Friday, 13 December 2019

Mizzima News

Home > News > Global Financial Crisis and Burma > Ad industry in Burma in doldrums

Ad industry in Burma in doldrums

Chiang Mai (Mizzima) – The global economic meltdown has dealt a body blow to the advertisement industry in Burma which has recorded a slump of 25 pert cent, sources in companies said. 

"It is not as healthy as before after the global recession. It has fallen by 25 pert cent," '21 Advertising Co.' Director Aung Myat said.  

Currently they have customers only from the music industry, fashion and apparel companies. They charge these companies Kyat 400,000 for a one month period, Kyat 2 million for 6 months and Kyat 3 million for one year, he added.  

The sales manager of 'Image Media' advertising company said that the company's revenue has fallen by one third.  

"Our company's income is hit hard and has registered a one third fall. Earlier business houses relied on our ad industry to promote the sale of their product and our industry was flourishing. There were over 20 advertising companies then. We have two machines and ran to full capacity. Now we have only about 10 job orders in a month," she said.  

Some businesses even cannot hire advertisement companies like before, a sales executive from 'Image Media' said.  

"Some companies had to stop advertising their products. For instance, 'Nine' Ball Pen Co had to stop advertising," he said.  

'Htun Tauk' Ad Co. which mainly runs 16'x20', 20'x18' big sized billboards and vinyl sheet ads also said that the income of their company had fallen by about 20 per cent.

"Earlier, our customers gave job orders to us which worth Kyat 10 million. But now we are getting job orders worth Kyat three million only. Our company's income has slumped by 20 per cent," a company manager said.  

The main hurdle for their industry is censorship of ads by the City Development Committee (municipal body) where firms have to wait at least three months for permission.  

Economist Khin Maung Nyo from Rangoon said that the government should liberalize and ease restrictions for the economy to pick up again.  

"The government should relax its restrictions to boost the economy. Moreover though it has not yet disclosed, some ministries are preparing, speedy issuance of export permits," he said. 

The Kachin’s last stand
Since October this year, Burma has been in a state of civil war, with fighting between Burmese military and armed ethnic rebels. The ruling junta started a crackdown on these armed groups.

Download Mobile App