And now, this message from the ad industry

`Value' is the message

Taipei Times: Given the economic slowdown, how can advertising spending help corporations boost revenue?

Ann Yang (楊淑玲), chief executive officer of Batey Ads, Taiwan: Consumers are more discerning about how they spend their money during a recession. They look for "value" from brands/products. Therefore, if a brand/product can grab the consumer's attention and make them recognize its value, chances of it being put on the shopping list will be greater. Advertising is a necessary evil, and is often the most efficient tool to do the job of getting on that list.

TT: Does entry to WTO and increasing global competition mean Taiwan-based companies need to spend more on branding?

Yang: We can expect that more products from different parts of the world will be available in the marketplace after entry to WTO. This means competition will be intensified whereas products become more homogeneous. What should marketers do? Building a strong brand to differentiate oneself from the competition.

TT: When did your client's advertising spending begin to slow last year and what quarter was the toughest financially?

Yang: Several clients cut advertising budgets in order to achieve their annual profit/loss goals in the second half of last year. The fourth quarter was the toughest financially for our agency.

TT: In terms of advertising spending, what clients or commercial sectors have been hit hardest by the recession in Taiwan?

Yang: Amongst our clients, travel and Internet-related businesses were the most severely hit by the recession.

TT: What did the Sept. 11 terrorist attacks do to ad spending in the third quarter last year?

Yang: The 9-11 event was just like sprinkling salt on the wounds of the sluggish economy. Most advertisers became even more conservative after 9-11. Airlines and tourist industry were the most directly hurt by the event.