asian In 1998, Thai and foreign advertising practi- against each other to trap experienced staff into Baht. Thailand basically was facing the national Advertising Congress. New products targeted at tioners gathered to hold the first regional advertis- their teams. While personnel shortage remained, bankruptcy: similar situation South Korea and more fragmented markets. Merger and acquisi- ing contest, Asia Pacific Advertising Festival this profession soon became a highly paid job, a several Asian countries had to face at that time. tions turned prevalent in advertising and other (AdFest). This annual event became well-accept- dream occupation of many graduates from various That was best known as the East Asian Financial marketing communications agencies. ed among Asian countries. Its 10th anniversary fields. Crisis. was just celebrated this year (2007). In addition, On the other side, government agencies issued though Thailand had had TACT Awards as the Following the West’s trends, master's degrees laws and regulations to control advertising in cer- annual domestic competition for advertising in advertising were offered to produce future pro- The Readjusting Period: 1997 to present tain businesses, while non-governmental organi- excellence, the event was not run by practitioners. fessionals with more in-depth knowledge and zations (NGOs) put more pressures on the govern- Therefore, in 2004, the AAT committee set up a marketing research skills. Then, later in 1996, Early in this period, Thailand still suffered ment and monitored all advertising. As a result of new contest named Adman Awards & Chulalongkorn University was the first to launch from the crisis. However, with the help of the that, the so-called below-the-line started to find its Symposium. Its position was to be an IMC award, a doctoral program in communication arts allow- International Monetary Fund (IMF), the country place in advertising world. It is a strategy that giving birth to the first showcase for advertising ing students to concentrate their dissertations in gradually recovered. The King Bhumibol could better reach specific groups and produced and other marketing communications work. advertising. Adulyadej’s (Rama IX) philosophy of the even more impacts on them; it could build brand Adding to the award ceremony, there was also Sufficiency Economy came so handy in such situ- experience. For out-of-home media, this has seminars to educate those interested on contempo- Media time and spaces were valued more, and ation. It stressed the importance of being suffi- expanded a lot, both in terms of types and loca- rary issues each year. very expensive. Companies competed in buying cient in oneself creating a sufficient family and tions. Its role is to be a “support channel” for it and employing various types of media for adver- business, not too much, not too less, but enough tising their products and services. Housing and for a happy living of all walks of life. This princi- realty were the two top advertising spenders. Four pal became a guideline for the new National main mass media remained the most popular Economic and Social Development Plan for Thais channels. However, innovative media, such as to overcome the crisis. cable TV, interactive media and multimedia, also received more attentions. In addition, some print During this contemporary era, Thailand moved media even launched specialized magazines tar- into the information technology age with three geting more on specific groups of reader. important forces; globalization, digitalization, and deregulation. Various concepts focusing on cus- Nevertheless, too much of such growth tomer's satisfaction emerged to increase manage- observed in the beginning of this era unfortunately ment efficiency in a business: total quality man- created negative effects. It led to over-supply agement (TQM) and re-engineering. Consumers problems that hindered the liquidated status of at the turn of the century were wiser. They were many companies while loans and interests were better educated and more environmentally con- Out-of-home media are everywhere outside the home. Asia Pacific Advertising Festival. (AdFest) 108 Asian Advertising - 2007 Development of Asian Advertising - China 109

The later developments occurred during this C H A P T E R 3 period included the new business of media inde- pendents. They were mostly separated from media departments in advertising agencies. Brand build- ing became the main mission of advertising agen- cies, whereas the principal focus of media agen- Development of Asian Advertising - China cies was on planning communication channels. In addition to that, following the global trend, it was to form groups of agency. There were four world- class agency groups: WPP, Omnicom, Interpublic, by Wen Chunying, Ph.D. / Liu pengzhe and Publicis. All of them had their agencies oper- ated in Thailand. WPP Group resulted to be the Advertising between 1949 and 1979 1952, the advertising industry was rebuilding. largest agency network in Thailand. It was also Central and local governments consolidated and worth noting that the compensation system soon October 1, 1949 marked the beginning of the restructured advertising agencies that used to be Smooth - E Baby Face Foam's commercials won gold awards switched from commission-based system to fee- People’s Republic of China and ushered in a new under individual ownership and operation before from Cannes Lions 2006. based system. era of Chinese history. However, for the 30 years the PRC and then introduced stricter regulation. between 1949 and 1979, China upheld a planned Following that, big cities like , Shanghai, economy influenced by the socialist model of the Xi’an, Chongqing, Guangzhou, Wuhan and former Soviet Union and adopted an economic Shenyang released new regulatory rules on adver- system under the government control, rather than tising. These new rules allowed advertising to relying on the market for resource allocation, play a positive and active role to promote trading which resulted in the underdevelopment of a com- between urban and rural areas and supported modity market and deprived the necessary condi- industrial and agricultural production to regain its tions and environment for the growth of modern strength for further development. advertising in China. China’s social development In terms of content, most advertisements dur- during these 30 years was filled with twists and ing these early years came from privately owned turns, including the dark years of the Cultural enterprises, the majority of which covered adver- Revolution, when the development of advertising tisements on commodities, medicine, private prac- in China was hamstrung, and even banned. For these 30 years, the development of China’s adver- Health Medicine & Food, news- paper ad, 1950s. tising inched forward under extreme difficulties, mixed with regular standstills.

Advertising during the Revival of the National Economy after the Birth of the PRC (1949-1952)

From the end of October 1949 till the end of 110 Asian Advertising - 2007 Development of Asian Advertising - China 111

ticing doctors, recruitment, job-hunting, lost & and develop under the guidance of this general and enhance international communication. It was Pens Advertisement with strong found, school enrolment, movies, etc. In terms of policy. the first time that China’s advertising industry political bias, early 1960s. advertising media, most producers and distribu- Concurrently, new changes were emerging in started international exchange. In 1959, the tors used periodicals, and though varied in forms, China’s advertising industry. Firstly, advertising Ministry of Commerce released a notice calling most advertisements were found in newspapers companies were established as state and private for putting more emphasis on advertising in and magazines targeting a vast group of readers. joint management. At the height of the state and China. In August, the “Commercial Advertising On the other hand, retailers mainly resorted to private joint management reform, advertising also Conference” was held in Shanghai, with participa- window display advertisements, catalogues and achieved new successes. Ideological training was tion from 21 cities permitted to conduct interna- product manuals. In the countryside, posters were held among players within the advertising indus- tional trade.3 This conference had long-lasting sig- the most popular form of advertising. try. Highly dispersed and individually operated nificance for China’s advertising. The conference Basic idea of advertising management was also advertising agencies were restructured into adver- stated that commercial advertisements were found within the advertising industry, with new tising companies under joint management. In required to represent “socialist thought, policy, emphasis on “serving socialism, industrial and Beijing, Shanghai, Tianjin, advertising companies reality, asthetics, and national uniqueness4”, dous damage to business and social order, and agricultural production, and workers, farmers and and advertising art companies2 were regulated and which were defined as the five features of social- pushed the national economy to the verge of soldiers.1” Radio stations and presses began to placed under the jurisdiction of municipal admin- ist advertisements in China. bankruptcy. The commodities economy and com- provide advertising services, which facilitated the istrations. Secondly, regulations over advertising On May 1, 1958, the first TV station in China, modities system was totally dissolved, so was the substantial growth of advertising. In addition to were strengthened. The Communist Party of Beijing TV started trial broadcasting and on role of advertising as a means of promoting prod- industrial and commercial advertisers, political China and government authorities took timely and October 1, Shanghai TV was launched. ucts. The shortage and scarcity of commodities advertisements were also widely adopted with an prudent measures against unhealthy trends within Subsequently, various local TV stations went on also killed the living conditions of commercial aim to strengthen the newly born country. the advertising industry. Some city governments the air in succession marking a new milestone for advertisements. In the 1950s, China’s advertising industry improved upon and revised the existing regula- TV advertising. In the beginning, regulatory authorities for employed about 1,300 people, and national spend- tions on advertising; some others promulgated The following three years between 1959 and advertising were removed in many cities, with ing on advertising for the whole year accounted new advertising rules in consideration of the local 1961 were fraught with natural disasters in China, many advertising companies dissolved and for about 0.02-0.03% of the total annual commod- needs for economic development. Cities like which depressed the national economy and stroke employees turned to other professions or sent to ity turnover. Advertising expenditure for the Tianjin, Shanghai and Guangzhou, etc. also a heavy blow to the advertising industry. In 1960s, work on communes. At the same time, the adver- Ministry of Commerce’s enterprises was only implemented rules on the registration and charg- the national economy began a readjustment period tising market began to shrink and disappear. 0.015% of the total annual turnover. ing of advertisements and established a mecha- paralleled by a jump in the number of advertise- Commercial advertisements were almost suspend- nism for the approval of advertisements in the ments between 1963 and 1965. After the econom- ed. Advertisements through broadcasting stations press and on the air. ic disruption, advertising in China achieved major were removed and only a few pages on newspa- Advertising under the Industrial and progress and began to revive in major cities. pers and magazines were reserved for advertise- Commercial Socialization Policies (1953- However, before long, things started to turn from ments, mainly on books for political propaganda 1956) Advertising in the Period of Entire good to bad. and “model play shows.5” Outdoor posters were Construction of Socialism (1957-1966) dominated by political slogans and images. Most During this period of socialist reform to indus- trademarks were forced to change their names, try and commerce, the major task was to imple- China’s socialist reform was completed by Advertising during the “Cultural being categorized as “old ideology, old thinking, ment socialist reform to agriculture, the handicraft 1956. In 1957, the International Advertising Revolution” (1966-1976) old customs and old habits.6” Many century-old industry, private industry and commerce with the Conference was held in Prague. The Ministry of businesses and trademarks were renamed with main focus on socialist industrialization. As a Commerce sent a delegation to attend the confer- The decade of the Cultural Revolution between their old name tablet smashed. According to sta- result, advertising during this period had to serve ence in order to exchange experiences with peers May 1966 and September 1976 brought tremen- tistics from the Ministry of Commerce’s First 112 Asian Advertising - 2007 Development of Asian Advertising - China 113

Commercial Bureau of Shanghai, of the over Advertising since the Reform and co and liquor. Double Rhomb Zippers, 1981. 3,700 retail stores under the eight affiliated com- Opening of China Because the industry then was still limited in panies, 3,000 were forced to change their names. size and pace of development, the government The political landscape of China experienced mainly used policy guidelines to manage advertis- major changes after the Gang of Four was cap- ing activities, and advertising was not in the scale Foreign commodities advertise- tured and the leadership structure changed. The of administrative control. According to the ments, newspaper ad, 1979. Third Plenary Session of Eleventh Central “Quantity Control” guidelines and the govern- Committee held at the end of 1978 rectified the ment principles of “Limit, guide and manage7”, wrong direction taken during Cultural Revolution, only state owned or collectively owned enterpris- and proposed to “improve the national economy es could be authorized to engage in advertising and open the doors to the outside world”, and business. Shanghai Watch, TV ad, early 1980s. established the fundamental guideline of refocus- ing socialism on modernization. Since 1979, China entered an era of a general economic boom. The Preliminary Development of the Hence, the left wing radical bias against advertis- Advertising Industry (1982-1992) ing gradually disappeared and advertising started

Ad for Shanghai Advertising to revive after years of suppression and silence. Advertising became an emerging industry with Corp, 1979. With the boom of the domestic economy, the fastest growth in the national economy. The advanced concepts and education on advertising total advertising expenditure (TAE), number of were introduced into China, bringing China’s advertising units and people employed in the modern advertising into a golden era. industry - three major indicators for the develop-

Baili Soap, mid 1980s. The Revival of Advertising in China (1979-1981)

On January 4, 1979, the first commercial advertisements were publicized in the Tianjin Cough mixture, 1979. Daily and on November 14, 1979 the Wenhui Newspaper published an article to rebuild the the- oretical basis to justify advertising in China. At the time, advertising activities were centered in a limited number of cities like Beijing, Shanghai, Tianjin and Guangzhou and most advertisements were circulated through the mass media like radio stations, TV and newspapers, but not enough to form an independent industry. In terms of adver- tisements, most advertisements were for clothing, were for cleaners and detergents, watches, tobac- 114 Asian Advertising - 2007 Development of Asian Advertising - China 115

Chinese liquor, TV ad, 1989. ment of advertising in China during this period - advertising services. Real estate, 1992. surged by an average of 46%, 29%, 27% respec- With the start of competition between com- tively to 6.8 billion yuan, 16,700 units and modities offered and the enhancement of people’s 185,400 personnel respectively in 1992. lives, categories of goods in advertisements Correspondingly, spending on advertising per became increasingly varied, covering an increased capita increased from 0.12 yuan in 1981 to 5.79 number of ads on foods, pharmaceuticals, cosmet- yuan in 1992, representing a growth of 47.3 times. ics and household appliances like color TVs, High growth on a low basis enabled China’s refrigerators and washing machines. advertising industry to form the industrial scale quickly. After reform and opening, foreign and private- Advertising in China during the times of ly owned enterprises were allowed to engage in prosperity (1993-2002) advertising businesses, and the unified ownership structure began to break down. In 1986, the first With further reforms and opening and the Lenovo Group, 2000. joint venture advertising company, DY (Dentsu development of a market economy, the annual and Young & Rubican) was established in Beijing TAE, number of advertising units and people and by 1992, and privately owned advertising employed in the industry - three major indicators companies had grown to 664, accounting for for the development of advertising in China dur- 3.09% of the total. At the same time, the number ing this period - surged by an average of 32%, of professional advertising agencies surged to 20%, 16% respectively to 90.31 billion yuan, 3,037 in 1992. Meanwhile, 5,881 advertising 89,600 units and 756,000 personnel respectively business units in the mass media were providing in 2002. Correspondingly, the proportion of spending on advertising in terms of Gross Liquid health medicine for Domestic Production(GDP) went up from 0.28% female, mid 1990s. in 1992 to 0.88% in 2002 and spending on adver- tisements per person increased from 5.79 yuan in Real Estate, 2001. 1992 to 70.31 yuan in 2002 representing a growth of 11.14 times. At the same time, professional advertising agencies had become the main bodies in the advertising industry. With the popularization and spread of the “advertising agency system8” across China, some local companies adopted internation- al practices for advertisement ideas, design, opera- tion and management. Foreign advertising compa- nies were also actively seeking to enter the Chinese market. The situation of strong media and weak advertising agencies was changed. In 2002, the annual revenue of advertising companies 116 Asian Advertising - 2007 Development of Asian Advertising - China 117

Corporate identity ad, 2002. reached 39.57 billion yuan accounting for 43.8% lems popped out in the industry, and prevailing Red wine, 2006. of the total. The annual revenue from advertise- laws and regulations are lack of detailed provi- ments in the mass media was 45.7 billion yuan, sions to define and punish new illegal business accounting for 50.6% of the total, half of the advertisements and advertising activities. whole picture. The number of companies and The history of advertising in China shows that employees under private ownership was growing the rejuvenation and development of advertising much faster than that of state-owned, collectively in China was concurrent, mutually supportive and owned and foreign funded companies, and the interdependent with the development of the mar- revenue was also accounting for increasingly larg- ket economy. The market size of the advertising er proportions of the total. industry in China quickly cleared four milestones: In terms of advertisements published, demand from 10 million to 100 million yuan: 3 years of the general public for commodities and services (1979-1981); to 1 billion yuan: 6 years (1982- like property, automobiles, medical care, travel- 1987); from 1 billion yuan to over 10 billion yuan: ing, and education shot up, thus slightly changed 6 years (1988-1993); from 10 billion to 100 bil- the structure of advertisers. In 2002, real estate lion yuan: 10 years (1994-2003). Among the top Hair shampoo, 2004. advertiser spent 10.14 billion yuan becoming the ten countries around the globe in terms of total first commodity to spend over 10 billion on adver- advertising expenditure in 2001, China was tisements. ranked the fifth with 9.58 billion US dollars (USD). At the same time, China’s advertising industry had become a major part of the national Mobile phone, 2006. The Advertising Expansion Period for economy and a facilitator and thermometer of China (since 2002) China’s market economy.

With further improvement to the socialist mar- ket economic system, the advertising industry entered a stage of comparatively mature expan-

Website for job hunting, 2005. sion. There were four features of this period. Firstly, TAE growth slowed down due to an 1“爲社會主義工農業生産, 工農兵服務” 2 increase in base figure, but was still developing at Advertising company refers to the agency that usually provide full- service; advertising art company refers to the agency that specializes a speed twice that of the GDP. In 2003, national in art design. revenue from advertising set the historical record 3 In the early days of PRC, the opened up cities had limited economic of 100 billion yuan, 0.92% of the annual GDP. exchange with the foreign countries, especially those in the socialist Secondly, after China’s entry into WTO, competi- camp of 1950s. tion in the advertising market was intensified and 4“社會主義思想性, 政策性, 眞實性, 藝術性和民族風格” 5 extended beyond the border. Integration between “樣板戱”During the Cultural Revolution, only eight dramas were allowed to show in public, which were called model shows. advertising agencies had become a general trend 6“舊思想, 舊文化, 舊習慣, 舊風俗” and more market niches were identified. Thirdly, 7“限制, 引導和管理” brand names gradually became the focus of adver- 8“廣告代理制” tising campaigns. Fourthly, new issues and prob- CHAPTER Current States of Advertising

Advertising Agencies Association of Nepal Advertising Board of the Philippines 4Advertising Council of India International Advertising Association, UAE Chapter Japan Advertising Federation Korea Federation of Advertising Associations Malaysian Advertisers Association Singapore Advertisers Association Taipei Association of Advertising Agencies The Advertising Association of Thailand China 120 Asian Advertising - 2007 Current Status of Advertising - Nepal 121

C H A P T E R 4 Racial Breakdown Official Language: Nepali English is most widely used as international lan- Race Population(%) guage. Local and regional languages are used as Chhetri 3,593,496 (15.80) second official language in some regions of the Current Status of Advertising - Nepal Braman 2,896,477 (12.74) country. Magar 1,622,421 (7.14) haru 1,533,879 (6.75) 4) Total and per-capita GDP, Tamang 1,282,304 (5.64) 2000-2004: by Dr. Pradeep Bhattarai Newar 1,245,232 (5.48) Muslim 971,056 (4.27) 1) AFAA Nepal Representative: 3) Population, 2005 Total and Per-Capita GDP, 2000-2004 Kami 895,954 (3.94) Organization- Population Yadav 895,423 (3.94) Total Per-capita Advertising Association Nepal (AAN) Age Nr.(%) Rai 635,151 (2.79) Year US$ million US$ million Immediate Past President- 0-4 2,755,213 (11.90) Mr. Bhasker Raj Rajkarnikar Gurung 543,571 (2.39) 2000 5672 245 5-9 3,211,442 (13.87) Damai 390,305 (1.72) 2001 5823 246 10-14 2,981,932 (12.88) Limbu 359,379 (1.58) 2002 6292 260 15-19 2,389,002 (10.32) Thakuri 334,120 (1.47) 2003 6853 277 20-24 2,016,768 (8.71) Sarki 318,989 (1.40) 2004 7362 291 25-29 1,725,478 (7.45) Others* 5,313,252 (22.95) Source: Nepal Statistical Yearbook 2005 30-34 1,489,503 (6.43) Total 23,151,423 (100) 35-39 1,310,653 (5.66) *88 Races People 40-44 1,088,044 (4.70) 45-49 923,373 (3.99) Mr. Bhasker Raj Rajkarnikar 5) National Holidays in Nepal 50-54 766,054 (3.31) Breakdown by Religion 2) Country at a Glance 55-59 602,093 (2.82) Race Population(%) Nepal has its own national calendar and 60-64 520,908 (2.25) Hindu 18,664,677 (80.62) according to this calendar Nepal has been cele- Area: 147,181 Sq. Km brating two kinds of national holidays. Some of 65 & over 956,741 (4.13) Buddhist 2,486,463 (10.74) Capital: Kathmandu them have relation with the important dates and Population : 25.88 million (2006) Total 23,151,423 (100) Islam 972,359 (4.20) historical facts of the country and some are based Currency: Rupees Kirat 833,451(3.60) on ritual values of countrymen. The first kind of Per Capita GDP: US $ 315* Christian 104,181 (0.45) holidays have fixed date so they can be consid- * US $ 1= NRs. 72.25 (approx.) Others 92,606 (0.40) ered as Nonmoveable National Holidays but the second types are fixed by the yearly national cal- Note: Text as provided by the writer. Total 23,151,423 (100) endar of the same year only, so they are Moveable 122 Asian Advertising - 2007 Current Status of Advertising - Nepal 123

National Holidays. Whatever they are, both of Birthday, Krishna Janmastami, Ram Nawami, 17. Fagun 12-13 (Feb 24-25): Fagu Purnima entered into the world arena of all possible them will provide the tremendous opportunity for Phagu Purnima, Nepal Sambat's New Year Day, ( Festival of colors) prospective, basically in an open society and com- marketing and advertising. Lhosar, Shivaratri, Babuko Mukh Herne 18. Chaitra 4 (Mar 18): Ghodejatra petitive market. We must not have any hesitation Din(Father’s day), Aamako Mukh Herne (Festival of Horse-races) to accept the fact that this movement provides the Nonmoveable National Holidays Din(Mother's day), Guru Purnima (Teacher’s 19. Chaitra 12-13(Mar 26-27): Chaite Dahain opportunities for all to start their businesses in a Day) etc. They are not fixed by dates as in English (Birthday of Lord Ram) very free and fair manner. Multinationals were Nepal is in the process of political settlement. Calendar but fixed by Tithis as Nepali Calendar welcomed in the market for their products, some So, we are not in the position of declaring all every year. Dashain & Tihar are considered as the best possible joint venture industries were set up, new national holidays such as Constitution Day. So far opportunities of advertising and marketing industries in our own investment were begun, as now, we can put down some of the national Moveable National Holidays declared by the because of their values in Nepalese society and monopoly of state and some big houses in some holidays as mentioned below: Nepal Government for 2063 BS (2006-2007) are number of days declared as national holidays. particular areas of industry and business with as follows: some special arrangement were ended and at last, 1. Baishakh 1: New Years’ Day Dashain & Tihar are celebrated in the season of these activities in industries and business help to 2. Magh 16: Martyrs’ Day 1. Baisakh 14 (April 27): Matatirtha Aaunsi autumn, the most beautiful season in Nepal. Not make a proper environment to invest in media 3. Push 27: National Unity Day (Mother's Day) only have its cultural values, the climate of Nepal industry too. 4. Phagun 7: National Democracy Day 2. Baisakh 30(May 13) : Buddha’s Birthday at that time also played a significant role to cele- (Birthday of Lord Buddha) brate it. In Nepalese tradition both of these holi- At the same time Nepal entered into the age of Besides the days mentioned above as per as 3. Asar 27 (Aug 9): Rakshyabandhan days are considered as the best time of spending Mass Media. Slowly after then, as an auxiliary Nepali National Calendar, Nepal has been cele- (Teacher's Day) money to purchase new things. Because of this service industry, advertising has got a shape in a brating some of the days according to English 4. Asar 28 (Aug 10): Gaijatra (Cows Festival) gravity, these festivals always have a great scope professional manner. This is the fact but still it’s Calendar as National Holidays. December 25, the 5. Saun 31 (Aug 16): Krishnastami (Birthday of marketing and advertising and most of the the matter of shame that there is no exact database Christmas is declared as National Holiday for of Lord Krishna) scheme advertising and sales promotional activi- of annual spending in advertising. We can figure Christian and May 1 is declared holiday for 6. Bhadau 7 (Aug 23): Kushe Aaushi ties are planned in these holidays. out two reasons for it; the first one is our third workers. Not declared yet as a National Holiday, (Father's Day) world mentality that still doesn't trust in transpar- January 1 is celebrated as New Year Day especial- 7. Bhadau 12 (Aug 28): Rishipanchami ent culture and the second one is lack of state ly in the urban areas and February 14 is observed (Woman's Day) 6) Advertising & Annual Advertising mechanism as well as professional institution to as Valentine Day within the youngsters. The rising 8. Bhadau 21 (Sept 6): Indrajatra Spending work in this very field. trends of celebrating these holidays have been (Festival of Lord Indra) providing opportunity for marketing and advertis- 9. Ashoj 7 (Sept 23):Ghatasthapana Nepal has a long history of advertising though Though we are in a position to say in a very ing. Mother's Day, Father’s Day, Children’s Day, ( Inaugural Day of Dashain) it has no professional practice and transparent rough estimation that we have an advertising Woman's Day and other declared days as 10. Ashoj 13-21 (Sept 29-Oct 7): Dashain means and medium to figure out its exact annual industry of 2 billion (about 30 million US $) International Days by the UN according to 11. Kattik 4-8 (Oct 21-25): Tihar spending. We had some traditional way and Nepalese currency. The ratio of ATL and BTL is English calendar also giving some opportunities 12. Push 15 (Dec. 30) : Lhosar means to advertise but they were in a very limited about 3:2. So far as the spending in different for advertising and marketing. 13. Push 27 (Jan 11, 07): National Unity Day number and characters. So far as the 21st centuri- media by volume is Print, Television, Radio and 14. Magh 9 (Jan 23): Shree Panchami on medium of advertising that we are talking, we new medium respectively. Moveable National Holidays (Days of Goddess Swarswati) have to wait till the success of 1990’s popular 15. Magh 16 (Jan 30): Martyr's day movement. Nepal has a practice of basically Movable 16. Fagun 4 (Feb 16): Maha Shivratri National Holidays like Dashain, Tihar, Buddha’s (Birthday of Lord Shiva) After the success of this movement, Nepal Top Ten Advertisers of 2005 124 Asian Advertising - 2007 Current Status of Advertising - Nepal 125

nization and its duty is to protect their professions, Award could be the best way to categorize. So far Fortnightly 300 As mentioned above, we are not in the position the advertising and to safeguard their rights. as the billing, most of the advertising agencies Monthly 1313 to categorize Top 10 advertisers on the basis of mentioned above could take the top 10 positions. Bi-monthly 267 their annual spending budget in advertising but We have to accept that; still there is neither a Tri-monthly 419 we can figure out them in their ‘spending-perfor- professional organization to categorize the adver- Quarterly 22 mances’ in the market and the media. tising agencies nor any particular state mechanism 7) Media Summary, 2006 Half Yearly 60 to categorize them. In the prevailing situation, Annually 76 AAN has been organizing Crity Awards since Relatively in South Asian sub-continent, Nepal Total 4286 Top Ten Advertisers of 2005 2004, the first of its kind in Nepal as National has a long history of the print media but through Advertising Award to enhance the inclusive the advertising point of view, we can’t find its As mentioned above, all of those newspapers Rank Company Products development of Nepalese advertising industry. long history. In a real sense, after 1990 popular have not the same standard. So, there is a provi- 1. Unilever Ltd Haircare, Bodycare movement, there is a dramatic change in print sion of ABC Circulation Bureau under the Press 2. Dabur Nepal Ltd Haircare, Bodycare, Foods On the basis of evaluation criteria followed by media after avail of Kantipur National Daily as Council Nepal which classifies the newspaper 3. Surya Nepal Pvt. Ltd. Cigarettes, Shirts an expert’s jury panel AAN has been nominating broad sheeted in multicolor form from the private every year. 4. Asian Thai Foods Pvt. Ltd. FMCG-Snacks the best five agencies every year. Five nominees sector. Kantipur broke the monopoly of state 5. Bottlers Nepal Pvt. Ltd Cold drinks for the best advertising agencies in Crity Award owned broadsheeted national daily and dragged This classification points out the standard of Himalayan Snacks & 6. FMCG-Snacks 2005 could be recognized as the top 5 agencies our print media in a very competitive era. We can newspapers which could guide the advertisers and Noodles Pvt. Ltd. are as follows. say that the publication of the Kantipur is the advertising agencies to choose the right media for 7. CG Foods (Nepal) Pvt. Ltd. FMCG-Snacks founding stone of professional development not the advertising. Let us see the media situation of 8. Spice Nepal Pvt. Ltd Telephone 1. Advertising Avenues Nepal Limited only in the Nepalese print media but as a whole in Nepal as stated in the latest ABC Circulation 9. Pepsi Cola Nepal Pvt. Ltd. Cold Drinks 2. Ad Media Pvt .Ltd. media sector. Report published in October 28, 2006. 10. Him Electronics Pvt. Ltd. Home appliances 3. ANS Creation Pvt. Ltd. 4. Prisma Advertising Agency Under the Ministry of Information and Class Daily Weekly Fortnightly Monthly 5. Welcome Advertising and Marketing Pvt. Ltd Communication there is a provision of Top Ten Advertising Agencies Department of Information (DOI) which is the A16131 10 Besides the top five agencies as mentioned concerned department of print media and every B14541 9 In Nepal there are about 100 advertising agen- above, we can list the remaining five agencies on year it publishes the real data regarding Nepalese C 10 167 4 16 cies actively working in their professions but the the basis of their number of nominees in the dif- print media. D2452104 size and shape is varying to a “Briefcase Agency” ferent categories of Crity Award 2005 and could to full-fledged “one-stop” service agency. This is be placed in top 10 advertising agencies. During the last couple of years, the media situ- because of the crucial period in all sectors of the ation in print media is almost stable. Here is the Broadcasting Media country including advertising industry. In a very 1. Business Advantage Pvt. Ltd. data of Nepalese print media published by DOI in flat way, we can say that Nepalese advertising ser- 2. Echo Advertising Agency 2006. So far as the broadcasting media, Nepal has a vice is in a transitional time to convert it into a 3. Linez Advertising history of Radio more than 5 decades. Radio service industry. 4. ME Nepal Pvt. Ltd. Print Media Nepal as a state-owned Radio Station in AM 5. Water Communication Pvt. Ltd modulation had a monopoly for almost 4 decades. AAN being an apex body of all sorts of adver- Dailies 313 Because of this ground reality, there was no tising agencies, it can't categorize its member AAN believes that in the absence of system of Mid-weekly 10 choice of Radio Nepal to broadcast the Radio organizations. Basically, it is a professional orga- categorizing top 10 advertising agencies, Crity Weekly 1506 commercials and in the absence of fair 126 Asian Advertising - 2007 Current Status of Advertising - Nepal 127

competition there were no qualitative Now, in Nepal eight television channels are in an apex body of Nepalese advertising agencies, commercials in production as well as service operation and a couple of channels are looking for AAN has started Crity Award in 2004, the first After 1990s popular movement, there are half delivery. new entry. The data provided by the Frequency of its kind. dozens of universities in government and private Department of Ministry of Information and This initiative of the AAN, the Crity Award sector together. But even today, there is neither After 1990 popular movement, Nepal entered Communications, the latest status of Television recognizes the talent of the advertising separate department for this booming subjects nor into the real era of FM Radio movement and Station as broadcasting medium is given below: professionals while acknowledging the a provision of it as a major in any levels. In most Radio Nepal opened its FM station in 1994. After contribution of advertising agencies to the of the universities, there is a provision of then, a number of FM Radio Stations started in Television On-Telecast Under process advertising sector, Nepali business and industries, compulsory subject varies from 100 to 300 full private sector as community as well as and the economy as a whole. The first of this kind marks in a level. commercial Radio Stations are set up not only in Satellite 6 5 of award in Nepal, the Crity Award has been urban areas but even in the far rural areas too. Terrestrial 2 - held three times before, to much acclaim and Whatever, there are some professionals with This movement in FM Radio raises the healthy Total 8 5 appreciation from the advertising and business the particular degree from the universities of competition in different corners and as a result G. Total 13 fraternities. neighboring countries and abroad, but the number Nepal is considered as a role model in this sub- Initially, Crity Award has given in five is very limited. So, it is the ground reality that we continent. categories only but in last year it has given in 13 have lack of graduate and post graduate While talking about the television, we can't categories and in years to come it has a plan to professionals in this very field. The data provided by the Frequency ignore the cable television as a mass medium. cover up other number of categories as well. Department of Ministry of Information and Now in Nepal there are 123 cable televisions It is true that Crity Award has no long history Now, there is a demand rising of manpower Communications, the scenario of Radio as operating from different parts of Nepal. Most of but it is taken as the most prestigious achievement from this faculty and some universities are in a broadcasting media is given below: them are transmitting the foreign television in this field. This recognition of Crity Award in a hurry to design major courses and hope to conduct signals and about 100 such signals are roaming very short span of time, it has been recognized as it very soon. Such provision is planning to adopt Radio On-Air Under process. through our sky. These cables are providing the National Advertising Award. in college level as well as 10+2 level also. Hope, opportunities to advertise through scrolling. after a couple of years Nepalese advertising AM 1 - Besides this, some local cables are running their industry could be able to get the cream manpower FM 57 66 own Nepali channels and providing opportunities 9) Advertising Education with the degree of relative subjects and they could Total 58 66 to advertise. be able to lead this business in a very proper and G. Total 124 In Nepal, there is a long history of state-owned professional way. As the new medium, On-line medium is also single University, Tribhuvan University till the welcomed in Nepal as a medium of right to success of 1990’s popular movement. There are information as well as the medium of advertising. faculties of Management and Journalism 10) Advertising Associations Television is considered relatively new version This medium is really in fast developing position separately but there is neither Advertising nor of broadcasting medium with the facility of in Nepal and attracting advertisers to choose the Public Relations as major in both. In the course of Nepalese Advertising industry has no telecasting visuals too. In Nepal, the history of right medium to advertise. Journalism for graduate level, there is a provision professionally managed long history though the Television began in 1984 establishing Nepal of a compulsory subject as Advertising & Public first advertising agency was established in 1960. Television by then government. About one and Relations and not exact in the same but there is a After a three decade’s journey, Nepalese half decade of one-horse race, Nepal Television 8) National Advertising Awards subject in Management faculty too. Same way, advertising agencies felt a need of their has played a significant role providing we can find the subject in post graduate level as organization as a result; in 1989 it took initiation opportunities to advertise in the very new medium In government level, there are no any national general one. So far as major, there is a provision to move forward. After a number of meeting and for then time. advertising awards in Nepal till the date but being of major marketing in post graduate level. discussion over it, Advertising Agencies 128 Asian Advertising - 2007 Current Status of Advertising - Philippines 129

Association of Nepal (AAAN) was established in Nepalese Advertising, there is no choice of annual C H A P T E R 4 1991. Since then, it has been playing a very Souvenir of AAN. Let us hope, we could have a constructive role fulfilling the hope and number of advertising journal with the very inspiration of all agencies working here. relevant information and materials to make rich and prosperous this booming field in years to When AAAN was established, there were very come. Current Status of Advertising - Philippines few numbers of advertising agencies and this field wasn't shaped yet as a significant service industry, as it is today. After 1990 popular movement, some 12) The Government Agency Primarily by Ramon Faustino L. Dolor II / Raymond Kalaw Nacino of the professionals working in other field shifted Responsible for the Advertising Business in it and tried to make it a prominent sector. With their hard time sincere effort in this field and the Advertising has been taken as an important RP Ad Industry on Cruise Control in the region during the ’50s and ’60s, but per- right environment for media advertising it shaped service industry in Nepal in recent couple of years haps, the best and the brightest minds in as an industry. though it has not given a right posture yet. It can IT’s doing well. Philippine advertising “have become complacen,” be said because of not keeping it under a proper says Castro. Right now, there are about 150 advertising state management. This in a nutshell is the state of the Philippine agencies registered here and actively working ad industry in the eyes of Alejandro V. Castro III. This is to say that “we can win some, we can number is about 100. Except some odds, all of There is still not a proper ministry and lose some...” them are under the umbrella of AAN. Because of department to handle this sector. Advertising Alex, as Castro is called by his peers and this achievement representing all advertising agencies have to knock the doors of different friends in the industry, should know of what he There really is no driving spark to create cam- agencies as an umbrella organization, it has been ministries and departments for their jobs and speaks. He has been around for a while, and he is paigns at par or better than anything produced the great pride and pleasure for AAAN initiator procedures. They have to register themselves presently the executive director of the Advertising elsewhere. Mr. Alex Castro and its executives. Initially, it was named AAAN- either under the Ministry of Industry and Board of the Philippines. Advertising Agencies’ Association of Nepal and Commerce or under Metropolitan Authority or Going back to the sports analogy, the right now it is said AAN- Advertising Association under local administrative bodies and to work in In some ways, he said, the situation is just like Philippines for a time was on cruise control while of Nepal. Now AAN became a unanimous the field of communication which goes under the Philippines’ quest for Olympic gold. Luckily their peers in other countries “are racing.” professional organization in the field of Ministry for Information and Communication by for the industry, the highest global award for the advertising industry in Nepal. its nature. industry was finally won this year in Cannes, Speaking in the vernacular, Filipinos can be Now AAN has been demanding, advertising Clio, AdFest and others. just a bit “bilib sa sarili” (trust in oneself), accord- agencies should be taken as a part of mass media ing to Castro. There is no question, however, that 11) Advertising Journals and managed it in a very proper way through an There will be great rejoicing if and when the the industry has been growing steadily over the independent Advertising Council under the Philippines wins its first ever Olympic gold medal decades. Gone are the days of the one-man shows, It is very sorry to say that there couldn't be Ministry of Information and Communications. Let in the 2008 Beijing Olympics. Everyone will be advertising practitioners who did it all. In the post found any serious initiations to publish regular us hope, with the sincere effort of AAN, sooner or ignoring the inescapable fact that other smaller war years, there were many Filipinos who were Adverting Journals in Nepal. We have a history of later Nepalese advertising industry will get the and poorer countries have been winning that gold one-man agencies - doing copy, creatives, client some periodicals as irregular publications. This is right position and posture. Now, "New Nepal" is for decades. servicing, marketing and even administration and because of two limitations, the first one is market much talked subject here in Nepal and in this very finance. and the second one is market creator itself. juncture advertising could be placed accordingly. The Philippine advertising industry was ahead So far as Advertising Journal in the field of 130 Asian Advertising - 2007 Current Status of Advertising - Philippines 131

At the end of the day, they were also janitors lower per capita income also translates to lower world “has become more refined.” Most everyone There is that old saying that - actually a line and delivery boys. expenditures. now thinks along the lines of niche marketing. from an American brand - when it rains, it pours. But that old style worked because the times The Philippines could win not one, not two, not called for it. Today, specialization has become the If you look at it, he added, the present “People know more now,” he said. three but several gold medals in the next norm, and will continue to be so in the near Philippine economy is essentially driven “by Olympics. future. In decades past, added Castro, there were Henry Sy and overseas Filipino workers.” And this is the battleground that present and less expatriates working locally. These days, it is future generations of the Philippine advertising So too could Filipino advertising bright boys not uncommon for head offices to rotate their peo- This is not to say that the situation is all that executives will be fighting in. How they will fare score a home run. And no one should be sur- ple in countries where they operate. Just like bad. is difficult to say. prised if this happens. It’s always been within the other MNCs or multinational corporations, execu- realm of the possible. tives, managers and promising talents are In the area of self-regulation, for example, the assigned abroad to sharpen their skills. Philippines is “ahead of the world,” said Castro.

