Rule change to boost Taiwan's agencies

In a press briefing last week Liu Te-shun, vice-chairman of Taiwan’s Mainland Affairs Council (MAC) mentioned “revising restrictions on Chinese product advertising in Taiwanese media” in line with the “ever-increasing exchanges across the Taiwan Strait.”

Technically, Chinese imports are already legal as are their advertising and promotion, explained a source at MAC, but few have yet to apply. All that is lacking, in other words, is the green light, and the island’s advertising community believes it is coming soon.

“The question is how far this will go this year,” said Manny Inocencio, managing director of TNS Taiwan. “At least the government is pushing to make the law and definition clear so it can go faster.”

Will these changes benefit Taiwan’s advertising agencies already struggling in one of Asia’s softest ad markets? “I don’t think it will create a boom,” said Christopher Fay, CEO at Saatchi & Saatchi Taiwan. “But it should help put a floor on the bottom of the market.”

Gary Chi, executive vice president, McCann Erickson Taiwan, believes media agencies are better positioned to gain. “Of overall revenue, more will go to media agencies," said Chi. “Taiwan agencies will earn adaptation fees while media agencies earn from media spend.”

In a Greater China context, Taiwan has been marginalized. Much of the work for multinational clients is done in China. "Taiwan has been doing fewer original campaigns and less strategic planning,” said Chi. “Instead Taiwan agencies simply localize regional ads and create small-scale activations based on the regional framework.”

But with Taiwan and China pulling closer together, the barriers that have marginalized Taiwan will be ameliorated. With direct flights, for example, it is easier for clients and production staff to visit Taiwan and supervise shoots.

"Maybe some projects and production will shift to Taiwan," said Chi. "That is where the true opportunity lies."