SPH drops ad rates to stimulate advertising

Singapore Press Holdings (SPH) has reduced advertisement charges in The Straits Times and The Sunday Times by four per cent, or S$1.50 per column centimetre until May 20.

Rates for The Business Times and Lianhe Zaobao were reduced by $1 per column centimetre.

The latest cuts come on top of its 10 per cent reduction in advertising rates for health and hygiene products and services from mid-April to May 14, and a 25 per cent discount for ads that pay tribute to healthcare workers.

SPH's executive vice-president of marketing, Tham Khai Wor, said the cuts would cost the company close to a seven-figure loss in ad revenue.

Media planners applauded the rate cut as a good gesture, but insisted that it would only help maintain adspend at current levels and not increase spending.

Elaine Quek, general manager of Mediaedge:cia Singapore, said the measure was a bonus to clients who were already running campaigns, but would not spur spending increases.

"This is largely because the overall consumer spending sentiment is bad and this is what is affecting business and advertising," she said.

Manpreet Singh, managing director of MindShare, described SPH's rate reduction as a worthy gesture nevertheless.

"The overall sentiment is bad and the extent of the slowdown in advertising depends on the industries - some are really hard hit, such as tourism, others are less so, such as healthcare.

"Any move to help clients and keep the advertising momentum going is therefore welcome," he said.

Starcom IP Asia managing director, Jeffrey Seah, agreed it was a good gesture but added that media owners in general "must now seek new ways of doing things".

"Clients want to see less of the transaction-based relationship as in the past, to more of a customised partnership between them and the media owners.

"Joint promotions, more flexible payment periods and customised programmes - clients want to see added value and depth in the partnership," he said.