Unfortunately, some exceptional Filipino ad Yes, the Europeans and Americans are now executives end up permanently abroad, or being into self-regulation, but we were there first. The pirated to join companies based abroad. parameters or self-regulation are more defined in 2006 Media Spend Highlights the Philippines than anywhere else, he said. And Source: 2007 The Nielsen Company Neighboring countries “continue to pirate” the level of sophistication is quite high. “Our skilled Filipinos, said Castro, and little can be mechanics is more polished,” he added. done to stop this practice. Even concepts devel- oped locally for some global brands are being Of course, there is always room for improve- Media Spend Landscape (Comparative Years) adopted regionally now. ment, said Castro. In Million Pesos Based On Rate Cards

It’s a matter of economics, of course. Overall, Castro said he has seen the ups and downs of the industry. In his more than three There is a brain drain because while there is no decades of experience, he has seen “gems of shortage of Filipinos who excel in various indus- ideas.” tries, the Philippines remains part of the develop- ing world where the earning potential is not as “Remember the ‘isang platitong mani’ (a high as First World countries. saucer of fried peanuts) commercial of San Miguel Beer,” he asked. That was but one exam- Thus, Filipino doctors, nurses, engineers, ple of an advertising campaign that was classic, artists, and other skilled professionals will always where all the elements came together perfectly. have greener pastures to go to. Also, the Philippine advertising industry cannot quite com- Castro is hoping that such gems become more pare with its neighbors in terms of adspend. regular now. This could be tougher or easier based on one’s perceptions. “Our level of economic activity sets the level of spending,” Castro said, so that the country’s The Philippine ad industry, like the rest of the 132 Asian Advertising - 2007 Current Status of Advertising - Philippines 133

Share of Media Spend (Full-Year 2006) Media Spend by Product Section (Comparative Years)

In Million Pesos Based On Rate Cards In Million Pesos Based On Rate Cards

Share of Media Spend (Full-Year 2006)

In Million Pesos Based On Rate Cards

2006 Top Categories

Top 1~10 Categories Based on Expenditure Top 11~20 Categories Based on Expenditure In Million Pesos Based On Rate Cards In Million Pesos Based On Rate Cards * Skin Care Includes Soaps and Facial Beautifiers Rank Category 2006 Spend Chg vs 2005 Rank Category 2006 Spend Chg vs 2005 Share of Media Spend (Full-Year 2006) 11 Vitamins and Tonics 4,257 +34% 1 Hair Shampoos and Rinses Products 15,587 -5% 12 Quick Service Restaurants 3,595 +1% In Million Pesos Based On Rate Cards 2 Communication/Telecommunication 12,755 -5% 13 Cigarettes 2,921 +4% 3 Skin Care* 7,223 -5% 14 Department Stores, Supermarkets 2,616 +11% 4 Detergents & Laundry Preparations 6,128 +4% 15 Seasonings, Sauces, & Extracts 2,432 +24% 5 Government Agencies and Utilities 5,169 +51% 16 Beers 2,160 +49% 6 Powder Milk 4,734 +32% 17 Baby Care Products 2,143 -17% 7 Proprietary Drugs 4,570 -2% 18 Coffee 2,096 +5% 8 Cough & Cold Remedies 4,517 +27% 19 Broadcast Networks 2,082 +7% 9 Entertainment 4,467 +29% 20 Bakery Products & Bakeshops 1,978 +21% 10 Dentifrices, Mouthwash, Toothbrush 4,368 +21% Total Top 20 Categories 95,794 +8% Balance Categories 47,795 -6% 134 Asian Advertising - 2007 Current Status of Advertising - Philippines 135

Top 1~10 Advertisers Based on Expenditure Top 11~20 Advertisers Based on Expenditure Advertising Board of the Philippines of the Philippines (OAAP), Advertising Suppliers In Million Pesos Based On Rate Cards In Million Pesos Based On Rate Cards Self-Regulation... A Privilege Association of the Philippines (ASAP), Cinema Advertising Association of the Philippines Rank Advertiser 2006 Spend Chg vs 2005 Rank Advertiser 2006 Spend Chg vs 2005 The Advertising Board (CAAP), Marketing and Opinion Research 1 Unilever Philippines 14,247 +11% 11 Philippine Charity Sweepstakes 1,742 +37% of the Philippines or Society of the Philippines (MORES), and 2 Procter & Gamble Philippines 12,718 -15% 12 San Miguel Brewing Group 1,595 -22% ADBOARD is a govern- Independent Blocktimers Association of the ing body composed of Philippines (IBA). 3 Nestle Philippines 7,167 +35% 13 Tanduay Distillers 1,434 +24% representatives of national 4 Colgate-Palmolive Philippines 6,753 +18% 14 Mead Johnson Philippines 1,360 -9% organizations involved in Brief History 5 United Laboratories 6,700 +38% 15 Philippine Long Distance Company 1,194 -22% advertising practice, The ADBOARD was organized in the belief 6 Fortune Tobacco 2,707 +1% 16 Jollibee Foods 1,150 +6% which have banded that the industry can best be regulated, and its 7 Smart Communications 2,552 -15% 17 Universal Robina Corporation 1,139 -10% together to promote the interests promoted, by the practitioners them- 8 Globe Telecom 1,959 -12% 18 Coca-Cola Bottlers 1,111 -31% development of the adver- selves, pursuant to the government policy that 9 Johnson & Johnson Philippines 1,853 +15% 19 Innove Communications 922 +55% tising industry through encourages self-regulation in the private sector. 10 Wyeth Philippines 1,793 +13% 20 Ginebra San Miguel 920 -38% self-regulation, in harmony with industry goals. The ADBOARD, then the Philippine Board of Total Top 20 Advertisers 71,017 +4% The ADBOARD is the umbrella organization of Advertising, was the result of a series of meeting the Philippine advertising industry and a member in 1973 by leading advertisers and advertising Balance Advertisers 72,572 +2% of the Asian Federation of Advertising practitioners who strongly felt the need for a body Associations or AFAA. to unify all sectors involved in the industry and gear their operations toward the common goal of Member Associations serving the interests of the consumers and the Sectoral members of the ADBOARD are the nation at large. It was constituted with the official Top 1~10 Brands Based on Expenditure Top 11~20 Brands Based on Expenditure Philippine Association of National Advertisers encouragement of the Department of Public In Million Pesos Based On Rate Cards In Million Pesos Based On Rate Cards (PANA), Association of Accredited Advertising Information. The Board was incorporated on May Agencies-Philippines (4As-P), United Print Media 3, 1974. Rank Brand 2006 Spend Chg vs 2005 Rank Brand 2006 Spend Chg vs 2005 Group (UPMG), Outdoor Advertising Association 1 Palmolive Shampoo & Conditioner 3,687 +21% 11 Rejoice 1,596 -28% 2 Sunsilk 3,139 +3% 12 Pantene 1,527 -29% 3 Smart 2,552 -15% 13 Tide 1,526 -4% 4 Colgate 2,044 +16% 14 Knorr 1,452 +81% 5 Head & Shoulders 2,013 -4% 15 Safeguard 1,403 +24% 6 Globe 1,959 -12% 16 Close-Up 1,399 +35% 7 Philippine Charity Sweepstakes 1,742 +37% 17 Vaseline Shampoo 1,268 +10% 8 Cream Silk 1,739 -24% 18 Ariel 1,254 +19% 9 Surf 1,643 +40% 19 PLDT 1,194 -22% 10 Nescafe 1,639 +25% 20 Jollibee 1,150 +6% 136 Asian Advertising - 2007 Current Status of Advertising - India 137

Industry Self-Regulation to learn new techniques in creativity and produc- C H A P T E R 4 The ADBOARD has adopted a Code of Ethics tion enhance and upgrade communication skills, which was originally drawn up by representatives in sessions with both local and foreign practition- of the member-associations, in consultation with ers who have excelled in their respective areas of the then Bureau of Standards for Mass Media operation. under the DPI in 1973. The member-associations, Current Status of Advertising - India all in accord with the principle of industry self- In recognition to the creative excellence in regulation, are committed to observe the provi- Philippine Advertising, the ADBOARD has sions of the Code. established the ARAW Awards. ARAW stands for by Ramesh Narayan Advertising Recognition and Awards. There are In addition, the ADBOARD is guided by the two awards program under ARAW: the ARAW Advertising Content Regulation Manual of Creative Awards and the ARAW Values Awards. 1) Country at a Glance Racial Composition in percent, if applicable Procedures and the Standards of Trade Practices These two happen in alternate years. The ARAW and Conduct Manual, which serve to keep adver- Values Awards is ADBOARD’s way of institu- Land: 2,973,190 sq km Indo Aryan: 72% tising within correct, ethical and wholesome tionalizing an awards program for the promotion Capital: New Delhi Dravidian: 25% bounds, and help to assure professional advertis- of Filipino values in advertising. Population: 1.11 billion* Mongoloid & other: 3% ing practice. The Code and the Manuals are tools Currency: Rupees (INR) to upgrade the standards of advertising practice in Furthermore, ADBOARD has brought about Per-capita GDP: Source: CIA, Fact book (2000 estimates) the country. the establishment of the Advertising Foundation INR: 32,229/- **US $: 703/- of the Philippines to organize conferences, semi- Base Year : 2001 Breakdown by religion The Code and Manuals are “live mechanisms” nars, symposia and workshops. Additionally, the * Census India Estimates and are subject to periodic revisions toward Ad Foundation manages and sponsors special ** Conversion rate: 1 $ = 45.8577 INR (Source: www.xe.com) as Hindu: 81% improvement, even as the practices that they advertising presentations and exhibits for the pur- on 2/10/06 Muslim: 13% cover are themselves constantly reviewed. pose of maximizing the development and continu- Christian: 2% ing education of advertising practitioners support- Sikh: 2% The Code contains regulations principally gov- ive of similar activities of member-associations of 2) Population Statistics Other: 2% erning wholesome and acceptable advertising the ADBOARD. Unspecified: 0.1% content. It commits the industry to the observance Total: 100% of truth in advertising, to its social, economic and Total, age-group breakdown cultural responsibility, and to its role in helping to Population Source: CIA, Fact book (2001 Census Estimates) foster public confidence in advertising as a legiti- Age Group (In Billion) % Population mate marketing activity. 0-14 years 0.34 31% Official languages Industry Development 15-64 years 0.70 64% A biennial Philippine Advertising Congress is 65 years & above 0.05 5% English enjoys associate status but is the most sponsored by the ADBOARD to promote devel- important language for national, political, and Tota l 1.10 100.00% opment and greater interaction in the industry. commercial communication; Hindi is the national The Ad Congress is a chance for all practitioners Source: CIA, Fact book language and primary tongue of 30% of the peo- 138 Asian Advertising - 2007 Current Status of Advertising - India 139

ple. There are 14 other official languages viz Per-Capita GDP Republic Day 26th January Christmas 25th December Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, The Constitution of India was formally adopted Christmas is a holiday on the Christian calen- Malayalam, Kannada, Oriya, Punjabi, Assamese, by the Parliament, and India declared itself as a dar, celebrating the birth of Jesus. Among those Kashmiri, Sindhi and Sanskrit; Hindustani is a “Republic” on January 26, 1950, a date thereafter using the Gregorian calendar, it is observed on 2000: popular variant of Hindi/Urdu spoken widely celebrated annually as Republic Day in India. December 25. INR 20,941 throughout northern India but is not an official US$ 457 language. Gandhi Jayanti 2nd October 2001: Gandhi Jayanti is commemorated to celebrate 5) Advertising Expenditure INR 22,179 Mahatma Gandhi also called the Father Of The US$ 484 3) GDP Statistics Nation’s birthday. Gandhi was a major political 2002: and spiritual leader of the Indian Independence INR 23,430 Total Adex movement. He was the pioneer of Satyagraha - GDP for the period 2000-2005 US$ 511 resistance through mass civil disobedience strong- GDP At Market Prices(Rs Mn) 2003: 2002: ly founded upon ahimsa (non-violence) becoming INR 25,981 Adex (INR Mn) : 83,110 Adex (US $ Mn) : 1,812 one of the strongest philosophies of freedom 2000: US$ 567 % Growth Rate : - struggle worldwide. *INR 21,076,610 2004: Adex as % of GDP : 0.339 **US$ 459,609 INR 28,926 2003: Diwali exact dates vary (typically fall during 2001: US$ 631 Adex (INR Mn) : 93,290 Adex (US $ Mn) : 2,034 end October) *INR 22,813,050 2005: % Growth Rate : 12.2 Diwali is a major Hindu, Jain, Sikh and **US$ 497,474.8 INR 32,229 Adex as % of GDP : 0.338 Buddhist festival. Known as the “festival of 2002: US$ 703 2004: lights” it symbolises the victory of good over evil, *INR 24,497,360 Adex (INR Mn) : 103,540 Adex (US $ Mn) : 2,258 and lamps are lit as a sign of celebration and hope **US$ 534,203.9 % Growth Rate : 11.0 for mankind. Celebrations focus on lights and 2003: Adex as % of GDP : 0.332 lamps, particularly traditional diyas (lamps). *INR 27,602,240 2005: Fireworks are associated with the festival in some **US$ 601,910.7 Adex (INR Mn) : 119,150 Adex (US $ Mn) : 2,598 regions of the country. 2004: 4) National Holidays % Growth Rate : 15.1 *INR 31,214,140 Adex as % of GDP : 0.337 **US$ 680,673.9 Independence Day 15th August 2005: Source: Adex: TAM+Madison India estimates An Independence Day is an annual celebration GDP: Reserve Bank of India *INR 35,314,510 commemorating the anniversary of a nation’s **US$ 770,089 assumption of independent statehood, usually Source: *Central Statistical Organisation (part of Government after ceasing to be a colony or part of another of India Ministry of Statistics & Programme Implementation) state. India gained its Independence after transfer Base: 1999-2000 of power from the United Kingdom in 1947. **Conversion rate: 1$=45.8577 INR (Source:www.xe.com) as Traditional lamps, also known as on 2/10/06 diyas. 140 Asian Advertising - 2007 Current Status of Advertising - India 141

Volume & Percent of Advertising Top Ten Advertisers (2005) Top Research Companies 6) Media Summary Spends for 2005 S.No. Advertisers INR (Mn) Television 1 Hindustan Lever Ltd 5,655 Company Foreign Affiliation The year 1982 marked the beginning of a revo- Adex (INR Mn) % Spends Details 2 Procter & Gamble 1,314 lution in television in India. Before 1982 all trans- A.C.Nielsen ORG MARG A.C.Nielsen TV 50,043 42 3 Maruti Udyog Ltd 1,120 mission in India was “black & white”. The gov- IMRB International Kantar Media ernment of India started the first colour broadcast Press 56,954 48 4 Hewlett Packard India Ltd 1,056 TNS India TNS Worldwide in 1982 with the arrival of the Asian Games in Radio 2,026 1.7 5 Nokia Corporation 1,022 Synovate India Synovate Worldwide India. Post 1982, things started changing for ever. Cinema 357 0.3 6 Bajaj Auto 1,009 Research International Research International Worldwide Outdoor 8,698 7.3 7 Tata Motors Ltd 1,000 Till the year 1992 the television broadcast in Internet 1,072 0.9 8 LG Electronics India Ltd 992 Source: Industry Estimates India was the monopoly of the Government of Actual billings not disclosed by agencies hence “not available”. Total 119,150 100 India with its channel “Doordarshan National”. 9 Hero Honda Motors Ltd 911 The order does not reflect the ranks. 10 Dabur India Ltd 904 Source: Adex: TAM+Madison India estimates Some of the landmarks in the television broad- casting in India are summarized below Source: TAM,Adex. Spends are for TV + Print Period: Jan-Dec 2005 Top Public Relations Firms - Doordarshan launched its second channel around 1990-91 targeted towards the metro Company Foreign Affiliation audience under its channel “DD 2”. All the Top Advertising Agencies Adex by Industry Category Genesis PR Burson Marsteller government channels were terrestrial chan- nels. Spends* for 2005 Agency Affiliation Perfect Relations - - The 1991 Gulf War witnessed the launch of JWT WPP Vaishnavi Communications - India’s first satellite channel CNN. Industry Category Adex (INR Mn) % Spends O&M WPP Text 100 Next Fifteen Communications Group - The economic reforms of the government in FMCG 43,441 40.6 Lowe Lintas IPG Hamner and Partners - 1992 resulted in the launch of at least 9 satel- lite channels in the Indian skies. Others 34,132 31.9 McCann Erickson IPG Roger Pereira Edelman - By 1995 the total number of satellite channels Leo Burnett Publicis Services 10,486 9.8 Adfactors PR - went up to 100 and as of date there are 277 Automobiles 7,276 6.8 Mudra Omnicom Madison PR - channels being beamed in to India. Financial 6,848 6.4 FCB - Ulka IPG Corporate Voice Weber Shandwick - The various channel launches have resulted in Durables 4,815 4.5 Grey Worldwide WPP 20 20 Media - the fragmentation of viewership across differ- ent genres such as soaps, news, sports, Total 106,997 100 Contract WPP movies, infotainment, kids, religious and sev- Rediffusion DYR WPP eral others. *Spends are for TV+Press only Source: Industry Estimates Source: Adex: TAM+Madison India estimates Actual billings not disclosed by agencies hence “not available”. Source: Industry Estimates The order does not reflect the ranks. Actual billings not disclosed by agencies hence “not available”. Print The order does not reflect the ranks. One of the oldest media has lost its grip with the influx of several satellite channels. 142 Asian Advertising - 2007 Current Status of Advertising - India 143

While several international publication groups with the launch of several multiplexes in India in 7) National Advertising Awards ness placed in the country. are eyeing the Indian market the current situation the last 2 years and more multiplexes expected to is characterized by: be launched in the coming months. The multi- Abby Awards Advertising Club, Bombay plexes are responsible for the revival of cinema in The Abby awards are the Oscars of Indian ad Established in 1954. Advertising Club Bombay - Survival of the fittest. Only publications with India particularly amongst the upper end target awards to honour creative excellence in advertis- is a club of and for individuals involved in the deep pockets seem to survive. While the groups. Apart from standard cinema advertising ing. Undoubtedly, the most prestigious ad award various facets of advertising and marketing com- newspaper reach has improved in the last few opportunities, the multiplexes are experimenting show in the country attended by more than 2500 munication. The mission of the club is to create years, the reach of magazines is dwindling with a host of activities such as branding in lobby, professionals from the marketing, advertising, forums and events to help its members improve year on year. branding of seats, brand activation, contests etc. media, research and PR fraternity. their professional competencies thereby raising - Publications are adopting different strategies the standards of advertising in the country. such as contemporary layouts, newer supple- Internet AAAI Creative Awards Festival (GOAFEST) ments catering to different target segments, While several studies have come up with dif- Patterned on lines similar to the Cannes The Indian Newspaper Society (INS) launch of several features and more localized ferent estimates of the size of the internet audi- Advertising Festival, the GOAFEST is the biggest The Indian Newspaper Society enjoys a unique editions to keep reader interest alive. ence this medium is here to stay. The medium is gathering of its kind in India. position as the accredited spokesman of the news- currently being skewed towards the youth in large paper industry. The foundation of the Society, in Radio metros. The opportunities to advertising are many the year of the beginning of World War II, was the Radio in India was historically controlled by with a host of vehicle choices such as simple ban- 8) Advertising Education at Universities first step in giving direction and cohesion to a the Government with its two strong station net- ners to more interesting soshkels. in India vital industry. Because the Press till then had been works called “Vividh Bharathi” and “Primary growing at random, without organisational sup- Channel”. These stations had wide reach and were Mobile Total number* of universities offering advertis- port, mutual co-ordination or any protection from used by advertisers to address low TV and Print Mobile is the new kid on the block, with a ing/public relation courses: 82 the numerous pressure groups that independent reach geographical markets. Again with the influx rapid penetration amongst consumers due to publications are invariably exposed to. of TV channels this has changed dramatically falling handset and call rates. The continued *Number relates to those universities which offer the subject as with radio reach decreasing year on year. reform in the telecom sector is going to translating a major. The greatest strength of the Society stems from a huge adoption of mobile in the coming 2/3 years a unity of purpose. Over 990 dailies, bi-weeklies, However, the radio scene is about to change resulting in huge opportunities for advertisers. weeklies, fortnightlies and monthlies published in dramatically with the opening up of Radio FM 9) Advertising Associations 18 languages from all over the country form the stations for private operators. The government has Out of Home nucleus that accounts for over 90% of the coun- given license to nearly 280 private FM stations Out of Home in India is come a long way from Advertising Agencies Association of India try's readership. which has resulted in a flurry of launches across simple hand painted billboards a decade back to (AAAI) different parts of India. host of dazzling options now. Some of the key Established in 1945. The Advertising Agencies Indian Broadcasting Federation (IBF) Radio in India will not be the same and is trends in out of home are: Association of India (AAAI) is the official, (a) To promote, aid, help, encourage, develop pro- about to witness some very interesting changes in national organisation of advertising agencies, tect and secure the interests of the Indian televi- the next few months. - More interactivity than a decade ago. formed to promote their interests so that they con- sion industry and other related entities. - Malls and multiplexes are offering a bewil- tinue to make an essential and ever-increasing Cinema dering range of options to advertise. contribution to the nation. The AAAI represents a (b) To disseminate knowledge, regarding the latest TV also took away a large cinema following. - Clutter in OOH will continue to increase. very large number of small, medium and large- developments in the television industry, amongst Cinema reach in the last few years has witnessed - Many global companies will set up shop to sized agencies as its members, who together its members. a huge downturn. However the scene is changing capitalize on the boom. account for almost 80% of the advertising busi- 144 Asian Advertising - 2007 Current Status of Advertising - India 145

(c) To provide a meeting ground to ensure that the working and entertaining, and professional devel- ing of radio, television, films, the press publica- members work in consensus to achieve the com- opment. tions, advertising and traditional mode of dance mon goals, have a common platform/forum at and drama plays a significant part in helping the which they may air their grievances and arrive at people to have access to free flow of information. solutions. 10) Advertising Journals It also caters to the dissemination of knowledge and entertainment to all sections of society, strik- Advertising Standards Council Of India ing a careful balance between public interest and (ASCI) Advertising Journals commercial needs, in its delivery of services. Key objectives of ASCI is to monitor, adminis- ter and promote standards of advertising practices S No Publication Year Type Frequency Field Ministry of Information & Broadcasting is the in India with a view to: Name Established Served apex body for formulation and administration of the rules and regulations and laws relating to (a) ensuring the truthfulness and honesty of repre- information, broadcasting, the press and films. 1 Brand Equity 1990 Supplement with leading Weekly Marketing, sentations and claims made through advertising business daily Media & Creative This Ministry is responsible for international co- and safeguarding against misleading advertising. operation in the field of mass media, films and 2 The Strategist 1993 Supplement with leading Weekly Marketing, broadcasting and interacts with its foreign coun- business daily Media & Creative (b) ensuring that Advertising is not offensive to terparts on behalf of Government of India. generally accepted norms and standards of public 3 Pitch 2003 Magazine Monthly Marketing, decency. Media & Creative

4 Brand Reporter 2004 Tabloid Fortnightly Marketing, (c) safeguarding against the indiscriminate use of Media & Creative advertising for the promotion of products or ser- vices which are generally regarded as hazardous 5 Impact 2004 Tabloid Weekly Marketing, to society or to individuals or which are unaccept- Media & Creative able to society as a whole. 6 First Option 2005 Tabloid Weekly Marketing, Media & Creative (d) ensuring that advertisements observe fairness in competition and the canons of generally accept- ed competitive behaviour.

International Advertising Association - India 11) Primary Government Agency Chapter Responsible for Advertising Business International Advertising Association - India Chapter is part of the International Advertising Primary Agency: Government Of India - Association (IAA). The India Chapter includes Ministry Of Information & Broadcasting professionals from advertising, media and market- ing. The organization provides a forum for discus- The Ministry of Information & Broadcasting, sion of relevant issues in our field, events for net- through the mass communication media consist- 146 Asian Advertising - 2007 Current Status of Advertising - United Arab Emirates 147

Breakdown by religion in percent 6) Advertising C H A P T E R 4 Muslim 50%, other 50% (estimated) Total Expenditure Official languages and their breakdown in per- cent Unit : Millions Arabic (official), other languages , English, Year AED US$ Percentage increase Current Status of Advertising - United Arab Emirates Persian, Hindi, Urdu, Malayalam year-on-year

2000 786 214 4) Total and Per-Capita GDP 2001 977 266 23.29% by Tanvir Kanji 2002 1,304 355 33.46% Total and Per-Capita GDP (2004~2007) 2003 1,641 447 25.91% 1) Country Representative for AFAA 2) Country at a Glance Unit : Millions 2004 2,328 634 41.83% Name: Tanvir Kanji Land: 83,600 sq km Year GDP Per Capita 2005 3,192 869 37.06% Title: Managing Director Capital: Abu Dhabi (Principal cities : Dubai, 2006 3,946 1,077 23.93% Inca Tanvir Advertising / Media Seen Sharjah, Ajman, Umm Al Quwain, Ras (AED) (US$) (AED) (US$) (Media Representation) Al Khaimah, Furjairah, Al Ain). 2004 381 103 87,666 23,871 Source: Pan Arab Research Centre Population: 5 Million (Approximation) 2005 478 130 102,210 27,831 Currency: Arab Emirates Dirham (AED) - US$ 1 2006 617 168 122,648 33,396 Advertising Expenditure as percentage of GDP: = AED 3.673 0.64% Per-capita GD(2006) : AED 122,648 - $33,396 2007 682 185 125,904 34,283 (Source : IMF) Source: IMF. Base year: 2006 Advertising Expenditure (by Media) - 2006 3) Population Based on Latest Census or 5) A Brief Explanation of National Unit : Millions Data Holidays Media AED US$ Holidays for United Arab Emirates for 2007 Dailies 2,585 704 Tanvir Kanji Total, age-group breakdown 0~14 years: 25.3% include Periodicals 661 180 Address : 15~64 years: 71.1% TV 437 119 Inca Group of Companies P.O. Box 5320, 244B, Al 65 years and over: 3.6% January 1& 2 New Year / Eid Al Adha Wahda Street, Sharjah United Arab Emirates Note : 80% of the population is non-national (2006 est.) January 20 Islamic New Year (Moharrum 1) Radio 44 12 Tel : +9716 559 3711 March 31 Mouloud (Birth of the Prophet) Outdoor 191 52 August 11 Lailat al-Miraj Fax: +9716 559 1226 Racial composition in percent (Ascension of the Prophet) Cinema 36 10 Email: [email protected] Emirati 20%, other Arab and Iranian 22%, South October 13 & 14 Eid Al Fitr (End of Ramadan) TOTAL 3,954 1,077 url: www.incatanvir.com, www.incagroup.biz Asian 50%, other expatriates (includes Westerners and East Asians) 8% December 2 National Day (Note: Islamic Holidaysmay vary as they are based on the Source: Pan Arab Research Centre Note: less than 20% are UAE citizens sighting of the moon) 148 Asian Advertising - 2007 Current Status of Advertising - United Arab Emirates 149

Advertising Expenditure by Industry category Top Ten Advertisers - 2006 Total Number of Advertising Agencies and Top Public Relations Firms (in alphabetic order) Media-Buying Houses - 500 (approximately) Active PR Category % Rank & Brand AED (000) Asda’a Public Relations Government/Quasi Government 20.5 Watani UAE (National Identity Programme) 53,416 Media Buying House Billing Affiliation Bidaya Corporate Communications (AED Million) Insurance & Real Estate 15.6 Emaar (Real Estate Developer) 33,596 Golin Harris Optimum Media Direction (OMD) 316 Omnicom Headline PR Shopping Malls & Retail Stores 9.8 Etisalat (Telecom Service Provider) 32,219 Mediaedge:cia 253 Group M Hill & Knowlton Vehicles,Accessories & Supply 6.1 Damas (Jewellery Chain Stores) 26,474 Impact Porter Novelli Starcom Mediavest Group 184 Publicis Hotel, Travel & Tourism 5.4 Nokia (Cell Phones) 26,048 Manning Salvage & Lee (MS&L) MindShare 117 Group M Financial Services 5.3 Dubai Properties (Real Estate Developer) 24,032 Matrix Consultancy Universal Media Seven (UM7) 117 Interpublic MCS/Action Entertainment 5.2 Chevrolet (Automobiles) 23,779 Optimedia 66 Publicis MEMAC Ogilvy PR Publishing Media 5.1 Save Lebanon (UAE) Campaign (Public Service) 23,132 O2 Marketing Communications Pan Gulf Media 51 Bates / WPP Professional Services 4.8 UAE National Elections (Public Service) 22,342 Pan Gulf PR PHD 51 Omnicom Clothing,Jewellery & Personal Accessories 4.3 Motorola (Cell Phones) 19,848 Polaris Public Relations Mediacom 48 Grey / WPP Business/Construct Equip. & Supply 4.2 Promoseven Weber Shandwick Source: Pan Arab Research Centre Magna Global 40 Interpublic Rawaj International Toiletries, Hygiene/ House Care Products 4.1 Spot On Public Relations Food, Beverages and Tobacco 2.8 Total Communications Communications & Public Utilities 2.6 TRACCS Household Appliances 2.3

Other Services 1.7 Top Research Companies (in alphabetical order) Total 100

AC Nielsen Amer Source: Pan Arab Research Centre IPSOS-STAT (Emirates) Middle East Marketing Research Bureau(MEMRB) Pan Arab Research Centre (PARC) 150 Asian Advertising - 2007 Current Status of Advertising - United Arab Emirates 151

7) Media Summary Fax : +9714 390 8362 Email : [email protected] www.iaauae.org

Middle East Public Relations Association

PO Box 54250 Dubai Media City Dubai United Arab Emirates Tel : +9714 343 0888 Fax: +9714 343 2226 Email : [email protected] www.mepra.org

11) Advertising Journals Source : Pan Arab Research Centre AdVocate - Advertising Industry Communicate - Advertising industry 8) National Advertising Awards Zayed University, Dubai Gulf Marketing Review - Marketing & American University of Dubai Advertising DUBAI LYNX American University of Sharjah Annual awards for creativity in advertising. British University of Dubai Jointly organized by the International Advertising University of Woolongong, Dubai 12) Governemnt Agencies Association (IAA) - United Arab Emirates Mahatma Gandhi University, Dubai Chapter and International Advertising Festivals MAHE - Manipal University, Dubai Miniistry of Information, Government of the Ltd, organizers of the Cannes Advertising Sharjah University, Sharjah United Arab Emirates Festival. (www.dubailynx.com) Licences to operate as an Advertising Agency 10) Advertising Associations need to be cleared by the Federal Ministry before a licence can be granted by the local government 9) Advertising Education at Universities International Advertising Association authority. 51% equity should be held by a national UAE Chapter of the UAE. Various courses on Advertising are offered by the PO Box 71104 following institutions: IAA Building, 8, Dubai Media City Dubai Media City - Advertising, Media and Dubai related businesses can be established in this free UAE University (College of Humanities and United Arab Emirates zone where hundred percent equity can be held by Social Sciences), Al Ain Tel : +9714 390 3232 non-nationals. 152 Asian Advertising - 2007 Current Status of Advertising - Japan 153

C H A P T E R 4 Celebrating of the beginning of the New Year Population Second Monday of January: Coming of Age Day Age (million) Celebrating the coming of age of young men 60-64 8.47 and women who will turn 20 years old during Over 65 25.59 the year Current Status of Advertising - Japan February 11: National Foundation Day Ratio of Age: 0-14 is 14%, 15-64 is 66%, over 65 is 20% Celebrating the founding of the nation Source: Population Census and Statistics of Japan, Ministry of March 21: Vernal Equinox Day Internal Affairs and Communications Respecting nature and nurturing all living by Japan Advertising Federation things April 29: Showa Day 1) AFAA Japan Representative Currency: Yen Looking back into the past and into the future Per Capita GDP: 3.98 million/US$36,599(2005) of Japan Organization - Japan Advertising Federation (JAF) 4) Total and Per-Capita GDP (2000-2005) May 3: Constitution Day Chairman - Mr. Yasuhiro Satoh Commemorating the entering into effect of Total and Per Capita GDP (2000-2005) Japan’s constitution 3) Population (2005) May 4: Greenery Day Year GDP* Per Capita** Showing appreciation for nature’s blessings May 5: Children’s Day Total: 127.7 million ( billion) (US$ billion) ( million) (US$) Wishing for the welfare and happiness of chil- 2000 501,068.1 4,646 4.03 37,448 dren Population 2001 496,776.8 4,088 3.98 32,785 Third Monday of July: Marine Day Age (million) 2002 489,618.4 3,908 3.91 31,252 Celebrating the blessings of the oceans Third Monday of September: Respect for the 2003 490,543.5 4,232 3.90 33,705 0-4 5.64 Aged Day Chairman 5-9 5.89 2004 496,050.3 4,587 3.95 36,595 Mr. Yasuhiro Satoh Respect for the elderly and longevity 10-14 6.02 2005 503,183.9 4,568 3.98 36,598 September 23: Autumn Equinox Day Paying respect to ancestors and remembering 15-19 6.57 2) Country at a Glance *Source: Annual Report on National Accounts and Quarterly the deceased 20-24 7.56 Estimate of GDP, Cabinet Office, Government of Japan. The exchange rate is based on the annual average rate as calculated Second Monday of October: Sports Day 2 Area: 377,907 km 25-29 8.48 by the IMF. Enjoying sports and encouraging people to Capital: Tokyo 30-34 9.81 **Source: International Monetary Fund, World Economic build a sound body and mind through sports Outlook Database, September 2005. Official Language: Japanese 35-39 8.78 November 3: Culture Day Racial Breakdown: Homogeneous Showing appreciation to those who have con- 40-44 8.11 Religion: Buddhism and Shinto tributed to culture and encouraging people The number of Christians is very small. The 45-49 7.75 to think about culture majority of people follow Buddhist practice at 50-54 8.80 5) National Holidays (2007) November 23: Labor Thanksgiving Day funerals, and on memorial days in the spring, 55-59 10.23 Honoring labor and showing appreciation to summer and autumn to pay respect to ancestors. January 1: New Year’s Day fellow workers 154 Asian Advertising - 2007 Current Status of Advertising - Japan 155

December 23: Emperor’s Birthday During these holiday periods, many people take Advertising Expenditures Advertising Celebrating the Emperor’s birthday trips overseas. Expenditures in Year Advertising Compared to Advertising Expenditures Previous Year Expenditures / GDP Japan Most people enjoy consecutive holidays from ( billion) ( ) ( ) (US$ million) the end of April to the 5th of May when there is a 6) Advertising Data 2001 6,058.0 99.1 1.22 49,862 concentration of national holidays. They also take 2002 5,703.2 94.1 1.16 45,533 summer holidays in the middle of August to visit Total Advertising Expenditures families or take trips to the beach or the mountains. 2003 5,684.1 99.7 1.16 49,042 2004 5,857.1 103.0 1.18 54,161 2005 5,962.5 101.8 1.18 54,131 Advertising Expenditures in Japan (1985-2005)

Note: 1. GDP figures up to and including those for 2004 are from the Annual Report on National Accounts and GDP Estimates published by the Cabinet Office, Government of Japan. Advertising Expenditures Advertising 2. The estimation method for Advertising Expenditures in Japan was retroactively revised in 1987 for all years, beginning with Expenditures in Year Advertising Compared to Advertising 1985. Expenditures Previous Year Expenditures / GDP Japan 3. US$ exchange rate based on the annual average rate as calculated by the IMF. (US$ million) ( billion) ( ) ( ) Source: Advertising Expenditures in Japan, Dentsu, Inc. 1985 3,504.9 - 1.08 14,697 1986 3,647.8 104.1 1.08 21,649 1987 3,944.8 108.1 1.12 27,276 Advertising Expenditures Classified by ing. When we look at the ratio of mass media 1988 4,417.5 112.0 1.16 34,473 Medium advertising in the overall advertising expendi- 1989 5,071.5 114.8 1.14 36,751 tures, TV advertising accounted for 34.2% and 1990 5,564.8 109.7 1.26 38,426 Between 1988 and 1990, overall advertising Newspaper for 17.4%. Including Magazine and expenditures maintained an increased growth rate Radio advertising, mass media advertising 1991 5,726.1 102.9 1.22 42,581 of about 10% in all media until the bursting of the accounted for 61.2%. 1992 5,461.1 95.4 1.14 43,103 ‘bubble economy’. From 1991, advertising expen- 1993 5,127.3 93.9 1.06 46,113 ditures dropped, particularly in Newspaper adver- Over the years, Newspaper and Radio advertis- tising, which dropped sharply because the major ing has been gradually dropping while the per- 1994 5,168.2 100.8 1.06 50,581 advertisers - financial institutions and real estate centage of TV advertising has been increasing. 1995 5,426.3 105.0 1.10 57,697 businesses - cut their volume of advertising. This The percentage of Internet advertising is rising 1996 5,771.5 106.4 1.15 53,051 situation lasted for three years. sharply. 1997 5,996.1 103.9 1.17 49,526 From 1995 to 2003, with the recovery of the Advertising Expenditures Classified by 1998 5,771.1 96.2 1.15 44,103 economy, there was an increase in TV advertising, Industry (Four Major Media) 1999 5,699.6 98.8 1.15 50,131 mainly in the form of 15-second commercials. 2000 6,110.2 107.2 1.22 56,665 Magazine and Internet advertising also increased. Advertising expenditures in the four major In 2005, overall mass media advertising media are divided into 21 industry categories. dropped while Internet advertising kept increas- 156 Asian Advertising - 2007 Current Status of Advertising - Japan 157

When we look at the share by media, newspa- Economy, Trade and Industry in 2003, the total number Advertising Expenditures by Medium (2005) Industry 2005 (%) pers had a high ratio of advertising for of advertising agencies was 3,180 with 4,234 offices. Unit: 100 million 17. Transportaion / Leisure 7.8 Transportation/Leisure, Distribution/Retailing and 18. Food Services / Other Services 3.5 Approximately 89,000 people were engaged in this Publications, while magazines had a high ratio of 19. Government / Organizations 1.4 business. As of 2006, 165 agencies were members of Advertising Compared to Component advertising for Cosmetics/Toiletries and the Japan Advertising Agencies Association. Dentsu, Expenditures Previous Year (%) Ratio (%) 20. Education / Medical Services / Religion 3.6 Media Apparel/Fashion, Accessories/Personal. Radio was the largest agency in Japan, holds 25% of market share 21. Classified Ads / Others 2.4 2005 used more as a medium for Automobiles/Related and the top three agencies, Dentsu, Hakuhodo and Total 100.0 Products and Finance/Insurance. TV was used Asatsu DK occupy 45% of market share. Major Media 36,511 99.3 61.2 more as a medium for Cosmetics/Toiletries, Source: Advertising Expenditures in Japan, Dentsu Inc. Newspapers 10,377 98.3 17.4 Beverages/Cigarettes and Foodstuffs advertise- Magazines 3,945 99.4 6.6 ments. Top 10 Advertising Agencies, Billings and Total Top 10 Advertisers Radio 1,778 99.1 3.0 Number of Advertising Agencies (2005) When we look at the change in the share of Television 20,411 99.9 34.2 advertising expenditures by industry, we can see Top 10 Advertisers in Japan (2005) Sales Promotion 19,819 101.3 33.3 the expenditures proportion for Cosmetics/Toiletries, Annual Billings Information/Communications and Finance/Insurance Advertising Ranking Agency ( million) Direct Mail 3,447 103.1 5.8 Rank- have been increasing. Company Industry Expenditures Flyers 4,798 100.7 8.1 ing 1 Dentsu 1,559,149 ( million) Outdoor 2,646 99.2 4.4 2 Hakuhodo 707,861 Component Ratio of Media Expenditures by Industry Toyota Motor 1 Automobiles 102,980 Transit 2,432 102.0 4.1 3 ADK 384,849 Total of four major media Corporation Matsushita Electric Home Electric 4 Daiko 145,901 POP 1,782 102.1 3.0 Industry 2005 (%) 2 79,270 Industrial Co., Ltd Appliances 5 Tokyu Agency 124,656 Telephone Directories 1,192 88.8 2.0 1. Energy / Materials / Machinery 1.3 3 Honda Motor Co., Ltd Automobiles 75,180 6 Yomiuri Advertising 102,119 Exhibitions/Screen Displays 3,522 106.2 5.9 2. Foodstuffs 8.1 4 Kao Corporation Cosmetics / Toiletries 56,540 3. Beverages / Cigarettes 7.6 East Japan Marketing & Satellite Media-Related 487 111.7 0.8 Information / 7 96,203 4. Pharmaceuticals / Medical Supplies 5.0 5 Vodafone K.K. 53,020 Communications Communications Internet 2,808 154.8 4.7 5. Cosmetics / Toiletries 9.9 6 Nissan Motor Co. Ltd Automobiles 47,260 8 Delphys 78,541 Total 59,625 101.8 100.0 6. Apparel / Fashion, Accessories 2.7 7 Benesse Corporation Services 37,470 9 Asahi Advertising 57,000 7. Precison Instruments / Office Supplies 1.1 8 Kirin Brewery Beverages 35,920 10 Nikkeisha 49,041 Source: Advertising Expenditures in Japan, Dentsu Inc. 8. Home Electric Appliances / AV Equipment 2.4 9 Suntory Limited Beverages 34,540 9. Automobiles / Related Products 6.6 10 AEON Co., Ltd Retailing 33,160 Source: Koukoku Keizai Kenkyusho 10. Household Products 1.9 11. Hobbies / Sporting Goods 3.9 Source: Advertising Expenditures of Leading Corporations, In 2005, categories having a high share of total 12. Real Estate / Housing Facilities 4.4 Nikkei Advertising Research Institute advertising media expenditures included 13. Publications 4.0 Major Research Companies Cosmetics/Toiletries (9.9%), Finance/Insurance 14. Information / Communications 7.2 (8.4%), Foodstuffs (8.1%), Transportation/Leisure 15. Distribution / Retailing 6.8 As of 2006, 221 companies were members of the (7.8%), Beverages/Cigarettes (7.6%), and Top 10 Advertising Agencies Japan Marketing Research Association. 16. Finance / Insurance 8.4 Information/Communications (7.2%). Based on a survey conducted by the Ministry of 158 Asian Advertising - 2007 Current Status of Advertising - Japan 159

Magazines Major Research Companies 7) Media Radio and Television Broadcasting in Japan

INTAGE 2-14-11 Tanito-cho, TEL: 0424-23-1111 Newspapers There are about 400 major weekly and monthly Nishitokyo City, Tokyo magazines used as advertising media. They are Commercial Broadcasting ACNielsen Corp. 4-1-1 Roppongi, TEL: 03-5573-9300 The total number of newspaper publications in roughly classified into several categories such as Minato-ku, Tokyo Year Number of Broadcasters 2004 was 53,020,000 including evening papers. men’s magazines (general weekly magazines, Radio Television Central Research 6-16-12 Ginza, Chuo-ku, TEL: 03-3549-3121 This means 1.06 copies per household. The num- magazines for the younger generation, men’s Service, Inc Tokyo ber of publications has remained about the same adult magazines); women’s magazines (general Dentsu Research 7-4-17 Ginza, Chuo-ku, for the past five years. weekly women’s magazines, magazines for the 2000 240 127 Inc. TEL: 03-3289-6711 Tokyo younger generation, magazines for adults, middle- 2001 253 127 2002 264 127 Nikkei Research 2-2-7 Kandatsukasa-cho, TEL: 03-5296-5111 About 100 newspapers are used as advertising aged and seniors, daily living information, mater- Inc. Chiyoda-ku, Tokyo media. nity & parenting, etc.; information magazines (TV 2003 270 127 Nippon Research 4-5-4 Hacchobori, guides, area magazines, automotives, sports, busi- TEL: 03-3552-2411 Source: Ministry of Internal Affairs and Communications, Japan Center Ltd. Chuo-ku, Tokyo There are five national papers: the Asahi, the ness & finance, PCs, etc.), and magazines about Mainichi, the Yomiuri, the Nihon Keizai and the hobbies & interests (health & fitness, pets, gar- Video Research 2-1-1 Irifune, Chuo-ku, TEL: 03-5541-6501 Ltd. Tokyo Sankei. There are four regional block papers: dening, entertainment, travel & leisure, etc.). They Hokkaido, Tokyo, Central Japan and West Japan. can also be segmented into categories by target age The number of commercial radio stations has As for local papers, there are 48. In addition to (younger generation, middle-aged and seniors), remained at 101 since 2001. Community FM sta- Major PR Firms these, there are 9 sports papers, specialized finan- and furthermore segmented by lifestyle, etc. tions have been increasing by 7 to 10 year on year 159 firms, including group companies of the advertising agencies, cial papers, trade papers and English language and by 2003, the number of companies totaled belong to the Japan Public Relations Association. (2004) papers. TV and Radio 270. As of 2005, there were 101 commercial radio The number of commercial TV broadcasting stations and 85 community FM stations. Major PR Firms Newspaper Circulation in Japan companies in 2005 totaled 127 and this figure has remained the same during the seven years since Internet Circulation (unit: 1,000) Coverage Kyodo Public Dowa Bldg., 7-2-22 TEL : 03-3571-5171 1999. Relations Co., Ltd. Ginza,Chuo-ku, Tokyo Year Total Set Morning Evening Population per Subscriptions Use of the Internet in Japan has developed at a paper paper paper one copy per household Key Stations: Nippon Television (NTV), Tokyo remarkable pace with the volume rapidly increas- Dentsu Public 2-16-7 Ginza, Chuo-ku, TEL : 03-5565-1055 Relations Inc. Tokyo 2000 53,709 18,187 33,703 1,819 2.35 1.13 Broadcasting (TBS), Fuji Television (CX), Asahi ing. 1995 saw the first Internet advertising. From Television (EX), and Tokyo Television (TX). 2000, the Internet spread with accelerating speed. 11F Touken International 2001 53,681 18,013 33,863 1,805 2.35 1.12 PRAP Japan Inc. Bldg., 2-12-19 Shibuya, TEL : 03-3486-6831 From around 2003, Internet advertising for mobile Shibuya-ku, Tokyo 2002 53,198 17,617 33,901 1,681 2.38 1.09 Cable Television: Launched in 1984 and there phones started to become very popular. From Kazeno Mangekyo Bldg., 2003 52,875 17,465 33,781 1,629 2.40 1.07 are now 530 companies. 2004, affiliate advertising increased sharply. In Brain Center Inc. 4-2-13 Ten-ma Kita-ku, TEL : 06-6355-3300 2004 53,022 17,342 34,066 1,613 2.39 1.06 CS: Sky Perfect TV (185 television channels 2005, commercials on the Internet started. Osaka and 101 radio channels) and Sky Perfect TV! 110 The number of people who use the Internet Note: “Set paper” is a subscription to both morning and evening editions of the same paper. “Set (70 television channels) increased to 85,290,000 in 2005 which accounts paper” subscriptions are usually counted as only one in determining circulation figures. Figures for 66.8% of the total population. In one year the are calculated in October each year and are based on the total number of the circulations of 122 papers in the year 2000, 124 papers in 2001, 123 papers in 2003, and 120 papers in 2004. BS: 5 commercial BS TV companies. BS digi- number of users increased by 5,810,000. Of the Source: Annual Survey by NSK’s Circulation and Newsprint Sections as of October, NSK (Nihon Shinbun Kyokai) tal broadcasting started in 2000. 31,240,000 points of access, 23,300,000 used 160 Asian Advertising - 2007 Current Status of Advertising - Japan 161

broadband which demonstrates that a growing Print, TVCM & Radio CM, Naming, Web 10) Advertising Related Organizations Council, Ethics, Audit majority of people are using broadband. TCC Awards - Tokyo Copywriters Club (TCC) Japan Audit Bureau of Circulation (JABC) Japan Advertising Federation Address: 1-3 Shisei-Kaikan, Hibiya-Kouen, Chuo- The number of users of mobile terminals like POP Ad (Tripartite advertising organization. Members: ku, Tokyo, 100-0012 mobile phones totaled 69,230,000 showing an Creative Design Show - Japan Point of Purchase Advertisers, Agencies, Media) Telephone: 03-3501-1491 increase of 18.8% over the previous year. The Promotion Institute Fax: 03-3501-1494 total number of personal computer users was Address: 7F Dentsu-Ginza Bldg., 7-4-17 Ginza, Established: October 28, 1952 66,010,000 so in 2005, for the first time, mobile Internet Ad Chuo-ku, Tokyo, 104-0061 terminal users surpassed personal computer users. Tokyo Interactive Ad Awards - Japan Internet Telephone: 03-3569-3566 Japan Advertising Council (AC) Advertising Association Fax: 03-3572-5733 Address: Dentsu-Ginza Bldg., 7-4-17 Ginza, On average, a person uses the Internet 28 times Established: October 20, 1953 Chuo-ku, Tokyo, 104-0061 a month, 34 minutes and 7 seconds a day with Other Advertising Related Awards Objectives: Through the building of sound Telephone: 03-3571-5195 65.5 page views. “Yoshida Hideo” Memorial Award for advertising and related industries, contribute to Fax: 03-3571-7562 Individual or Group of the JAAA Member the development of economic activities and the Established: July 7, 1971 companies. improvement of living standards. In order to 8) Major Advertising Awards Japan Advertising Agencies Association (JAAA) achieve these objectives, implement measures Japan Advertising Review Organization, Inc. “Creator of the Year” Prize for raising advertising ethics, conduct research, Address: Dentsu-Kousan Dai-san Bldg., Newspaper Ad Creator of a JAAA Member company accumulate data and information related to 2-16-7 Ginza, Chuo-ku, Tokyo, 104-0061 Newspaper Advertising Prize - Japan Japan Advertising Agencies Association (JAAA) advertising, share this knowledge with related Telephone: 03-3541-2813 Newspaper Publishers & Editors Association “ACC Chairman” Prize organizations in Japan and overseas, and under- Fax: 03-3541-2816 Individual involved in activities of the ACC take cooperation with such organizations. Established: October 15, 1974 Magazine Ad and has contributed to the progress of TVCMs Japan Magazine Advertising Awards - Japan All Japan Radio and Television Commercial Advertisers Newspaper Magazine Advertising Association Confederation (ACC) Japan Advertisers Association Inc. (JAA) Japan Newspaper Publishers and Editors Address: 10F Kyodo Bldg., 3-10-9 Ginza, Association TVCM, Radio CM Source: An Introduction to the Advertising Business (Japan Advertising Chuo-ku, Tokyo, 104-0061 Address: Nihon Press Center Bldg., 2-2-1 ACC CM Festival - All Japan Radio & Television Agencies Association) Telephone: 03-3544-6580 Uchisaiwai-cho, Chiyoda-ku, Tokyo, 100-8543 Commercial Confederation (ACC) Fax: 03-3544-6581 Telephone: 03-3591-4407 9) Advertising & PR Education Established: February 26, 1957 Fax: 03-3591-6149 Major Four Media Ad, SP, Internet, Public Ad Established: July 23, 1946 Dentsu Advertising Awards - Dentsu Ad In 2005, 303 classes on advertising were con- Advertising Agencies Awards Committee ducted at junior colleges, universities and gradu- Japan Advertising Agencies Association Magazine Major Four Media Ad, Internet ate schools and there were 210 seminars on adver- (JAAA) Japan Magazine Advertising Association Advertisement Beneficial to Consumers tising. In addition to these, numerous lectures and Address: 8F Dentsu-Ginza Bldg., 7-4-17 Ginza, (JMAA) Contest - Japan Advertisers Association speeches on advertising were conducted. Over Chuo-ku, Tokyo, 104-0061 Address: Nihon Zasshi Kaikan, 1-7 Kanda 900 professors, lecturers and people in this indus- Telephone: 03-5568-0876 Surugadai, Chiyoda-ku, Tokyo, 101-0062 Graphic Design Ad (Newspaper, Magazine, try taught these classes. Fax: 03-5568-0889 Telephone: 03- 3291-6202 Poster, etc.), TVCM Established: May 1, 1950 Fax: 03-3291-6240 ADC Awards - Tokyo Art Directors Club (ADC) Source: Survey on Advertising Related University Courses (Nikkei Established: November 1, 1946 Advertising Research Institute) 162 Asian Advertising - 2007 Current Status of Advertising - Japan 163

