Figures from Indochina Research show adspend grew 19 per cent in print and on TV (discounts not included) in June compared with the same month last year. However, from January to June this year, spend has slipped by 16 per cent, or US$5.8 million.
Laurent Notin, research director at Indochina Research, pointed to a pause in Government spending. “Some of our clients working closely with government authorities report not being able to sign off any projects requiring approval from Government stakeholders, who are too busy campaigning for the elections,” he said.
The election was held on 27 July. Preliminary results indicate that the Cambodian People’s Party will form a single-party majority Government, tightening its grip on power.
Notin added that marketers were waiting for the dust to settle before committing their budgets. “What is important is how the government will be structured. Once this has been resolved, there is no reason why advertising spend should not rise again.”
Concerns persist in Cambodia about transparency, strategies for development and a possible Government restructure. But Notin believes that adspend could rise significantly if marketers are confident the situation in Cambodia is stable.
“The big change compared to previous elections is the fact that marketers are ready to spend again and maybe spend more, once the elements of uncertainty are tackled,” he added.
Other observers report a pause in outdoor advertising hoarding construction, which is usually a strong sign of the growth of Cambodia’s advertising industry. Media suppliers are waiting until after the election before they build sites, supposedly to avoid early taxes.
A heated dispute with neighbouring Thailand over the origins of the Preah Vihear near the Thai border is also said to be making advertisers cautious.
Adspend drops ahead of Cambodian poll
PHNOM PENH - Advertising spend in Cambodia has fallen considerably since the beginning of the year, as marketers took a cautious approach in the run-up to the recent parliamentary election.
