Vietnam is beginning to realize the value of advertising and there is great potential in the industry, according to Yuji Yamaguchi, executive officer for the Japanese advertising joint venture Dentsu Alpha.
Thanh Nien Weekly: Is there future potential in Vietnam's advertising market?
Yuji Yamaguchi: Compared to Japan and other countries, I sense that the possibilities are many times greater. In recent years we have been receiving requests from many Vietnamese companies for consultations on branding, marketing and advertising. Companies in the US and Europe, Japan and Korea have been ahead of Vietnam in the advertising business in the past, but we now sense that Vietnamese companies are increasing their consciousness of the role of advertising. A brand is an important resource for undertaking sustainable business operations, and in order to increase brand value, entrepreneurs are beginning to make this investment for their company's future.
How has Vietnam's advertising market developed in recent years?
We sense that advertising is no longer being viewed as a mere communication tool, but now needs to be positioned as a form of investment in building "the brand."
While Vietnamese firms are now well aware of the role of advertising, their advertising budgets are still limited. What would you suggest in such cases?
Every company has its own idea about advertising, and advertising budgets. We believe there is a need to carefully plan how to use limited resources to the greatest efficacy.
Firstly, the company's marketing personnel need to objectively evaluate their company, and then, after establishing clear goals, they need to share those goals within the company (including with management). This can be very difficult to accomplish in-house.
We think third-party consultants provide a much-needed perspective on the most effective way to utilize those budgets
What effect is online advertising having on the industry's traditional mediumse.g. TV, billboards, etc.?
Worldwide, communications utilizing the Internet and mobile phones etc. have come to play an important role. At Dentsu, we strive to propose communications in keeping with the purchasing actions of consumers. These are not communications that use the new online services alone. It is also important to carefully manage the consumer contact points used until now such as television, newspapers, major sporting events, etc.
We believe that the mass media, such as television and newspapers, which can simultaneously communicate with many consumers, will henceforth play an even more important role in advertising.
What trends do you foresee in the future of advertising?
Advertising methods are likely to change considerably over time, due to technological developments. How to utilize such developments becomes a major issue for advertising agencies such as Dentsu.
The basic nature of advertising is to communicate to consumers in an effective and easy-tounderstand way whether you're conveying the messages of the nation, of companies or of organizations.
The development of effective advertising that connects with the feelings of consumers is actually a rather mundane task. I think the basics of advertising might remain the same, even if our countries and languages differ, and even if the technology develops further.
With the background of the favorable economic conditions in Vietnam, we think that not only will Vietnamese companies be increasing their advertising budgets but that companies which are investing in advertising for the first time will grow in numbers.
We think that the government and various other organizations will also be increasing their advertising activities.