Broadcasting Confederation (ACC) Nippon Display Federation (NDF) IAA Japan Chapter The National Association of Commercial Address: 5F Nagatomo Landing Bldg., 3-1-11 Addres: Shin Kyobashi Bldg., 3-3-8 Kyobashi, Address: 7F Dentsu Ginza Bldg., 7-4-17 Ginza, Broadcasters in Japan Shinbashi, Minato-ku, Tokyo, 105-0004 Chuo-ku, Tokyo, 104-0031 Chuo-ku, Tokyo, 104-0061 Address: 2-23 Kioi-cho, Chiyoda-ku, Tokyo, Telephone: 03-3500-3261 Telephone: 03-3274-4657 Telephone: 03-3569-0531 102-8577 Fax: 03-3500-3263 Fax: 03-3274-4659 Fax: 03-3572-4655 Telephone: 03-5213-7711 Established: January 28, 1960 Established: February 28, 1969 Established: September 27, 1957 Fax: 03-5213-7703 Established: July 20, 1951 Japan Association of TV Commercial Japan Point of Purchase Promotion Institute Production Companies (JAC) Inc. (JPP) 11) Advertising Related Newspapers and Japan Cable and Telecommunications Address: Suzuki Bldg., 2-13-5 Shinbashi, Address: #701 Nihon Insatsu Kaikan, 1-16-8 Annuals Association Minato-ku, Tokyo, 105-0004 Shintomi-cho, Chuo-ku, Tokyo, 104-0041 Address: 7F SDI Gotanda Bldg., 7-13-6 Nishi- Telephone: 03-5510-0727 Telephone: 03-3523-2505 JAF Reports (monthly) Gotanda, Shinagawa-ku, Tokyo, 141-0031 Fax: 03-5510-3178 Fax: 03-3523-2508 Japan Advertising Federation Telephone: 03-3490-2022 Established: April 7, 1962 Established: November 14, 1969 Fax: 03-3490-2575 JAAA Reports (monthly) Outdoor, Transit, Display and Others Japan Direct Mail Association Japan Advertising Agencies Association Creative The Federation of All Japan Outdoor Address: 4F Landcom Azabudai Bldg., 1-9-14 Tokyo Graphic Designers Club (TGC) Advertising Associations Azabudai, Minato-ku, Tokyo, 106-0041 Dentsu Advertising Annual Address: Shatore Oshida #201 27-5 Sakuragaoka- Address: Okugai Koukoku Kaikan, 1-17-14 Telephone: 03-3584-3447 Dentsu cho, Shibuya-ku, Tokyo, 150-0031 Kamezawa, Sumida-ku, Tokyo, 130-0014 Fax: 03-3584-3909 Telephone: 03-5515-9479 Telephone: 03-3626-2231 Established: June, 1983 Japan Newspaper Annual Fax: 03-3464-4149 Fax: 03-3626-2255 The Japan Newspaper Publishers & Editors Established: February 1, 1951 Established: December 9, 1958 Internet Association Japan Internet Advertising Association (JIAA) Tokyo Art Directors Club All Japan Neon-Sign Association (AJNA) Address: 9F Fuji Chuo Bldg., 2-1-7 Shintomi- Japan Commercial Broadcasting Year Book Address: 8F Inaoka Kudan Bldg., 2-38 Kanda Address: Minato Bldg., 1-21-4 Hamamatsu- cho, Chuo-ku, Tokyo, 104-0041 The National Association of Commercial Jinbo-cho, Chiyoda-ku, Tokyo, 101-0051 cho, Minato-ku, Tokyo, 105-0013 Telephone: 03-3523-2555 Broadcasters in Japan Telephone: 03-3238-7852 Telephone: 03-3437-1526 Fax: 03-3523-2670 Dentsu News (weekly) Fax: 03-3238-7853 Fax: 03-5776-1321 Established: May 12, 1999 Dentsu Established: September 5, 1952 Established: October 30, 1968 PR Advertising Whitepaper Tokyo Copywriters Club (TCC) Japan Association for Rail Advertising Public Relations Society of Japan NIKKEI Advertising Research Institute Address: 5-7-15 Jingumae, Shibuya-ku, Tokyo, Promotion (JARAP) Address: Daini Soga Bldg., 2-11-5 Shintomi- 150-0001 Address: 8F Hyumax Ebisu Bldg., 1-1-1 Ebisu, cho, Chuo-ku, Tokyo, 104-0041 Advertising Copy Annual Telephone: 03-5774-5400 Shibuya-ku, Tokyo, 150-0022 Telephone: 03-5543-1011 Tokyo Copywriters Club Fax: 03-3406-7433 Telephone: 03-5773-6789 Fax: 03-5543-1015 Established: January 10, 1958 Fax: 03-3712-2399 Established: April 7, 1980 Sign & Display Annual Established: November 1, 2005 Mass Communication Institute All Japan Radio & Television Commercial International 164 Asian Advertising - 2007 Current Status of Advertising - Korea 165

Direct Mail Annual vised not only by advertising-related associations C H A P T E R 4 Japan Direct Mail Association including the Japan Advertising Review Organization (JARO) and the Japan Advertising ACC CM Annual Council (AC), but also by government agencies, Japan Radio & Television Commercial advertisers, media companies and other related Confederation organizations. Current Status of Advertising - Korea

Sendenkaigi (monthly) SENDENKAIGI Co., Ltd. by In Sup Shin / Dong Hyun Kim

Kigyo to Koukoku (weekly, monthly) Channel 1) AFAA Korea Representative: 3) Population (2005)

Koukoku to Keizai (3 times a month) Organization - Korea Federation of Koukoku Keizai Kenkyusyo Advertising Associations (KFAA) Population, 2005 Chairman - Mr. Sang Jo Nahm ADVERTISING (quarterly) Population Dentsu Age Nr.(%) Kohkoku (quarterly) 0-4 2,545,000 (5.27) Hakuhodo 5-9 3,225000 (6.68) 10-14 3,470,000 (7.19) 12) Government Agencies Supervising 15-19 3,076,000 (6.37) the Advertising Industry 20-24 3,832,000 (7.93) Economic and Industry Policy Bureau, Ministry 25-29 3,862,000 (8.00) of Economy, Trade and Industry, Japan Mr. Sang Jo Nahm 30-34 4,359,000 (9.02) (Monitoring and supervising advertising indus- 35-39 4,236,000 (8.77) try practices) 2) Country at a Glance 40-44 4,233,000 (8.77) Information and Communications Policy 45-49 3,971,000 (8.22) Bureau, Ministry of Internal Affairs and Land: 99,617 square km 50-54 2,878,000 (5.96) Communications, Japan Capital: Seoul 55-59 2,310,000 (4.78) (Supervising broadcasting communications) Population: 48.3 million (2005) Currency: won 60-64 1,914,000 (3.96) Fair Trade Commission Per capita GDP in US dollars: $14,162 (2004) 65 & over 5,062,000 (9.07) (Supervising use of premium items) Total 48,294,000 (100)

Voluntary restrictions on advertising are super- 166 Asian Advertising - 2007 Current Status of Advertising - Korea 167

Racial breakdown: Not applicable 5) National Holidays in Korea. October 5, 6, 7: Lunar New Year’s is primarily a day when Breakdown by religion: Chuseok, or the Harvest Moon Festival, which ancestral rites are held in the morning at the The percentage of the population who identify National holidays do change. Politics and eco- falls on the full moon of the eighth lunar home of the eldest son of each clan. Only males themselves as belonging to some kind of religion nomic necessities often cause such changes. Of month. One of the two three-day holidays are permitted to offer a cup of rice wine at the is 53.9 percent of the total. Taking 53.9 percent as course, national holidays are deeply rooted in the December 25 : Christmas memorial service table, where foods are neatly 100 percent, according to Distribution of culture and religion of a country or society. From placed according to family tradition, although Population by Religion for the year of 2003 in a marketing and advertising point of view, they There are two three-day holidays: Lunar New females are being allowed to participate in the rit- Social Indicators in Korea 2005, published by the offer tremendous opportunities. Year’s and the Harvest Moon. Both are celebrated ual in some isolated cases. Hence the preference Korea National Statistical Office, this breaks with Confucianist ancestral rites. So the Chinese for male offspring. Certain fish are a must for the down to: Korea is no exception. Take 2006 for example. sage still lives on in the way of life of Korea. Two foods on table. 47.0% Buddhist There are 15 such holidays. Arbor Day, April 5, holidays, Buddha’s Birthday and Christmas, are 36.8% Protestant was a national holiday until 2005 but is no longer. Korean national holidays that reflect religious prac- The Harvest Moon is for visiting the ancestral 13.7% Catholic October 9, Hangeul or Korean Alphabet Day, tices of large portions of the country’s population. grave site, where, again, the entire family get 2.5% Other religion used to be a national holiday, but it was dropped Korean animosity toward Japan is obvious: March together, bowing and offering rice wine. out of the list. 1, commemorating the Independence Move-ment Official language: Korean. of 1919, and August 15, commemorating the date So what are the marketing implications of this? English is the most widely used foreign lan- Korean National Holidays, 2006 in 1945 when Korea regained its independence Consult with your Korean partner well in advance guage. after Japan’s surrender at the end of World War II, if you are in a foreign or multinational company. January 1: New Year’s Day are holidays. Children’s Day and Memorial Day Check your Nielsen Retail Index figures if you are January 28, 29, 30: need no explanation. Constitution Day commemo- in the package goods business. Official holidays 4) Total and Per-Capita GDP, Called Seollal, or Lunar New Year’s Day. One rates the establishment of Korean constitution in are important not only because they are days of 2000-2004 : of the two three-day holidays. This is a move- 1948. National Foundation Day is derived from the rest but also because they offer unsurpassed able holiday because the date is determined myth of Dan-gun, who descended from heaven opportunities for your products and services. according to lunar calendar 4,339 years ago to establish Korea. Total and Per-Capita GDP, 2000-2004 March 1: Independence Day Confucianism pervades Korean life. It is part of Celebrating Korea’s independence uprising Korean culture. There is no religious conflict. Nearly half the population trav- against Japanese rule on March 1, 1919 Chuseok is the biggest gift-giving season even els, mostly from the cities to the Total Per-capita countryside during the Harvest Year US$ billion US$ May 5: Children’s Day though there are a great number of Christians and Moon, better known as Chuseok May 5: Buddha’s Birthday Buddhists. Another gift-giving season is New in Korea. 2000 512 10,841 This holiday is movable because the date is Year’s. Officially, Chuseok is a three-day holiday, 2001 482 10,160 April 8 by lunar calendar. In 2006 it coincides but in practice it can be week-long, especially in 2002 547 11,499 with Children’s Day the printing industry. It is also a bonus season, June 6: Memorial Day another being summer vacation. 2003 608 12,720 July 17: Constitution Day 2004 680 14,162 August 15: Advance booking of newspaper space or televi- Liberation Day commemorating Korean libera- sion time is necessary for Chuseok or the Source: Korea Statistical Yearbook 2005. p.665 tion from Japanese rule on August 15, 1945 Christmas season. October 3: National Foundation Day 168 Asian Advertising - 2007 Current Status of Advertising - Korea 169

6) Advertising Ad. Expenditures Year-on- Ad as Media Volume Year-on-Year(%) Share (%) Top Ten Advertisers of 2004 Year Korean won(US$) Year(%) % of GDP Cable TV 487 8.8 6.9 Total four-media advertising expenditures of 1997 5,377(3,799) 4.2 1.09 On-line 567 44.4 8.0 Advertising Expenditures, 1968-2006 the top ten advertisers in 2004 stood at around 798 1998 3,485(2,885) 35.2 0.72 Sky Life (TV) 6 - - billion Korean won, accounting for some 17 per- Units: Billions of Korean won & millions of US$ 1999 4,621(4,034) 32.6 0.87 Total 7,054 3.1 100.0 cent of the four-media total of Korean advertising. For all practical purposes, seven companies in the 2000 5,853(4,646) 26.7 1.01 Ad. Expenditures Year-on- Ad as Source: Cheil Communications, March 2006 issue information-technology industry dominate the top Year Korean won(US$) Year(%) % of GDP 2001 5,714(4,309) 2.4 0.92 ten. The remaining three include two automobile 2002 6,844(5,701) 19.8 1.00 1968 9.2(32.7) 0.63 companies and one cosmetic company. 2003 6,802(5,679) 0.6 0.94 Dominance by the IT industry became obvious 1970 12.7(40.1) 0.50 Advertising expenditures broken down 2004 6,665(6,385) 2.0 0.86 around the turn of the 21st century. 1972 19.0(47.6) 0.45 by industry category for 2005 2005 7,054(6,963) 3.1 - 1974 33.0(65.2) 0.36 Top Ten Advertisers, 2005 2006 7,739 (7,989) - - 1976 93.5(193) 0.68 1. Basic materials 2.1% 2. Foods 8.0 1977 120(249) 0.68 Source: 1) 1968 through 1989. Development of Korean 3. Beverages & favorite foods 5.8 Rank Company Billions of won 1979 219(452) 0.74 Advertising Industry (1999). (Korean). Seoul: Korea Association of Advertising Agencies. p.112 4. Pharmaceutical products/medical services 3.9 1 Samsung Electronics 176.8 1980 275(417) 25.9 0.76 2) From 1990 to 2005. Advertising Yearbook (2005). Seoul: 5. Cosmetics & healthcare products 6.2 2 SK Telecom 105.5 Cheil Communications. p.1160. 1981 318(455) 15.7 0.74 6. Publishing 3.5 3 LG Electronics 90.4 3) Expenditures in U.S. dollars are calculated on the basis of the 1982 426(569) 23.8 0.88 rate of exchange published in respective Statistical Yearbooks. 7. Fashion 4.3 4 KT Freetel (Telecom) 74.0 4) Advertising as a percent of GDP is based on Korean won. 8. Industrial products 0.6 1983 585(711) 32.6 0.97 5 KT (Korea Telecom) 68.1 9. Precision & office equipment 1.1 6 Hyundai Motor (Cars) 66.8 1984 683(826) 20.9 1.06 10. Household electrical products 5.4 7 Pacific Chemical (Cosmetics) 54.3 1985 739(831) 8.2 1.03 Advertising expenditures broken down 11. Computers & IT 2.3 by media for 2005: 8 Kia Motor (Cars) 47.5 1986 819(950) 10.7 0.99 12. Transportation equipment 5.0 9 LG Telecom 45.1 1987 972(1,227) 18.8 1.00 Units: Expenditures in billions of won 13. Household products 3.5 10 Nhongshim (Foods) 42.6 14. Chemical products 0.5 1988 1,279(1,869) 31.5 1.01 Media Volume Year-on-Year(%) Share (%) 15. Construction, construction materials & real estate 7.5 1989 1,565(2,302) 22.4 1.10 Television 2,149 3.8 30.5 16. Distribution 5.9 Total 771.4 1990 2,000(2,792) 27.8 1.07 Radio 268 1.1 3.8 17. Financing, insurance & securities 9.1 18. Services 9.8 Total Korean ad expenditures 1991 2,395(3,149) 19.8 1.06 Newspapers 1,672 4.1 23.7 4,526.7 19. Government & organizations 2.3 (Newspapers, Magazines, Radio & TV) 1992 2,816(3,572 17.5 1.09 Magazines 437 2.6 6.2 20. Education & welfare 1.8 Share of top ten 17.0% 1993 3,229(4,022) 14.7 1.11 Subtotal 4,537 3.1 64.2 21. Corporate communications 1.5 1994 4,028(5,108) 24.8 1.18 Outdoor 736 4.7 10.4 Total 100.0 Note: Figures rounded. Newspapers, magazines, radio & TV only Source: Advertising Yearbook 2005. Seoul: Cheil 1995 4,951(6,391) 22.9 1.24 4-Media 732 4.7 10.4 Production Cost Note: Newspapers, magazines, radio & TV only Communications. p.1161 1996 5,616(6,652) 13.4 1.25 Source: Cheil Communications, March 2006 issue 170 Asian Advertising - 2007 Current Status of Advertising - Korea 171

Top Ten Advertising Agencies may be a good guide in assessing what one might print media published in this data are not necessarily System (CBS), which broadcasts both AM and call a full-service agency. Dominance of the top advertising media. FM and covers nearly all the important markets. The number of advertising agencies may vary ten by multinational agencies became obvious fol- The best thing is to consult your advertising/ depending on how one defines an agency. There lowing the Asian financial crisis of 1997-1998, media agencies. The Ministry’s year-end data in Cable television was launched in 1995 and now were 54 agencies reporting their billings and staff when the Korean ad industry suffered a devastat- 2004 had the following figures: has 144 channels. Sky Life, a satellite channel, to Advertising Trends, a monthly journal pub- ing blow as the market size tumbled by some 37 was launched in 2002 and now offers 120 chan- lished by the Korea Federation of Advertising percent decline resulting in the closure of many Dailies 164 nels, 80 television and 40 audio. Terrestrial and Associations (KFAA), the central ad industry mid-size agencies. By far the largest agency is News services 2 satellite DMB was launched in 2005 and has 38 organization. In order to receive agency commis- Cheil Communications, with billings account- Other dailies 406 and 20 channels respectively at present. sion an agency must have a license from the ing for 24 percent of total Korean advertising Weeklies 2,421 In addition to print and broadcast media, there Korea Broadcasting Advertising Corporation, expenditures in 2005. Monthlies 2,727 are host of other media available. Kobaco, a government agency with exclusive Bi-monthlies 407 Again, the best approach is to consult profes- sales rights for all terrestrial broadcasting. The lat- Top Ten Research Firms Quarterlies 828 sional agencies. est figure for the number of Kobaco-licensed Semi-annuals 273 Alphabetical Order agencies was 265. Internet papers 265 Internet. According to data published in Total 7,493 Section 8: Information & Telecommunications of Company Homepage Top Ten Advertising Agencies, 2005 2005 Social Indicators in Korea, some 71 percent A.C Nielsen Korea Limited www.acnielsen.co.kr The above list includes noncommercial media of Koreans used the Internet at least once a month DongSeo Research Inc. www.drsgroup.co.kr such as house organs, which are mostly monthlies. in 2005. More males use the Internet than Billings in Gallup Korea www.gallup.co.kr Rank Company Billions of won Circulation audit is still in a developing stage, females, 77.4 percent versus 66.3 percent. Internet Hankook Research www.hrc.co.kr largely because of hesitancy on the part of media. usage is heavier among the younger generation, 1 Cheil Communications 1,696 Ipsos Korea www.ipsoskorea.com Korea ABC publishes circulations of audited 97.3 percent of those aged 6~15 and 20~29, taper- 2 LG Ad (WPP) 612 Milward Brown Media Research www.mediaresearch.co.kr titles. Since there are so many titles, especially ing down among older generation. Internet use is 3 TBWA Korea 358 Research & Research www.RandR.co.kr among weeklies and monthlies, it is best to con- also greater among the higher-educated and those 4 Daehong 345 Research International www.research-int.co.kr sult your advertising agencies or media profes- with higher incomes. Around 94 percent of col- 5 Diamond Ogilvy & Mather 261 Synovate www.synovate.com sionals for media planning. lege-educated Koreans use the Internet and 87 6 Welcomm (Publicis) 248 Taylor Nelson Sofres www.tns-global.com percent are among families with a monthly 7 Phoenix Communications (Dentsu) 201 Korean television is NTSC and 100 percent income of three to four million won (or roughly 8 Oricom 178 color. The following is a summary of broadcast US$3,000-4,000). Around 63 percent use the 9 Innotion 148 media which accept commercials: Internet over 10 hours per week. There are 11.9 10 McCann-Erickson 121 7) Media Summary, 2005 million broadband Internet service subscribers or Note: Figures rounded. National TV networks: roughly 25% of the total Korean population. Source: Advertising Trend, March 2006. Seoul: KFAA The media situation during the last couple of years 4 including Educational TV has been relatively stable, although more changes will Local TV stations: 9 in major cities Compared with the availability of media, lack take place in new IT-related media such as DMB (digi- National radio networks: 3 AM, 2 FM of media data is a common problem except for tal multimedia broadcasting). The Ministry of Culture Local radio stations (FM): 11 television, which provides people-meter audience The Korea Association of Adverti- and Tourism publishes Statusof Registra- data. sing Associations (KAAA), established in 1986, tion, Periodical Publications annually. This is the best Additionally, there are five religious radio sta- has 39 members. The KAAA membership figure source for the current status of print media. However, tions, including the Christian Broadcasting 172 Asian Advertising - 2007 Current Status of Advertising - Korea 173

8) National Advertising Awards. in advertising and public relations. Subjects cov- Address: 9F Korea Advertising Culture Center Korea 138-921 ered are wide in range. Bldg., 7-11 Sincheon-dong, Songpa-gu, Seoul, Telephone: 82 2 2144 0980 According to Advertising Yearbook 2005, there Korea 138-921 Fax: 82 2 2144 0981 are 16 advertising awards: 12 media-sponsored, 3 In addition to the four-year universities, many Telephone: 82 2 733-3500 agency-sponsored, and one industry-wide, which junior colleges also offer advertising and public Fax: 82 2 738-7824 Korea Cable TV Association (1994) is the national awards sponsored by the Korea relations courses. Address: 7F KPC Bldg., 122-1 Jeonseon-dong, Federation of Advertising Associations, KFAA. Korea Newspaper Advertising Association Jongno-gu, Seoul, Korea 110-751 The annual awards called the Korea (1971) Telephone: 82 2 735 5411 Advertising Awards classifies media into six cate- 10) Advertising Associations Address: Rm 1302, Press Center, 25 Taepyeongno 1- Fax: 82 2 735 6514 gories: newspapers, magazines, radio, television, ga, Jung-gu, Seoul, Korea sales promotion, and the Internet. Awards fall into The Korea Federation of Advertising 110-890 Korea Audit Bureau of Circulations, KABC three categories: (1) Grand Prix (2) Gold, Silver, Associations, KFAA, is the central advertising Telephone: 82 2 733 5518 (1989). Bronze, Honorable Certificates and Finalists, and organization. Its membership follows (the number Fax: 82 2 730 1619 Address: 9F Korea Advertising Culture Center (3) Special Awards. in brackets is the year of establishment): 7-11 Sincheon-dong Songpa-gu, Seoul Korea The Special Awards are further broken Korea Magazine Association 138-921 down into Public Service Advertising, Korea Federation of Advertising Associations, Address: 4F Japji Bldg., 44-31 Yeoido-dong, Telephone: 82 2 783 4983 Advertising Day Promotion, Ministry of Health KFAA (1971) Yeongdeungpo-gu, Seoul, Korea 150-890. Fax: 82 2 782 5889 and Welfare Special Campaign, and Best Model All industry organization comprising 20 indi- Telephone: 82 2 780 2112 Awards. vidual associations. Publishes two journals and Fax: 82 2 785 9464 Korea Public Relations Association (1989) operates a website, www.advertising.co.kr Address: 1709 Koryo Academytel, 437-3 (Korean). KFAA is the representative for AFAA. Korea Commercial Film Maker Union, KCU Ahyeon-dong, Mapo-gu, Seoul, Korea 121-010 9) Advertising Education It sponsors the Korea Advertising Awards, the (1987) Telephone: 82 2 393 2902 national ad awards. It also hosts an annual nation- Address: 5F Korea Advertising Culture Center Fax: 82 2 393 2901 Even though a few universities offered adver- al advertising conference. Bldg., 7-11 Sincheon-dong, Songpa-gu, Seoul, tising and public relations courses in the 1970s, Korea 138-921 International Advertising Association (IAA) there was no university which offered advertising Address: 9F Korea Advertising Culture Center Telephone: 82 2 2144 0741 Korea Chapter (1968) and public relations as a major until 1974, when Bldg., 7-11 Sincheon-dong, Songpa-gu, Seoul, Fax: 82 2 2144 0743 Address: 12F Boryong Bldg., Wonnam-dong, Chung-Ang University in Seoul established such Korea 138-921 Jongno-gu, Seoul, Korea 110-750 a department. Telephone: 82 2 2144 0750 Korea Outdoor Advertising Association(1972) Telephone: 82 2 3668 8067 Advertising education at universities followed Fax: 82 2 2144 0759 Address: 3F Korea Outdoor Adver-tising Fax: 82 2 3668 8120 the political democratization begun in 1987. The Association Bldg., 10-626 Silimbon-dong, number of dailies alone quadrupled to 126 Korea Advertisers Association, KAA (1988) Gwanak-gu, Seoul, Korea 151-029 Internet Marketing Council of Korea (2001) between 1987 and 1994. The number of pages per Address: 18F FKI Bldg., 28-1 Yeoido-dong, Telephone: 82 2 889 8855 Address: 6F Seoungwon Bldg. 995-24 Daechi- issue, previously restricted to 12, was liberalized. Yeongdeungpo-gu, Seoul, Korea 150-756 Fax: 82 2 888 2177 dong, Gangnam-gu, Seoul Korea 135-052 Private radio and television were born again. To Telephone: 82 2 782 8390 Telephone: 82 2 511 2152 meet the rising demand for advertising, many uni- Fax: 82 2 782 8390 Korea Advertising Photographers Association, Fax: 82 2 539 9175 versities started to establish advertising and public KAPA (1976) relations departments from the 1990s. Currently, Korea Association of Advertising Agencies, Address: 5F Korea Advertising Culture Center Korea Electric Billboard Broadcasting there are 87 universities where students can major KAAA (1986) Bldg., 7-11 Sincheon-dong, Songpa-gu, Seoul, Advertising Association 174 Asian Advertising - 2007 Current Status of Advertising - Korea 175

Address: 5F Korea Advertising Culture Center Korea Advertising Society (1989) less their house organs. However, their contents Issues/trends on advertising review. Bldg., 7-11 Sincheon-dong, Songpa-gu, Seoul, Address: 9F Korea Advertising Culture Center are fairly neutral and cover a wide range of sub- Korea 138-921 Bldg., 7-11 Sincheon-dong, Songpa-gu, Seoul, jects related to various fields of interest. Number Cheil Communications (Korean). Telephone: 82 2 752 1562~3 Korea 138-921 stands for year established. 1975. House organ Fax: 82 2 756 6736 Telephone: 82 2 2144 0264 Cheil Communications. Fax: 82 2 2144 0265 Advertising Trend (Korean). Monthly. Free-controlled. Korea Branding Association (1999) 1991. House organ Advertising in general with creative snap shots Address: Rm 202 Gukje Bldg., 29-1 Pil-dong Korea Society of Consumer and Advertising KFAA. Monthly. Free-controlled. of the agency. 1-ga, Jung-gu, Seoul, Korea 100-020 Psychology Current news with a monthly special report Telephone: 82 2 2264 9774 Address: Department of Psychology Ehwa such as agency, research etc. LG Ad (Korean). Fax: 82 2 3474 4298 Women’s University 11-1 Daehyun-dong, 1985. House organ Seodaemun-gu, Seoul Korea 120-750 KAA Journal (Korean). LG Ad. Bimonthly. Free-controlled. Korea Association of Advertising Specialty Telephone: 82 2 3277 4143 1989. House organ Advertising in general with creative snap shots Suppliers (1988) d-mail: [email protected] Korea Advertiser’s Association. Bimonthly. of the agency. Address: 3F Nageong Bldg., 115-62 Free-controlled. Current issues related to the Gongdeuk-dong, Mapo-gu, Seoul, Korea Korean Academic Society for Public interest of advertisers. MBC Adcom (Korean). 121-020 Relations 1979. House organ. MBC Adcom. Telephone: 82 2 3442 7655 Address: Rm. 701, Gabriel Hall, Sogang KAAA Journal (Korean). Bimonthly. Free-controlled.Advertising in gen- Fax: 82 2 706 7254 University 1 Sinsu-dong, Mapo-gu, Seoul Korea 1994. House organ eral with creative snap shots of the agency. Telephone & Fax: 82 2 706 2342 Korea Association of Advertising Agencies. Korea General Homeshopping Companies Bimonthly. Free-controlled. Daehong Communications (Korean). Association (2003) Korean Association for Advertising and Public Current issues related to the interest of adver- 1984. House organ Address: 2F Jeongil Bldg., 197-8 Jamsil-dong, Relations tising agencies. Daehong Communications. Songpa-gu, Seoul, Korea 138-220 Address: 1271 San 1-dong, Sangnok-gu, Ansan Bimonthly. Free-controlled. Telephone: 82 2 412 3261 City, Kyeonggi-do Korea Ad Information (Korean). Advertising in general with creative snap shots Fax: 82 2 412 3047 Telephone: 82 10 4783 8100 1981. House organ of the agency. Kobaco. Monthly. Free-controlled. Korean Modeling & Talent Association (1976) Advertising in general with monthly broadcast Oricom Brand Journal (Korean). Address: 16-5 Chungdam-dong, Gangnam-gu, 11) Advertising Journals advertising data. 2001. House organ Seoul, Korea 135-100 Oricom. Bimonthly. Free-controlled. Telephone: 82 2 515 3750 All the advertising journals published in Korea Korea Ad Times (Korean). Emphasis on brands. Fax: 82 2 515 3751 are in the with the exception of 1999. Korea Ad Times, Monthly. the bi-annual Advertising Yearbook published in Advertising in general with emphasis on cur- KOAA bulletin (Korean). Korea Advertising Review Board (1991) English by the Korea Association of Advertising rent creative. 1977. House organ Addres: 10F Korea Advertising Culture Center Agencies. Compared with the size of the market, Korea Outdoor Advertising Association. Bldg., 7-11 Sincheon-dong, Songpa-gu, Seoul, there are very few independent advertising jour- Advertising Review (Korean). 1994. House Monthly. Free-controlled. Korea 138-921 nals. The majority are published either by leading organ Issues/trends on outdoor advertising. Telephone: 82 2 6360 6600 agencies or industry associations or by the Korea Korea Advertising Review Board. Monthly. Fax: 82 2 6325 0021 Broadcasting Advertising Corporation as more or Free-controlled. Sign Moonhwa (Korean). 176 Asian Advertising - 2007 Current Status of Advertising - Korea 177

1995. SM Media Group. Monthly. 12) The Government Agency Primarily BIBLIOGRAPHY Outdoor advertising. Responsible for the Advertising Business 1) Advertising Yearbook, published annually by Cheil Communications. 1,384 pages (2005). Language: Korean. Pop Sign (Korean). The Broadcasting and Advertising Department Sold at leading bookstores. The Yearbook covers all the current advertising matters and data. Historical data are also included. A must for advertising organizations/institutes with an interest in the Korean advertising market. Pop Sign. Monthly. of the Ministry of Culture and Tourism is the pri- Outdoor advertising. mary government agency dealing with the adver- 2) Advertising Information, a monthly house organ published by the Korea Broadcasting Advertising Corporation tising business in general. However, other min- (Kobaco). Language: Korean. Free, controlled circulation. In addition to regular advertising articles, Advertising The Korean Journal of Advertising (Korean). istries are also involved in specific advertising Information carries monthly data on television advertising. 1990. Korea Advertising Society. matters: notably, the Fair Trade Commission, Quarterly. which oversees any infringement pertaining to fair 3) Korea Creative Yearbook, published by the Korea Association of Advertising Agencies (KAAA). Language: Korean and English (titles only). Sold at leading bookstores. trade, including advertising. The Consumer Advertising Research (Korean). Protection Board is also involved in dealing with 4) Advertising Yearbook, the bi-annual book published in English by KAAA. Excellent reference with tables on 1988.Korea Broadcasting Advertising Corp. misleading advertising. The Korea Advertising all advertising industry data. Free, controlled. Quarterly. Free-controlled. Review Board (KARB) is a self-regulatory orga- nization with authority vested by the Korea 5) Advertising Trends, a monthly published by the Korea Federation of Advertising Associations (KFAA). Language: Korean. Free, controlled. Each month the journal covers specific issues, i.e., its March issue covered The Korean Journal of Advertising & Public Broadcasting Commission to censor all commer- advertising agencies with billings broken down by media, number of staff, etc. Relations (Korean). cials before they are broadcast. 1999. Korean Association of Advertising & 6) Advertising in Korea, 4th edition (2005), co-authored by In Sup Shin and Kie H. Shin and published by Public Relations. Communications Books, is the only English-language book on Korea advertising. The 174-page book has 10 chapters Quarterly. Free-controlled. covering nearly all advertising matters of interest to foreigners. 7) Korea Statistical Yearbook, published by the Korea National Statistical Office. The 972-page Yearbook (2005) Journal of Public Relations Research (Korean). is naturally crammed with statistics in Korea. Tables are bi-lingual, Korean and English. Indexes are both in Korean 1999. Korean Academic Society for Public and English and can be found at the back part of the book. Sold in major bookstores and government publications Relations. stores. Semi-annual. Free-controlled. Korean Advertising, Facts and Insights published by Korea Broadcasting Advertising Corporation (Kobaco) in English in 2007. The 324-page book covers primarily the current status of Korean advertising including an industry overview, media, consumer trend, agency and creative. Korean Journal of Consumer and Advertising Psychology (Korean). 8) Advertiser’s Directory. This annual directory is published by Korea Advertiser’s Association. Language in Korean Society of Consumer and Advertising Korea. The 520-page book is a valuable source of information covering advertising associations, academic societies, Psychology, 3 issues per year ad industry related organizations, advertisers, broadcast and print media, advertising agencies, outdoor advertising companies, other advertising industry related services, university professors among others. In addition, there are a number of journals on 9) Social Indicators in Korea is an annual also published by the Korea National Statistical Office. The 752-page marketing, broadcasting, journalism and commu- SIK 2005 is another excellent source of data for global marketers and advertising agencies. Contents and tables are nications which carry articles on advertising and bilingual (Korean and English). Sold in major bookstores. public relations. However, they are not included in this list. For academics, there are a few quarterlies : The Korean Journal of Advertising, The Korean Journal of Advertising/Public Relations, published by academic bodies. In addition, Kobaco publishes a quarterly. There are also other academic journals. 178 Asian Advertising - 2007 Current Status of Advertising - Malaysia 179

C H A P T E R 4 three main categories: multinational; national and and the largest of its kind in Malaysia); Tenaga retailers. Almost all of these advertisers prefer Nasional (national electric utility company) and mass-marketing though retailers (supermarkets; Jabatan Pos Malaysia (national postal service) departmental stores and dealers of goods) only upon their privatisation. advertise within their towns or states. In recent Current Status of Advertising - Malaysia years, even these retailers have adopted a wider A common feature that all these corporations approach to advertising as mega-supermarkets share is their monopolistic hold over their respec- began to gobble up small and medium sized retail- tive sectors. These companies have poured mil- ers in burgeoning townships. lions into building and maintaining a high corpo- by Nantha Kumar rate image and compete with the multinational The most lucrative budgets, however, are still firms for adex contributions. Public listing in the Advertising Industry and Advertisers millennium before the Middle East conflict in the with the multinational and national companies, 1990s has also increased these companies’ adver- last five years put paid to a full turnaround. which provide the bulk of the adex, due to their tising spend and as traditionally strong advertis- The advertising industry has changed beyond management expertise; marketing nous and huge ers, mainly tobacco companies, were phased out recognition since the 1980s and has recorded Multinational companies have gained promi- capital. An interesting impact of the Malaysia’s of the advertising scene, these firms filled the steady growth to place itself as the ninth biggest, nence since the 1990s with their heavy budget and move to industralise was the increasing promi- adex void and have established themselves as in terms of adex, in Asia. In 1980, Malaysia’s wide advertising campaigns, which emphasised nence of government-linked-companies (GLCs), major advertisers. adex was RM226m and grew rapidly between the power of brands as a global strategy. Image such as Malaysian Airlines (which runs the 1981 and 1985 to register RM645m in 1989. The building became the chief cost for advertisers as national commercial carrier and cargo); Edaran In the early 1990s, the top 10 advertisers in only low point in this decade was in 1986 when they jostled among their rivals to place their Otomobil Nasional (EON; which markets the Malaysia came from the shipping business; six global recession between 1985 and 1986 stymied brands amongst the top tier and a tactic that has national car and motorcycles and had diversified tobacco advertisers disguised as apparel and the adex growth but the adex for 1986, which worked well across the markets in the world. The into financial services; real estate and manufactur- sports marketers and travel service operators; showed RM382, hardly suggests that the media, naturally, profited from this competition ing); Telekom (national telecommunications firm Malaysian Airlines; Road Safety Council and Malaysian economy was adversely affected. More but a negative aspect of it was felt by the con- progress was achieved in the following decade: in sumers who were inundated with advertisements. 1990, the adex surged past RM800m and went Top 10 Advertisers one step further in 1991 when it reached RM1b. In 1991, for example, the adex rose by an esti- mated 20%, of which 12% were contributed by Rank in 2004 Rank in 2005 Advertiser 2004 RM’000 2005 RM’000 The adex multiplied manifold in the 1990s as new advertisers who had never, before that year, 2 1 Procter & Gamble 103,029 128,582 Malaysia embarked on ambitious industrialisation promoted their products and services. These new 3 2 Celcom 89,616 123,268 programmes that intended to convert her into a advertisers were mainly from financial institutions 1 3 Maxis Communication BHD 144,500 98,232 fully developed nation by the year 2020. Two which offered credit cards; the automobile indus- 5 4 Unilever Malaysia 65,446 80,972 major developments in the 1990s slowed down try; apparels and entertainment services. This 4 5 Digi Telecommunication S/B 80,465 80,959 the adex’s upward movement: the Gulf War in coincided with Malaysian consumers’ larger pur- 6 6 Nestle 60,576 65,684 1990, which did not hit the Malaysian market as chasing power; the expansion of the banking sec- 11 7 TM 33,793 48,301 badly as it did other markets as the adex moved tor and the government’s aggressive push for a 7 8 KFC Holdings 40,805 44,672 up to RM818m, while the most serious setback successful national automobile industry. 10 9 Petronas 35,111 36,746 was the economic crisis of the late 1990s. The 9 10 Malaysia Airlines System 35,202 30,113 recovery was well under way at the turn of the Advertisers in Malaysia can be divided into 180 Asian Advertising - 2007 Current Status of Advertising - Malaysia 181

