The companies are Otto Advertising, Hoho Outdoor and Powerful Integrated Marketing Communication, each of which is bidding to handle boxes for a three-month period, March through May.
William Chao, chief of advertising section and business department, TRTC, said a system of ‘mini-bids’ has been used since last October when Omniad broke its four-year exclusive advertising contract with TRTC.
William Chao, chief of advertising section and business department, TRTC, said a system of ‘mini-bids’ has been used since last October when Omniad broke its four-year exclusive advertising contract with TRTC.
Omniad is believed to have paid NT$700 million (US$22 million) annually for rights to the system.
“The problem is that Taiwan is in a recession, and the TRTC continues to use a minimum price that is based on times when the economy was stronger,” said a source at one of the subcontracted outdoor firms.
The TRTC advertising system has been underutilised since then, and this is a major reason cited for the eight per cent drop in Taiwan’s outdoor adspend last year.
“We make the space available to public service advertising when there are vacancies,” said Chao.
Currently, only half of the system’s total advertising space is being utilised commercially, said Chao.
TRTC has 1192 lightbox frames in 69 stations across Taipei. The system also offers 270 TV screens, and advertising on 77 high capacity and 51 medium capacity trains.
“Actually, we are reducing the price level, not all at once, but gradually,” said Chao. “But I can’t reveal by how much, as it is a commercial secret.”
