Beverages have overtaken telecommunications as the top advertising spender in Cambodia as advertising revenues for some firms have increased 15 to 25 percent compared to last year, media companies said yesterday.
According to data from the marketing research firm Indochina Research, advertising revenue for the first eight months of the year reached $51 million, about 37 percent more than the same period last year, but nearly the same as the $52 million in 2008.
The data is based on stated advertising rates and does not take into account discounts or deals, but it still reflects an increase in advertising purchases, if not the actual value, said Laurent Notin, general manager for Indochina Research.
“Companies are in better financial shape so they have increased their marketing budgets,” he said.
Indochina Research’s data also shows increases in beverage advertising have caused it to outpace the fiercely competitive telecommunications sector, with beverages spending $8.8 million to telecoms’ $7.2 million. Mr Notin said it was difficult to pinpoint the reason for the change.
Kim Hak, managing director of Ads Com advertising company, said his firm had seen advertising increase 25 percent to about $3 million in the first nine months of the year thanks to growing demand for professional advertising.
“The economy is not growing very much but the important thing is that it depends on promotion,” he said, referring to projections that the Cambodian economy will grow 5 percent this year.
Eung Song Leap, general manager at Rasmey Hang Meas adverting firm, said revenue had increased by 20 percent in the last nine months of the year, much of that from Thai companies selling consumer goods such as cosmetics, shampoos and soaps. As the economy improves, he said, more companies will seek opportunities to market new products.
“I think that the advertising industry will continue to increase in the future,” he said.
Bill Pasion, operations manager for Multimedia Company Limited, said revenues at his company, which owns more than 100 billboards, had increased as much as 15 percent this year compared to last.
Still, he said that, while companies were clearly increasing their marketing budgets, he could not tie this to economic activity.
“They always say when the sales are bad you have to advertise. But when the sales are good you have to advertise more,” he said.
(Additional reporting by Tim Sturrock)