Telekom Malaysia. In the first half of 2006, the Affordability involves correct pricing of prod- tising and communications campaign on a grand ers and acquisitions which saw existing local tobacco firms have been replaced by four ucts and services. Varying costs of living across scale. More often than not such advertising advertising agencies teaming up with their multi- telecommunication companies including Telekom the globe makes it is almost impossible for the assignments would be commissioned by multina- national counterparts. The power to make crucial Malaysia or TM as of 2006; Procter & Gamble; price structure in any local market to reflect that tional companies keen on localising the global management decisions would be placed in the Unilever Malaysia; Nestle; KFC Holding (KFC); of the products’ country of origins. The roaring marketing strategy that has been directed by their hands of either local partners or expatriates from L’Oreal Malaysia and Petronas (national petrole- success of multinational fast-food outlets such as parent companies. multinational companies and it depends on the um company). KFC and McDonald’s in Malaysia and the intro- nature of the mergers and acquisitions. duction of the cafe culture by Coffee Beans & Tea Specialist agencies are divided into two: the The five multinational companies on this year’s Leaves and Starbucks Coffee are two different first usually offers “below-the-lines” services, Multinational companies have the edge over list have retained their global marketing style that examples of all three marketing principles work- which the larger agencies shun, while the second, local advertising agencies as they tap into their most such corporations had adopted since the ing in tandem. which is an off-shoot of the unbundling of adver- counterparts’ expertise and know-how. When early 1980s for their continued success. Three tising work, manages clients’ media planning. global brands choose a multinational advertising marketing tenets have serves this group well: The economic boom time in Malaysia in the Below-the-lines work consists of preparing agency, the parent company’s affiliates in the availability; acceptability and affordability. 1990s - which produced a wealthy and image- buntings; banners; umbrellas; calendars, posters other regions would be given the account as well Availability means that the products or services conscious middle class - had irrevocably altered and such items. Media specialists, on the other to maintain alignment in advertising concept, are made available in key global markets and the local advertising landscape. It is certain that hand, are not new “agencies” but have always strategy and execution. This is why Ogilvy and while a popular lifestyle is used as a campaign the lifestyles engendered by these multinational existed as departments in advertising agencies Mather are identified with American Express strategy, compromises have been made for the companies - barring a radical socio-political which were tasked with buying media space for while Coca Cola has been synonymous with culture and customs of Malaysia. rethink - have become a permanent part of the the clients’ campaigns. McCann-Erickson for decades. Malaysian scene. A case in point would be the approach of KFC, As the competition heightened among advertis- The access available to multinational compa- which had survived bird flu epidemic scares ers, there was a need to rethink strategies in a nies also allows them to offer the latest in strate- across Asia in the last five years and yet managed Advertising Agencies in Malaysia crowded field and this primarily involved the gies; concepts and communications trends that are to attract consumers. While the KFC packaging planning and buying broadcast time and print employed in advanced markets to their clients. It and logo in Malaysia tally with that of the There are more than 200 accredited and non- space for advertising campaigns. Media special- is rare for leading advertisers in the world to pass American KFC - which recently announced a accredited media agencies, ninety percent (90%) ists, which have been claiming this as there area on their campaigns to local advertising agencies brand overhaul - the taste of their products has of which are based in the Klang Valley area where of expertise, are charged with the responsibility of and even if the latter is engaged it would usually been modified to suit local consumption. the capital Kuala Lumpur and major cities such as maximing the effectiveness of clients’ campaigns for below-the-lines jobs. Petaling Jaya are located. Most of these agencies by thinking out details such as buying the right Acceptability refers to product awareness, can be broadly segmented into full-service agen- type of media to acquiring cost-attractive media Local agencies, however, control advertising which requires heavy promotion and publicity for cies and specialist agencies. Full-service agencies packages on offer to literally managing the cam- work commissioned by government and statutory the goods and services. In a market that is flooded cater to every whim and fancy of their advertisers paigns. bodies; local banks and private companies but this with advertisements for virtually the same prod- or clients and often have dedicated personnel to dominance does not sufficiently empower them to ucts and services, there is a vital need for advertis- attend to lucrative advertising accounts. It is estimated that over half of the advertising compete with their multinational companies. ers to stand out in the consumers’ mind. The culti- agencies in Malaysia are of the full-service variety Despite their stake in accounts of government and vation of the brand name would result in greater These agencies would work from scratch. This and multinational companies are dominant among statutory bodies, the local agencies have a limited interest which in turn would produce brand loyal- includes everything from scrutinising their clients’ these agencies. Law in Malaysia requires a local list of clients while restricted funds and facilities ty, as can been seen from the dominance of Coke products or services; evaluating rival products or partner holds a majority share in these multina- to compete with their multinational competitors. and Pepsi in the Malaysian soft drink market. services; conceptualising to implementing adver- tional firms and this had led to a number of merg- 182 Asian Advertising - 2007 Current Status of Advertising - Malaysia 183

Advertising Expenditure 2005 and this figure is projected to grow to 3% in 2006/2007). Newspaper and Television 2006 (ZenithOptimedia report in July, 2006). The share of advertising spending in Malaysia A huge factor behind this development is the The New Straits Times Press group operates The growth in advertising spend in the past two is unique. The market in Malaysia is one of the alliance of various media under the single banner the top two Malay language newspapers (broad- decades has also resulted in the introduction of very few in the world dominated by print media of Media Prima in 2003, in a consolidation ven- sheet Berita Harian and tabloid Harian Metro), various other forms of advertising which takes as opposed to television. In 2005, advertisers lav- ture that mirrors Singapore’s MediaCorp group of which has a total readership of almost 3m. The into consideration the impact of advancing tech- ished about RM2.39 billion of the RM4.56b commercial media companies. Media Prima is accumulated circulation figure for the New Straits nology. Yet, despite the promise of the Internet as advertising expenditure (adex) on newspapers and essentially the combined strength of Malaysia’s Times Press group stands at 50% of the total the “new” advertising media - tremendous expan- magazines. This amounted to a staggering 64% of leading television station, TV3 which was operat- newspaper circulation. These shares in television sion is expected in this sector which is widely the total adex, which overshadowed the 29% or ed by Malaysian Resources Coprporation Berhad, viewership and newspaper readership allows regarded as the only medium that will see sus- RM1.31b that television received. and The New Straits Times Press (Malaysia) Media Prima to compete aggressively with their tained capture of more adex - newspaper and tele- Berhad news group. rivals in the electronic and print media by offering vision still hold sway in Malaysia. The rest of the adex was shared between out- synergised advertising opportunities for their door advertising; cinema; radio and point of sales. The union, and subsequent media company clients. Since the mid-1980s, television and newspaper It is estimated that there will not be a drastic purchases, provided Media Prima with four televi- have had a combined adex share of at least 80% change in the stake of each medium in the adex sion stations; two English dailies and two Malay The advertising rates for television are often as the appearance of more television channels; pie for 2006, which is expected to reach the language newspapers and two radio stations, plus cited as a reason for the sector’s small stake. A magazines and newspapers in the market enlarges RM4.9b mark. But it is important to note that the ownership of a leading drama and movie content 30-second prime-time spot on free-to-air televi- viewership and readership. Both mediums are increase in the number of free-to-air television company. MediaPrima’s four stations reached sion will cost advertisers an average of between able to customise deals for their wide range of channels in the last two years has also resulted in 3.25m television households and control almost RM4,075 and RM7,080 on four top television sta- buyers as they constantly seek additional airtime a steady swell in television adex. The television half of the total viewership while enjoying 85% of tions The rates for full-page black and white and pages to meet the demand for advertisements. adex posted a 0.7% growth between 2004 and free-to-air television adex (Carat Media Facts advertisements in an English daily are between RM14,500 and RM29,680 (Carat Media Facts Newspaper’s strongest rival is television and Advertising Expenditure by Top 10 Categories 2006/2007). These, of course, are basic rates despite aggressive marketing from the latter, which could be bundled into affordable packages newspaper companies continue to lead the adex as would be the case with Media Prima’s media take-up. Television does not have the faster and Rank in 2004 Rank in 2005 Category 2004 RM’000 2005 RM’000 companies. higher reach and frequency of newspaper and, 2 1 Mobile Line Services 233,540 270,072 unlike television too, newspaper offers a wide pri- 1 2 Mobile Interactive Services 233,839 204,485 Almost ninety percent (90%) of the businesses mary target audience. It is also effective for short 5 3 Face Care - Women 105,725 124,375 in Malaysia, however, are small and medium media campaigns (sales promotions in retail out- 4 4 Hair Shampoo & Conditioner 110,735 120,832 sized enterprises and this would make the news- lets) or longer term ventures which will be needed 6 5 Government Institutions - Local 91,770 105,828 paper an ideal platform to promote their products for branding. A single other advantage possessed 3 6 Residential Estate 113,889 102,267 and services. The high production budgets needed by the newspaper is that it is able to carry 7 7 Credit Card 82,025 74,934 for television commercials are not financially prospectuses; classifieds and appointments which 8 8 Cinema Advertising 73,785 68,665 viable for a small market such as Malaysia, which elude the other mediums. 11 9 Fast Food Centre 60,046 64,379 is a reason for smaller brands to focus their adver- 12 10 Furnishing - furniture Retail 53,204 61,343 tising on newspapers and radio rather than televi- Despite the hike in newspaper advertising rates, sion. the last of which was in 2004, it is almost impos- sible to ignore newspaper if national advertisers 184 Asian Advertising - 2007 Current Status of Advertising - Malaysia 185

are unveiling new products or services to the pub- routine appearances of supplements and special dren) and laundry cleanser and care companies. between newspaper content in Peninsular and East lic. This is, however, a two-way relationship as reports - which zoom in on a variety of topics Malaysia. There is a greater emphasis on local newspapers have become increasingly dependent such as travel; health; home furnishings; fashion; Newspaper’s Top 10 adex categories are as fol- flavour, especially in the newspapers in Sabah and on adex as their lifeblood as the competition automobile, education and sports - command the lows: telcos; real estate companies; utility and Sarawak, which target the large Chinese commu- between different mediums amplified. advertisers’ attention. A recent concept in adver- government agencies; advertisers in the educa- nity in East Malaysia. tising over the newspaper is the advertorial, which tional and book industries; media, publishers and While mergers, as executed by Media Prima, is an amalgamation of paid advertisements and publications; department stores; banks; firms in A minimum of 51% of Malaysian adults read a and moving into the radio broadcasting industry - editorial which expound the value of the advertis- household furniture and interior decoration busi- daily newspaper, which is a decline from a high of as is the case with Star Publications (Malaysia) ers’ products and services. ness; entertainment companies and brands in the 60% in 1998 (Carat Media Facts 2004). As of Berhad which purchased Radio Redifussion’s credit card and travellers’ cheque industries. 2005, there were seven Bahasa Malaysia dailies; Red104.9 and 988 in 2003 - would be one way of Advertisers from the telecommunications 15 Chinese dailies; 10 English dailies and four consolidating their position, there are looming industry dominate advertising expenditure in both Newspaper Growth Tamil dailies in Malaysia (Carat Media Facts threats to its longevity as the dominant media newspaper and television. On television, telecom- Malaysian newspapers, available in broadsheet 2006/2007). adex leader. Media Prima and Star Publications, munications companies (telcos) lead corporation, and tabloid forms, mirror the needs of the three which runs Malaysia’s No1 English daily, The utility and government agencies; shampoo and main races in the country and, as such, are classi- The English newspapers are popular among the Star, are now able to offer joint advertising pack- hair conditioner advertisers; fast food centres; fied in four languages: Bahasa Malaysia; English; higher income group (white collar professionals; ages to advertisers. body care advertisers; confectionary and snack Chinese and Tamil. There is a clear difference executives and businessmen) staying in the mar- advertisers; petroleum firms; entertainment com- The other attractions of the newspaper is the panies; advertisers of essential milk (young chil- Circulation of Major Dailies.

Monitored Advertising Expenditure 2001 - 2005

2001 2002 2003 2004 2005 RM’000 % RM’000 % RM’000 % RM’000 % RM’000 % Television 878,391 28% 921,777 27% 999,248 26% 1,300,713 29% 1,310,560 29% Radio 119,675 4% 144,141 4% 152,526 4% 172,024 4% 178,533 4% Magazine 182,448 6% 158,060 5% 159,035 4% 165,426 4% 160,578 3% Newspaper 1,936,417 61% 2,188,450 63% 2,366,783 63% 2,669,763 60% 2,777,770 61% Video 2,764 0% N/A N/A N/A N/A N/A N/A N/A N/A Cinema 11,387 0% 9,739 0% 12,561 0% 13,994 0% 17,849 0% Pos AD 25,968 1% 28,286 7% 33,661 1% 32,814 1% 39,110 1% Outdoor 61,847 2% 68,936 2% 75,620 2% Total 3,157,050 100% 3,450,453 100% 3,785,661 100% 4,423,670 100% 4,560,020 100%

%Increase Over Previous 3% 9% 10% 17% 3% Year 186 Asian Advertising - 2007 Current Status of Advertising - Malaysia 187

ket centres, with a higher profile of managers and The combined audited circulation for the daily Newspaper Advertising Expenditure by Top 10 Categories professionals with higher education. The Bahasa Chinese newspapers was at 901,000; Bahasa Malaysia newspapers are a mainstay of the rural Malaysia dailies scored 624,000 while their readers while Chinese newspapers are relatively English counterparts hit 620,000 in 2003. Rank in 2004 Rank in 2005 Category 2004 RM’000 2005 RM’000 more urban-based. According to Carat Media Facts 2004, the victors 1 1 Mobile Interactive Services 180,329 173,356 Due to its position as the national language, in the newspaper circulation contest are The Star 2 2 Mobile Line Services 132,560 149,948 Bahasa Malaysia-based newspapers enjoy a high (307,000; English language); Sin Chew Daily 3 3 Residential Estate 106,232 96,089 readership amongst the population, which a 27% (342,000; Chinese language) and Utusan 5 4 Furnishings - Furniture Retail 44,269 50,017 readership reach; followed by Chinese (20%) and Malaysia (246,000; Bahasa Malaysia). 4 5 Credit Card 48,861 46,423 English newspapers (11%). As of 2006, the total In 2005, the total audited circulation for the 8 6 Beauty Salon/Hairdresser 39,171 45,058 readership reach of all the newspapers was at the daily Chinese newspapers moved up to 918,000; 6 7 College/Institution 43,902 42,868 55%, which is still considered comparatively high Bahasa Malaysia dailies improved to 690,000 and 9 8 Department Store 36,903 39,740 by Asian standards. the English dailies attained 653,000 (Carat Media 10 9 Cinema Advertising 34,748 39,218 Facts 2006/2007). As of mid-2005, The Star led 17 10 University 27,473 38,218 Improving social standing and economic the English newspaper circulation (300,000) and progress had resulted in higher literacy rate and Sin Chew Daily have maintained their prime posi- steadied the growth of newspaper. In 2006, the lit- tion for 2005 as well (349,000). The 67-year-old eracy level among Malaysians rose to 95% Utusan Malaysia (229,000) slipped to third behind last decade, the launch of Harian Metro, a Bahasa the telecommunications firms emerged as the big (Peninsular Malaysia; Carat Media Facts Berita Harian (231,000) Harian Metro (230,000). Malaysia afternoon tabloid, and The Sun, an spenders in the advertising industry and are pro- 2006/2007) as the government’s push for versatile English tabloid that went on to become the first jected to emulate the dominance of the tobacco individuals to supply the increasing demand for a The 1990s witnessed a change in the newspa- “free” newspaper in Malaysia, had shaken up the companies before them. quality workforce. per industry with the arrival of new players. Early scene. For the first time ever, Harian Metro, which has displayed great circulation strides in the Television Growth Top Newspaper Advertisers - Malaysia last three years, posted a 24% growth, which is Television has the widest daily adult reach the highest against all dailies as of June, 2005. amongst all the other media, with 83% in 1992 and this figure has grown over the years to peak at Rank in 2004 Rank in 2005 Advertiser 2004 RM’000 2005 RM’000 A significant step into the future for the news- 96% in 2003, with the Malays form the bulk of 2 1 Celcom 58,778 74,402 paper was their foray into the Internet by produc- the viewership. Pre-1996, only three free-to-air 3 2 Digi Telecommunication S/B 56,755 62,468 ing the online editions of their hard copies. The channels (TV1; TV2 and TV3) peppered the tele- 1 3 Maxis Communication BHD 68,570 44,035 Sun and The Star have been instrumental in vision landscape but in 2003, Malaysian viewers 7 4 TM 16,987 25,282 attempting to mine the potential in cyber media were given the option of six free-to-air channels 8 5 Panasonic Malaysia S/B 16,984 18,312 adex, with the latter offering its full version over and a plethora of satellite television channels. 4 6 Citi Bank 25,342 16,706 the Internet in 2004. 6 7 Malaysia Airlines System 19,207 16,496 Media companies were concerned about the Between September and November 2003, 25 8 Proton 11,018 15,686 complete ban on direct and indirect tobacco Channel 9 and 8TV stepped into the television 17 9 Nestle 12,937 15,215 advertising, which had dominated advertising arena with the aim of capturing a new class of the 16 10 Guinness Anchor 13,100 15,210 spend until 2002, in 2003. The concerns proved prosperous and promising Malaysian population: unfounded as the telecommunications sector came the young and urban viewers. Television became to the rescue of the media. As mentioned above, the fastest growing medium between the early 188 Asian Advertising - 2007 Current Status of Advertising - Malaysia 189

1990s and 2003, with the Malays comprising the Despite the influx of foreign programmes - Despite lagging behind newspaper in terms of daily average of 435 commercials were recorded core audience. especially those from the US - the highest ratings adex garnered, television - which was introduced in 1991 in all three networks which represented a for television are actually for local programmes in Malaysia about 40 years ago - is by far the most rise of 65% from the 1989 average of 264 - news- Public television and radio broadcasters, Radio such as Malay films and dramas. It is no surprise dominant advertising medium in the nation. Proof paper still reign supreme. Over the years, the Television Malaysia (RTM), owns two television that Malay viewers, like their Chinese counter- of television’s bulging strength was evident when demand for advertising airtime from major adver- channels, TV1 and TV2, plus 32 national and parts who love the evening soaps from Hong it posted an approximately 100% increase within tisers had superseded supply and this situation regional radio channels. TV1, which is more of a Kong, prefer to watch programmes in their native four years between 1987 and 1991 to achieve the compels the television stations to shake-up their news and public service channel, has not veered language rather than in English. type of growth that has never been attained by any programming every few months to satisfy the from its target market of Malay viewers in the other media in Malaysia. It is not wide off the advertisers’ requests. suburban and rural areas. The TV1 content is a The advent of TV3 - with its early emphasis on mark to claim that Media Prima’s newfound posi- combination of news; local films; dramas; sit- pure entertainment - in 1984 created a fiercer tion as a multimedia player would allow for The media consolidation under Media Prima coms; religious programmes and documentaries. competition for content and viewership. Within greater flexibility in pricing and strategies to offers part solution to the problem of limited air- four years of its birth, TV3 wrestled control of mount a challenge to the dominance of newspa- time as television channels became more niched The entertainment-centred TV2 zeroes in on 50% of the adult reach and had maintained its pers. as they cater to a variety of viewers. Television’s the Chinese and Indian viewers, with a small number one status with an audience reach of 71%, As the foremost television channel in Malaysia, share of the adex, however, is only 27% in 2003 group of urban Malay viewers, and broadcasts followed by TV2 (65%) and TV1 (59%) in 1992. TV3 also rakes in a giant share of the television (Carat Media Facts 2004) which means a hard foreign films; Chinese soaps from Hong Kong; In 2003, TV3 improved on this figure by 17% (for adex. In 1991, TV3 took up 45% of the total tele- slog for six television channels and the three main Television Station Advertising international sports and a rising number of domes- a total of 88%) while TV2 closed the gap to 83% vision adex of RM400 million on their positioning vernacular channels on satellite broadcaster Astro Revenue. tically produced programmes, mainly dramas and with TV1 still trailing at 65%. as the channel of choice for the urban audiences sitcoms, to meet the government ruling of televi- which in turn brought in advertisements which are sion channels airing 30% local programmes. The total television adex for 2003 attained geared towards this “rewarding” group of con- TV3’s programming - which espouses the edu- RM994 million or 8% more than in 2002, while sumers. TV3’s willingness to accept low-priced tainment concept - has a heavy content slant of its share was maintained at 27%. TV3 continued video production costs; seven, 10 and 15-second TV1 while maintaining TV2’s edge. to dominate with an adex stake of 53%, followed filmlets and slides apart from the conventional 30- Television Station Advertising by ntv7 (Malaysia’s second private free-to-air or 60-second commercials proved to be a winning Revenue. television) 29% while public broadcasters RTM strategy. (TV1 and TV2) made little progress with an attainment of a single percentage to 18% in 2003. Many supermarkets; departmental stores and other retailers replaced advertisements in the print Last year (2005), the total television adex was media to opt for television advertising. TV3’s at RM1.3b, which represented a low growth of decision signaled that Malaysian television was 0.8%. TV3’s share, which had dropped to 43% in no longer a medium for advertisers with deep 2004, did not see any improvement while ntv7, pockets and television’s brand new viability which had secured 30% of the adex in 2004, saw allowed it to vault over newspaper as the top their stake decline to 25%. The two government- medium in 1989 for the first time in the history of owned channels, TV1 and TV2, which had their Malaysian advertising. Alor Setar: 697 Melaka : 376 KL : 268 Perak : 352 combined adex share of 13% in 2004 enhanced to J. Bahru : 326 Seremban : 66 Kelantan : 559 P.Pinang : 246 15% in 2005. Despite this feat and the huge number of adver- Pahang : 315 Kangar : 123 Treng : 271 Langkawi : 29 tisements in the 1990s on TV1, TV2 and TV3 - a RMS 3:Regional Stations(’000) 190 Asian Advertising - 2007 Current Status of Advertising - Malaysia 191

(Ria which targets the Malay audience; Wah Lai On the public broadcasting front, the privatisa- Sabah and Sarawak. By 2006, the total number of that the growth spurt for radio could be in the next Toi which caters for Chinese viewers and the tion of RTM would push TV1 and TV2 into private owned radio stations, both subscription- few years: radio contributes 4% or RM178 mil- Indian-based Vanavil) to lock in advertising tak- adopting a more competitive mood. Aggression in based and free-to-air, had reached 26 while the lion of the RM4.6 billion advertising expenditure ings. content acquisition and marketing would be the government owned stations remained at 30. It is in Malaysia. It is estimated that the radio adex key factors in determining the channels’ place in estimated that almost 90% of all homes in would grow from RM178m in 2005 to nearly Astro has managed to snare 23% of Malaysian the arena in view of the increasing fragmentation Malaysia has a radio set while its popularity as the RM190m in 2006, which would represent a 4.5% household (just over one million viewers) in 2003 of television audience. Average weekly free-to-air medium of choice for almost all car owners. jump. Radios has a reach of 92% on Malaysians and has stated that the average home penetration television adult viewership dropped off in 2003 ten years old and above, two million listen to for the Asian region is estimated at 42%. The when Astro moved assertively to secure more As the most intimate of mediums, radio radio on an average 15 minutes and Malaysians challenge to Astro that was supposed to come viewership and it is likely that when the satellite exploits its personal relationship with the listeners spend an average of 24 hours per week listening from MiTV (launched with 41 channels in broadcaster introduces more channels in early with a mixture of music, announcers’ conversa- to radio. October 2005) and Fine TV (debuted in 2007, TV1 and TV2 would stand to lose the most. tional delivery; contests and news. Radio’s prima- Radio share has grown from 2% to 3% in the December 2005 with 18 channels) floundered as ry listeners are of a younger age and it is a fact early 1990s to about 4% in 2005. In 1997, the both broadcasters struggled to overcome technical Other Media that radio listenership has been declining since the radio adex was RM67m while five years earlier it hurdles and poor business models. Radio and magazine offer the most effective 1980s - most prominently after the arrival of TV3. had garnered a lowly RM26.7m, which represent- alternatives to television and newspaper in Despite radio stations taking the drastic measure ed 2.36% of the total adex of that year. In less The launch of another satellite in December, Malaysia as products and services multiply as of broadcasting 24 hours a day in response to than 10 years, it has almost reached RM190m as 2006 has also boosted confidence that the Astro’s advertising and media itself becomes more indi- arrest the flagging listenership, the consensus is new players entered the radio broadcasting arena. primary technical snag of not being able to deliver vidualised than ever. Radio has emerged as a very that the medium has not fulfilled its adex poten- Innovative ways of advertising and better pro- their services during rain outage would be phased strong option to television after garnering a week- tial. gramme content and listening environment have out. The presence of the additional satellite will ly reach of 74% of all adults in 2003 (Carat Media also reaped adex rewards. enable Astro to include 50 more channels to their Facts 2004) even though the medium only has a But there are impressive figures which suggest Since the 1990s, advertisers have preferred to current stable of 56 television; 17 radio and four 4% share of the total advertising spending. pay-per-view channels. No details on Astro’s ser- vice expansion have been made available thus far Magazine provides the platform for advertisers Radio Advertising Expenditure by Top 10 Categories as industry watchers and advertisers await its to close in on a particular target groups in an impact, which will only be assessed in February industry where media fragmentation is the norm Rank in 2004 Rank in 2005 Category 2004 RM’000 2005 RM’000 2007 when the satellite becomes fully operational. and has a traditional supporting role or vehicle for 1 1 Mobile Line Services 8,784 15,482 specific brands operating in a tight knit market. A 4 2 Fast Food Centre 6,465 7,998 Astro subscribers, however, are braced for a number of new magazines have appeared in the 5 3 Government Institutions - Local 6,013 6,377 hike in subscription rates as a channel repackag- past three years as they see the potential for adver- 20 4 Vehicle-Passenger Car 1,00-2,000cc 1,985 6,278 ing exercise is expected to be implemented with tising revenue which was never tapped into in the 2 5 Tonic & Vitamin 7,548 5,930 the addition of the new channels in early 2007. A past. 3 6 Credit Card 7,464, 5,265 decline in subscription would affect Astro’s plan 6 7 Television 3,900 4,407 to capture 42% home penetration (fewer than two Radio 8 8 Department Store 3,229 3,325 million viewers) while also shaping the senti- Radio is one of the earliest mediums to estab- 101 9 Rice 444 3,317 ments of advertisers. Much would depend on lish itself in Malaysia and is defined by the medi- 18 10 Communication - Corporate Ad 2,041 3,303 Astro’s shrewdness in bundling their channels into um of instruction, which is Bahasa Malaysia; eye-catching and affordable packages. English; Chinese; Tamil and major dialects in 192 Asian Advertising - 2007 Current Status of Advertising - Malaysia 193

sponsor radio programmes rather than making stations’ gradual privatisation since 2003. entertainment-based title which had roped in Feminine (RM10.2m); Female (RM8.75m); Cleo spot buys and radio stations have encouraged this 166,000 in circulation while in 2003 declined to (RM8.6m); Nuyou (RM7.681m); Sisters’ Pictorial practice by offering additional benefits in the Magazine 125,000 in 2005 (Carat Media Facts 2006/2007). (RM6.6m); Jelita (RM6.5m); Malaysian Women’s forms of extra commercials and other packages. It is almost certainly impossible to monitor Weekly (RM5m); New Tide (RM4.85m) and Marketing and content formatting, which has been magazines as the sheer number of it would be URTV, was similar in content to Mangga, Marie Claire (RM4.33m). the forte of the six stations under Airtime overwhelming. There are new magazines in which was third highest in magazine circulation in Management & Programming, has led the way in Malaysia, in tandem with other developed mar- 2003 with 100,000 faced the biggest fall, when it A common characteristic among the top adex selling airtime, producing content and creating a kets, every other month and there are publishing recorded a circulation of 59,000 in 2005. In the earners is the availability of a strong and more vibrant and suitable environment for their listen- companies which disappear after the inaugural list of the top ten magazines with the highest cir- organised marketing department (compared to the ers. issue of their magazine or do not hang around for culation, only two, KL Lifestyle, a city guide Bahasa Malaysia-based publishers) and quality in subsequent print runs. aimed at tourists, and women’s monthly Cleo and presentation; paper; printing and content. The These innovations, however, have only man- Utopia, a travel guidebook for the gay and lesbian advantages of magazine are convincing enough aged to maintain radio’s grip of its viewership Most magazines too refused to submit their cir- communities, are in English. for advertisers to not ignore it and this has ensured rather than increasing it. In other words, while the culation figures to be authenticated by indepen- it remained behind newspaper and television as adex pie has grown tremendously since the 1990s, dent bodies such as the Audit Bureau of Yet, only one Bahasa Malaysia title, Jelita, the adex share. radio’s stake in it appears to have reached a Circulation (ABC Malaysia), which makes it diffi- managed to gain entry into the list of top ten plateau at 4% in comparison to the average share cult for advertisers to manage their media plan- advertising revenue earners amongst local maga- As highly specialised media, magazine offers of 8% in other South East Asia markets. ning and buying for this medium. zines, gaining almost RM6.5m in 2005. The list is strong demographic and psychographic selectivity Regardless of this, advertisers continue to plough dominated by five English language magazines - and quite frequently the marketing strategy for their spending into radio due to its captive audi- There are just too many titles to be categorised all but one Malaysia Tatler dedicated to women magazines are closely worked out with the princi- ence and popularity amongst Malaysian adults. in its fullest and it is suffice to state that maga- readers - and four Chinese titles, all either slanted pal advertisers. Offering gifts courtesy of advertis- Readership of major Local zines cater for both the white-collar urban popu- towards women’s lifestyle or a feminine angle or ers, embarking on joint promotions with advertis- magazines. The formation of the Malaysian Association of lace and those in the rural areas. Magazine pub- both. It is no surprise to learn that nine out of the Commercial Radio Operators (MACRO) was in lishing frequencies range from weeklies to annu- top ten revenue earners for magazines are also reaction to the growth in the number of private als and it must be said that the top magazines in women’s titles and that women or home or family radio stations in the past 10 years. MACRO Malaysia are either monthlies or forthnightlies. category accounted for 78% of all publications brought together the key players in the industry to Bahasa Malaysia titles lead the pack, followed by income. a common ground as they sought to safeguard and English and Chinese language magazines, but enhance their interests. MACRO’s introduction of popularity often does not equate high adex earn- In 2003, Female led nine other titles with the Air Awards, which honours creative advertis- ings as they lack the advertising support of the big RM10.2m; followed by Malaysia Tatler (earning ing work in radio, has piqued the interest of spending advertisers. RM8.5m); Feminine (Chinese title; RM7.11m); advertisers and advertising agencies since 2003. Nuyou (Chinese title; RM7.01m); Cleo (English In 2003, the leading magazine in Malaysia was title; RM6.8m); Sisters’ Pictorial (Chinese title; The only stations which have not profited from Mastika, which combines investigative journalism RM6.2m); Marie Claire (English title; RM4.66m); the developments in the radio broadcasting scene and sensationalism and targets the Malay readers. Malaysian Women’s Weekly (English title; are those under public broadcasters RTM. The Mastika recorded a circulation of 159,000 in 2005 RM4.4m) and New Tide (Chinese title; RM3.9m). sterile presentation and content choice have ham- (which is drop from 220,000 in 2003) while its pered any hope of progress or jump in the creative nearest rival is women’s weekly Mingguan In 2005, Malaysia Tatler took over the top spot process and not much is expected even after the Wanita (128,000 in circulation). Mangga, a local with adex earnings of RM11m, followed by 194 Asian Advertising - 2007 Current Status of Advertising - Malaysia 195

ers and extending perks to advertisers beyond the and had a reasonable following in Malaysia have breaks and other benefits. Frequency of Internet usage. purchase of the traditional page are a few ideas managed to make the leap towards high reader- that have been explored by magazines to retain ship volume. This has to do with the fact that the The investment in this sector had resulted in a their readership lure new readers and attract other largest group for the consumption of magazines is cyber-savvy population which has placed advertisers. Bahasa Malaysia-based and the costs and time of Malaysia as a “leading country among (her South translating these foreign titles into the language east Asian) neighbours with an internet penetra- Special-interest magazines - especially the would not be commercially and operationally con- tion rate of about 33% based on the country’s 2.6 established titles - score high among advertsiers as venient for publishers. million dial-up internet subscribers and an esti- they do not just look at basic figures in their buy- mated 7.8m users as at the end of 2002.” (Carat ing strategy. A recent trend among publishers is to Internet Media Facts 2004). buy over the rights to popular titles in England The single most improved medium - and one and the United States and localising the content to that bursts with potential - is the Internet and These figures improved in 2005, according to suit Malaysian readership. In making these popu- unlike the other media, the internet provides a Computer Industry Almanac (March 2005), which lar titles cheaper to the readers, the publishers are level of interactivity that is unimaginable else- put the number of Malaysians online at 37.8%. hoping to attract similar advertisers, as those in where. The internet allows the one to interact with Pixel Media Hong Kong & Malaysia, a leading the market of origins, to direct their advertise- fellow users; gather information; form communi- media seller in Malaysia, claims that the nations US$19.5b in 2005 to US$55 billion in 2010, with ments into the local versions. ties in accordance with our interests no matter has 8 million online users. It is projected that, in search advertising, which accounts for 40% of the how obscure, conduct business and create other view of the government’s aggressive move to internet adex, expected to remain as the most Such ventures have only brought in mixed commercial possibilities. widen boardband access, the boardband sub- lucrative area, closely trailed by display advertis- results as not all titles which are popular abroad scriber market is expected to expand at a com- ing. It would be fair to say that the same patterns The biggest boost for the usage of the internet pound annual growth rate of almost 33% between would be replicated in the Malaysian market and Features used on the Internet. in Malaysia arrived in the 1990s when the govern- 2004 and 2009. elsewhere in these nascent stages in internet ment identified it as the central plank to their push advertising. for fully developed nation status by 2020. The As any medium, the internet turns to advertis- launch of such initiatives as the ambitious ers for their backing and confidence to power its The unavailability of an agreeable rating sys- Multimedia Super Corridor (MSC) project loosely ambition to be the ultimate marketing machine. tem for internet advertising, in Malaysia and glob- fashioned after the Silicone Valley and calculated The global advertising industry’s value is project- ally, which would usher advertisers and advertis- to vault Malaysia into the forefront of the ed to reach US$428 billion (ZenithOptimedia) and ing agencies in the right direction, is the main Information Age. it is instructive that the US internet advertising is obstacle to the growth of this sector. This is cou- taken as an example of its impact on the pled with ongoing issues with website audits In physical terms, the MSC covers a vast Malaysian market. would delay growth in related sectors as the expanse that stretches from the Kuala Lumpur mobile technology, which use internet functionali- city centre, with the Petronas Twin Towers as the In 2005, online advertising spending jumped to ty. starting point, to the south of the capital which a new high of US$12.5 billion according to a The convergence of media above would pre- includes the newly created towns of Putrajaya and report released by Interactive Advertising Bureau sent the most exciting challenge for the advertis- Cyberjaya plus Kuala Lumpur International (advertising trade group) and PricewaterhouseCoopers ers and advertising agencies. As it is now, adver- Airport. The MSC has been trying to attract com- in the first quarter of this year. Market research tisers and advertising agencies have been comfort- panies - both local and foreign - to set up base and consulting firm Parks Associates estimates ed with the more effective ad-tracking tools and within this designated zone with generous tax that worldwide online adex would expand from pleased with applications that allow advertisers to 196 Asian Advertising - 2007 Current Status of Advertising - Malaysia 197

gauge the effectiveness of their spending in terms advertising business. The advertisers and advertis- Source: of sales and target their internet spending based on ing agencies have been confronted with the location, demographics and other relevant factors. progress of satellite communications in the form A Review of Advertising in Singapore and Malaysia during Early Times of Astro and have successfully dealt with it and (Publisher Federal Publications Sdn Bhd; 1970) While the internet connectivity and usage gap the same can be said of the free-to-air television between urban centres and rural areas would be a segment. Advertising in Malaysia (Author Adnan Hashim; publisher Pelanduk Publications) long-lasting endeavour on the part of the Malaysian government, there are planned projects But there would be more narrowcasting than Carat Media Facts 2004 to take the internet into towns. Advertising agen- boardcasting and there is only one group of win- (Publisher Carat Media Services Sdn Bhd; March 2004) cies in Malaysia, meanwhile, have initiated stud- ners here: the consumers. The plethora of alterna- Carat Media Facts 2006/2007 ies on the effectiveness of marketing their clients’ tives - in media or otherwise - at the disposal of (Publisher Carat Media Services Sdn Bhd; May 2006) products and services over the internet and have the Malaysian consumers would require marketers included the medium as part of their strategy. to position their brands at the summit and this Cultural Values and Advertising in Malaysia: Views from the Industry (Authors David S. Waller and Kim Shyan Fam; publisher Asia Pacific would ask them to put forth innovative and cus- Journal of Marketing and Logistics) Most advertising agencies have been preparing tom-made methods of advertising to attract con- for the explosion in internet advertising and have sumers. Run Spot Run (Publisher 4As Malaysia; 1997) established separate departments or acquired interactive arms to oversee the next big bang in The multiplying media industry, meanwhile, advertising. The common and principal hurdle offers the advertisers and advertising firms a suite This report is prepared by NANTHA KUMAR. Prior to his leap into freelance journalism, the writer covered media industry issues during appears to be convincing their clients to seriously of options where the question often would not be his six year tenure at The Star. He also currently serves as the consider the internet as a viable option in their the choice of media but the integration a range of Marketing Manager (Creative) of Mehla Arts Sdn Bhd, which marketing and promotion. mediums into their strategies. specialises in the event and multimedia content sectors.

It is improbable, no matter how great the The Future advancement in technology, that traditional media would play no part in the marketing of goods and Asia has been earmarked for exponential eco- services. In any case, these “brick-and-mortar” nomic expansion and Malaysia would not be left media players have been preparing for the out of the surge of events that would commercial- Information Age as indicated by the number of ly and technologically impact upon the continent. newspapers and radio stations which have their The boom in manufacturing and service industries own online extensions. would continue to propel Malaysia forward as the nation aims to evolve into an industralised coun- All these developments would necessitate sub- try. stantial structural modifications to the advertising agencies’ mindset and approach, which have been The revolutionary advances being made in partly addressed by training their personnel to be communications would help the cause of advertis- aware of challenges that lie ahead. ers and advertising agencies to maximise their marketing dollars to meet the new demands in the 198 Asian Advertising - 2007 Current Status of Advertising - Singapore 199

C H A P T E R 4 Total and Per-Capita GDP, 2000 - 2005 April 14, 2006: Good Friday-Christians celebrate the crucifix- Total GDP and per-capita GDP at current prices. ion and subsequent resurrection of Jesus Total GDP in millons and per-capita in ones May 1, 2006: Labour Day May 12, 2006: 2005 : Current Status of Advertising - Singapore Vesak Day-celebrated by the Buddhists Total GDP: S$194,359.8 US$ 116,760.7 August 9, 2006: Per-capita GDP: S$44,666 US$ 26,833 National Day-celebrating 45 years of nation- 2004 : hood by Eddie Chan Total GDP: S$181,703.6 US$ 107,497.8 October 21, 2006: Per-capita GDP: S$42,852 US$ 25,352 Deepavali-festival celebrated by the Hindus 2003 : 1) AFAA Singapore Representative: S$44, 6666 or US$26,833 October 24, 2006: Total GDP: S$161,546.6 US$ 92,725.6 Base year: 2005 Hari Raya Puasa-Malay New Year Per-capita GDP: S$38,599 US$ 22,155 Organization - Singapore Advertisers December 25, 2006: 2002 : Association (SAA) Christians celebrate the birth of Christ. Non- Total GDP: S$158,410.3 US$ 88,467.76 President - Mr. Yong Poh Shin Christians also celebrate with gift-giving and Per-capita GDP: S$37,976 US$ 21,209 3) Population Based on the Latest Census Data dinners and parties. The most important com- 2001 : mercial event as the shopping districts are all Total GDP: S$153,392.7 US$ 85,612.9 Total, age group breakdown: attractively decorated and bonuses are given Per-capita GDP: S$37,130 US$ 20,723 0-14 years: 15.6% out at his time of the year 2000 : 15-64 years: 76.1% December 31, 2006: Total GDP: S$159,840.4 US$ 92,720.2 65 years and over: 8.3% New Year’s Eve and Hari Raya Haji (the latter Per-capita GDP: S$39,784 US$ 23,078 Racial composition: observed by Muslims who have been on the Chinese 76.8%, Malay 13.9%, Indian 7.9%, Haj pilgrimage to Mecca) other 1.4% (2000 census) Breakdown by religion: Mr. Yong Poh Shin Buddhist 42.5%, Muslim 14.9%, Taoist 8.5%, 5) National Holidays 6) Advertising Hindu 4%, Catholic 4.8% other Christian 9.8%, other 0.7%, none 14.8% (2000 census) January 1, 2006: New Year’s Day Total Ad spend 2) Country at a Glance Languages: January 10, 2006: (official) Mandarin 35%, English 23%, Malay Hari Raya Haji-celebrated by Muslims who 2005: S$1.86 billion Land: 692.7 sq km 14.1%, Tamil 3.2% (dialects) Hokkien had been on pilgrimage to Mecca 2004: S$2.03 billion Capital: Singapore 11.4%, Cantonese 5.7%, Teochew 4.9%, other January 29-31, 2006: 2003: S$1.77 billion Population: 4,492,150 (July 2006 Chinese dialects 1.8% other 0.9% (2000 cen- Chinese New Year-celebrated in a big way by 2002: S$1.69 billion estimate.) sus) the Chinese community. Many Chinese return 2001: S$1.54 billion Currency: Singapore dollar to their home towns in Malaysia for their tradi- (2006 exchange rate of about US$1 = S$1.6) 4) Total and Per-Capita GDP, 2000 - 2005 tional annual reunion dinners. Some Chinese Per-capita GDP: owned retailers may be closed for up to a week. 200 Asian Advertising - 2007 Current Status of Advertising - Singapore 201

Rank Categories millions of S$ � Breakdown by media: 2005 6 Toiletries 71 Top Ten Public Relations Firms Channel 5 (English) 7 Real Estates 67 Channel 8 (Chinese) Channel U (Chinese) Media S$ million % 8 Beauty & Fitness 67 1) Hill & Knowlton Channel Central (Tamil/English) Newspapers 733.8 39.4 9 Automotive 66 2) Burston- Marstellar Channel Suria (Malay) Television 724.9 38.9 10 Media 66 3) Ogilvy PR Worldwide Channel News Asia (English) Radio 158.1 8.5 4) Weber Shandwick Worldwide Magazines 96.3 5.2 5) Edelman Public Relations Mediacorp also jointly publish a free newspaper Outdoor poster 89.4 4.8 6) BANG Public Relations Top ten advertising agencies ‘Today’ with SPH Others 57.5 3.2 7) MDK Consultants 8) Fulford Public Relations Total number of advertising agencies: Estimated One cable TV station owned by Starhub with 9) Octagon SEA Marketing about 200. multiple paid channels. 10) PR Communications

�Top Ten Advertisers, 2004 Since the Sarbanes-Oxley Act in 2002, interna- One major radio operator, Mediacorp Radio with tional public-listed companies are not permitted to 15 stations: Rank Company Thousands of S$ disclose certain financial information pertaining to Top ten research companies 1 Starhub (Telecommunications) 28,237 subsidiaries, especially claims of revenues or Data not available. 7 English stations 2 Procter & Gamble (Toiletries) 27,673 profitability. Therefore it is no longer possible to 5 Chinese stations 3 M 1 (Telecommunications) 24,035 use billings or incomes as yardstick for the top ten 2 Malay stations 4 Cold Storage Group (Retail) 23,665 agencies. In 2005, Marketing magazine did a sur- 7) Media Summary 1 Tamil station 5 Mediacorp (Media) 22,385 vey among 2,158 organisations in Singapore and 6 Sony (Entertainment) 21,594 572 senior marketers responded. The criteria were One major newspaper group, Singapore Press 7 NTUC (Retail) 21,504 based on their choices of the top 3 agencies in Holdings Ltd. publishing 8 newspapers: 8) National Advertising Awards 8 Singtel (Telecommunications) 21,500 main areas of creative, media buying, direct mar- 9 HSBC (Banking) 20,351 keting, interactive and public relations. Based on Straits Times/Sunday Times (English Creative Circle Awards-organised by 4As to 10 Nokia (Telecommunications) 19,589 overall votes, the Top 10 agencies overall were: morning) honour the best creative talents in Singapore LianHe ZaoBao (Chinese morning) advertising industry. It was first established in 1) Ogilvy & Mather LianHe WanBao (Chinese afternoon) 1963 but went into hibernation until it was 2) Mindshare Shin Ming Daily News (Chinese revived in 1980.The annual competition helped �Top Ten Product Categories 3) Zenith Media evening) set and maintained a high standard for the local 4) Saatchi & Saatchi The New Paper (English afternoon) advertising industry. The awards presentation was 5) Mediaedge:cia Berita Harian (Malay morning) fondly known as the ‘Gong Show’ and its 25th Rank Categories millions of S$ 6) OMD Tamil Murasu (Tamil morning) Anniversary was celebrated in 2005. 1 Entertainment 192 7) Leo Burnett Business Times (English morning) 2 Retail 118 8) Starcom Media Crowbar Students Awards-Designed to encour- 3 Telecommunications 100 9) BBDO One major free-to-air TV station Mediacorp with age students in the creative art discipline at col- 4 Government/SOC/MED 82 10) McCann Erickson 6 channels: leges and universities to strive for high creative 5 Pharmaceuticals 79 standards. This annual event was first started in 202 Asian Advertising - 2007 Current Status of Advertising - Singapore 203

2001 as a local competition had become an Advertising Associations : 12) Name of Primary Government Agency international event since 2004. Association of Accredited Advertising Agents Responsible for Advertising Business Singapore (4As) Singapore Media Awards-First started by the Established 1948 to look after the interest of Ministry of Communications, Information and 4As in 2005 to honour and recognize those in the the advertising agencies. the Arts (MICA) is the main government agency media sector of advertising industry. responsible for the advertising business. Its mis- Association of Broadcasters Singapore (ABS) sion has two thrusts:- Max Lewis Awards-Organized by Singapore Established in 1997 to look after the interest of Advertisers Association to honour and recognize TV and radio broadcasters. Propelling the Creative Economy those individuals who had made significant and Develop and promote creative industries (arts long lasting contributions to the Singapore adver- Advertising Media Owners Association of and culture, design, media) and infocomm tech- tising industry. This award first started in 1973 Singapore (AMOAS) nology sector to create new economic value and was discontinued in 1993 but was revived in 2005 Established in 1973 to look after the interest of jobs. and is sponsored by the Fraser & Neave Group. the advertising media owners.

Singapore Advertisers Association (SAA) 10) Advertising Associations Established in 1952 (formerly known as The Advertisers Association before the split with Advertising education at universities : Malaysia) to look after the interests of advertisers. There are three universities which offer mass communication related courses at degree level namely;- 11) Advertising Journals National Technological University National University of Singapore Adasia (colourful tabloid monthly magazine Singapore Management University in English). Content: News, marketing case studies, articles But there are numerous Polytechnics and and creative works. Colleges which also offer various advertising Circulation: 4,408 copies. related courses at Diploma and Certificate levels Marketing Magazine (A4 size monthly mag- Nanyang Polytechnic azine in English). Ngee Ann Polytechnic Content: News and articles on advertising, Republic Polytechnic marketing and media communities, survey Temasek Polytechnic reports plus recruitment section. Nanyang Academy of Fine Arts LaSalle-SIA College of Fine Arts Circulations: 9,110 copies. Raffles Design Institute Institute of Advertising Singapore ADS-Advertising Directory of Singapore (published annually). 204 Asian Advertising - 2007 Current Status of Advertising - Taiwan 205

C H A P T E R 4 nations of East Asia. 2000 to 205,854 in 2005, a drop of 99,458 persons in five years. There is a tendency toward marrying Although Taiwan is not a member of the later, not marrying at all and marrying but not United Nations or the WHO, it has always sought having any children, all of which are become to participate fully in global activities and has per- more common among those in the advertising Current Status of Advertising - Taiwan sistently sought to gain entry to both of these industry. international organizations. Taiwan’s high level of education means a very effective workforce. At the end of 2005 there by Cheng Tzu-leong, Ph.D. 3) Population were 18.5 million people aged 15 or older. 6.2 million or 33.53% were high school graduates, 1) AFAA Taipei Representative: was US$13,619, and the current rate of economic Taiwan’s population stood at 22,770,383 at the representing the largest segment of the population. growth is 4% per year. Taiwan currently holds end of 2005, with roughly the same number of 2.4 million were junior college graduates, 2.8 mil- Organization-Taipei Association of US$253.3 billion in foreign reserves, and trade men and women. The growth rate has slowed lion held master’s degrees, and 575,000 were Advertising Agencies(TAAA) figures for last year showed US$198.4 billion in slightly in recent years, falling from 3.33 persons Ph.D. candidates or holders. In Taiwan’s advertis- Chairman- Mr. Chyi-Chiang Huang exports and US$182.6 billion in imports. The per household in 2000 to 3.12 in 2006, a drop of ing industry holding a master’s degree has gradu- island boasts a vigorous economy and a very sta- 0.21 persons. The birth rate has also declined, ally become accepted at the basic standard of edu- ble population. dropping from 13.76% annually in 2000 to 9.06% cation. in 2005. Actual births declined from 305,312 in Education is one of Taiwan’s proudest achieve- ments. Currently 5.4 million students are enrolled at 8,289 schools including 150 universities and Taiwan’s Population: 2000-2005 colleges. Of the total population of 22.8 million there are 2.1 million with graduate degrees, and Figures from Household Registrations Births university and college enrollment stands at 815,000 at present. There are 421,000 people with Year No.of Size of Number No.of Birth Rate Total Births (%) Mr. Chyi-Chiang Huang post-graduate degrees, and currently more than Households Households Increase(%) Male Female 153,000 are engaged in graduate study. 2000 6,681,685 3.33 22,276,672 8.34 11,392,050 10,884,622 305,312 13.76 2) Country at a Glance Taiwan is a free democratic country. Taiwan 2001 6,802,281 3.29 22,405,568 5.79 11,441,651 10,963,917 260,354 11.65 was ranked 35th in the world in press freedom by 2002 6,925,019 3.25 22,520,776 5.14 11,485,409 11,035,367 247,530 11.02 Taiwan is located on the Pacific Rim with Freedom House in 2006, placing it in the middle 2003 7,047,168 3.21 22,604,550 3.72 11,515,062 11,089,488 227,070 10.06 Japan to the north, mainland China to the west of the advanced democratic nations of the West. and the Philippines to the south. Looking at Asian nations alone, 2004 7,179,943 3.16 22,689,122 3.74 11,541,585 11,147,537 216,419 9.56 Taiwan and Japan occupy the number one spot. 2005 7,292,879 3.12 22,770,383 3.58 11,562,440 11,207,943 205,854 9.06 At 36,006 sq.km. Taiwan is not especially large Thus the latest review by Freedom House names in area. In addition, some 2/3 of the island is Taiwan as a solidly democratic country boasting a Source: Monthly Statistics, Bureau of Statistics, Executive Yuan mountainous, meaning that only about 1/3 is lawful and free economy. It also has one of the arable and habitable. The average income in 2005 highest levels of media freedom among all the 206 Asian Advertising - 2007 Current Status of Advertising - Taiwan 207

Education Levels for Those 15 Years or Older Taiwan’s Economic Conditions 2000-2005 Units: 1,000 persons Units: NT$

Literate Actual Per Foreign Trade GDP GNP Unemp- econo- Capita Forex College or Higher High school/ Year ($100 ($100 Total CPI Inflation loyment mic Income Holdings Year Total vocational Nonliterate million) million) ($100 Export Import growth (US$) Total Gradu- Univer College (Includes first 3 Junior High Elementary Home study million) ate sity (1) yrs of college) 2000 100,320 2.99% 5.77% 101,716 13,090 2,883.32 1,483.21 1,400.11 1,067.4 1.26% 1.82% 2000 17,574 16,792 219 1,517 1,852 5,509 3,820 3,756 119 781 2001 98,622 4.57% -2.17% 100,542 11,692 2,301.03 1,228.66 1,072.37 1,222.1 -0.01% -1.34% 2001 17,744 16,997 274 1,766 2,032 5,681 3,492 3,638 115 747 2002 101,943 5.17% 4.25% 104,368 11,780 2,431.27 1,305.97 1,125.30 1,616.6 -0.20% 0.05% 2002 17,922 17,211 329 2,014 2,156 5,793 3,255 3,551 112 711 2003 103,186 4.99% 3.43% 106,475 11,972 2,714.29 1,441.80 1,272.49 2,066.3 -0.28% 2.48% 2003 18,123 17,574 457 2,431 2,450 6,097 2,838 3,205 95 549 2004 107,704 4.44% 6.07% 111,463 12,851 3,419.04 1,740.14 1,678.90 2,417.4 1.62% 7.03% 2004 18,302 17,781 512 2,628 2,446 6,139 2,822 3,144 92 521 2005 111,316 4.13% 4.09% 114,255 13,619 3,709.98 1,893.92 1,816.06 2,532.9 2.30% 0.61% 2005 18,511 18,017 575 2,826 2,443 6,207 2,797 3,080 89 494 Source: Monthly Statistics, Bureau of Statistics, Executive Yuan Source: Household Registry, Ministry of Education Note: ‘College(1) denotes 2nd and 3rd years of college and the last two years of technical school

Festival. Official holidays are generally associated incident with political or government-related events. April 4: Children’s Day 4) GDP 2000-2005 Per capita income in Taiwan was US$13,619 in Honors children and mothers 2005, an increase of US$1,827 over the figure for January 1: Founding of ROC April 5: Tomb-sweeping Day Taiwan’s Gross Domestic Product (GDP) grew 2001. This is an outstanding accomplishment Memorial, one-day holiday One-day holiday every year from 2000 to 2005, with the exception among the nations of Asia. The Consumer Price January/February: Honors ancestors, gravesites are cleaned up of 2001. Between 2002 and 2005 it grew from Index(CPI) declined from 2001 to 2003 and then New Year’s Eve May 1: Labor Day $10.19 trillion to $11.13 trillion, an increase of rebounded slightly from 2004 to 2005, a very sta- Traditional, one-day holiday One-day holiday for workers $937 billion. Actual economic growth has been ble performance overall. Families gather for meal to honor ancestors. May: Mother’s Day steady for the past decade at 4 to 5% annually. By Red envelopes with money given to children Widespread events to honor mothers 2005 it stood at $11.43 trillion. Chinese New Year Emphasis on ethics and love 5) National Holidays Traditional, three-day holiday First Sunday in May Taiwan has maintained a surplus in trade for First day of lunar year May/June: Dragon Boat Festival many years with most of its exports going to the Taiwan has two kinds of holidays traditional Lantern Festival Traditional, one-day holiday US and Japan. Two-way trade totaled US$370.9 holidays and official holidays. Traditional holi- Dumplings eaten to signify reunion, lantern Dragon boat races, tsungzi dumplings, grass billion in 2005 as foreign exchange holdings days are those which originate in culture and his- displays, riddle contests fronds at door reached US$253.2 billion. Taiwan has no overseas tory and include days like New Year’s Eve, 15th day of 1st month 5th day of 5th month debts, a remarkable feat for a nation with a popu- Chinese New Year, Lantern Festival, Tomb- February 28: Peace Day August/September: Chung-yuan Festival lation of 23 million. sweeping Day, Dragon Boat Festival, Chung-yuan Memorial, one-day holiday Honors orphans and spirits Festival, Mid-autumn Festival and Chung-yung Commemorates events around Feb.28, 1947 15th day of 7th month 208 Asian Advertising - 2007 Current Status of Advertising - Taiwan 209

September 3: Soldiers Day for creativity. More foreigners appeared on screen affected by the loss of media buying revenues. functions to this day to monitor advertising effec- One-day holiday for military personnel and more overseas settings were used, and com- tiveness and collect data on TV and newspaper September 28: Confucius Birthday puters were used a lot more in post-production. The most significant change in Taiwan’s media exposure among consumers, offering digital infor- Ceremonies in honor of ancient sage These tend to make the commercials more watch- was the passing of the ‘three TV stations and two mation to advertisers and agencies. Confucius able, and technical innovations have helped newspapers’ era. The passage of the Satellite and Also called Teacher’s Day Taiwan-made commercials to win a number of Cable TV Law led to the sudden appearance of 60 The most widely recognized advertising September/October: Mid-autumn Festival awards in international competitions. In addition, to 70 more TV stations for Taiwan audiences to awards in Taiwan are the China Times Traditional, one-day holiday directors have come in from outside Taiwan to stir watch, thoroughly diluting the long-standing dom- Advertising Awards and the 4A Creative Awards, Get together to view moon, enjoy mooncakes up the market, and the long-standing apprentice inance of TTV, CTV and CTS and slicing their both of which are held annually. 15th day of 8th month system for developing new local directors is being share of the advertising pie. By 2000, cable and October 10: National Day challenged by graduates of colleges and universi- satellite TV ad revenues had already outstripped The leading advertising-related magazines are Traditional, one-day holiday ties. those of the original big three. Brain magazine, founded in 1977, and October 25: Retrocession Day Advertising magazine, founded in 1990. Another Marks end of war with Japan Multinational advertisers now play a very 2003 brought the rise of the Liberty Times and significant periodical is the Journal of Advertising September/October: Chung-yang Festival important role in Taiwan’s advertising industry, Hong Kong’s Apple Daily, both of which made Research, published by National Chengchi Traditional festival in honor of older citizens making up about half of the top 500 advertisers. significant inroads into the advertising market. University since 1993. Hiking, kite-flying, chrysanthemum wine, In 2003 six of the ten largest spenders on advertis- Apple Daily was remarkable for its tabloid-like Chung-yang cakes ing were multinationals P&G, Unilever, Taiwan focus on gossip, celebrity exposes and liberal 9th day of 9th month Kao, Chunghwa Mitsubishi, Taiwan Liu-lan- splashes of color photos. Apple’s appearance on 7) Media Summary December 25: Constitution Day hsiang (Wrigley’s Gum) and Ford Motor Co. The the scene caused other newspapers to follow suit Celebrates enactment of Constitution Taiwan Advertisers Association (TAA), founded and ‘apple-ize’ their own content to varying Taiwan has five major media: TV, newspapers, in May 2001, was the first organization in Taiwan extents. radio, magazine and other media. to act on behalf of advertisers. The founding com- 6) Advertising mittee was spearheaded by C.M. Kao, president of The opening of the Mucha Line of Taipei’s Television I-met Foods, and the guiding principles behind its Metropolitan Rapid Transit system in March 1997 This is the largest medium for advertising and Advertisers in Taiwan have enjoyed a very sta- establishment included ‘public good’ first and ushered in the age of MRT and created yet anoth- it goes back to 1962 and the founding of TTV. ble history. Membership in the Taipei Association ‘industry profits’ second. er new medium for advertisers. Outdoor advertis- CTV followed in 1969 and CTS in 1971, and the of Advertising Agencies has held at about 180 ing expanded into many new forms including sta- big three terrestrial stations dominated this seg- companies for the past few years. Most of what Sweeping changes have taken place in media tion posters, escalator signboards, large LED ment until well into the 1990s. turnover has occurred has been in new members buying in Taiwan. The island’s first media buying screens, MRT tickets and passes, car interior and who set up shop, join the association and then pull center was established at the end of the ‘90s in the exterior ads, and many other ad spaces in stations The entry of foreign and satellite channels after out after a year or two when incomes do not live wake of upheavals in the advertising industry. throughout the system. 1995 affected the television industry significantly. up to expectations. Business is much more stable Media buying was wrested from the hands of In 1997 Formosa TV began broadcasting, with for the larger agencies, in particular for multina- advertising agencies by shops specializing in ad Marketing research in Taiwan took a step for- PTS following in 1998. The more than 100 TV tional agencies and for agencies with a larger placement, costing agencies one of their three ward with the entry of A.C. Nielsen in 1982. In channels now available in Taiwan include only six number of multinational clients. main staples ad sales, creative production and 1993 People meters took the place of telephone terrestrial stations (CTS also has an educational media buying. Media fees and service fees had surveys, adding another dimension to the accura- channel), meaning that the main competition is Production companies prospered during the long served as a prime source of income for ad cy and speed of data collection. Local media now between cable and satellite channels. 1990s and many commercials broke new ground agencies, and agency operations were severely watcher Rain Maker was founded in1977 and Audiences and ad income for cable TV stations 210 Asian Advertising - 2007 Current Status of Advertising - Taiwan 211

eclipsed those of the terrestrial stations by the end During the 1970s the newspaper industry was Broadcast Media in Taiwan (as of July 2006) of the 90s. And of the six terrestrial stations PTS dominated by the China Times and the United and CTS Education do not broadcast advertising, Daily News, but by the 1990s the largest circula- leaving only TTV, CTV, CTS and FTV. The main tion was held by the Liberty Times. The newspa- Category Number Notes players among cable channels are San-li, Eastern per industry has always been - and continues to be (1) 29 stations were on air before liberalization of the media (includes Central Broadcasting Station) TV, Chung-tien, Great TV and Videoland, while - in flux as reading habits and other media change. (2) 143 stations have been set up following liberalization(140 of which have received licenses, and Radio 178 the principal foreign channels include CNN, three pending) NHK, Discovery and HBO, all of which enjoy Education levels in Taiwan are very high and (3) Six stations have applied for licenses for digital radio broadcasts fairly good viewer ratings. newspapers have long been a leading medium and a key source of information for the public. Terrestrial TV 5 TTV, CTS, CTV, FTS, PTS The billing system used in Taiwan relies on Changes in the laws governing newspapers in CATV 18 Cost Per Rating Point or CPRP, which means 1997 meant that registration and licensing were audience ratings function basically as currency in no longer required in order to publish. This made Satellite TV 141 57 local stations broadcasting on 96 channels as well as 17 overseas stations on 45 channels advertising. Audience ratings can indirectly influ- it much harder to monitor and verify circulation (Content providers) channels ence the content of television programming, a figures for newspaper. Of the twenty or so major point frequently criticized by academics and by titles now on the market, the leading papers are (1) Five local operators: Space TV, Hsin Chi Broadcast Co., Hung Kai Digital Technologies, Satellite TV International Advanced Music Co., Cosatech Communications many in the television industry. currently the Liberty Times, Apple Daily, China 8 Times, United Daily News, Chunghwa Daily and (Service providers) (2) Three foreign operators: Global Communications of Singapore; Turner of the US; and Taiwan AV, Five of the terrestrial stations - TTV, CTV, Minchung Daily. registered in the Cayman Islands CTS, FTV and PTS - initiated digital broadcasting Cable TV 63 in July 2004. Taiwan is thus already well into the Taiwan now has a branch of the Audit Bureau digital TV age, and in the future advertising will of Circulation (ABC) but with the exception of Fixed Broadband TV 1 Chunghwa Telecommunications need to respond to more channels, high-definition Apple Daily none of the major newspapers avail Source: National Communications Commission TV, interactive broadcasts and other changes, and of its services. The reluctance of newspapers to advertising execution will need to adapt in reveal their circulation is an indication of the high response. level of competition in the industry. radio broadcasts. While the Chiangs headed the approval. This means many new magazines have government there were severe restrictions on appeared. While hard to track, the industry is Newspapers Radio broadcast licenses, and the stations allowed to obviously flourishing, with many magazines The earliest newspaper in Taiwan was the Taiwan Radio was founded in 1925, about the broadcast made small fortunes from advertising. developing into publishing groups with several Taiwan Missionary Daily, established in 1885, same time broadcasting began in Japan. In 1926 When these restrictions were lifted in 1993 there titles under a single umbrella. Major titles include and the first newspaper under the Japanese occu- NHK was formed from stations in Tokyo, Osaka was a burst of applications and there are now Business Weekly, Taiwan Weekly, Commonwealth, pation was the Taiwan News Daily, which started and Nagoya, meanwhile test broadcasting in some 178 licensed stations on the island. The Global View, China Times Weekly, Non-non, up in 1896. The most influential paper of the time Taiwan had been going on since 1925, with a full biggest earners for ad revenues are BCC, Taipei Reader’s Digest and PC Home. was the Taiwan Daily News. Following the end of station on air in 1928 and Taipei Radio in opera- Philharmonia, KISS Radio, Cheng-sheng, Voice World War Two the KMT took over the Taiwan tion by 1931. of Victory and the English-language ICRT. Other Media News Daily and re-named it the Taiwan New Life The newest and hottest medium is the Internet, Daily, which was the number one medium at the During the Japanese occupation Taiwan Radio Magazines which appeals mostly to young and well-educated time in Taiwan. It was eventually surpassed by the was a non-commercial enterprise. It was only in Restrictions on magazine publication were lift- consumers and thus attracts advertising for the KMT's own publication, the Central Daily News. the 1950s that advertising began to appear on ed in 1999, and titles no longer require prior products they use. At present the key networks in 212 Asian Advertising - 2007 Current Status of Advertising - Taiwan 213

Advertising Expenditures for Television, Newspapers and Magazines in Taiwan, 1996-2005 chipped in with the Golden Deer Awards for TV 4A Liberty Creativity Awards ad production in 1998, and in the same year These awards were originally established by Units: NT$ 1,000 Breakthrough magazine introduced the Marketing 4A in 1991 as the 4A Creativity Awards. They Media TV Newspaper Magazine Creativity Breakthrough Awards for magazine were intended to serve as a family gathering of advertising. sorts for the industry, and the first ceremony Year Ad.Exp Growth Rate Ad.Exp Growth Rate Ad.Exp Growth Rate excluded advertisers while featuring judges select- 1996 21,699,060 13,453,494 4,033,358 Currently the line-up of advertising awards ed by 4A members. The cost of staging the event 1997 24,926,655 14.87% 18,063,136 34.26% 4,837,190 19.93% includes: led 4A to seek out media to co-host the awards, 1998 34,845,316 39.79% 21,157,223 17.13% 5,886,787 21.70% and in 1999 as the result of a membership vote, Golden Bell Awards the awards became the 4A Liberty Creativity 1999 32,234,840 -7.49% 18,858,303 -10.87% 6,099,264 3.61% The Golden Bell Awards are presented by the Awards with the inclusion of the Liberty Times in 2000 30,669,785 -4.86% 18,745,551 -0.60% 7,200,213 18.05% GIO and are the only TV ad awards given by a the awards process. 2001 27,703,212 -9.67% 16,414,195 -12.44% 6,509,510 -9.59% government agency. Established in 1965, they were set up to encourage excellence in radio and 2002 32,175,454 16.14% 12,195,574 -25.70% 6,614,797 1.62% television programming and personnel. Changes 9) Advertising Education 2003 33,413,452 3.85% 15,120,996 23.98% 7,568,807 14.24% in the medium brought changes in the awards, and 2004 34,009,548 1.78% 16,524,403 9.28% 8,063,754 6.54% in 1974 advertising awards were added to the mix, In Retrospect with citations for best radio and television ads as Advertising education in Taiwan officially 2005 30,967,216 -8.95% 16,325,028 -1.21% 8,410,252 4.30% well as a production award. In 1997 another began with the Journalism Department at National Source: Rain Maker change came with the inclusion of cable TV chan- Chengchi University, which set up a class in Note: Beginning in 1997 TV includes both terrestrial and cable TV. nels in the TV awards. Principles of Advertising in 1957. In 1958 the Business Administration Department added a China Times Golden Awards course called Advertising. Professor C.S. Hsu Taiwan are Yahoo Kimo, PC Home and Yam, the Taiwan New Life News established the ‘Best These awards were originally known as the took over the Journalism Department in 1968 and each of which is doing well in terms of advertis- Design Award for Newspaper Advertising’ in China Times Design Awards, established in 1978. revised the curriculum so that Advertising became ing revenues. 1965. The first awards for television advertising At the 3rd annual awards in 1980 they were re- a mandatory class and juniors studied elective came in 1968 with the Golden Pyramid Awards named the China Times Golden Awards, and in classes in politics, economics, law, international The MRT is a major medium in Taipei, and founded by TTV. The Golden Bell Awards initiat- 1983 the Public Service Special Awards were relations and business administration. Students efficient management has earned the system a bil- ed in 1974 were more broad, including accolades added. The number of entries reached 1,000 in were required to take at least 20 hours of classes lion NT dollars in revenue yearly. Ads appear in for both radio and TV. 1978 saw the Golden 1984 and in 1985 the awards ceremony was in these areas. In their senior year students opted cars and stations including LCD screens on wait- Bridge Awards set up by the Economic Daily broadcast live on TV for the first time. TV ads for a major in editing/reporting, radio/television, ing platforms. Outdoor advertising is flourishing News and the China Times Advertising Awards were added as a category in 1988, and in 1990 the English-language journalism or advertising/public in Taipei with neon signs, transit ads in buses and initiated by the China Times. The 4A’s 4A China Times Asia-Pacific Advertising Awards relations. The advertising/public relations track Bee TV on LCD screens in buses. Creative Awards came in 1991, and in 1992 the were initiated. In 1991 judging in the awards took included Public Relations, Marketing, Print Media China Times brought out the Golden Calf Awards. place in two stages, and in 1992 the Golden Calf Ad Production, Electronic Media Ad Production, 1993 witnessed the Worldwide Awards for Awards were set up to honor works done by stu- Advertising Planning and Events and Public 8) National Advertising Awards Chinese Advertising, and 1994 brought the dents, with a new category for classified advertis- Opinion Surveys among other courses. Golden Sentence Awards for creativity in maga- ing as well. In 1993 the awards added the Taiwan has had advertising awards ever since zine advertising, from Brain magazine. The GIO Worldwide Awards for Chinese Advertising. In the same year that NCCU’s courses were re- 214 Asian Advertising - 2007 Current Status of Advertising - Taiwan 215

designed, another university established Taiwan's and appointed Cheng Tzu-leong to run the pro- December 1966, a time when Taipei City was At this time a dispute over the international first Advertising Department. Hsingwu College at gram. The program has attracted 15 candidates being designated a Special Municipality, the asso- English name of the organization and its accredi- Linkou in Taipei County received permission each year including two to three working students ciation re-organized to upgrade its operations by tation had the Association facing disbandment. from the Ministry of Education in 1968 to set up a and a number of candidates from overseas. dividing into three separate associations based on Fortunately with the full support of the Board of two-year program in advertising in conjunction profession. Thus TAA was born on December 15, Directors, T.K. Hsu, the fourth Chairman of the with Kwo-hwa Advertising and the English-lan- Other advertising-related educational activities 1975. Association, was able to calm the dispute and guage China News. H.L. Liu took charge as the in Taiwan include the Public Relations resolve the accreditation issue. first director of the program. Department established in 1963 at Shih-hsin Association heads over the years have included Academy, which was renamed Shih-hsin F.W. Chen, W.F. Chang, T. Yang, T.Y. Chiang, P.J Once these problems were settled they were Current Situation Communications Academy in 1991. In addition, . Hsu, T.K. Hsu, T.C. Shen and J.X. Hu. The cur- able to continue with planning for the Congress. Chinese Culture University set up a the Public Relations Department was re-organized rent chairman is C.C. Huang. Tomming Lai, K.H. Lee, Yi-chih Liu and others Department of Advertising in 1986, the first of its as the Public Relations and Communications worked quickly to expand the China Times kind in Taiwan. The department grew steadily Department. Shih-hsin has since been designated One of TAAA’s major achievements was host- Advertising Awards to cover entries from the under the guidance of C.S. Liu, who served as its a full university. In 1997 Fu-jen University set up ing the Asian Advertising Congress in 2001 with entire Asia-Pacific region in order to strengthen head for ten years. Students were encouraged to a separate department for Advertising and its energetic gathering of international delegates. the prestige of the event and win support from participate in activities outside of classes. Special Communications, and in 1999 Ming-chuan TAAA has helped to organize delegations from influential figures in the Asian advertising indus- awards were presented and China Advertising University established a Department of Taiwan to every AAC since 1980 with the excep- try. This was eventually helpful in achieving magazine was founded, and a scholarship was Advertising, became the fourth university in tion of the 1989 Congress in Pakistan where they accreditation for the Association in 1990. Chou provided by United Advertising, all of which Taiwan to do so. In addition, there is a technical were unable to obtain visas. Sheng-hsiao served as Chairman for the 5th and made solid contributions toward developing talent program for advertising at Kunshan University in 6th terms following re-accreditation and launched for Taiwan’s advertising industry. Taiwan. TAAA also publishes the ROC Advertising a campaign to restore the international reputation Yearbook, a periodical which serves as an of the Taipei Chapter. The 7th and 8th Chairman NCCU set up its own Advertising Department Yet another advertising-related development overview of advertising in Taiwan each year. The was Kao Chih-ming, who helped to get more peo- in 1987 under S.F. Wang, who led it for seven was the establishment of advertising courses in association commemorated Advertising Day for ple involved in activities related to the awards in years. Beginning in 1992 the department has held the School of Communications at NCCU. These the first time in 2006 to honor those involved in order to make them more effective and efficient. an annual symposium on Advertising and Public included advertising planning, public relations advertising. Held the first Friday in November, Shen Ta-chi was Chairman of the Association for Relations Studies in the ROC. Academics are and cross-media production courses. the event promises to become an annual affair for the 9th and 10th terms, which was also when the encouraged to provide papers for the symposium the advertising industry in Taiwan. 20th AAC (Asian Advertising Congress) took and it is followed up with the Journal of place in Manila in November 1997. The Advertising Studies, a publication which has done 10) List of Major Advertising Associations International Advertising Association Association was able to encourage a large group much to further advertising education in Taiwan The International Advertising Association of delegates from Taiwan to attend the Congress, while solidifying the reputation of the Advertising Taipei Association of Advertising Agencies (IAA) was first established in Taiwan as the China and the delegation’s enthusiasm and energy were Department. The Taipei Association of Advertising Chapter of the World Advertising Association. key to Taiwan’s selection as the host site for the Agencies (TAAA) is the most important advertis- M.Y. Hsu served as the first chairman of the chap- 2001 Congress. In 1999 NCCU’s Department of Advertising ing-related organization in Taiwan. Originally ter, with W.T. Chou following as second chair- sought candidates for Master’s degrees, the first founded as the Taipei Association of Advertising man. In 1973 changing diplomatic relations made Raymond So was chosen as Chairman of the instance of post-graduate studies in advertising in Businesses on January 25, 1958, TAAA’s mem- it impossible for Taiwan to continue using the title Association for the 11th and 12th terms and con- Taiwan. Under the careful guidance of S.F. Wang bership consists entirely of advertising techni- “China” and the association regrouped as the currently served as vice-chairman of IAA from and C.L. Kuo the department recruited students cians, sign makers and venue designers. In ROC (Taiwan) Chapter of the IAA. 2002 to 2004 - the first person of Chinese extrac- 216 Asian Advertising - 2007 Current Status of Advertising - Taiwan 217

tion to serve in that position. So strove to expand their cooperation. The Legal Issues Committee Taipei Internet Advertising & Media The JAR is published by the Department of the scope of activities for the Taipei Chapter and offers information and helps to resolve any legal Association Advertising at NCCU and is the most significant to heighten its profile in the international commu- problems encountered by members of the The Internet Advertising and Media periodical published in Taiwan regarding advertis- nity. The Silver Treasure Project, which was origi- Association; it also keeps up to date on the latest Association of Taipei (IAMA) was founded in ing and related studies. First published in 1993, it nally proposed by Longmen Hu, won widespread topics in international advertising and law and July 2006 and is dedicated to creating a unified comes out twice a year and includes academic attention and respect from other chapters of IAA. carries out seminars and classes on issues relevant spirit among advertising and media agencies in papers and book reviews. Submitted items are The Chapter was given responsibility for develop- to advertisers and agencies in Taiwan. Taiwan through shared goals and standardized checked by two editors before appearing in the ing the project and it was eventually adopted in procedures. Hopefully this will help to promote journal. 2005 with the establishment of the Silver Treasure The 4A also has a Liberty Times/4A Creative understanding and cooperation between advertis- Fund for the Asia-Pacific Region. Awards Planning Committee which has held the ers and members of the advertising industry, The 16th issue of JAR in 2006 contained a 4A Creative Awards since 1991, a record of 16 media outlets, media agencies, Internet marketing wide variety of essays on public relations, creativ- Association of Accredited Advertising Agents years to date. The purpose of the original 4A companies and Internet media so that all can grow ity and design, consumer behavior, campaign of Taipei (Taipei 4A) Creative Awards was to publicize outstanding cre- and prosper together. advertising, advertising effectiveness, history of The Association of Accredited Advertising ative works from Taiwan and help refine the local advertising, media strategy, ethics and the law and Agents or 4A is composed of large full-service advertising industry’s skills in and appreciation The Association has been in existence for less Internet advertising. agencies in Taiwan. Its precursor the General for creativity in advertising production. This led than a year but already it has held a conference Advertising Agencies Association was founded to the expansion of the awards to the Liberty 4A bringing together 26 corporate members and one China Advertising Research July 1, 1987. In December 1991 the association Creative Awards in 1999 to promote even wider individual member. This conference resulted in Published by Chinese Culture University since applied for designation as an official civic organi- appreciation of creative skills among the advertis- the establishment of four committees composed of 1996, the periodical contains stories and essays zation, changing its name to the AAAA. In 2005 ing community in Taiwan. representatives from various association mem- related to advertising in Taiwan and serves as a membership stood at 36 agencies. bers. These committees are the Association brief recent history of the island's advertising Media Agency Association of Taipei Affairs Planning and Execution Committee; the industry. 4A is overseen by six committees covering The Media Agency Association of Taipei Public Relations and Publicity Committee; and Public Relations, the Advertising Industry, Media, (MAA) was founded in 2000 and consists of two committees for development of cooperative Mass Communication Research Advertisers, Academia and Legal Issues. These media buying agents in Taiwan. The Association projects with domestic and with international This is the most important publication in six committees put forward plans and suggestions now has 21 corporate members, and individual agencies and organizations. Each committee is Taiwan regarding mass communications. as required by situations in these areas. For exam- members of the Association are divided into four headed by a convener and an assistant convener to Published by the Department of Journalism at ple, the Public Relations Committee serves to groups according to their profession: Association facilitate the various activities of the committee. NCCU, it has been published since 1967 and fea- ensure that 4As maintains a solid reputation for Affairs, Electronic Media, Print Media and Media tures essays on advertising research in Taiwan. the advertising industry, and it works to keep Research. Allocation of members to groups, des- interaction of ideas and experiences flowing ignation of group leaders and assignment of tasks 11) List of Major Advertising Journals Journal of Radio & Television Studies smoothly among the various members of the orga- to members are all handled by the Association's Published by the Department of Radio and nization. The Media Committee checks to see that Board of Directors. The major advertising journal published in Television at NCCU, this is a key academic jour- all members are given equal and fair access to the Taiwan is the Journal of Advertising Research by nal for those involved in radio and television. It media in Taiwan and also monitors the accuracy Taiwan Advertiser Association the Department of Advertising at NCCU. Other first appeared in 1992 and features articles on of audience rating services. The Advertisers The Taiwan Advertiser Association (TAA) was publications include China Advertising Research, advertising studies. Committee works to promote good relations founded May 3, 2001. It has more than 40 mem- Journalism Research, and Radio and Television. between advertisers and agencies and ensure that bers with total billings of over NT$10 billion. ROC Advertising Journal each side respects the other and both profit from Journal of Advertising Research The Taipei Association of Advertising 218 Asian Advertising - 2007 Current Status of Advertising - Taiwan 219

Agencies first published this periodical in 1988. It broadcast during general audience viewing seg- for products like pharmaceuticals and food prod- was edited by Y.C. Liu of Fu-jen University’s ments. ucts. Department of Advertising and later by H.L. Liu of the same department. Since 1995 the editor has In January 2004 the government agency which During the past few years the Taiwan govern- been Professor Cheng Tzu-leong of the oversees Taiwan’s radio and television industry ment has become much more pro-active in sup- Department of Advertising of NCCU. released the Basic Communications and porting and encouraging the advertising industry. Broadcasting Law. The third paragraph of this The National Communications Commission In addition to these academic journals there are document stipulated that ‘in order to effectively (NCC) is charged with monitoring the contents of two magazines which have contributed signifi- control communications and broadcasting the gov- advertising, while most government support cantly to the development of advertising in ernment will set up a National Communications comes from the Government Information Office Taiwan. Commission operating independently under the and the Commercial Office of the Ministry of law. Planning for all national communications and Economic Affairs. In 2005 the MOEA launched a Brain magazine has been published monthly broadcasting organizations and guidance and three-year program called the “Plan to Upgrade since July 1977.Tomming Lai was the first pub- encouragement of such organizations will be car- Advertising,” which offers training in the areas of lisher and C.S. Wu the first president of the maga- ried out by an agency of the Executive Yuan “The Advertising Environment,” “Cultivating zine. The magazine’s strategy has always been to under the law’. Advertising Talent” and “Values and Concepts in remain ‘small but potent’, with articles that are Advertising.” TAAA organized a special relatively simple but very much to the point. In other words, there are to be two governing Advertising Day in 2006, and the first Friday in bodies, each operating in accordance with its abil- November is now officially recognized as Advertising magazine first came out in 1991 ities. The NCC will handle monitoring of content Advertising Day in honor of the contributions that under editor C.L. Tuan, with C.T. Tuan as presi- and licensing approval, and the GIO will be the advertising industry has made to society in dent. Media expert C.S. Hsu also cooperated in responsible for strategic planning and industry Taiwan. the venture as publisher. The magazine relies guidance. heavily on Advertising Age magazine, even taking the English-language publications’ name as its Under the principle of journalistic freedom, own English name. Taiwan has not imposed any limitations on print- ed media, and there are no government agencies overseeing the planning and production of print 12) Government Agencies Responsible for advertising. Television advertising is monitored in Advertising accordance with the Radio and Television Law, the Satellite Television Law and the Cable Taiwan is a nation which places a very high Television Law. value on free speech. It also lacks an ‘Advertising Law’ specifically designed to control the opera- In addition to the Radio and Television Law tions of its advertising industry. With the excep- there are a number of other government agencies tion of films and television ads, there is no need to which oversee parts of the advertising industry. submit ads to a government agency for censor- The Executive Yuan operates under the Fair Trade ship. Monitoring of commercials stipulated in Act of 2005 to monitor advertising, and its order to prevent restricted materials from being Department of Health keeps tabs on advertising 220 Asian Advertising - 2007 Current Status of Advertising - Thailand 221

C H A P T E R 4 throne, which is considered the longest reigning zine, cinema, out-of-home, and internet. current monarch in the world. In addition, he was Television is the most popular medium. Six terres- presented with the first Human Development trial stations are available for advertising nation- Lifetime Achievement Award by the United wide. It reaches all target groups, but it can also Nations. be very clutter. As the demands of advertising on Current Status of Advertising - Thailand television are high, quota system is in practice. A large majority of over 65.2 million people About ten minutes per hour are allowed to be are ethic Thais, along with strong communities advertised. whose ethnic origins lie in China, India and oth- by Saravudh Anantachart, Ph.D. ers. Official spoken and written language is Thai. The second media type is cable or pay televi- However, English is widely understood, particu- sion. Its coverage is limited for only Greater In this chapter, the current status of advertising larly in Bangkok where it is almost the major Bangkok areas and some key provinces. Under in Thailand is reviewed. In details, general infor- business language. Buddhism is the main religion True Visions, the only company running the cable mation about Thailand, summary of media in in Thailand while other religions are welcome. television, 78 channels are available. Commercial Thailand, big pictures of Thai advertising indus- spots are not allowed. Only sponsorship and filler try, advertising professionalism, and advertising The Thai currency is Baht (THB). Thirty-six advertising, the one used to promote companies' education are explained. Baht is equal to 1 U.S. dollar (USD). In 2006, the events and activities, are run in certain channels. total GDP of Thailand is USD 585.9 billion while the per capita GDP is USD 9,100. Years in Radio is a good medium used to penetrate to Thailand at a Glance Thailand are numbered according to the Buddhist Thai teenagers and working people. Since its cost era (B.E.) which commenced 543 years before the per spot is not expensive, radio could help build Formerly known as Siam, the Kingdom of Christian era (A.D.). Thailand’s national public brand recall through its frequency. Approximately, Thailand lies in the Indochina Peninsula. Its bor- holidays are linked to religious or agricultural tra- 526 A.M. and F.M. radio stations are currently ders are with Myanmar on the North and West, ditions and follow the lunar calendar. In general, broadcasted. Among them, 80 stations are in Laos P.D.R. on the North and Northeast, holidays includes the followings: New Year Day, Bangkok while the rests are in other provinces. Cambodia on the Southeast, and Malaysia on the Makha Bucha Day, Chakri day, Songkran Day, The top five radio programs nationwide are Thai South. With the 513,115 square kilometers, National Labor Day, Coronation Day, Visakha folk song, Thai modern music, news, international Thailand is divided into four regions; the North, Bucha Day, Asanha Bucha Day, Buddhist Lent music, and traffic news. the Central, the Northeast, and the South. The Day, His Majesty the Queen’s Birthday, country comprises of 76 provinces. Bangkok is Chulalongkorn Day, His Majesty the King’s Next is newspaper. It is classified into four seg- the capital city, and the center for economic, polit- Birthday, Constitution Day, and New Year’s Eve ments; Thai daily, Thai business, English daily, ical, religious, and cultural activities. Day. and sport newspapers. Thai Rath and Bangkok Post are the top Thai and English daily newspa- Thailand is a constitutional monarchy. The pre- pers, in terms of readership. Most circulation sent king is His Majesty King Bhumibol Thai Media Summary numbers for newspapers are claimed while a few Adulyadej, the ninth king of the Chakri Dynasty. are audited. Magazine is good to reach certain tar- Thailand and Its neighbors. Last year, there was the 60th anniversary celebra- Currently, media options in Thailand can be get groups as it is segmented into many types. tion of His Majesty the King’s accession to the mainly divided into eight types. They are televi- Nonetheless, women and general magazines are sion, cable television, radio, newspaper, maga- the most popular ones. Lately, various new maga- 222 Asian Advertising - 2007 Current Status of Advertising - Thailand 223

zine titles hit the shelf. No audited circulation Advertising Industry at a Glance were from consumer product groups. They are cation channel planning. In 2005, the top two number for magazine is available. Unilever (Thai) Holdings, Procter & Gamble advertising agencies in the country were JWT After Thailand recovered from the economic (Thailand), and Nestle (Thai) Ltd. The total Bangkok and Ogilvy & Mather, both from WPP Thai Rath and Bangkok Post, crisis, the overall advertising spending grew amount the top ten advertisers spent in 2006 Group. Besides Western agencies, three Japanese the top Thai and English daily newspapers in Thailand. sharply in 2002. However, two years later, the accounted for 17.0% of the overall country spend- agencies were on the top list: Dentsu (Thailand), industry's growth rate dropped to single-digit fig- ing. Dai-Ichi Kikaku (Thailand), and Chuo Senko ure, and continued to fall in 2006. Both internal (Thailand). Most media specialists in the top ten and external factors have affected the media The top ten brands advertised most were Pond's list are affiliated with their advertising agencies. spending. They are, for example, rising oil prices, facial skincare product, Oil of Olay facial skincare Minsdhare/Maxus, a WPP Group's company, was turmoil around the world, bird flu, flood, violence product, Happy mobile phone system, PTT Public the number one while OMD, an Omnicom in the Southern part of Thailand, and new laws Co., Ltd., One-2-Call mobile phone system, Group's company, and Starcom SMG, a Publicis and regulations. Clinic anti-dandruff shampoos, TV Direct direct Groupe's company, ranked numbers two and sales, Toyota pickups, Toyota passenger cars, and three, respectively. Isuzu pickups Total Advertising Expenditures 2000~2006 Top Ten Advertisers 2006 Top Ten Advertising and Media Agencies 2005 Year Million Baht Change Recently, cinema gains more popularity among 2000 59,071 24% Rank Advertisers Baht ('000) Rank Advertising Agency Rank Media Agency Thai people, especially teenagers. Though the 2001 59,960 2% 1 Unilever (Thai) Holdings 5,126,365 1 JWT Bangkok 1 Mindshare/Maxus total number of cinema houses was 616 last year 2002 67,682 13% 2 Procter & Gamble (Thailand) 1,691,427 2 Ogilvy & Mather 2 OMD (324 in Bangkok), new houses keep emerging, as 2003 77,963 15% 3 Advance Info Service Pcl. 1,608,408 3 Leo Burnett 3 Starcom SMG well as their quality that are improved each year. 2004 90,883 17% 4 Toyota Motor Thailand, Co., Ltd. 1,380,978 4 Dentsu (Thailand) 4 Carat (Thailand) As businesses are booming and consumer 2005 95,667 5% 5 Nestle (Thai) Ltd. 1,001,833 5 Euro RSCG Flagship 5 Initiative lifestyles are changing, the demand in out-of- 2006 99,024 4% 6 PTT Public Co., Ltd. 988,191 6 Lowe 6 Mediaedge: cia home media increases. Both traditional and vari- 7 Beiersdorf (Thailand) Co., Ltd. 940,283 7 Dai-Ichi Kikaku (Thailand) 7 ZenithOptimedia ous innovative out-of-home media are available. Source: Nielsen Media Research 8 Total Access Communications 906,537 8 BBDO Bangkok 8 Universal McCann Locations vary while the advertising rates are 9 Osotspa (Teck Heng Yoo) 857,730 9 Chuo Senko (Thailand) 9 Prakit FCB more flexible. 10 Boonrawd Brewery Co., Ltd. 819,537 10 Dentsu, Young & Rubicam 10 MediaCom In 2006, the total advertising spending was Finally, with the 8.4 million Thai users, internet 99,024 million Baht. Television was the top medi- Source: Nielsen Media Research Source: Revenue Department becomes another interesting medium for business- um with 54.0% share followed by newspaper, es to reach their potential and current customers. radio, and magazines (23.4%, 7.5%, and 6.8% Many companies have their own web sites and shares, respectively). Though their total shares Lately, as media departments in advertising advertise their products and services through the were small, in-store and transit media had the agencies became separating business units, how Advertising Professionalism internet. In addition, online games are popular highest growth rate (174.5% and 40.5% increases one rates the competency that each agency has among Thai children and adults. from 2005). was therefore changed. The focus of the advertis- Associations. ing agency would be on brand building while In Thailand, two associations play the impor- Three out of the top five advertisers last year media agency places more emphasis in communi- tant roles in advertising professions. The first one 224 Asian Advertising - 2007 Current Status of Advertising - Thailand 225

is the Advertising Association of Thailand (AAT), workshops. Each year, BAD's members vote for keting, direct marketing, and media work. Second Broadcasting Board, a joint committee composed the industry association serving as the main unit their president. Besides annual events, BAD's is the Adman Symposium which provides con- of representatives from television stations and the to build better understanding among its members, president develops and initiates new activities to temporary knowledge in advertising and market- AAT. and between advertising agencies and institutions, strengthen the association. In 2007, the BAD's co- ing communications to the public. associations, government, and other related orga- presidents are Mr. Passapol Limpisirisan and Mr. Several government regulatory organizations nizations. It tries to raise the standard of advertis- Wiboon Leepakpreeda, Chief Creative Officers deal with the control of advertising. The ing professionalism, publicize the advertising from Monday. Consumer Protection Board (CPB), an agency value, and generate other activities that could ben- Other related industry associations includes under the Office of the Prime Minister, has the efit advertising professions. The association is run Marketing Association of Thailand, Thailand legitimate power to regulate any advertisements by practitioners from various advertising agencies Management Association, Public Relations that are deceptive, misleading, or offensive. on a voluntary basis. The term for each AAT com- Society of Thailand, Thai Direct Marketer Another agency is the Food and Drug mittee is two years. Currently, Chief Executive Association, Broadcasters Association of Administration (FDA). Under the Ministry of Officer of Creative Juice\G1, Mr. Witawat Thailand. Public Health, the FDA has the power to control Jayapani, is the AAT's president. advertising for food, pharmaceutical products, Awards. cosmetics, and other potentially hazardous con- The "Advertising Value" The first well-known advertising contest in suming products. Campaign run by the AAT to Thailand is the Top Advertising Contest of correct understanding of Thai Three Thai advertising trophies: TACT Awards, BAD Awards, and consumers about the value of Thailand (TACT) Awards which is operated by Adman Awards. advertising. three universities. The main criteria for TACT Advertising Education Awards lie in marketing more than creative aspects. In addition, as the contest was originated Code of Ethics. In higher education, advertising, as an academ- from educational institutes, all judging procedures In the beginning era of the AAT, the code of ic discipline, is one of the study areas mostly strictly follow academic blueprints. After its 29th ethics was developed as a guideline for its mem- offered in journalism and mass communication annual events, organizers decided to stop the con- bers on a voluntary basis. Recently, the code was schools. At the undergraduate level, approximate- test as many problems occurred lately. The last reviewed and updated on the basic principles that ly, 38 public and private universities and colleges TACT Awards was held in 2006. advertising must be legal, truthful, along with around the country provide programs in advertis- Thai norms, socially responsible, and under the ing. As competition among universities becomes BAD Awards is creative-oriented contest orga- fair competition. The current advertising codes of severe, various institutions attempt to differentiate nized by the Bangkok Art Directors' Association. ethics comprises of ten guidelines. Nonetheless, their programs by offering new, unique curricula, This contest is positioned as an alternative for the association does not have any coercive power like creative-focused advertising track, manage- other marketing awards, and a reward for individ- to enforce the code among its members. The only ment-focused advertising track, marketing com- ual creatives rather than their advertising agen- penalty is the dismissal from the membership. munications major and brand communication cies. major. Regulations. Bangkok Art Directors' Association (BAD) is Last, Adman Awards is the newest contest in In Thailand, cigarettes are prohibited from Advertising education at the master's level pro- another association that focuses on advertising Thailand organized by the AAT since 2004. Two advertising in all media. On television, alcohol vides students with in-depth, advanced knowledge creativity development. Being positioned to be the parts are included under the event. First, Adman commercials could be aired only between 10 p.m. in advertising and research skills. Two public and center for creative people in the advertising field, Awards, the IMC contest that gives awards to and 5 a.m. Generally, all television commercials four private universities offer their master’s cur- its activities are related to creative contests and advertising as well as public relations, event mar- must be pre-censored by the Television ricula in advertising/marketing communications. 226 Asian Advertising - 2007 Current Status of Advertising - Thailand 227

All are located in Bangkok, the hub of Thai adver- Chulalongkorn University’s Faculty of BIBLIOGRAPHY tising business. In addition, there are six universi- Communication Arts. It is now in the 25th vol- ties offering doctoral programs in communication ume. Using the blind reviewing process, this quar- Advertising Association of Thailand (2002). All about advertising. Bangkok, Thailand: Love and Live. arts. Students might choose to focus their doctoral terly journal publishes both Thai and English Anantasomboon, K. (2000). Undergraduate curriculum in advertising and workforce demand in Thailand. dissertations in advertising/marketing communi- manuscripts. Unpublished master's thesis, Chulalongkorn University, Bangkok, Thailand. cations areas. Chaisuwan, B. (2002). Construction of the advertising code of ethics in Thailand. Unpublished doctoral Although each higher educational institution dissertation, Chulalongkorn University, Bangkok, Thailand. tends to publish its own academic journals, no advertising journal exists in Thai academia. Most Chantrasoot, N. (2004). Graduate curriculum in advertising and workforce demand in Thailand. Unpublished master's thesis, Chulalongkorn University, Bangkok, Thailand. of them are journals of communications in gener- al, where work from all communication fields Chirapravati, V. (1996). The blossoming of advertising in Thailand. In K. T. Frith (Ed.), (e.g., advertising, public relations, journalism) are Advertising in Asia: Communication, culture, and consumption (pp. 223-240). welcomed. The most well-known and accepted Ames, IA: Iowa State University Press. communication journal is the Journal of Chirasopone, J. (2005). Perception and attitude of advertising practitioners toward advertising awards. Communication Arts, published by Unpublished master's special project, Chulalongkorn University, Bangkok, Thailand. Thailand's Journal of Communi- cation Arts. Kullavongvanich, S. (2000). Development of advertising agency in Thailand (after the World Was II to June 1997). Unpublished master's thesis, Chulalongkorn University, Bangkok, Thailand.

Marittanaporn, P. (Ed.). (2007). Advertising: Advertising agency, production house, media, marketing (vol. 20). Bangkok, Thailand: Bangkok Printing.

Nawigamune, A. (1995). Classic advertising. Bangkok, Thailand: Nora.

Nawigamune, A. (1996). Advertising in Thailand. Bangkok, Thailand: Seangdad.

Nawigamune, A. (2000). Thai advertisements (vol. 1). Bangkok, Thailand: Nora.

Pattarathammas, K. (2004). The development and future of integrated marketing communications concept and utilization in Thailand. Unpublished doctoral dissertation, Chulalongkorn University, Bangkok, Thailand.

Senarak, P. (2004). The development of advertising education in Thailand. Unpublished master's thesis, Chulalongkorn University, Bangkok, Thailand.

Shrestha, R. (Ed.). (2007). The advertising book 2007: Thailand advertising, marketing, and media guide (vol. 19). Bangkok, Thailand: PCP Asia. 228 Asian Advertising - 2007 Current Status of Advertising - China 229

C H A P T E R 4 2) The GDP of China from 2000 to 2005 times more than in 2000. By the end of 2005, China has accumulatively absorbed 274.08 billion Compared with the year 2000, the GDP of US dollars of paid-in foreign capital. 2005 has increased by 57.3% with an average Approximately, 42 million people have been growth rate of 9.5% per year; fiscal revenue has Current Status of Advertising - China increased by 364.7 billion per year. Per Capita GDP of 2000-2005 The aggregate trade value in 2005 was two

GDP of 2000-2005 (Billion RMB) Per Capita GDP Per Capita GDP by Wen Chunying, Ph.D. / Liu pengzhe Year (Unit: RMB) (Unit: US Dollar)

2000 7,858 949 1) The Demographics Sex Proportion : The male population is 653.55 Primary Secondary Tertiary Year GDP 2001 8,621 1,042 million which makes up 51.63% of the total popu- Industry Industry Industry 2002 9,398 1,135 Since November 11, 2000, the Chinese govern- lation; the female population is 612.28 million 2000 9,921.5 1,471.6 4,555.6 3,894.3 ment has carried out five nationwide censuses of making up 48.37% of the population. The male- 2001 10,965.5 1,551.6 4,951.2 4,462.7 2003 10,542 1,274 the population (the prior four times were in 1953, female ratio is 106.74 for every 100. 2002 12,033.3 1,623.9 5,389.7 5,019.7 2004 12,336 1,490 1964, 1982 and 1990). 2003 13,582.3 1,706.9 6,243.6 5,631.8 2005 13,925 1,703 The gross population of China is 1.29 billion. Age Distribution : In terms of the population 2004 15,987.8 2,095.6 7,390.4 6,501.8 The 31 provinces, municipalities, and municipali- by age, 289.79 million people are between 0-14 2005 18,232.1 2,271.8 8,620.8 7,339.5 Source: National Bureau of Statistics of China ties directly under the Central Government in years of age, which makes up 22.89% of the total mainland China has the population of 1.27 billion, population; 887.93 million are between the age of Source : National Bureau of Statistics of China while the population of Hong Kong Special 15-64 making up 70.15% of the total population; GDP and Growth Rate 2000 - 2005 Administrative Region (SAR) is 6.78 million, the remainder of the population, 88.11 million, are Macau SAR 440,000 and Taiwan 22.28 million. over 65 years old, accounting for 6.96% of the total population. GDP Growth Rate of 2000-2005 (%) Population Growth: As compared with the GDP Growth Rate (%) fourth nationwide population census conducted in The Urban and Rural Population : the number 20,000 12 Primary Secondary Tertiary July of 1990, the total population in China, which of people who live in urban areas are 455.94 mil- Year GDP 18,000 Industry Industry Industry 10 was 1.13 billion, has increased by 132.15 million lion, covering 36.09% of the total population; the 16,000 with a growth rate of 11.66% in the 10 years and 4 people living in rural areas are 807.39 million, 2000 8.4 2.4 9.4 9.7 14,000 8 months. Every year the population has increased making up 63.91% of the total population. 2001 8.3 2.8 8.4 10.2 12,000 18,232.1 15,987.8 by 12.79 million with the average growth rate of 2002 9.1 2.9 9.8 10.4 10,000 6 1.07%. Education : The number of people with a col- 2003 10.0 2.5 12.7 9.5 Billion RMB 13,582.3 8,000 12,033.3 lege education is 45.71 million, which is 3.61% of 2004 10.1 6.3 11.1 10.0 4 6,000 10,965.5 Households : China has a total of 348.37 mil- the total population. The illiteracy population 2005 9.9 5.2 11.4 9.6 4,000 2 lion households with a household population of (people over 15 years old who cannot read or can 2,000 Source : National Bureau of Statistics of China 1.2 billion implying that every average household read little) is 85.07 million which accounts for 0 0 has 3.44 people. 6.72% of the total population. 2001 2002 2003 2004 2005 230 Asian Advertising - 2007 Current Status of Advertising - China 231

employed or reemployed during these five years. was a big celebration on national day each year Economy” not only expands domestic demand slowdown: The sustained, quick and healthy growth of with a military parade and review. In September and activates consumption, but also promotes the First, since 1978 China’s advertising industry China’s economy, especially the expansion of of 1960, the Central Committee of the Chinese idea of economic growth. Together with the May has experienced high-speed growth of more than domestic demand, has created a favorable envi- Communist Party and China’s Central Day and Spring Festival holidays, the three ronment and laid a solid foundation for the devel- Government decided to reform the system of “Golden Weeks” have now become a new topic to opment of the advertising industry in China. national day’s celebration in the principle of Chinese people. The Advertising Industry Situation from 1981 to 2005 (RMB) building our country through thrift and hard work. Later on, from 1960 to 1970, every year grand Total Ad Growth Share of 3) A Brief Introduction of China’s assembling and parade was held in Tian’anmen 4) The General Situation of the Advertising Per Capita Year Expenditure Rate GDP Units Practitioner Expenditure National Day Square, but no more ceremonial military review. Advertising Industry (Million) (%) (%) From 1971 to 1983, every October 1, Beijing The Origin of National Day adopted other forms of celebration such as the fes- The Situation Report 1981 118.00 686.67 1,160 16,160 0.024 0.1 On September 27, 1949, the First Plenary tivals in the parks and so on, without people’s 1982 150.00 27.12 1,623 18,000 0.028 0.1 Session of Chinese People’s Political Consultative parade. In 1984, a grand military review and peo- Since revival of China’s advertising market in 1983 234.07 56.05 2,340 34,853 0.039 0.2 Conference unanimously determined that the ple’s parade was held in the 35th national day. In 1979, the advertising industry has shown signs of 1984 365.28 56.06 4,077 47,259 0.051 0.3 People’s Republic of China adopts the Gregorian the following years, more than a decade, there rapid development. According to statistics, from 1985 605.23 65.69 6,052 63,819 0.067 0.5 calendar. was no more celebration military review. In 1999 1981 to 2005 China’s total advertising expendi- 1986 844.78 39.58 6,944 81,130 0.083 0.7 On December 3, 1949, the Fourth Session of when China celebrated its 50th national day, a ture has increased yearly, with an average growth 1987 1,112.00 31.63 8,225 92,279 0.093 1.0 Committee of Chinese Central Government had military review was held again which was the last rate of 36.13%. Its share of China’s GDP, the peo- 1988 1,492.74 34.26 10,677 112,139 0.100 1.3 welcome the proposal of Chinese People’s grand celebration in the 20th century. Since the ple employed in advertising and average per capi- 1989 1,999.00 33.90 11,142 128,203 0.118 1.7 Political Consultative Conference, adopted the founding of New China, a total of 13 military ta advertising spending all show a trend of contin- 1990 2,501.73 25.15 11,123 131,970 0.135 2.1 “Resolution on the National Day of the People’s reviews were held. They are in 1949-1959, 1984 uous growth. 1991 3,508.93 40.26 11,176 134,506 0.162 3.0 Republic of China,” deciding that October 1, is and 1999. 1992 6,784.75 93.36 16,683 185,428 0.255 5.7 the founding date of the People’s Republic of Since 1998, the growth rate of total advertising 1993 13,408.74 97.63 31,770 311,967 0.388 11.3 China and also its national day. From 1999 the National Day Holiday is expenditure began to slow down, and for the first 1994 20,026.23 49.35 43,046 410,094 0.429 16.7 Lengthened time expanding at a rate lower than 20%. In the 1995 27,326.90 36.46 48,082 477,371 0.475 22.5 Founding Ceremony of China Previously, China had set October 1, 2, and 3 following six years the total spending maintained 1996 36,663.72 34.17 52,871 512,087 0.548 29.9 On October 1, 1949, the grand founding cere- as legal national holidays. From the year 1999 the its increase rate of around 15%. In the year 2003, 1997 46,196.38 26.00 57,024 545,788 0.632 37.3 mony of the Central Government of People’s Saturday and Sunday before and after National China’s total advertising expenditure had exceed- 1998 53,783.27 16.42 61,730 578,876 0.699 43.0 Republic of China was held in Tian’anmen Day were put together by the Central Government ed 100 billion reaching 107.9 billion and increas- 1999 62,205.06 15.66 64,882 587,474 0.760 49.4 Square of Beijing. The Chairman of China’s so as to make it a 7-day holiday. The aim was to ing by 17.55 billion with a growth rate of 19.44%. 2000 71,266.32 14.57 70,747 641,116 0.800 56.3 Central Government-Mao Zedong had run up the raise domestic spending. Tourist-driven spending The growth rate of 2004 is 2.2% lower than 2003, 2001 79,488.76 11.54 78,339 709,076 0.820 62.2 first national flag, and the 350,000 people and during the “Golden Week” of the National Day and in 2005, 0.1% lower than 2004. Many schol- 2002 90,314.64 13.62 89,552 756,414 0.860 70.3 army assembled in the square for a ceremonial has become a new highlight in China’s economy. ars have called this phenomenon the “turning 2003 107,868.00 19.44 101,786 871,366 0.920 83.4 review and parade. Led by the government, the tourism industry and point”. The growth rate of China’s advertising has 2004 126,460.00 17.23 113,508 913,832 0.790 97.2 consumer trend, the scale of the tourism market shown a slowdown with the features of a “turning 2005 141,634.87 12.00 125,394 940,415 0.777 108.3 Celebrations of National Day Have Changed has been expanding quickly. The large spending point”. However, in the early and mid 1990’s, the Several Times after 1949 has also driven relevant industries, which makes a growth rate had respectively reached over 90% Source: China Advertising Yearbooks In the early years of China (1949-1950), there new space for economic growth. The “Holiday and 30%-40%. There are many causes to this 232 Asian Advertising - 2007 Current Status of Advertising - China 233

20 years. At present, it is in the phase of industrial According to statistic, by the end of 2005 there The Encouraging Potential of Local are more flexible in adopting more forms of coop- adjustment and spontaneously controls resource were 84,272 advertising agencies in China - an Advertising Agencies 2 eration with local companies, besides purchasing allocation by the market means. The industry seg- increase of 8,062 at a rate of 10.6%. The number After China’s advertising market completely controlling shares. mentation is deepened. Second, in a market of of advertising agencies makes up 67.2% of all opened to the outside, local agencies were hard hit fierce competition, the means of marketing advertising units1. People employed in advertising by international advertising agencies. But they Advertising Media becomes more diverse, and the previous advertis- agencies reached 655,925, which is 14,271 more soon adjusted their competitive policies, deepen- ing expenditure is now perhaps shared by public people than last year and accounts for 69.7% of ing their services, and actively exploring new Conventional Media relation, terminal promotion, business consulta- all advertising practitioners. The growth rate tend- resources. In the top 100 advertising agencies of Television: The television advertising expendi- tion and interactive marketing. Thirdly, the adver- ed to be steady after the period of high-speed 2005 in China, 38 local agencies were in the list, ture in 2005 was 35.53 billion, which increased by tising industry is influenced by the country’s growth, and the advertising agencies began to which showed a strong developmental power. It 21.9%, an increase of 6.38 billion. It accounted macro-control policies to some extent, especially absorb capital resources, techniques, and man- reflected the trend of market choice and how com- for 25.1% of the gross ad expenditure and its the medical treatment and real estate advertise- power to transform the system, structure and man- petition in China’s advertising market is maturing: share in advertising expenditure is still growing. ments which were big advertisers. Fourthly, the agement gradually strengthening their ability to First, the demand of local services has China has a large-scale television market. competition within the ad industry is getting guard against risks, and make a stride towards increased greatly. Local advertising agencies are However, the industrial scale and advertising rev- tougher; as a result, the cost of ads has been internationalization and specialization. more familiar with the market, more mobile and enue are comparatively low. In recent years, the increased, which finally restricted the industrial flexible in conducting advertising activities. ad expenditure by television took about 25% of development and disturb the market order. The Obviously Advantageous Position of Second, the local agencies are usually small com- the total expenditure. Television has ranked num- Foreign Advertising Industries panies, so inborn disadvantages make them seek ber one among all media types for more than 20 Advertising Agencies In 2004 the State Administration for Industry avoiding risks by reorganization or forming a years, and its position will be difficult to chal- and Commerce and the Ministry of Commerce cooperative union. Third, with the widening of lenge in the short term. Due to the strong force of the Chinese media together issued “The Provisions on the channels of capital cooperation, foreign agencies and the rise of advertisers’ position, the advertis- Administration of Foreign-funded Advertising ing agencies in China are always facing the prob- Enterprises”, which allows foreign capital to take China Top Ten Advertising Agencies in 2005 lem of “being marginalized”. In recent years, the at most a share of 70% in joint ventures. China development of the four conventional media (TV, kept its promise to the World Trade Organization Radio, Newspaper and Magazine) tended to be (WTO) to opening its advertising market. Rank in 2005 Agency Million RMB Rank in 2004 Million RMB constant. Therefore, the advertising agencies According to regulations, China was required to 1 Leo Burnett 3,817.22 1 4,217.68 developed at a faster speed and the unique situa- permit foreign advertising companies to set up 2 Saatchi and Saatchi 3,384.29 2 3,110.79 tion of “strong media, weak agencies” in China’s jointly funded companies in China by the end of 3 Mccann-Erickson Worldwide 3,099.30 3 2,775.45 advertising industry was firstly changed. The rela- 2003. 4 Dentsu 2,706.57 4 2,503.74 tionship of advertising agencies, the media and Since 1986 when Dentsu and Young & 5 JWT 2,406.38 27 305.74 advertiser has been improved. Since China's Rubican together set up their first foreign adver- 6 Beijing Future Advertising Agency 1,935.54 5 1,700.00 reform and opening, China’s advertising industry tising agency in China, the foreign advertising 7 Guangdong Advertising Co., Ltd 1,560.00 6 1,338.00 has developed rapidly. The Chinese government agencies have set up jointly-funded companies 8 Shanghai Advertising Co., Ltd 1,252.00 7 1,223.16 has also provided opportunities for foreign adver- here with Chinese partners. By 2005 there were 9 Beijing Dayuweiye Advertising Co. 759.00 13 462.00 tising companies to reap huge profits in China. 461 foreign-invested agencies, the number and 10 Hainan White Horse Advertising Co., Ltd 709.91 - - sales of which have surpassed any other kind of The Slow - down of Growth and Overall agencies. Source: Modern Advertising Strengthening 234 Asian Advertising - 2007 Current Status of Advertising - China 235

Radio: In 2005 the advertising expenditure of ed a larger share of advertising. The classification New media forms Internet Advertising Expenditure and Growth Rate 2001 - 2006 radio was 3.89 billion, an increase of 600 million, of magazine audiences tends to be clear. Due to New media forms have developed quickly at a rate of 18.0% growth. Radio makes up 2.7% consumer segmentation, advertisers can raise the depending on new technology. At present, it has of the total ad expenditure. In recent years radio cost of advertising to a certain audience group. rapidly captured market shares through position- Expenditure Growth Rate has continued to grow at a high speed, which The level of market orientation of magazines has ing of “precise communication”. The advertising 5,000 120 makes it a unique phenomenon among the four gradually been improving and the multilayer sale expenditure by internet, mobile phone, outdoor 111.9% conventional media. There are three reasons for pattern has increasingly matured. The Chinese and indoor LCD (liquid crystal display) all have 4,500 4,600 100 this: firstly the specialization of stations segments magazine has entered an era of overt mass mar- increased at a fast rate. 4,000 3,500 77.1% the audience to form different groups; secondly, keting. Take the internet advertising for example, in 80 3,000 the audiences of radio are usually young and edu- 2005 the gross market share was 3.13 billion, 71.6% 3,130 cated, and they do not change stations; thirdly, the which was an increase of 77.1% over the previous 2,500 60

Number of Four Media in 2005 Million RMB 2,000 cost of radio advertising is low compared with year and 7.6 times larger than 2001. Internet 48.2% other media. advertising has surpassed magazines (1.8 billion) 1,500 1,770 40 Media Growth Number Increase and is approaching close to radio. It has already 1,000 Type Rate 17.7% 1,030 20 Newspapers: The advertising expenditure of become the fourth largest advertising media. Its 500 410 490 newspapers in 2005 was 25.6 billion, an increase TV 2,800 50 1.82% share of total advertising expenditure has also 0 0 2001 2002 2003 2004 2005 2006 of 2.53 billion at the rate of 11%. Newspapers Radio 919 205 28.71% gone from 0.5% in 2001 to 2.3% in 2005. account for 18.2% of the total advertising spend- Newspaper 1,845 -110 -5.63% Source: i-Resaerch ing. In competition with the new media, such as Advertising Awards in China the internet, through specialization, differentia- Magazine 4,056 50 1.25% tion, and deepening of content and market posi- The Chinese Advertising Award between advertisers, advertising agents and the Source: China Advertising Yearbooks tioning, newspaper advertising spending soared The highest award in China’s advertising field media. It is hosted by the Newspaper Committee by 11%, and reversed the negative growth in considers 26 aspects among four major categories of China Advertising Association in 2006. 2004. Newspaper advertising will have three of general advertisements, movie and television downward trends in the future: the proportion of Media Share in Advertising Expenditure 2000-2005 advertisements, radio advertisements and outdoor The Chinese EFFIE Award ad expenditure by newspapers in total expenditure advertisements. The Annual Grand Award and the The award has an international milieu empha- Unit : will probably decrease; the share of advertising various Gold, Silver, Bronze and Nomination sizing the effect of advertising. It was established will probably drop year by year as per the news- Prizes represent the highest annual awards for to recognize those advertisers and advertising paper’s total revenue; because of the rise of the Media advertisement concepts and design in China. It is companies that had fulfilled annual advertising 2000 2001 2002 2003 2004 2005 expenditure base, the growth rate will go down- Type hosted by China Advertising Association. goals and achieved prominent performance at the ward. TV 23.70 22.57 25.58 23.64 23.0 25.1 The Chinese Advertiser’s Great Wall Award same time. It considers advertisements in terms of Magazines: In 2005, the advertising expendi- The award is designed to recognize those effect and concept, but more so focusing on effect. Radio 2.31 2.37 2.42 2.37 2.6 2.7 ture of magazines was 2.49 billion, an increase of advertisers making prominent contribution to Works awarded represent the highest level of 460 million at a rate of 22.1% (negative growth in Newspaper 20.55 19.84 20.87 22.53 18.1 18.2 China’s advertising industry, and further encour- effective advertisements in China and also 2004). Magazines make up 1.8% of the total Magazine 1.59 1.49 1.68 2.26 1.6 1.8 age and enhance the participation of advertisers to embody the cooperative spirit between advertisers advertising expenditure. With continuous domes- Total 48.15 46.27 50.55 50.80 45.5 47.6 contribute more to the development of advertising and advertising agencies. tic economic growth and the advancing of urban- in China. The award also helps advertisers to fur- ization, magazines on finance, economics and city Source: Modern Advertising ther understand the fundamental significance of life have showed its value of existence and attract- advertisements and bring closer cooperation 236 Asian Advertising - 2007 Current Status of Advertising - China 237

Advertising Education in China versity major. courses according to what they find practical, and Advertising Organizations have established a clear status among academia. Institutes of higher education in advertising in The Second Phase (1993-1996): The According to the 2006 Chinese Radio and The Chinese Advertising Association (CAA) mainland China date back to the early 1980s. In Extensive Development and Deepening of Television Yearbook, as of 2005, 262 Chinese The Chinese Advertising Association was June of 1983, the Journalism and Communication Advertising Education institutions of higher education offered programs founded on December 27, 1983. It is an organiza- Department in Xiamen University established The main trait of this phase was a trend of on advertising. tion for China’s advertising industry, and also an advertising major for the first time in China. From extensive development with low quality educa- Although advertising education in China has independent legal entity as a social organization. then on, education in advertising grew quickly tion. The universities and colleges that began been relatively young as compared with the prac- Members of the CAA include groups, honorary along with the fast-paced development of China’s advertising majors increased rapidly. The exces- tice of advertising because of historical reasons, members and individual members. economy and advertising industry. sive expansion left a lot of problems buried. The the current trend shows a healthy momentum China Advertising Association is under the year 1992 was the turning point of China’s adver- towards development, such as the strengthening direction of the State Administration of Industry The First Phase (1983-1992): Waiting and tising education. Since 1992, the number of high- of education and pedagogy, introduction of for- and Commerce, with a General Assembly seeing: the beginnings of advertising education er education institution having established adver- eign advanced ad theories, and the promotion of Meeting which is held every three years as its Holding the notion that advertising was not a tising major sky rocketed. exchanges between institutes. Achievements in supreme organ of the CAA power. It set up five subject to be studied, the entire Chinese education In 1993, The Beijing Broadcasting Institute China’s advertising education included: a change professional committees including newspaper, system showed an indifferent attitude towards started to enroll postgraduate students in advertis- from translating and introducing foreign advanced radio, television, advertising agency and academic advertising teaching and studies. During this peri- ing, which raised advertising education to a new theories to building a native theoretical system, a that all recognize the authority of the standing od of time, the advertising major was brought into level. Xiamen University was the second to enroll shift from hastily initiating a new advertising council of the CAA. The government administra- a few universities and colleges nationwide. From postgraduate students in 1995. Up to the end of major in the 1990’s to designing a curriculum tive level above municipality has a branch associ- 1983 to 1988, no university or college had tried to 1996, there were 13 universities and colleges that with a clear position, and an improvement from ation, led both by the Administration of Industry make advertising into a formal full-time under- had tutors for Master of Arts students. In March isolated development to open exchanges. and Commerce of the same level and higher levels graduate training curriculum. In June of 1983, of 1994, the first advertising department in China Moreover, since professional advertising edu- of the CAA. Xiamen University in Fujian Province began was set up in Beijing Broadcasting Institute. Later cation in China started rather late, a large number advertising courses. On November 9, 1988, the on, Jilin University, Wuhan University and several of people working in advertising were not well The Chinese National Foreign Economy and Journalism Department of the Beijing universities established advertising (communica- qualified. As a result, the basic strategy of China Trade Advertising Association Broadcasting Institute (in 2003 it changed its name tion) department one after another. From this we for the training of advertising professionals was to The Chinese National Foreign Economic and to the Communication University of China, with can see the leveling up of advertising education. combine professional education and intern train- Trade Advertising Association was founded on an aim to build a comprehensive university featur- ing. As for intern training, institutions of higher August 21, 1981. It is the earliest advertising ing information and communication sciences) set The Third Phase (1997-present): Advertising education and advertising industry organizations organization since China’s reform and opening. It up the second advertising major in China. Then, education began to show its own characteristic may leverage their respective strengths and make is a union formed by advertising agencies and the Mass Communication Department of and beginnings an all efforts at cooperation. Intern training took press publishers within the foreign economic and Shenzhen University in Guangdong Province fol- With more than 20 years of development, the form of correspondence courses, short full- trade system, and advertising departments in lowed in step in September of 1990. As of 1992, advertising education was no longer overcrowded. time training and training by overseas institutions, China’s national import and export corporations there were six universities which established Several famous universities have laid the ground which played a major role in promoting the devel- of various different industries. advertising major. work for advertising educational circles and the opment of the advertising industry and enhancing Its highest authority is the general meeting, During this era, advertising’s position as a sub- field of advertising. Some universities and col- the overall qualifications of the staff. which is held every two years. The association’s ject was not accepted or recognized by society leges which previously set up advertising no routine work is in the charge of the standing coun- and academia. Many people doubted whether or longer have the major. However, more institutes cil. It is under the leadership of the Ministry of not advertising could step up to the level of a uni- of higher education have adjusted their own Foreign Trade and Economic Cooperation. Its 238 Asian Advertising - 2007 Current Status of Advertising - China 239

membership is divided into professional groups, Website: http://www.ad-cn.net 1999, the magazine was changed from a bi- With years of effort, Chinese Advertising, enterprise groups and individual members. A few Beijing Office: Room 324, Xi Si Building, monthly to a monthly magazine. Modern International Advertising, Modern Advertising, branches are located in several provinces of No. 83 Fuxing Road, Beijing Advertising centers on the reader and adheres to and Advertising Panorama have developed into China. Tel: 86-010-51606085, 13671339893 guidelines on quality, authority, professionalism the four biggest professional advertising maga- and industry guidance. Focusing on the practical zines which are most influential in contemporary The International Advertising Association - International Advertising and pragmatic subjects, it strives to provide useful China. They have contributed their own strength Chinese Branch International Advertising was launched in 1985 help and insights to readers through in-depth dis- to the advertising theory, practices and academic The Chinese Branch of the IAA was founded as a specialized advertising monthly within and cussion on general issues, typical cases, theories research with different positioning, styles and fea- in May of 1987 in Beijing. The Chinese Brach without China. The magazine was under the and issues. tures. was set up in the Chinese Advertising Association. Ministry of Commerce of the People’s Republic It organized its members to attend the World of China and published by the Chinese Business Address: Room 909-910, Machine Building, Advertising Regulations Advertising Congress. It plays an important role in Advertisement Association. In 1997, it went into a No. 248 Guang’anmenwai Street, Beijing. promoting Chinese advertising exchange and licensing agreement with Advertising Age, a lead- Postal Code: 100055 Advertisement censoring authorities and the cooperation with the world. ing marketing communication journal publised in Tel: 86-010-63317498, 63317486 censorship system Chicago. International Advertising enjoys the Fax: 86-010-63317499 There are three kinds of advertisement censor- Professional Advertising Magazines largest circulation with the highest advertising E-mail: [email protected] ship in China: First, censorship by advertisement rates among similar publications in China. The Website: http://www.maad.com.cn operators, which is conducted by censors at adver- Chinese Advertising magazine includes five major sections: brand tising companies and media publishing outlets. Chinese Advertising was launched in Shanghai name, marketing, creative, media and public rela- Advertising Panorama Second, regulatory censorship, a special regulato- on April 15, 1981. It was a quarterly, changed to a tions. Advertising Panorama is approved by the ry censorship over four kinds of special commodi- bi-monthly, and then to a monthly. Being the first General Administration of Press and Publication, ties like pharmaceuticals, medical devices, pesti- specialized advertisement publication, it studies Address: 4th floor, Jianguomeiwai Street, and one of the four biggest professional advertis- cide and veterinary drugs according to the present and future of advertising in China; Beijing. ing magazines in public distribution both at home Advertisement Law. For these four kinds of com- conducts research on advertising, advertising the- Postal Code: 100022 and abroad. “New and sharp concepts, insight, modities, qualifications have to be verified and ories and advertising related sciences; discusses Tel: 86-010-65684490, 65670742 and responsible” is the magazine’s slogan, and “a advertisements censored according to regulations design, creation, and production of various adver- Fax: 86-010-65681942 sense of responsibility determines one’s influ- and rules of relevant regulatory authorities. Only tisements; and shows successful advertising cases E-mail: [email protected] ence” is its motto. Advertising Panorama is the with the approval documents from relevant and advertisements within and outside China; Website: http://www.ad-INT.com only professional advertising magazine issued authorities can these advertisements be released reports on changes in the advertising industry; and every ten days, and the comprehensive theoretical by the media. In other words, advertisements for brings in new technology, materials and methods Modern Advertising media editions are published in early, mid and late special commodities like pharmaceuticals, med- on advertising. In April 1994, Modern Advertising, a monthly, month. ical devices, pesticide and veterinary drugs have the flagship publication of the Chinese to be censored by the Censorship Department of Address: Room 1805, Shenxin Building, Advertising Association was started with the Address: B & C building, tenth floor, Gu Lou the State Administration of Industry and No. 200 Ning Hai Dong Road, Shanghai approval of the Press and Publications Bureau. unicom building, No. 32 Central Road, Commerce or other relevant administrations for Postal Code: 200021 This brand new specialized advertising magazine Nanjing, Jiangsu Provice approval. Thirdly, censorship according to the Tel: 86-021-63552298, 63552118 is under the State Administration of Industry and E-mail of Chief Editor: [email protected] Advertisement Law by the Advertising Control Fax: 86-021-63551811 Commerce and published by the Chinese Website: http://www.cnadp.com/ Office of State Administration of Industry and E-mail: [email protected], china-ad@ad- Advertising Association. It is also the largest spe- Tel: 86-025-83217901, 83217902 Commerce for advertisements already released. cn.net cialized advertising publication in China. Since Fax: 86-025-83217905 240 Asian Advertising - 2007 Current Status of Advertising - China 241

Supervisory and administrative organs for - Management Rules of Advertisement Censors Industry Self-regulation advertisements In order to address various issues encountered In China, supervision of advertisements is As stipulated in Article Six of the in censorship, the State Administration of Industry mainly the responsibility of the government, but Advertisement Law, “the administrative depart- and Commerce formulated the Management there is also self-discipline within the industry. ments for industry and commerce of the people’s Rules of Advertisement Censors in the form of a The Chinese Advertising Association was such a government at or above the county level shall be notice, which entered into force on January 1, self-regulatory institution. Established in 1983, it the supervisory and administrative organs for 1997. Advertisement creators and the media have is responsible for instructing, supporting and advertisements.3” According to this clause, the to engage certain advertising censors, who will advising the advertising industry according to rel- government authority of State Administration of censor all advertisements before release and issue evant Chinese laws. The Chinese Consumers’ Industry and Commerce under the State Council written approvals. Candidates for advertisement Association, established in 1984, can also be con- and Industrial and Commercial Administrative censors should be selected from staff of advertis- sidered as a self-regulatory institution. Authorities at provincial, autonomous region, ing agencies and the media that are trained by In 1994, the Fourth Congress of the Chinese municipal, city and county levels are responsible courses organized by the State Administration of Advertising Association reviewed and approved for censoring, planning, managing, supporting, Industry and Commerce and certified by an its self-regulatory rules. However, the rules serve and supervising advertising and sanctioning ille- “Advertising Censor Certificate” acquired through only as a principle without detailed stipulations or gal advertisements. examination. necessary controls over management. Since the The State Administration of Industry and mid-1990’s, the supervisory function of media Commerce under the State Council has 13 depart- - Interim Regulations on the Control of Radio was strengthened. The Chinese Consumer Journal ments under it and governments at provincial, and Television Advertising under the Chinese Advertising Association regu- autonomous region, municipal, city and county Since advertising was revived in 1978, radio larly publicizes illegal advertisements, and since levels also have established Industrial and and television advertising has played an important 2001, administrative authorities like the State Commercial Administrative Authorities to per- role in the advertisement market. On September Administration of Industry and Commerce have form the function of advertisement regulator. 24, 2003, The State Administration of Radio, Film also regularly publicized illegal advertisements in Industrial and Commercial Administrative and Television (SARFT) enacted the Interim the mass media that fail to pass the censorship. Authorities at all levels are responsible for the Regulations on the Control of Radio and censorship and management of all businesses Television Advertising (“Circular 17 4”), which defined in the Advertisement Law. stipulates that the amount of advertisements on radio, television and in films should be strictly Legal basis for advertisement censorship in controlled. According to the regulation, no in-pro- China gram advertisements are permitted in television - Advertisement Law programs aired during prime time hours and 1“Advertising agency”refers to professional advertising agency, and The Advertisement Law of the People’s loathful advertisements should not be released “advertising units”refers to any unit that provides advertising ser- Republic of China came into force on February 1, during meal hours. This was the first time for the vice, i.e. an advertising department in a media or a company that 1995. According to the law, advertisement censor- State Administration of Radio, Film and partially provides advertising service. 2 ship has two forms: censorship before release and Television to issue an Order for overall control “Local Advertising Agencies”refers to agencies that provide ser- vices to local companies as opposed to international ones. censorship after release by the Advertising over the content, number, frequency and supervi- 3“縣級以上人民政府工商管理部門是廣告的監督管理機關” Control Office of the State Administration of sion of advertisements over radio and television. 4“17號令” Industry and Commerce. Appendix Movers and Shakers in the Development of Asian Advertising

Founding Chairman of AFAA - Antonio R. de Joya / Philippines AFAA in Brief - Indra Abidin / Indonesia Message from Gohei Kogure - Gohei Kogure / Japan Dawn of the Modern Asian Advertising World - Shuzo Ishikawa / Japan AFAA - A Driving Force in the Asian Advertising Industry - Kazuo Miyakawa / Japan With Fellow Asian Advertising Practitioners, Celebrating 30 Years of AFAA and 50 Years of AdAsia - Senyon Kim / Korea An Aged Photo - Longmen Hu / Taiwan The AdAsia Connection - Raymond So / Taiwan AFAA Article - Vinit Suraphongchai / Thailand Recalling 30 years of AFAA and 50 years of AdAsia - Bruce Cormack / Australia AFAA and AdAsia - a must place to joint - Tran Hoang / Vietnam 244 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 245

A p p e n d i x photo and slide projector equipment with almost Bombay in 1970, to the 10th AdAsia in Sydney in 600 color slides on carousel trays. He later 1978 where he was given the mandate to organize recounted how he had more than 200 meetings the federation. with leading advertising association in the coun- Movers and Shakers in the Development tries he visited, making over 50 presentations to Occasional opposing views and passionate dis- promote attendance in the forthcoming 11th AAC, cussions among the organizing countries marked of Asian Advertising and enlisting them to membership in the nascent the AFAA’S founding period. However , De Joya AFAA. managed to achieve a consensus and set the fol- lowing directions that the proposed federation Long before the AFAA was founded, De Joya should take: that the AFAA will play a vital role had made it personal mission to make advertising in furthering the development of advertising in Founding Chairman of AFAA The idea of an AFAA took shape as early as the practitioners more aware that in Asia, they cannot Asia; that the AFAA pledges itself to unifying all 1st Asian Advertising Congress (AdAsia) in just be talking about lifestyles when survival advertising associations in Asia; and, that the “The winds of change are sweeping across he Tokyo in 1958. But it was at the Sydney-hosted issues face half of the population day-to-day. AFAA would upgrade advertising practice, stan- face of Asia. A new entrepreneurial thrust from a 10th AdAsian in 1976 that delegated decided the Along with this, he urged governments to use dards and ethics through programs in education new breed of Asian Businessmen is rapidly trans- time was right to pursue in earnest this dream of a communications and advertising as tools for pro- manpower development creativity and production forming Asia into the place where the actions is.” having such an Asian federation moting development at the grassroots level, a information exchange , research and documenta- Antonio R. de Joya in his keynote address at the practice now known as development communica- tion, government relations, public relations, and opening of the Manila-hosted 11th Asian The mandate to make this organization a reali- tions and development advertising. This was why promoting the use of development advertising and Advertising Congress in 1978, birthplace of the ty, by beginning the necessary conceptual and one of the earliest projects of the AFAA was the devcom in export marketing and export promo- Asian Federation of Advertising Associations organizational work, fell on De Joya. During the publication of three books: Development tion (as a way to help achieve economic growth). Antonio R. de Joya (AFAA) AdAsia in Sydney, the Philippine delegation had Communication and the Asian Imperatives, and Another important role that De Joya defined won the bid to host the 11th Asian Advertising the 1980 and 1982 editions of Asian Advertising, was for the AFAA to serve as a continuing sup- Philippines Now in its 30th year, the AFAA has outlived its Congress in Manila. This meant that De Joya with all co-published by the De Joya Management and port mechanism for Asian advertising congresses. founding chairman Antonio R. de Joya of the the Philippine Board of Advertising (PBA) had Development Corporation in cooperation with the It had been noted that country hosts virtually had Philippines, and this was exactly what he wanted- the dual tasks of preparing for the Congress and of PBA. to start from scratch with every congress. The that it “will continue to exist and do all it can to making sure there would be enough member- AFAA would fill in this lack by assisting future help provide for a better and brighter future for countries to from an AFAA and inaugurate it in At the time when the AFAA was being orga- congress hosts in all phases of organization, serve advertising as a profession in Asia.” time for the Manila-hosted Congress in November nized, there was a swelling sentiment that as repository for all congress documents, and 1978. Western-style advertising cannot just be imposed carry out decisions, plans and resolutions carried His prophecy on Asia becoming the next on the harsher realities in Asia. De Joya had out in the various AdAsia. growth area for economic miracles is being ful- Thus mandated, from April to June 1978, De always espoused that while Asians can learn from filled in was he never even imagined. Within the Joya went at his expense on a 44-day one-man the sophisticated style, direction and creative tech- It was a historic moment when the AFAA was Asian advertising community, the AFAA has road show that took him to 13 countries in Asia, niques of the West, we need to sift through and officially inaugurated on November 15, 1978 at prospered and indeed taken a nuclear and unifying the Middle East and Europe. adapt these to national goals. the 11th Asian Advertising Congress. Singing up role among its members- despite varying beliefs, as charter members were Indonesia, Israel, cultures and levels of economic prosperity- just as This was before the era of PowerPoint and De Joya carried his vision to the various pre- Malaysia, Pakistan, the Philippines, and De Joya had envisioned it. flash drives and so the 52-year-old De Joya AFAA AdAsia congresses he attended, from the Singapore, while Australia, Hong Kong, India, lugged along from airport to airport 33 kilos of 5th AdAsia in Taipei in 1966, the 7th AdAsia in Japan, Republic of Korea, New Zealand, Papua 246 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 247

New Philippine president Ferdinand Marcos for many of their strategic directions. AFAA in Brief ing since graduating from my Graphic Design administered the Declaration of Membership in School Bandung Institute of Technology. I was the presence of over 1,100 delegates from 21 De Joya would have been amused that his Reacquainting with the rise of AFAA for me very impressed to listen to all these prominent countries. name would someday be spoken in the same means going back 33 years. A journey which speakers from all over Asia. breath as that of a Filipino world boxing champi- gives me pride to take part of what I call the insti- Due credit must be given to the support and on: tution and character building of Asian advertising AdAsia 1974 land marked the first time ever cooperation of the PBA and the many advertising that we are today. Asian advertising congresses to be opened by a associations and individuals that De Joya consult- In her keynote address during the 18th country’s leader; President Soeharto. ed with all over Asia. Philippine Advertising Congress in 2003, As I write this, in front of my eyes and my Since then, almost all AdAsia Congresses were At the same time, it has been widely acknowl- Philippine president Gloria Macapagal-Arroyo memories, pass the proud faces of our beloved opened by the host countries’ national leaders. edged that De Joya played a key role in finally paid an unsolicited tribute to De Joya when she friends including The late Antonio De Joya, The bring the AFAA to fruition, after pouring in con- said, “it is not strange to us that the Founding late Dato Jaffar Mohammed Ali, Javed Jabbar, As many Asian countries opened their doors to Indra Abidin siderable study, work and travel abroad to weave Chairman of the AFAA was Antonio de Joya, a and Senyon Kim. They are what I call the Asian economic development, foreign investments, and Indonesia the workings of the federation. Filipino... (for) in all fields, intellectual and physi- Advertising warriors. began to experience growth and categorized as the cal, from Antonio de Joya to Manny Pacquiao, we It is they and many others, who have made us, new developing countries of Asia. De Joya served as chairman for four terms are world class.” stand where we are today. For them I give them from 1978 to 1986. He was re-elected at the 1980 the highest appreciation and respect. Besides the commercial functions, President 12th AdAsia in Singapore, the 1982 13th AdAsia He many have often marched to a different Soeharto called upon the Asian advertising indus- in New Delhi, and the 1984 14th AdAsia in Seoul. drumbeat, but always struck chords that were true. This writing is based on my observations and tries to actively participate in their social func- By the time he ended his fourth term in 1986, the But here now lies De Joya’s claim to immortality: perceptions of happenings and environmental tions in the development of their individual coun- AFAA had 18 members, and had received various that the AFAA, whose organization he had pur- spheres, dividing the past 33 years of Asian adver- tries. study and awards grants that were funneled to sued with such passion and determination, now tising in 3 phases. The first phase: Imperatives of deserving practitioners. thrives and continues to grow in the service of the Change 1976-1986, The second phase: Winds of During these days, the transnational marketing business he served and loved so well. Change 1987-1997, and The third phase: Be there against locals was of disharmony. Sentiments and Acknowledged as the Father of AFAA and a or be behind 1998-2007 emotions were built on the interactions of Multi pillar of Philippine advertising , this Filipino National Marketing Companies bringing their advertising maverick was a futurist who scanned international advertising agencies; operating the Asian business environment with amazing 1) 1976-1986 Imperatives of Change insensitively to the local values. perception and sensitivity. With his company, Advertising and Marketing Associates, then the a. 1974 Jakarta “Modern advertising and the Perceived as arrogant, dictating their commercial largest Filipino-owned advertising agency, he social responsibilities change in Asia” goals benefiting only to themselves, entering Asia scanned Philippine and Asian economics and only to make huge profits and have no sense of political environment, spotting areas and opportu- Representing Fortune, as one of the Indonesian social responsibilities towards the young Asian nities for growth beyond selling toothpaste, deter- delegates, and participated in the AdAsia industries. gents and soft drinks brands brands. He kept track Advertising Congress 1974 in Jakarta. This was of ad industry growth and spending, publishing the first international event. I mingled; I met and During that period, majority Asian practitioners the survey results in Philippine media, and this exchanged views with many practitioners from lacked education and trainings, created imbalance, information became the ad business’s guideposts Asia. 1974 was my first year working in advertis- frictions, and distrust towards the multi-nationals. 248 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 249

Some countries applied laws that all advertising several times; as a strategist, a far sighted man, and practices of advertising and to bring more Opening Ceremony, listening to materials must be developed by local profession- tough negotiator, and disciplined. As a veteran meaningful contributions from advertising activi- President Marcos speech. Front row table from right to left: als and produced in their own countries. Army Colonel Antonio stuck to his guns when sit- ties to both regional and national socio-economic Steve Ellis-Hongkong Delegate uations got tough. development. Set up the necessary mechanism for Savrinus Suardi - Chairman Indonesian Advertising Agencies There was a need for strong Asian advertising A heavy smoker of the long slim cigarettes with Asian Advertising Congresses. Foster self-regula- Association/PPPI AM Chandra - industries operated by Asians utilizing cultural a pipe. tion. Devise and implement educational programs. Immediate Past Chairman and Chairman Honorary Council sensitive disciplines, and skills. Antonio firmly believed that advertising indus- PPPI Indra Abidin - Secretary It was this congress that attracted me to partic- tries across Asia can only grow with the presence The ten founding members of the AFAA that General PPPI. ipate in the Indonesian Advertising Agencies of strong professional organizations in each coun- pledged for the achievement of the aims and goals Association/ Persatuan Perusahaan Periklanan try working together towards a common goal. were: the advertising associations of Australia, Indonesia PPPI. Since then I have taken an Hong Kong, Israel, Indonesia, India, Korea, active role in the development of the industry “An Asia federation must, by its very nature, be Malaysia, Pakistan, Singapore and the through the PPPI. a servus populi, a servant of advertising practi- Philippines. Thus was the beginning of AFAA. Thailand, the Philippines, Sri Lanka, UAE, tioners in Asia, a planner/doer/ coordinator of the Vietnam and Nepal. b. 1976 AdAsia Sydney “I did it my way” tasks that must be done rather than a would-be Since then, the growth and consolidation of Asian overlord who might be tempted to infringe Asian economies has seen the rule of AFAA being Membership Categories As Secretary General of PPPI, I felt the heat upon the prerogatives of individual trade associa- recognized by an increasing number of Asian There are four categories of membership: between Asian and western values warming dur- tions or federations in our respective countries” countries. Today, the AFAA has members hailing Regular member: Regular member represents ing the AdAsia Congress in Sydney. from Bangladesh, India, Indonesia, Japan, Korea, the Tri - partite organization of each country con- The Congress was felt as very insensitive Quote of Antonio De Joya speech, Chairman Malaysia, Mongolia, Pakistan, Singapore, Taiwan, sisting of The Advertisers Association. The towards Asian cultures. Organizing Committee for the feasibility study Front row table, from left to right Amongst many, there was a pressing need to that led to the formation of AFAA. Delegate from Singapore Indra speed up the process of a body acting as a custodi- Abidin - Secretary General Indonesian Advertising Agencies an, guiding and managing the AdAsia Congresses The establishment of AFAA in 1978, was attend- Association/PPPI AM Chandra - to meet the rising expectations of Asian ed by President F Marcos, and Mrs. Imelda Immediate Past Chairman and Chairman Honorary Council Advertising strengthening the position of Asian Marcos. The president praised the founders in lay- PPPI Savrinus Suardi - advertising industries, and ensuring quality con- ing down the bricks of a better future for Asia Chairman Indonesian Adverti- gresses, consistency and continuity. through responsible advertising. He stated that sing Agencies Associ-ation/PPPI Steve Ellis-Hongkong Delegate. developing advertising in Asia with 50% of the c. 1978 Asian Federation of Advertising world population, and rich resources; can generate Associations, AdAsia - Manila Asia to be the global engine of growth turning the wheels of economies, improving the welfare and Spearheaded by Antonio De Joya, the making of equal distribution of wealth of the Asian people. AFAA was prepared. Under his leadership, the Organizing Committee and his Think Tank AFAA was founded with the following aims and worked hard for the next two years, preparing the goals: ground works for the future Asian Advertising. Unify all Asian associations involved in various The Antonio De Joya I knew, after meeting him aspects of advertising. Upgrade standards, ethics 250 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 251

Advertising Agencies Association and the Media The menu served was one salted fish, and plain tions of all the advertising components including Associations. water in a fine crystal glass!! the Advertisers/Marketers Association/Asosiasi Other AFAA members are Associate Member, Penyantun Iklan Indonesia/ASPINDO, Corporate Member and Individual Member. With this symbolic luncheon, Mrs. Imelda Advertising Agencies Association/Persatuan Marcos, called upon AFAA founders to embark Perusahaan Periklanan Indonesia/PPPI, Publishers “Beggar’s Luncheon” on developmental advertising helping the rural Association/Serikat Penerbit Surat Kabar/SPS, One of the memorable events during the 1978 populations in many parts, where many Asians Commercial Radio Broadcasting Stations AdAsia congress was with The First Lady Imelda were still uneducated, and poor. Association/Persatuan Radio Siaran Swasta Niaga Marcos. She hosted a lunch for the AFAA She reminded that whilst advertising has suc- Indonesia/PRSSNI, Cinema Owners founders held in the premier venue: The cessfully proven itself capable of increasing the Association/Gabungan Pengusaha Bioskop Philippine International Convention Center wheels of economies in the increasing metro- Indonesia/GPBSI, Television Association/Yayasan served, in the Head of Nations’ room, Invitees ploitan cities of Asia, advertising should also be Televisi. were served a fully served banquet with very capable of improving the qualities of life amongst expensive gold plated table set. the rural areas and villages of Asia. The Advertising Council/Dewan Periklanan Indonesia established in 1978, later changed name Manila 1978 Indra Abidin, left, receiving certificate from AdAsia AFAA Programs to Komisi Tata Krama dan Tata Cara Periklanan 1978 Organizing Committee. Developmental Advertising Indonesia. The first product of the Advertising Responding to the calls of the heads of Asian Council was The Advertising Code of Ethics and nations in previous AdAsia Congresses, AFAA Code of Practice accepted by the industry and the ture, with both the past and the future chairman Indra Abidin right, conversing with delegates from Singapore, embarked on developmental advertising pro- government as the standards in 1982. next to the Chairman, this will ensure continuity Hongkong. grams. Pilot project - test markets spearheaded by and consistency both in the operations of AFAA Javed Jabbar and Antonio De Joya. Advertising as d. 1986 AdAsia Bangkok China membership and primarily AdAsia congresses. a tool empowering rural populations. AFAA Chairmanship The projects continued, and expanded for many Vinit Suraphongchai initiative - Financial years in other Asian rural areas passing through For the first time, I met the delegates from China Contribution for AFAA AdAsia Congresses in Singapore 1980, 1982 Advertising Association. In the AFAA General AdAsia Bangkok Thailand was the first to start India, 1984 Korea. Body Meeting in Bangkok 1986, the representa- the practice of contributing to AFAA. During the tives of China expressed their intention to join AFAA General Body Meeting in Bangkok the Self Regulation - Indonesia AFAA. The meeting was very pleased to accept Chairman of Organizing Committee Vinit Between 1978 -1982, Indonesia was assisted by China Advertising Association as AFAA member. Suraphongchai pledged support to AFAA and AFAA to build a self regulating industry. An AFAA General Body Meeting in Bangkok, contributed a large sum of fund for AFAA. And industry that sets down its own rules as responsi- decided that The Chairmanship term of service that all future AdAsia congresses to contribute to ble components of the national development. will be 2 years, and that the Incoming Chairman AFAA. This fund if required can be used as a loan Immediately after the establishment of AFAA in should come from the next AdAsia Host. by the Organizing Committees that need working 1978 Manila; a body called The Advertising It was also decided during General Body capital or seed money to prepare the future Council/Dewan Periklanan Indonesia was estab- Meeting in Bangkok, that two vice chairmen will AdAsia. Since then most congresses contributed a lished. sit with the Chairman; the immediate Past sum of fund to AFAA. The Advertising Council consisting of associa- Chairman and The Incoming Chairman. This configuration was felt an improved struc- 252 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 253

International Council Members grass lawns. It was also in Lahore Pakistan that Asia. I remember Javed a charismatic person with AdAsia - Bangkok 1986. AFAA felt the change of the century was coming. his energy as stunning the audience each time he The need for a strong institution capable of offer- speaks. ing solutions to the fast changing world. Javed Jabbar, stressed that advertising has an important Shuzo Ishikawa - AFAA Ad Asia Odd Year mission and duties to perform to its societies in IAA Congresses Even Year Asia. Building/developing Asian brands - prod- Besides AFAA, in Asia, IAA was also present as ucts and services, communicating, informing and an active advertising organization. Both were the educating these fruits of developments in the most active organizations across Asia. IAA’s simi- Asian way. The fruits eventually will be harvested lar interests with AFAA a federation of by Asians themselves, creating employment Advertising Associations from each Asian coun- opportunities for the Asians, generating prosperi- try; IAA was an organization of individual mem- ty, welfare, education, health. Thus increasing the bership; since early stages have actively devel- qualities of life of Asians. oped close relationships, and cooperation between And that the advertising profession must be AFAA and IAA. respected as “Very Important Person/VIP”. IAA is a global partnership whose members rep- The Antonio De Joya and Javed Jabbar I knew resent advertisers, media, advertising agencies, were the persons with the most impactful pres- public relations agencies, media companies, and ence. educators, advocating self regulating industries. AdAsia - Bangkok 1986. 2) 1987-1997 Winds of Change Antonio De Joya, A soldier by background, his IAA since 1938 has built a common global voice commitments and speeches have inspired many, through its grass root presence with over 4000 a. 1989 Lahore Advertising practitioners - Very sparked the fires inside many Asians burning members in all 79 market economies. IAA Important Persons Asian spirits and started to work towards common inspires and empowers members to raise their goal increasing Asian advertising standards, sights and reach for the life they want. Increasing AdAsia 1978 Lahore was another landmark for improving the qualities of life amongst Asians, the advertising standards, and contributing to the AFAA. The Organizing Committee, under leader- turning the wheels of Asian economies. betterment of economies worldwide. ship of Javed Jabbar; the Pakistan advertising I see Antonio as a person of commitment, trav- practitioners set precedent of positioning eled, shuttling to many cities across many parts of In the early days, Congresses of both organiza- AdAsia - Bangkok 1986. Advertising practitioners as Very Important Asia to ensure a united AFAA. tions were held in even years causing conflicts People. The Pakistan heritage, the great palaces As for Javed Jabbar, I see him as a statesman since both were inviting the same audiences. Both were opened to the Advertising practitioners. (who was Minister of Information in the Pakistan AdAsia AFAA and IAA want to invite as much Here we really felt honored, treated with high Cabinet) during the AdAsia 1989 in Lahore. Javed delegates as possible. respect, and acknowledged as good citizens of stated that advertising profession is vital to the Asia. development of the people that it serves. Whether “In order to avoid a head on collision with AdAsia Congress delegates experienced the practiced for local rural villagers or encompassing International Advertising Association/ IAA World highest respect, banquets in the palaces, in one of borders, territories, of many races, and ethnic Congress, AdAsia made a concession so that it the Gengis Khan’s fortress gardens, in the colonial groups. would be held on an odd year since 1989 - He established a high position for advertising in Pakistan. Malaysia thus was supposed to be held 254 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 255

in 1991, but it wanted to do it a year earlier to The AFAA General Body Meeting in Kuala AdAsia - Kuala Lumpur 1990. coincide with that country’s ‘Visit Malaysia’ year Lumpur acknowledged that AFAA as the umbrel- of 1990”. la organization has improved the quality of AdAsia Congresses since 1978-1987. As Stated by Shuzo Ishikawa in one of his previ- The mechanisms for stability, consistency, and ous letters/correspondences. continuous Organization Developments were con- tributing factors for the increasing advertising AdAsia Venue bidding four years in advance standards in Asia. Thus contributing to the quali- Proposed by Shuzo Ishikawa, the general Body ties of life of Asians. Meeting in Lahore decided to ensure sufficient time and effective preparations, the bidding for Jaffar Mohammed Ali - Permanent Secretariat the venue will be decided 4 years in advance. Kuala Lumpur The congresses were growing in term of pro- As AFAA grows more active and members gram contents, and also in attendance. Issues were grew, there was a need for further strengthening of becoming more complex. From less than 100 in the institution. Coordination of AFAA activities, 1956, 1978 delegates grew to 600. To ensure historical and documentation of all programs, smooth preparations for future congresses, there conferences, AFAA meetings, proactive dissemi- was a need for sufficient time for the organizers to nation of information, news, developments, plan, develop, prepare and implement. archives, library. All this was piling up without any central service to administer the body on a Left Yong Po Shin (left) - Indra Abidin - Indonesia ( b. 1990 Kuala Lumpur professional and permanent basis. components of the advertising industry in Singapore with International Saburosuke Suzuki - Japan. (center) Malaysia. J Matthews was appointed as Executive Council member from Australia. To further ensure progress, AFAA Chairman Secretary. Dato Jaffar Mohammed Ali; proposed that a per- manent secretariat must be established to serve as c. 1993 Tokyo the AFAA Service Center administering all AFAA affairs. It was also noted that as AFAA body Since the establishment in 1978, AFAA regular matures as an institution, the archives, library, and members with full voting rights comprise of tri- documents needed to be secured, serving all partite organizations of each country. AFAA members, easily accessible, and servicing Tripartite organizations include The Advertisers Sitting at the table facing each other Shuzo Ishikawa, left, the Asian advertising communities. Association. The Advertising Agencies Japan Dato Mohamad Jaffar - Association, and The Media Associations. Malaysia. The Permanent Secretariat will report directly to Other AFAA members non voting rights are The Chairman of AFAA, operated and managed Associate Members, Corporate Members and by Secretariat Services MarkComm Sdn.Bhd - Individual Members. Malaysia. Anticipating future growth developments in all A professional company already servicing all the the Asian market economies, it was felt that, not all areas are represented exclusively by one orga- 256 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 257

Indra Abidin, right, with dele- This apparently led China to its silent departure Delegates registration counters. gates from Indonesia. from AFAA. It stopped all its communications with the Federation. It did not respond to inquiries by the succeeding AFAA Chairmen.

During 1993-1995, The Indonesia Advertising Council as the organizing committee for the next AdAsia Congress 1995 made tremendous efforts to invite China back to AFAA. I recalled Yusca Ismail AFAA Chairman, and I shuttled from Beijing, Hongkong and Taipei to seek ways for China Advertising Association to return to AFAA. We met the China Advertising Association Officers, and tried to negotiate a breakthrough Opening Ceremony perfor- solution to the issue. mance.

d. 1995 Bali AFAA responding to rising expec- tations

Delegates from India. nization body. There will be a need for representa- As Asia developed economically the advertising tion by more than 1 organization from that one issues became more complex, AdAsia congresses region in Asia. That AFAA should be open for also became an increasingly important global more members rather than one body representing Forum for advertising leaders, professionals from or originating from one area. It was possible that 1 Asia and world to meet, exchange information, organization representing one city/region and experience, and to build global networking another representing another city/region. amongst the management executives for Asian advertising industries. Balinese dance performance, Shuzo Ishikawa - AFAA Non Political Promoting AdAsia 2005, Bali, As the AdAsia - Asian Advertising Management Indonesia. Upon the recommendation of Shuzo Ishikawa as forums covered more complex issues; it was felt In front of Singapore Hospitality Chairman Membership Committee, AFAA that AFAA needed to expand its management Counter. From left to right Yong Constitution was revised to accommodate future forums to the other parts of advertising disciplines Po Shin- Singapore, SQ Hostess, Ersnt Katopo, Fachry growth. including creative. Muhamad-Indonesia. At the AFAA General Meeting held immediately A forum to increase creative standards amongst before the Tokyo AdAsia, 1993, the AFAA Asian advertising industries. Gather creative tal- Constitution was amended so that “Country ents to meet creative leaders, learn, discuss, and Membership” read “Regular Membership”. Also, build dialogs. Recognize and award the outstand- Taiwan’s application for a regular membership ing good works created by Asian Advertising. was approved. The Creative Forum will require funds which 258 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 259

Indonesian delegates Front row debts, will be steered by individuals who are From left to right Mrs Ernst Katopo, Priest, Nos. 2, and 3 from left Miranty senior Asian practitioners. Abidin and Aristides Katopo. Miranty Abidin, Indira Abidin, An Underwriter will be solicited to secure and Lusiana Tanahdjaja - Indonesia. guarantee the initial investments, and running costs of the forum. A permanent venue to be selected in Thailand.

In 1997, AP AdFest Vinit Suraphongchai Asia Pacific Advertising Festival was estab- lished and launched in Bangkok. The founders were Shuzo Ishikawa, Vinit Suraphongchai, Balinese performance during Senyon Kim, Indra Abidin one of the evening dinners.

Founding Chairman Steering Committee Senyon Kim, Founding Chairman Working Committee Vinit Suraphongchai, key members of the Working Committee included Jimmy Lam, and Boonsri. Although facing the economic crisis, the first Asia Pacific Advertising Festival/AP AdFest AdAsia - Tokyo 1993. AFAA has not. AFAA has been a non profit orga- was held in March 1998, Chiang Mai. With over nization that depends totally from membership Left to right Senyon Kim - Korea Balinese dues, and small contributions from AdAsia dancer, Miranty Abidin, Mrs Congress host Organizers. Since 1978 AFAA Ersnt Katopo, Yanti Sugarda. have never made efforts to be financially strong and healthy.

Proposed in 1993 Tokyo, AFAA General Body Meeting in Bali 1995 appointed Vinit Suraphongchai to lead and initiate the first cre- AdAsia - Tokyo 1993. ative forum program; To prepare the making of a truly Asian Advertising Festival.

The AFAA International Council Meeting in Manila in 1997 approved the proposals forwarded by Vinit Suraphongchai. The Forum will be managed organized sepa- rately to AFAA, endorsed by AFAA, will be self financing, will not burden AFAA with losses and 260 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 261

Kechak Dance during one of the 100 delegates and over 300 entries, the first AP of the constitution when the urgency arose. He AFAA Service Awards Recipients. evening program. AdFest was considered successful. was firm with the principles of non-political for AFAA. Upon review, AdFest was moved to Peach Senyon Kim was instrumental as the bulldozer International Convention Center in Pattaya, to and unifier of the rich diversity AFAA holds ensure higher interest and attract all the creative amongst its communities. Senyon was straightfor- talents of Asia specially the young creatives each ward in straightening issues, making complex year to come , meet , exchange information, expe- issues simple clean and clear for decision making. rience, and build networks amongst themselves. Senyon shuttled intensively west and east, north All this for the advancement of Asian advertising and south to address various intricate and serious standards, increasing the economic wheels of issues for AFAA. Both Shuzo and Senyon were AFAA Awards ceremony Indra Asia, and improving the qualities of life amongst the warriors from the Far East with the strong Abidin receiving AFAA Service Awards. Asians. spirit of Asia. Lef to right Indra Abidin, Baty Subakti, Gunadi Sukemi- AP AdFest today is acknowledged to be the Indonesia. leading Advertising Festival in Asia a gathering of more than 1,500 leading world creative talents and over 5,000 entries. In 2007 The Festival was changed from 2.5 to 3 days event. A meeting point of cultures, a melting pot of creative talents from all over the world. President Ramos, Philippines, standing with the AFAA International Council Mmbers. Besides the creative professionals, 20 young tal- ents were selected from the Asian cities and gath- ered in Pattaya to attend the Advertising Festival, and attend a special workshop preparing them for Front row from left to right future challenges. Equipping them with the win- Mahtum Maksum, Baty Subakti, ning edge skills, and tools. Indra Abidin. Shuzo Ishikawa, and Senyon Kim, I Knew In this period I feel there were many who have contributed to the AFAA growth including the two names above. Shuzo Ishikawa, a humble, yet very wise, and knowledgeable person who have attended the 1st AdAsia in Tokyo 1958. With his deep knowledge of AdAsia, Shuzo Ishikawa contributed to secur- ing the basic spirit of AFAA, and the amendments 262 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 263

3) 1998-2007 Be there or be behind New jargons were introduced including activa- One of the sessions during AdAsia 1999, Pattaya, Thailand. tion, 360 degrees, engaging the consumers not a. 1999 AdAsia Pattaya disrupting. All these major changes have created confusions, despair, and pessimism to the future As the economic crisis continues to roll all over of advertising. Will advertising fall and PR rise? Asia, the emergence of new technologies globally To respond to these major concerns of all adver- impacted on the new media convergence. New tisers, agencies, and media; paradigms emerged. Demanding the advertising The General Body Meeting in Taipei 2001 man- industries to restructure. To change forms. To dated Indra Abidin to prepare a new AFAA Spirit, respond to the imperatives of change. To call on and a strategy to respond to the current and future Asian industries to be there in front to embrace challenges. The proposal for an Asia Media change or be left behind. The media landscapes Forum was in process. now changed dramatically. The Media Specialists, the media giants entering Asia as new players, b. 2001 Taipei & Jaipur - New Millennium New threatening the conventional integrated marketing Spirit communications. As the new millennium entered Asia, and 9/11 Venue for AdAsia 1999 Peach International Convention Center, disasters hit the world, AdAsia 2001 Taipei con- Pattaya. tinued in full force to find new solutions respond- ing to the rising expectations of its members. APMF is the first advertising media conference Exhibition scene in the congress building. AFAA approved the improved logo symbolizing of its kind in the region. AFAA new millennium spirit. Also the proposals Supported by AFAA & IAA, the conference will for an Asia Media Forum were gaining momen- discuss among others: critical advertising media tum and finalizing. AFAA General Body Meeting issues, business issues, evaluate future advertising in 2003 Jaipur approved the porposed APMF Asia media trends. APMF aims to fertilize good under- Pacific Media Forum. standing amongst different elements of Asia- The mechanism follows the AP AdFest. Pacific Advertising Industry through friendship, The Forum is independent from AFAA, will be exchange of information, enrichment of knowl- organized separately to AFAA, endorsed by edge. To help increase the Asia-Pacific AFAA, will be self financing, will not burden Advertising Industry standards, particularly in India AdAsia 2003 Promotion Booth. AFAA with losses and debts, will be steered by media related issues. To provide a unique net- individuals who are senior Asian practitioners. working opportunity for all related including An Underwriter will be solicited to secure and advertising agencies, media, advertisers, research guarantee the initial investments, and running companies. To provide a forum for new business costs of the forum. opportunities and be ready to anticipate changes. Bali was selected as the permanent venue. To observe the laws of Indonesia, The c. 2005 Asia Pacific Media Forum/APMF Organizing Body was established and name AAPAM for Association of Asia Pacific 264 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 265

Cultural performance during the tures in Pattaya. A visionary, optimist and com- From Left to right Welcome Reception AdAsia mitted, he created a strong dedicated organization The founders of APMF Yong Po 2001 Taipei. Shin, Senyon Kim, Indra Abidin. to face the uphill struggle of the economic crisis 1997 hitting across Asia. Asian economies were falling, advertising were dying, Vinit and his colleagues never lost their optimism and confident that with perseverance and patience AP Adfest will grow to meet its goals. A strong AFAA believer, Vinit persevered when AP AdFest were making huge losses during the first years. IAA Meeting after Asia Pacific Media Forum event. Left to rigth N. Shutto - Japan Conclusions 1978 - 2007 Zhang Zeman - China Whether good or bad, advertising have played an important role in what Asian economies, and cul- tures have achieved today. From very heteroge- neous, diverse, and different societies; Asians today are closer to each other, share common Advertising Media Founding Steering Committee: above. Chairman: Senyon Kim Ageing 30 years for AdAsia and 10 years for Closing Dinner APMF. Members: Indra Abidin, Kazuo Miyakawa, AFAA, there was an opinion of weakening, and Vinit Surapongchai, Gautam Rakshit lacking directions. There was slow progress for The first Asia Pacific Media Forum was various AFAA developmental advertising pro- launched successfully in Bali in March 2005. grams, lack of internal and external communica- Over 300 participants and speakers attended the tions. Almost no flow of information amongst conference. They were from the Asia Pacific AFAA members. Region, and also from the US, UK and Europe. The Late Dato Jaffar Mohammed Ali, with his The conference discussed advertising media warm manner and often humor persistently trends, development of technology, the drastic pressed for AFAA organization changes to changes and its impact upon advertisers, creative improve AFAA directions and growth. His agencies, media specialists, various media, and warmth melted many icebergs within AFAA media research. poles, and made consensus possible for decision making.amongst hot issues at the time. The Late Dato Jaffar Mohammed Ali, and Vinit Dato Jaffar Mohammed Ali was a sincere and a Suraphongchai I knew true gentleman. For this period there were many more which Vinit Suraphongchai, I knew, was instrumental AFAA is indebted to, including the two names for the making of the creative melting pot of cul- 266 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 267

behaviors and attitudes, and generating as the cen- cultural development in Asia Pacific improving upon the prerogatives of individual trade associa- and the general public creating positive imageries ter of world development. Where information, qualities of life. As advertising gradually tran- tions or federations in our respective countries. on our industries. Long term the profession can be education, and communications are the vital com- scends to become a multilateral communications acknowledged as the most popular and the most ponents and players to improving the qualities of discipline, AFAA could position as the unifier and It is my opinion the time is now to elevate and promising career to build amongst the youth/stu- life in Asia. Strengthening the governments’ fertilizer of growth for all the communication position AFAA into higher grounds, enabling dents/young graduates. taxes, providing employments, increasing the industries including Above The Line and Below AFAA to be the central and source of develop- qualities of the mass media encompassing the the Line industries, Mass Media, and Asian ment for all communications - ideas industries in most remote villages. Brands. Asia Pacific continuously and consistently. Advertising billings have grown to 20% of world expenditure and increasing. Asian advertis- Anticipating the continuous media convergence, AFAA social responsibility ing markets are leading in various technology new technologies, restructuring of the advertising It is anticipated that the consumerists will grow applications. Yet we should also see the high com- industries; it is important for AFAA to be the more aggressive pressures attacking the commu- plex issues, health, epidemics, environmental haz- instrumental body to prepare equip our Asia nications in various consumers issues following ards, and many other social never seen before Pacific industries to take a larger role within their the movements in the other continents impacting emerging jeopardizing all the fruits hard work own markets. to the freedom of communications/advertising gone through Ad Asia and AFAA since the past speech and creativity. 50 years. An Asia federation must, by its very nature, be a AFAA should pre-empt / pro-activate and posi- servus populi, a servant of communications prac- tion leadership in public service advertising and As Asia Pacific evolves dynamically, advertising titioners in Asia, a planner/doer/coordinator of the social marketing programs, information education today and tomorrow has the opportunity to func- tasks that must be done rather than a would-be and communication that will create trust/confi- tion as the accelerator of social, economic and Asian overlord who might be tempted to infringe dence, acknowledgement and respect amongst the Asia Pacific publics towards advertising/commu- The masters of ceremony during nications industries. the finalists Awards ceremony. Various issues can be initiated/undertaken by AFAA implemented by its members around their own respective markets. Social marketing/public service advertising campaigns that will result in social behavioral changes towards the betterment of its societies.

Promotion of advertising/communications pro- fession Developing high standards/practices in Asia Pacific need to attract the best talents/students that will be the future leaders of the communications/adver- tising industries. This will require active continuous information educational and communication programs amongst higher schools, institutes, universities, 268 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 269

Message from Gohei Kogure advertising industry has achieved a remarkable the Japan International Advertising Association wishing for its success. Mr. Yoshida passed away growth in quality as well as in quantity. Yet there (JIAA) presumably as a step toward that end. at the young age of 59 the following January. First of all I would like to extend my hearty are still many unsolved issues and emerging new congratulations to AFAA on the 50th anniversary problems we never dreamed of fifty years ago. With enthusiastic support from the Japanese ad The 14th Asian Advertising Congress was held of the Asian Advertising Congress. It is hard to Some of these are unique to the advertising indus- industry, the first regional advertising meeting in Seoul in 1984. During a break between ses- believe that half a century has passed since the try in this region and I expect AFAA members was held in Tokyo in 1958. Eight international sions, I was asked by a reporter from a Hong First Congress was held in Tokyo in 1958. will continue to make united efforts to face these delegates from Hong Kong, Taiwan, Thailand, Kong trade publication why Dentsu had not been challenges, to make our industry more effective India and Egypt attended the three-day confer- paying its membership dues to AFAA (which had When I trace back the history of the Congress, and meaningful, and to do so in a mutually benefi- ence. been established in Manila in 1978 by Mr. Tony two Japanese gentlemen come to my mind as cial and timely way. de Joya). I had not been involved in AFAA for being driving forces behind its formation. They Tokyo also played host to a second meeting in quite some time, even after returning from the Gohei Kogure were Messrs. Toyonobu Domen, then President of the fall of 1960. On this occasion, 38 international States, and recall telling the reporter that I was not Shuzo Ishikawa Japan Ajinomoto and Hideo Yoshida, then President of delegates from five countries participated. For aware that Dentsu was a member of AFAA. I did Japan Dentsu. some unknown reason, this second gathering was tell him, however, that I would look into the mat- referred to as a “congress,” while the first had ter. Mr. Yoshida particularly understood the impor- been designated a “conference.” Perhaps the When I got the chance to go through all the old tance of unity within the advertising industry in founding fathers, anticipating the future growth of documents, I discovered that Dentsu had not actu- the Asian region for the improvement of the stan- this event, thought the term “congress” would be ally joined AFAA. Dentsu had instead donated an dards of the industry. He had the remarkable fore- more appropriate. amount equal to the annual dues of a corporate sight to see that advertising would play a vital role member as a congratulatory gift. The confusion in economic development and prosperity which As Mr. Yoshida was a prime mover for these was understandable. I reported my findings to Mr. would deliver higher standards of living for the first meetings, I was among several young Dentsu Gohei Kogure, then president of Dentsu, and rec- people in the region. employees temporarily transferred to the organiz- ommended that Japan become a Country (now ing committee whereupon each of us was Regular) Member. I also suggested that Dentsu I remember the First Congress held in Tokyo in assigned to a different overseas representative. become AFAA’s first Corporate Member. Mr. l958. It was a very modest affair with only eight This was our first exposure to international busi- Kogure agreed and decided to ask the Japan delegates from overseas and a little over 100 from ness etiquette and I recall one of my colleagues Advertising Federation (JAF) to represent Japan Japan. Though it was limited in size, the First Dawn of the Modern Asian Advertising being appointed to look after a female delegate. in AFAA. Congress was a significant step for the advertising World When he offered to carry her huge purse, she industry in this region. In these fifty years the quickly chided him, saying, “A gentleman would As I look back, it is clear that the seeds sown Congress has grown into a big event with more Mr. Hideo Yoshida, elected president of Dentsu never touch a lady’s purse.” by Mr. Yoshida and others a half-century ago gave than one thousand delegates and I am sure Mr. in 1947, believed strongly that advertising would birth to what is known now as AdASIA. Yoshida would be delighted that the small seed he play a vital role in the post-war reconstruction of My early association with what has since However, it is the many dedicated members of sowed has become a big tree with a lot of blos- the Japanese economy. He also felt that interna- evolved into AdASIA ended when I was trans- AFAA whose enthusiasm and belief in the com- soms. He would be particularly happy that the tional cooperation among advertising profession- ferred to New York a few months after the 1960 mon causes of advertising that keep this biennial seed has been nurtured by his fellow ad-men als was essential, and decided in the mid-1950s to congress. By the time of the Manila congress two event ever growing. throughout Asia to grow into that big tree. join the International Advertising Association years later, Mr. Yoshida was seriously ill. (IAA). At that time, the IAA did not have a for- Although unable to attend, he did send a message In the half century since the First Congress, the eign chapter system and Mr. Yoshida established 270 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 271

AFAA - A Driving Force in the Asian Asia/Pacific for several years, I experienced first With Fellow Asian Advertising ing principles and constitutions of AFAA and in Advertising Industry hand the willingness of AFAA leaders to work Practitioners, Celebrating 30 Years of the fall of the same year at the Manila congress with outside parties and other organizations. AFAA and 50 Years of AdAsia the established of the AFAA was formally My involvement with AFAA began in 2001 Without AFAA’s cooperation and support, the announced. Hence the Asian congress averted the with AdASIA Taipei and continued thereafter for considerable progress that has been made toward 1978 Manila crisis and successfully opened a new era in Asian the next five years. In looking back, those were the establishment of a regional Professional I visited Manila in early August 1978 in the full advertising. clearly some of the most rewarding experiences of Development Program would not have been pos- heat of summer. Thus began my 30 year long my career. I consider myself very fortunate indeed sible. And who can forget the teamwork exhibited journey with the AFAA. The Philippine advertis- AdAsia to have had the opportunity to work closely with by AFAA in a cooperative effort with the IAA to ing industry was fully mobilized to prepare for the Thereafter following Singapore and New Delhi so many outstanding individuals whom I still feel raise funds for the needy following the terrible work at hand to found the Association and as for congresses, Seoul hosted the congress in 1984 and privileged to call friends. And it was over those tsunami disaster. participation from the other countries there were I was tasked to be in charge of the organizing Kazuo Miyakawa five years that I became firmly convinced that just 12 participants from 9 countries. We were committee and we held a successful meeting. It Senyon Kim Japan AFAA is a crucial driving force in the Asian Looking back now from the quiet perspective most impressed by the fervor of the Philippine was noteworthy that the congress was renamed Korea advertising industry. My reasons for holding such of retirement, I am reminded of the many endur- advertising colleagues. AdAsia and the name has been retained to this A founding member in 1978 and since International Council mem- a belief are threefold: ing friendships developed, and the pleasure I day. ber, always felt to be associated with such a profes- 1958 Tokyo AFAA (1978~2005) Former World President, 1. AFAA promotes mutual respect and under- sional organization. Thank you, AFAA! The Asian Advertising Congress was founded Kashmir Issue IAA (1996~1998) standing. Membership seems to spawn the trust with the initiative of Mr. Yoshida, President of From 1984~1986 India and Pakistan were and desire necessary for members to work togeth- Dentsu Corporation of Japan at the time in 1958 embroiled in the Kashmir conflict and this led to er effectively. Nowhere is this cooperative spirit and this survived over the years with meetings the recording of the first crisis for AFAA. Many more evident than at the biennial AdASIA con- being held every two years in different Southeast including myself recall the difficulties we faced gresses. The camaraderie among AFAA col- Asian countries. However, in the 1970s the on this awkward ‘political issue.’ As a conse- leagues is the single lasting and overriding image enthusiasm gradually subsided and at the meeting quence of this Tony de Joya, the founding chair- I have from my participation in the AdASIA con- in 1976 held in Australia the Congress was virtu- man, resigned from his position. Thenceforth it gress held in Taipei, Jaipur and Singapore. ally at a crisis point. was decided that the chairmanship would rotate biennially from one host country to the next and 2. AFAA members share common goals and AFAA this system has been maintained to date. values. There is a universal feeling of together- As the following conference planned in the ness among the members of AFAA, as well as a Philippines in 1978, the Philippine advertising Japan very strong communal belief that problems can be industry led by Antonio de Joya rose to the occa- Japan, the founding country of AdAsia actually overcome and standards raised. AdFest and the sion in order to revive this congress. The con- participated somewhat passively throughout the Bali Media Forum come immediately to mind as gress which was handed down from one hosting 70s and 80s. However, Mr. Kogure, President of perhaps the two best examples of what can be country to the next reached the conclusion that a Dentsu at the time took the decision to bid the accomplished when AFAA members take the ini- back-up organization needed to be established Congress and in 1983 the hosting of AdAsia tiative and work hand-in-hand toward a common with participation of countries throughout Asia. returned to Tokyo after a long duration. vision. Thereafter Japan and Dentsu actively partook in This meeting brought the Asian advertising fel- the development of the AFAA and became an 3. AFAA embraces opportunities to work with lows together in unity and established the found- important pillar thereof. others. As IAA VP and Area Director for 272 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 273

AFAA/IAA and its share of the regional market, the absence nizers from each of the AdAsia host countries in New Era, New Challenges After the founding of the AFAA, the relation- of China is most regrettable. the years following are greatly appreciated. We It could be said that the past 30 years were the ship to the International Advertising Association would like to take this opportunity to show our period of the first generation for the emerging (IAA) needed to be established. Opinions ranged Asian Hospitality express thanks to their outstanding service and advertising industry in the various Asian coun- from those supporting coexistence and confronta- The most memorable moments are represented friendship. tries. tion but recognizing that one was regional and the by the hospitality events such as those which other was a global organization it was determined impressed us at the Bali and Jaipur congresses. In particular, Datto Jaffar who passed away, the Common to the first generation is the pioneer- that the relationship should be complementary. The hospitality events with folkloric presentations still active Vinit Suraphongchai, India Abidin, and ing passion, the focus on the vital role in the Moreover, active industry leaders in each country and delicious local food typify the evenings that Shuzo Ishikawa who since retired and others dedi- establishment a new industry and the vision of hoped to utilize harmoniously the advantages of we shared together after serious congress sessions cated a great deal of time to developing ideas and sharing new information among member coun- the two organizations. Since the latter half of the during the past 30 years. Such very Asian and taking initiative. Often it is said that advertising is tries. Therefore their mutual cooperation came by 80s both the AFAA and IAA consistently main- carefully considered banquets form a part of the a business of people. An organization such as very naturally as a common issue. The Asian tained a policy of cooperative coexistence and this tradition of AdAsia and have gained international AFAA is a people’s organization and we believe advertising industry in the new millennium is was a mature and appropriate choice. In the ’80s renown. that meeting good people are the greatest reward growing at a phenomenal rate and its environment both associations held Congress in the same years. to our dedication to the association. and content are evolving accordingly. Hence the However, in 1991 at the Kuala Lumpur congress Goodwill and Volunteer Spirit socio-economic position of the advertising indus- it was decided to postpone AdAsia by a year to We pride ourselves in the 50 years of AdAsia AdFest/APMF try in the region has changed considerably. take the initiative on this issue. Furthermore, the and 30 years of AFAA history since its inception. Towards the mid of the 1990s, AFAA also relationship between IAA and the AFAA have We have to think what gave rise to the success of broadened its scope. As AdAsia matured into a The 21st century and its new generation are been maintained most actively in comparison to the associations. In retrospect, the AFAA is a general forum of the Asian advertising industry, expected contend and innovate with a commensu- other regions. funny kind of organization. This is a loose orga- we all have come to agree on the necessity of an rate level maturity to the increasing demands of nization which is not particularly strict as an orga- independent advertising festival for Asia with a AdAsia and AFAA. Moreover, Asian solidarity China Issue nization without supporting financial resources view to resolving technical issues. Thus was cre- will be redefined and expressed in the years In 1986 at the Bangkok congress China which and a established secretariat. The fact that this ated AdFest (Asia Pacific Advertising Festival) ahead. just joined the AFAA seemed to recognize Taiwan organization was sustained with considerable which is celebrating its 10th anniversary this year as a member state in the conciliatory mood of the development over almost half a century is testa- and this has grown to be one of the five top adver- AdAsia unique in the world with its 50 year times at first and even offered to host them at the ment to the good will and the volunteering spirit tising festivals in the world. history! 1995 congress. However, in 1990 China strongly of the leaders from each of the member countries. insisted on the ‘One China’ policy taking issue Only their passion and initiative made all this pos- In 2005 The Asia Pacific Media Forum We look forward to a benevolent revolution in with the denomination of Taiwan chapter and sible. (APMF) was launched after years of preparation. the future in light of the half century anniversary withdrew from the association. Many efforts This is a biennial forum for media specialists and with unique advertising events and culmination of were made thereafter by the leaders of AFAA at Asian Solidarity and Friendship is slated to grow rapidly in view of the current collaboration between advertising professionals. different occasions to persuade China but in spite In the gatherings among Asians we stress development of the media industry. The AFAA of such efforts China has not formally returned to Asian solidarity over and over again. It is most has therefore been instrumental in giving birth to the association. This taught a valuable lesson as enjoyable to see that the friendship and cama- the likes of AdFest and Media Forum, and is in the Kashmir issue that such political issues raderie flourished during the many years of entering a new era of trilogy. could not be readily resolved in industry organiza- growth and progress. The passion shown by the tions like the AFAA. In view of the considerable Philippine participants and Tony de Joya in the progress made by the Chinese advertising industry early days and the dedicated service of the orga- 274 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 275

An Aged Photo However, after each congress was over, when The AdAsia Connection our Asian friends and AdAsia Taipei turned out to everyone had left, the enthusiasm seems to disap- be a very successful congress. It was one of the The other day, I discovered an aged photo acci- pear. An empty feeling took over when life is My story began twenty one years ago in most unforgettable events in my life. dentally. It’s a photo from an overseas friend and back to normal. Through the noises and excite- Bangkok. In 1986, I was asked by my boss to it has brought back lots of memories. The photo ment at the festivity, we got to gather with old attend AdAsia Bangkok. Though I knew nothing Over these years, I am glad that the standard of was taken 41 years ago at the Fifth Asian friends and meet new friends. There are many about AdAsia, I accepted the offer happily. Who AdAsia Congresses gets higher and higher. Every Advertising Congress in Taipei while President other ways to build up network and receiving new would say “no” to a vacation in Bangkok! When I organizer tries to bring new perspectives and Chiang Kai-shek was greeting all the representa- ideas. Are these the only contributions AFAA can got there, I became a little boy in the candy shop. excitement to the Congress. However, I start to tives. That time, I was helping out at the Congress offer to the Asian advertising industry? There was so much to learn and see. I was worry about the decreasing number of delegates and I belonged to the General Affairs Committee. impressed by the speakers and the chance to meet from certain countries in Asia. Many of the Apart from my job at work, I spent lots of time Of course, there were work reports from each these industry leaders in person. I enjoyed the din- younger advertising professionals in the region Longmen Hu and energy in organizing the Congress. The working committee during each meeting and all ner parties and the cultural experience provided seem to lose interest in going to AdAsia. They are Raymond So Taiwan Fourth Asian Advertising Congress was held in participants actively involved in the discussions. by AdAsia. I made a lot of friends from countries either too busy at work or do not recognize the Taiwan Hong Kong two years prior to the Taipei However, the issues discussed were not at enough around the region. It was more than a vacation! It value of AdAsia. I believe AdAsia should be Congress. I was very young then. It was not only depth and the discussions seemed to carry on only was a great chance for self-development and net- more aggressive in promoting itself and enlarging the first time I participated in an international con- for the sake of discussing. The reason for this may working. I believed my AdAsia experience is a its impact both in the industry and in the region. It gress it was the first time I traveled overseas. be that the issues were not researched and thought great asset to my career. Without hesitation, I put is good to see old friends every time we go to Therefore, everything was so new and foreign to through thoroughly before being brought up. AdAsia on my “must do” list and joined all the AdAsia. However, it is more important to get new me. Therefore, to achieve this, specially designated following AdAsia Congresses. I was always an blood to AdAsia so it continues to be the leading research personnel would be required. active and supportive delegate. industry forum in the region attended by industry From then on, I attended almost every interna- leaders. AdAsia is a very valuable brand. We need tional congress held except for some special rea- Under the current condition, to ask each work- My experience with AdAsia took a new per- to preserve it and revitalize it. I also urge all sons. ing committee to conduct such research would be spective when I turned from a delegate into an advertising elites in the region to attend AdAsia. I The Fifth AdASIA Congress in No matter in which country the congress was quite difficult both in manpower and financially. organizer of AdAsia. The Taipei Association of guarantee it is a fruitful experience. Taipei President Chang, Kai- held, the host made their best efforts and most of Nevertheless, if we are able to put more manpow- Advertising Agencies decided to bid for AdAsia shek was greeting all the rep- resentatives. the time, the congresses ran very fantastic. er at the Secretariat to conduct research on issues 2001 and I joined the bidding team. We did a lot This year we celebrate the 50 years of AdAsia facing the Asian advertising industry or even on of homework to understand the spirit and organi- and 30 years of AFAA. Congratulations to AFAA the development of the Asian economy before zation of previous AdAsia Congresses. We also and AdAsia on this very special occasion! On bringing the issues to the International Council for put together a direct marketing campaign to solicit behalf of the advertising professionals in Taiwan, decision making, the meetings will become much support from AFAA members in the region. All I would like to thank AFAA and AdAsia for your more productive. We will also be able to make our effort paid off and Taipei became the organiz- wonderful contribution to the advertising business higher contribution to the Asian advertising indus- er of AdAsia 2001. I was appointed Deputy CEO in Asia. try. of the organizing committee and spent almost four years in the preparation of AdAsia Taipei. It was Viva AdAsia! AdASIA is already 50 years old. After going not until then that I realized the tremendous through half a century, I hope the organization amount of effort put behind an AdAsia congress. Viva AFAA! will become more mature and can make glorious We had to overcome numerous challenges to contributions to the advertising industry in Asia. make the congress meaningful and attractive to delegates. Fortunately, we had great support from 276 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 277

AFAA Article era we live in now would be seen as an over-kill. venue. In response, Dato Mohamad Ali Jaffa of (CNAFERT). Gradually, the duration of the event has been Malaysia (a long time member who passed away In 1990, the Taipei Advertising Agency Is AFAA an historical relic or a relevant rep- reduced to the three days that it currently occu- some time ago) volunteered to have Malaysia as a Association (TAAA) also applied and became resentative of today’s advertising industry in pies. permanent centre. Since then the management of member, by amending some clauses in the AFAA Asia Pacific? AFAA and AdAsia have become a professional constitution. It is too complicated and delicate to I first came into contact with the Asian But to start talking about AFAA or AdAsia affair. go into detail here, so suffice to say that as a Federation of Advertising Associations, or AFAA straight away is too far ahead of the story. To get result, China, withdrew from AFAA. Sadly in the in 1984, when I attended the 14th Asian the whole picture, we need to go back about 50 AFAA’s Legacy last thirteen years, although much effort had been Advertising Congress held in Korea. It seems years. When I joined AFAA in 1984, it was in the made by many members of AFAA to resolve the appropriate that I should be writing about AFAA midst of a very exciting time for advertising in the stand-off, no progress has been achieved. and the Asia Advertising Congress when it is once The History of AFAA and AdAsia region, when things were happening everywhere, Vinit again held in Korea, twenty-three years later. In 1958 Mr. Hideo Yoshida, president of accompanied by hope, vision and energy. So after 23 year with AFAA and AdAsia, I Suraphongchai Dentsu Japan, launched the very first Asian have come to some conclusions about this illustri- Thailand Instead of using the full name of the “Asian Advertising Congress in Tokyo. There were less AFAA was not without its problems. Around ous group. Advertising Congress” as it was called originally, than 100 delegates, many of whom were Dentsu the mid 1980’s, political tension between India the Koreans shortened it to “AdAsia”. Thailand people. Mr. Shuzo Ishikawa, a long time member and Pakistan spilled into AFAA. India virtually As the custodian of AdAsia, AFAA has been followed in 1986 and the name has been adopted of AFAA who has since retired, was among them. boycotted Pakistan at AdAsia Lahore in 1988. In most useful. The whole administrative machinery, ever since. Held every two years by different Asia Pacific those days, the heavyweight group controlling the oiled by the good office of Mr J. Matthews of country, the event was to be the beacon of the Indian advertising scene consisted of Dr Ram Macom in Kuala Lumpur, has been in excellent My duty in 1984, if one can call it that, was not industry, the hub and network that aims to pro- Taneja, Harish Mahindra and Ahmed Ibrahim. On hands. The bidding system for the event, typically so much as a delegate but rather as to observe the mote friendship, knowledge and to elevate the the Pakistan side, there was Syed Haseen Hashmi, in the Asian style, has worked well. Over the organization and management of the event, as I standard of advertising in the region. Wajid Mirza and Javed Jabbar. years countries across the region have been well was the Chairman of the Working Committee for represented as hosts of AdAsia. More importantly, Thailand, the next country to host the event, two In those days there was no centre or a proper The last was a fiery and eloquent orator who AFAA has worked at and maintained good rela- years hence. It was the beginning of a twenty- system to manage the affairs of AdAsia from one subsequently became a senator in the Pakistan tionships across Asia Pacific and is truly a harmo- three year relationship with AdAsia. event to the next. This was resolved in 1978, government. They were all a product of their time, nious body, with no factions among the members. when with the agreement of different countries, i.e., the classic Cold War warriors of a black-and- Faces were introduced to me and names came AFAA was established in Manila with Mr. white world where you were either a best friend AFAA’s Challenge at me from every direction at first but two stuck Anthony de Hoya as the first chairman. There or a mortal enemy. Those were interesting times. If there is a weakness, it is that AFAA has an with me. They were Senyon Kim (President) and were teething problems in the beginning. Fortunately, since then, relationships have taken a image problem. It has been around for 30 years In Sup Shin (Secretary - General) of the turn for the better. India and Pakistan even play but in terms of industry awareness, it has failed to Organizing Committee. At the time, they had little While the headquarters of AFAA were in cricket together these days. promote its own ‘raison d’etre’. When confronted, spare capacity to teach me anything because they Manila, the venue of AdAsia changed every two the advertising practitioners can be forgiven for were busy managing the event, so I was left to years. The result was that record-keeping and In 1986, the People’s Republic of China attend- asking the respective questions of “Who is make observations on my own, which did not transfer of documents from one AdAsia to the ed the Bangkok AdAsia, with Mr. Chou Shin as AFAA?” or “What does AFAA do for me?” amount to much. Half-way through, I just gave up next happened randomly. Things got even worse the head of the Chinese delegation. In the same and enjoyed myself. In those days, the event when it was decided that the headquarters of year, China applied and became a member of Suggestions have been made to rename future spanned over five days which, in the fast-paced AFAA was to move in tandem with the host AFAA, through the China National Association AdAsia events, such as “AFAA AdAsia”, but that for Foreign Economic Relation and Trade may not be enough to improve industry recogni- 278 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 279

tion and respect. For belief, people must see whether AFAA responds relevantly to the chang- advertising community in the region. It is not organised by the hosts. results and many of the visions proposed by ing times in our industry and represents its current enough to rely on its successful custodianship of Speaking from personal experience as a regular AFAA in the early years were simply not realized, needs. AdAsia and affiliation with AdFest or Media participant of AdAsia (I have been to every single among them a regional training project. AFAA Forum. one of them since 1984), I confess that some of suffers the same fate as many associations, in that Forty or fifty years ago, the advertising indus- my most vivid memories are largely of the the organization consists of mainly board mem- try in Asia was in its infancy. It was very small, The Jewel in the Crown evening functions and the ambience of the differ- bers, with no executive team to implement ideas highly fragmented and rather unsophisticated. The AdAsia is AFAA’s shining jewel and the bi- ent venues: the grandeur of Shalimar Gardens and effectively. This is the main reason that many leaders in those days essentially became the annual event draws strength from the inspired Lahore Fort, the fantastic dances in Bali, the food good and well-meaning proposals remained on visionaries and pioneers. They identified the input it gets from every new host country. and pageantry in Jaipur, to name but a few. paper. industry need and formed a common forum that was AFAA. At the time of AdAsia’s inception, forty or This is not to belittle the rostrum of world class For AFAA to be a stronger body for the good fifty years ago, information and knowledge were speakers. The main attraction of AdAsia is always of the industry, a source of income is needed to But the times have moved on apace. The very hard to come by, It played a vital role in peri- the broad range of its speaking sessions, which I help it change. For example, one way is to charge advent of globalization and the sophistication of odically updating the region on the future trends have devoured avidly over the years. Although I future host countries a “hosting fee” which might communication technology have left their impact. for the industry. Although industry information is cannot tell you explicitly who spoke in the first be managed by way of a bidding system for the International agencies are now well represented accessible through other sources nowadays, session on the second day at AdAsia Singapore organizational responsibility or through profit- regionally, providing good internal networking AdAsia still provides a broad spectrum of infor- 2005, I believe that the knowledge received ele- sharing of the proceeds. and training. These days, information can be mation and knowledge, particularly for small gantly disappeared from the conscious and dif- made available at the touch of the finger. Against agencies and publications that have less access to fused into the subconscious, into one of those lit- Significantly, the association also has an aging this backdrop it must be said then that the need of the latest technology. tle drawers in Salvatore Dali’s painting of his problem. New blood needs to be brought in, an agency to belong to a regional institution is no dreams. At least I tell myself that! indeed forced in. AFAA should require that its longer as critical as it once was. In recent times it can be seen that AdAsia members be active executives in the industry, as is speakers tracked the marked shift in the media Delegates to AdAsia these days average around the case with C4As (Confederation of Accredited There is also the matter of current attitudes to scene, e.g. the unbundling of media buying from twelve hundred people, compared to just one hun- Advertising Agency Associations). This may be take into account. Today’s generation is more self- the traditional full service agency system and the dred at the inaugural gathering in Tokyo in 1958. just wishful thinking but it is a serious observa- centered and self-reliant than its predecessors - rapid evolution in digital and new media fields, As an industry milestone, it is the oldest, most tion. something the older generation complains about which in turn has affected the traditional media important and prestigious event of the region. As frequently. It seems that the sense of communal scene. While the role of AdAsia as a forum long as the host of each country strives to be bet- Ultimately, some questions have to be asked obligation or voluntary contribution is less imper- remains constant, its contents are change continu- ter than the last and provides programmes that are about AFAA’s current ‘modus operandi’; whether ative or simply extinct. To make matters worse, ously, serving the needs of the times. relevant and well balanced, AdAsia will continue it is the issue of the aging council members who we are seeing a marked shift in culture towards to thrive. lack the energy and vision of younger representa- high mobility, which negates any long-term com- Ultimately, AdAsia is more than a knowledge tives, or lack of money to fund active, working mitment. If this is indeed the attitude of advertis- forum. It is an institution; a heritage and a meet- This year we are celebrating the very healthy executives to implement ideas, or the need for ing young bloods, what does the future hold for ing place. It is a regional venue for long-lost fiftieth year of a well-attended and well-respected new and inspirational projects to encourage wider AFAA? friends to meet as well as for new friendships to AdAsia. Mr. Hideo Yoshida and AFAA should be participation around the region. develop. It is a place for hard-working executives very proud of what it has become. It is clear that the organisation needs to re- to get away from the daily grind for a few days to Perhaps more specifically, it is a question of invent itself and make itself relevant again to the ponder and refocus on the future. Last, but not least it is a place to enjoy the evening functions, 280 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 281

Recalling 30 years of AFAA and 50 years another title at that time (Asian Advertising military stepped up and helped to run the confer- two linked hotels, call the Mandarin, at the top of of AdAsia Congress-editor). The prime mover and first host ence with great efficiency and with a minimum of Orchard Road with a confusing and labyrinthine was Elma Kelly who had started the pioneering interference from outside distractions. Security is track between meeting rooms and hospitality cen- Some reminiscences by Bruce Cormack, Cathay Advertising agency in Hong Kong and remembered as being first rate. tres in the two properties. The Singapore AdAsia delegate for Australia to Bangkok 1986, Shanghai some years earlier. The business was “Mandarin” had no connection with the Hong Lahore 1989, Kuala Lumpur 1990, Tokyo 1993, part advertising agency and part media representa- Manila in 1978 was the second of three Kong Mandarin, a benchmark for the region in Bali 1995 and AFAA Council Member from 1987 tion but it was unique in Asia as a contemporary AdAsia meetings in that city. It is remembered as those early days, and left many delegates disap- to 1993 and Russell McLay, Australian delegate western-style advertising business which had one of the first functions held in another major pointed and dismayed. Raffles, even in its then to Manila 1978, Singapore 1980, Tokyo 1993 grown from its own resources. The Cathay busi- new convention complex developed near the har- un-rebuilt state was a preferred site for many dele- Bruce Cormack ness was not flown in from another place. bour. What is not generally known, let alone gates. Australia In the rear view mirror, AdAsia has been a remembered, is that this particular AdAsia was kaleidoscope of colour and personalities, of differ- Miss Kelly practised as an industrial chemist in rescued from financial disaster at the last minute Singapore itself was far from the sophisticated ences and unexpected similarities and of long- China in the early 30’s, before she moved into the by the generosity and prompt action of the advertising hub it is today, assuming the mantle of lasting friendships arising from a common faith in advertising business with Cathay. She was Australian agency George Patterson, Dentsu of a regional hub for many companies. But even our communications industry. interned in Hong Kong by the Japanese during Japan and a third party. These people stepped in then, the efficiency of the local organisers was a World War 2. Returning to advertising she quietly to make sure the event happened and it stand-out for its time. Today we take such organi- With some notable exceptions the venues, the retained a broad vision for the industry through did. Again, the opening duties were performed by sation, service and efficiency for granted, even in organisation and the accompanying hospitality the region. She was uniquely positioned to sup- the head of state at that time Madame Marcos. venues which fall a little short. And one should survive the trial of time rather more than the sub- port an industry-wide initiative such as AdAsia not forget the benign influence of the Straits ject matter of the conferences. While they were through her unmatched contacts through the Manila is also recalled as the occasion when Times group which provided a glue which held not a forum for learning new ground-breaking region. It is believed she was strongly supported delegates were tempted by a government-spon- together disparate members of the fledgling advertising practice, we met and heard from in her vision of a future AdAsia by Otto-san (?) of sored offer to purchase duty-free, a veritable fleet advertising industry. many of the global leaders of the day in industry Dentsu and Jake Romero of San Miguel. She sold of new Mercedes cars. The Government would and in politics. her business to George Patterson Australia in retain the right, for a specified time, to call on Bangkok in 1986 carried some logistical prob- 1961, a business which was to evolve into Bates these cars to be used for short periods as official lems, with a conference venue away from the The last decade has produced some of the most Asia. However Elma continued her enthusiasm transport for major conferences. The buyer downtown area and the city itself in the throes of far reaching changes in our industry since the for AdAsia supported by her new George enjoyed a deep discount and a two year commit- enormous growth in people, development and advent of television. The rate of change will vary Patterson Chairman, Keith Cousins, himself to ment to make the vehicle available. It was part of traffic - change which continues to this day. The from country to country but the impact of the new become a future-shaping force in the region. a government initiative to generate more interna- hosts were gracious as ever and painstaking in digital age will be felt by us all. It is to be hoped tional convention business. In the manner of such smoothing over the differences which can emerge that there will be a role for AdAsia in helping the Jakarta 1976 was held in a brand new confer- things the trail has gone cold, but there may still when disparate cultures gather together. While the region to understand this phenomenon and in ence centre carved out of an old section of the city be some local beneficiaries of the big car deal. Or speakers did well on their day, one of the helping our individual businesses to engage it and not yet equipped with air conditioning when their heirs. strongest forces to emerge came from a few key effectively and profitably. Here are some the AdAsia meeting started. The conference itself country delegates who were to carry on for some thoughts from the authors and a few of their sur- was opened by President Suharto of Indonesia, Singapore in 1980 was held before many of us years and provide the framework which held viving colleagues. supported by a strong retinue from the military, had much experience in staging international AFAA together. This enabled AdAsia to continue the air force being particularly noticeable. meetings, both from a logistics point of view and as a viable event. Hong Kong 1964 was the site of the fourth Despite the very real conference problems caused a programme aspect. There is a strong memory of AdAsia conference, although it quite possibly had by on-going construction of the new centre the 282 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 283

There were strong contributions and represen- tie and rolling up sleeves in a frenetic plea for palace adjoining our high vantage point. There competing nations. tation from Malaysia and Singapore. From more creativity in advertising. For days after, he seemed to be thousands rather than hundreds in a Thailand and Pakistan. A powerful group from attracted a rock star-style retinue of young believ- swirl of colour and movement and music a total In a novel and spectacular move, the Malaysian Japan and an emerging strength from Indonesia. ers clamouring for more. (One of the great initia- assault on the senses. And we farewelled Lahore hosts built a spectacular “village”, for eating and Australia too was active on a wide front. We have tives of this and other AdAsia events was to allow from a hill-top fort surrounded by the culinary entertainment, right in the centre of downtown, a habit of identifying social periods by name, young local delegates and students to fill the audi- delicacies of provincial Pakistan and stunned by only minutes from the main conference venue these days; in hindsight the Bangkok AdAsia ence gaps at no charge, to expose them to the best the night release of hundreds of colourful hot-air and opposite the classic lines of the old Kuala might be called the first of the “modern era” of minds in the business.) Bryce, on the other hand, paper balloons, candle-powered and drifting into Lumpur railway terminal. You could say that AdAsia meetings, in the same way that the was a little distracted because, in Lahore, he had the starry night. To this day I do not know how we AdAsia literally spilled over on to the streets ground-breaking 1956 Melbourne Olympic just received first proofs of the dust jacket for his avoided burning down half the city of Lahore. and took them over in a huge, happy gathering. Games won a “modern era” cachet for perfor- first novel The Power of One. It was the first of I am conscious that this AdAsia, at times, mance, presentation and outcome. AdAsia many, and Bryce now sells internationally in the seems more tourist than professional conference. Tokyo 1993 was run with great precision, and showed its purpose was serious and the support millions. The professionalism was there each day with meticulous attention to timing and detail. The from the senior leadership became increasingly speakers treated like celebrities. But is was also opening ceremony attended by the Crown Prince evident and visible. The great catalyst was the We dined outdoors to tinkling fountains and ice one of the most concentrated, cultural impacts one of Japan was accompanied by a stunning concert- hospitality of our Thai friends who provided an sculptures, we lunched on the rolling lawns of the could experience anywhere in the world I hall performance by a full symphony orchestra. embracing forum. I remember many of the indi- grand colonial style provincial Library, only steps believe the impact came not so much from the This raised the bar and set a standard for the ensu- viduals well, to this day. It is a tribute that many, away from a dedicated market of working artists grand and impressive sights and venues but ing conference. The captains of Japanese industry such as Vinit, are still contributing in Thailand and craftsmen and a dazzling array of colour and from the impact of the people of Lahore, those attended along with the legends of the local and and in other AdAsia countries. movement. with authority and duties, and those who sang and international advertising industry At the glam- danced and talked about cricket. orous welcome party in the Imperial Hotel, dele- Lahore in 1989 was the next AdAsia venue We dined on more acres of lawn at the original gates could meet the “names on the brands.” (The and the first time we saw the development of what Governor’s residence, still a seat of power, and Kuala Lumpur 1990 was hugely attended and author writes this still wearing a watch, presented was to become a serious bidding process by coun- were served impeccably (some hundreds of us) by formally opened by the King and by Prime later in the conference, by Mr Seiko.) tries to hold future meetings. Times had changed dress-uniformed army personnel, being enter- Minister Mahatir. Several of the delegates were and our Pakistan AFFA delegate Javed Jabbar had tained the while by a large army band strategical- later fortunate enough to join His Majesty for The conference rolled on with the smoothness become the Pakistan Minister for ly positions on an artificial hill. One could imag- morning tea, and an unusual insight into the of a Bullet Train. But behind the scenes there had Communications! Political times were not easy ine the hill as a viewing platform for the grassed development of Malaysia. been some turmoil at the AFAA meeting preced- but Javed brokered a de tente and cooperation area where we were dining and hear the thun- ing the conference. Newly-joined delegates from between the federal and state authorities. The dering hooves of polo ponies in another time. There was a growing sense of camaraderie the Peoples Republic of China were most anxious result was a stunning conference a variety of top among delegates from different countries who to be nominated to host the AdAsia after next, a speakers and spectacles which defied imagination After decades, the fabled Shalimar Gardens were now getting to know each other over a series venue which had been previously allocated to and which could only happen with full national were opened for an informal meeting and refresh- of AdAsia conferences. This, of course, was Australia. This caused tensions, and potentially support. ments magically lit for the occasion by the gen- spurred on by lobbying amongst delegates for some embarrassment to the hosts of the Tokyo erosity of Philips of Eindhoven. The senses were votes for the venue of the next conference (actual- conference and to the AFAA Chairman. The prob- One memorable on-stage performance was a almost totally overwhelmed by the parade of ly, the conference after the next to allow prepara- lem was resolved, as it usually was, within the creative speaker, Bryce Courtenay from the singers, dancers and musicians, colourfully tion time). The lobbying was climaxed by on- AFAA Council. The Australian delegate offered Sydney ad agency George Patterson Bates. Bryce dressed in their own village styles, who danced stage presentations from delegations from the to vacate their long allocated position as next was a flurry of movement, flinging off coat and through the paths and flowers and ponds of the 284 Asian Advertising - 2007 Movers and Shakers in the Development of Asian Advertising 285

hosts, after Indonesia, in favour of the Peoples gates. Setting up a moonlight picnic dinner on a AFAA and AdAsia - a must place to joint thanks to all of AFAA leaders and members, who Republic of China, recognising the future impor- remote, but nearby, headland did nothing to spoil always give generous supports and true friendship tance in the region of this new recruit to AFAA. the mood of the delegates! For this delegate, it Dear friends and colleagues, to made our beliefs and mission come true. Accordingly the competing presentations for the was a memorable end to an extraordinary series of honour of being next venue were cancelled and AdAsia conferences spread over a decade. With its mission, commitments and experi- Warmest regards and all best wishes, Australia publicly invited the Peoples Republic to ences, AFAA has made great contribution to the take their position. The Japanese hosts, and the promoting of advertising standards and profes- delegates in general, showed appreciation of this sional development in Asia and her membership resolution. associations through such Only One events such as: AdAsia, AdFest, A/P Media Forum, etc. Tran Hoang Our hosts were outstanding in presenting a Vietnam series of professional papers and also in orchestra- AFAA is also an ideal place for emerging President tion a number of awards, on a trans-national basis, advertising market and young local practitioner, VietnamMarcom ( an individual member of AFAA ) including the extraordinarily difficult task of communicators to learn and exchange precious arranging an international jury to judge a market experiences with world class leading advertising research award. This author, as a jurist, was most guru in Asia and around the world. impressed. AFAA and its membership associations, part- Bali 1995 was held at the conference centre at ners such as TAAA, KFAA, Dentsu, AdFest, Nusa Dua, adjacent to several Sheraton Hotels, IAA¡¦ have supported and donating many books, sparkling clear water and sunny skies - a true trop- magazines, and advertising materials to the adver- ical masterpiece. tising library initiated by VietnamMarcom in Vietnam. Yet it was somehow quite appropriate for then President Suharto to helicopter in to open AdAsia With this precious and generous supports, the and to give delegates a light-hearted lesson in professional development program initiated by geography. Later, at morning tea, the author was VietnamMarcom and University of Economics able to ask the President if one of the 13,000 (Hochiminh City) from April 2001 until now has islands of Indonesia, he had spoken of, could be provided the advertising training courses for more dedicated as a retirement home for old advertising than 3,000 students and local practitioners for the people? The President laughed but did not say no. Vietnam young advertising industry. The program His Air Force aide did not seem amused. is keep growing well with regular new launching other specializing modules such as: IMC, copy- The conference and the venue attracted a par- writing, creative communication, marketing, ticularly outstanding programme presented by brand communication, event... world leaders in advertising. Somehow Bali did not seem so far from London or New York.... The On the 30th anniversary of AFAA foundation venue certainly contributed to a relaxed atmos- and the 50th anniversary of AdAsia, it¡¯s my phere and good inter-action between the dele- great pleasure to send our best regards and sincere Appendix About the Writers

Dr. Pradeep Bhattarai / Nepal Ramon Faustino L. Dolor II / Philippines Raymond Kalaw Nacino / Philippines Cynthia S. Jacinto / Philippines Ramesh Narayan / India Indra Abidin / Indonesia Tanvir Kanji / United Arab Emirates Japan Advertising Federation (JAF) / Japan In Sup Shin / Korea Dong Hyun Kim / Korea Nantha Kumar / Malaysia Eddie Chan / Singapore Jonathon Chen / Taiwan Cheng Tzu-leong, Ph.D. / Taiwan Saravudh Anantachart, Ph.D. / Thailand Wen Chunying, Ph.D. / China 288 Asian Advertising - 2007 About the Writers 289

A p p e n d i x Ramon Faustino L. Dolor II, aka Beting Laygo Dolor, is a veteran newspaperman. He is presently managing editor of MAXIM Philippines, managing editor of Prime Asia, and contributing editor of Philippine News. About the Writers He was previously editor-in-chief of Inquirer’s Bandera and worked in the US as managing editor of Philippine News based in San Francisco, CA. Before that, he was managing editor of . He had a lengthy stint in BusinessWorld as senior reporter and section editor. He also had a two-year stint as business sub-editor in Gulf News based in Dubai. He began his journalism career as columnist for the Sunday Times Magazine.

Ramon Faustino Beting has won awards in investigative journalism, including a fellow- Dr. Pradeep Bhattarai, a multi-dimensional personality with a deep L. Dolor II ship from the East-West Center in Honolulu, the JV Ongpin Awards, and knowledge of Nepalese advertising industry in ground reality has a long Philippines the Economic Journalists of the Philippines. He was also cited as outstand- experience in advertising in Nepal. He has been involved in this sector ing media practitioner by his alma mater, De La Salle University. Beting since last 15 years in the position of senior most executives in execution as has completed his first novel, part of a trilogy. well as creative in different advertising agencies.

Schooling in mass communication and specializing in "Socio-cultural Raymond Kalaw Nacino, aka Emon Nacino is the Coordinator for effects of Cinema in South Asia" he has contributed a lot as an opinion- Industry Development, External Affairs and International Relations maker in favor of competitive Nepalese advertising industry and as a uni- Committee of the Advertising Board of the Philippines (ADBOARD). versity teacher of Advertising and Public Relations, he has played a signifi- Emon has been in the service of the advertising industry for five years now cant role in human resource development in this sector. and has significantly helped managed industry events and special projects Dr. Pradeep of the ADBOARD such as the Philippine Advertising Congress, ARAW Bhattarai He has been involved in the development process of AAN since its jour- Values Advertising Awards, Cannes Lions in Manila and ADUKASYON Nepal ney begun and played a significant role to draft country's first advertising Student Advertising Training Program, among others. policy paper, a progressive guideline of its kind to breakthrough the Nepalese advertising up to the mark. Emon graduated Cum Laude from the Polytechnic University of the Philippines with a degree on Advertising & Public Relations in 2002 and is Raymond Kalaw currently taking his MBA unit. Nacino Philippines

Cynthia S. Jacinto Unfortunately, we were not able to get any information and photo of Cynthia Jacinto. She was with Patalastas - The Official Publication of the Philippines Association of Accredited Advertising Agencies of the Philippines, August, 1984. 290 Asian Advertising - 2007 About the Writers 291

Writer, columnist, photographer, entrepreneur, advertising profession- Forum Bali. al. Ramesh Narayan is all of these. 2006 Elected as Senior Vice President International Advertising Association, World President Elect 2008-2010. In 1983 he founded Canco Advertising Pvt.Ltd. an agency that was to be known for its penchant for professionalism. Ramesh Narayan has been the President of the Advertising Agencies Association of India Club and President of the Advertising Club Bombay. He has served on the Board of Tanvir Kanji heads the Inca Tanvir consortium of Advertising, Public the Audit Bureau of Circulations, National Readership Survey Council and Relations, Media and Internet companies headquartered in Dubai and the India Chapter of the International Advertising Association. His Sharjah (United Arab Emirates). columns on advertising and marketing appear in several leading newspa- He was a founding member of the United Arab Emirates Chapter of the pers and magazines. International Advertising Association in 1979 and was its President till Ramesh Narayan November 2006. Under his stewardship the UAE Chapter emerged as the India most active and the largest Chapter in the world. The Chapter is the recipi- ent of the Golden Tulip Award for Excellence, twice. Since 1974 active in the organization development of the advertising He was on the Organizing Committee of “Dubai 2006” - the 40th IAA industry in Indonesia regionally and worldwide. He has climbed the ladder World Congress, held in March 2006. The Congress was billed as the most of the advertising organization from Secretary General Indonesian successful Advertising Congress ever anywhere. Advertising Agencies Association/Persatuan Perusahaan Periklanan Tanvir Kanji He also had the responsibility of chairing the IAA Awards Committee Indonesia/PPPI to the Chairman of Indonesian Advertising Agencies. United Arab Emirates (2006). He represents the IAA-UAE in the Asian Federation of Founding Member of The Indonesian Advertising Council/komisi Advertising Associations (AFAA). Periklanan Indonesia in 1978. Awarded the ‘Medal of Merit’ in 2006 by the IAA for meritorious ser- 1981 Chairman of the National Convention establishing The Code of vice to the Advertising Industry. Ethics&Code of Practice. He was instrumental in forging a joint venture with the International 1982 First Advertising Practitioner as Member of the Indonesian Press Advertising Festival - organizers of the Cannes Advertising Festival - and Council/Dewan Pers. the IAA to stage the Dubai Lynx Awards in March 2007. Indra Abidin Actively Advocator for the Advertising Laws. 1993 Founding Member The group’s flagship company Inca Tanvir Advertising, has been success- Indonesia of the Indonesian school of Advertising/Institute of Marketing & fully operating in the Gulf region for over 30 years, with a stable of local, Communications Technololgy. regional and international accounts (www.incatanvir.com). 1993 Founding Chairman of The Uni Sadhu Guna Joint Venture with University University of New South Wales and Monash University. Media Seen represents several prestigious Media for the Gulf and 1995 Acquired The British Institute, language School as part of The Uni Middle East region (www.mediaseen.com). Sadhu Guna. The group own www.nri-worldwide.com - a dedicated portal for Non- Founding member of Asian Federation of Advertising Associations /AFAA. Resident Indians (NRI). The portal has won several awards in the Joined International Advertising Association in 1992 Community Service Category internationally and has become the voice of President Indonesia Chapter 1992-1994. NRIs worldwide ([email protected]). 1997 Received The AFAA award for Recognition of Service. A native of Mumbai, India, Kanji relocated to Dubai/Sharjah (UAE) in 1998 Founding Steering Committee Member of Asia Pacific 1976 and has since been living there. Advertising Festival, Pattaya Thailand. 2005 Founding Steering Committee Member of Asia Pacific Media Group URL: www.incagroup.biz 292 Asian Advertising - 2007 About the Writers 293

The Japan Advertising Federation (JAF) is the representative member Mr. Dong Hyun Kim started his journalist career at the Dong-A Ilbo in association of AFAA in Japan. JAF is responsible for all the materials pre- 1969. He was forced to resign after six years for his fight against press pol- sented here and reserves copyright. icy of the military regime. In 2001, however, his fight for democratic movement was recognized and his honor was restored.

Japan Advertising Federation (JAF) After his forced resignation, he joined the Ssangyong Group of Established: October 20, 1953 Companies as public relations manager advancing to the manager of the Japan Advertising Members: Advertisers, Media, Agencies and related companies Cheongju Cement Plant of the Group eventually to become the executive Federation (JAF) Address: 7F Dentsu-Ginza Bldg., 7-4-17 Ginza, Chuo-ku, Tokyo, 104-0061 managing director in charge of the Group public relations. During his 22- Japan Tel: 03-3569-3566 Fax: 03-3572-5733 year service at the Group he served as a member of the board for nine years. While at the Ssangyong, a leading advertiser, he served as a member Dong Hyun Kim of the steering committee and self-regulatory committee of the Korea Korea Advertisers Association. In 2002 Mr. Kim was appointed as the vice chairman of the Korea Federation of Advertising Associations and is in charge of Advertising Development Committee, Press Advertising Ethic Committee and Advertising Competition for University Students among other duties. Professor In Sup Shin’s career in advertising covers over 40 years. He was the secretary-general for the 14th Asian Advertising Congress He was decorated with the Order of Chultap Industrial Award of the (AdAsia) in 1984 and the 35th IAA World Advertising Congress in 1996 Korean government in 1995. He authored two books, New Nomads of the held in Korea. 21st Century and Free Press.

He wrote some 20 books on advertising and public relations ranging Address: 410 Jeokseon Bldg. from copywriting, introduction to advertising, media and agency. He co- 80 Jeokseon-dong, Jongno-gu, authored Advertising in Korea, the only English-language book on the Seoul, Korea 110-756 development of advertising in Korea in addition to two books on advertis- Telephone: 822 733 1201 ing in Japan and China. His landmark book, History of Advertising in Fax: 822 722 4288 Korea, is now a classic which is a culmination of his 40-year-long experi- e-mail: [email protected] In Sup Shin ences media, advertiser and advertising agency. Korea Fondly called the “Grand Dad of Korean Advertising”, he says he is “actively retired”.

Address: Room 401, Hayanjip 105-15 Sangdo 5-dong, Dongjak-ku Nantha Kumar. Prior to his leap into freelance journalism, the writer Seoul, Korea 156-035 covered media industry issues during his six year tenure at The Star. He Telephone (Mobile): 82 19 229 1329 Nantha Kumar also currently serves as the Marketing Manager (Creative) of Mehla Arts e-mail: [email protected] Malaysia Sdn Bhd, which specialises in the event and multimedia content sectors. 294 Asian Advertising - 2007 About the Writers 295

In 1957, Eddie Chan started a career in advertising which spans almost The Secretary General of the Steering Committee of AdASIA 2001 50 years. He had worked for about two decades with international advertis- TAIPEI. ing agencies including Ogilvy & Mather before setting up his own agency. Presently the Deputy Regional Director of Greater China Region, Beijing Dentsu who was the COO of United Asatsu and Managing During this time he had continuously served the local advertising indus- Director of United Advertising Co. in Taiwan for years. try including 3 terms as President of the 4As and 3 years as ASAS Chairman in the 80’s. Eddie had been honoured by the SAA with the ‘Max Lewis’ Gold Medal Award for lasting contributions to the advertising industry as well as the 4As with the ‘Excellence Award’ and by CASE with ASAS Gold Medal Award for long service. In 1965, he graduated from College of Distribution of Trades with a Communication, Advertising Eddie Chan & Marketing (CAM) Diploma in London and subsequently served as an Jonathon Chen Singapore examiner for the professional final examinations in Singapore. Taiwan

In 2001, Eddie as Vice Chairman joined Mr.Yong Poh Shin, Chairman of ADASIA 05 Bid Committee and went to Taipei to help secure the bid for Singapore. Last year Eddie as 4As Executive Director and SAA Professor, Department of Advertising, National Chengchi University in Administrator was a member of the ADASIA 05 main committee as well Taipei.. as served in numerous sub committees, marketing and promotion, finance Chairman, Broadcasting Development Fund (sponsored by Taiwan and hospitality. He found the experience both challenging as well as satis- Government) fying as it was the most successful ADASIA congress to date. Indeed he is General Editor, Advertising Yearbook of Taiwan a true adman in all his adult life. The author of Address: 279 Holland Road “Strategies of Election Campaign” (1992) Singapore 278620 “Political Advertising” (1995) Telephone: 65 6464 6275 “Advertising Management” (2001) Fax: 65 6464 6275 “Election Campaign Communication in Taiwan” (2004) e-mail: [email protected] Cheng Tzu-leong, “Marketing of Cultural Industries” (2001) Ph.D. “Branding Taiwan: An Overview of the GIO’s International Taiwan Advertisements” (2007) 296 Asian Advertising - 2007 Asian Advertising Congress 1984(14th), Seoul 297

Saravudh Anantachart is currently an Associate Professor and Head of Wen Chunying is an associate professor at the College of Advertising, the Advertising Sequence in the Faculty of Communication Arts, Communication University of China, Beijing. Chulalongkorn University, Bangkok, Thailand. He holds a B.A. in Advertising (first class honors) from Thammasat University and After her BA degree in the Department of Library Science (now Dept. B.Com.Arts in Public Relations from Sukhothai Thammathirat Open of Information Management), Heilongjiang University, she received her University, Thailand. His M.B.A. in Marketing was from Chulalongkorn Ph.D. at the Department of Communications, Seoul National University, University’s Graduate School of Business. From the University of Florida, South Korea. Gainesville, USA, he received an M.A.M.C. in Advertising (with distinc- tion) and Ph.D. in Mass Communication/Advertising. His work was pre- Her primary interest is in the study of the history of advertising in sented at the conferences/conventions of the American Academy of China, Korea and the West. Trilingual(Chinese, Korean, English) she fre- Advertising (AAA); Association for the Education in Journalism and Mass quently contributes her articles in the academic journals published in Saravudh Communication (AEJMC); Association for Consumer Research (ACR); Wen Chunying, Korea. Her latest book is Advertising in China (in Korean language) co- Anantachart, International Communication Association (ICA); Florida Communication Ph.D. authored with a noted Korean scholar In Sup Shin . Ph.D. Association (FCA); and International Academy of Business Disciplines China Thailand (IABD). Liu pengzhe also contributed to the article on China.

Some of his publications can be found in the Journal of Promotion Address: Department of Advertising, Communication University of China, Management, Business Research Yearbook, Advances in Asia-Pacific Dingfuzhuang East Street, Chaoyang District, Beijing 100024, China Consumer Research, Proceedings of the Conference of the American e-mail: [email protected] Academy of Advertising, Proceedings of the Asia-Pacific Conference of the American Academy of Advertising, and Thailand's Journal of Communication Arts.