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Advertisement on LCD : the competion started- who will be benefited ?

In 2007, a new type of advertisement was introduced in Hochiminh and other big cities – advertisement on LCD screen at public areas such as department stores, supermarkets… At that moment Goldsun Focus Media is the only player on this market. However within a year of introduction, this advertisement market started to have a hidden and strong competition.

 The pioneer

In 2005, Goldsun Group was one of the “big brothers” in advertisement market in Vietnam. However it seems that the market was too small for Goldsun Group and it had to find a bigger market for expansion. After studying, Goldsun decided to put investment in a new type of advertisement which was still “empty” – advertisement on LCD screen in public areas. Goldsun Focus Media (GFM) invested its first investment of 80 billions and Ms. Tran Thi Lan Thanh was assigned as CEO. In November 2006, GFM officially signed the franchising contract with Focus Media Shanghai Corporation which had 99% of market share for advertisement on LCD screen in China.

An amazing break-through and the competition started

It is an amazing break-through for GFM to be pioneer in advertisement on LCD screen in public areas. Referring to stand-alone surveys of TNS and Nielsen, two leading market study companies, it is the performance of this new advertisement that creates the break-through: 100% of female and 89.4% of male customers in Hanoi and Hochiminh City watch advertisement on LCD screens in supermarkets and department stores, 42% of customers decided to buy products after watching advertisements on LCD screens. As an advertisement channel, although it is just introduced but this type of advertisement has exceeded newspaper and internet to be number 2 after TV. On the pricing aspect, one advertisement on LCD is only one-third that of TV. Therefore, in May 2007, GFM started to sign contracts with clients and after 6 months GFM has installed more than 1,500 LCD screen in most of big supermarkets in HochiminhCity and Hanoi. In March 2008, the system was increased to 3,500 screens and was available not only in supermarkets and department stores but also in office buildings, big hospitals to “consult” customers… And the competition has started from here.

 Who will be benefited?

Ms. Lan Thanh, general manager of GFM said that: “the market is very hot now, competitors of GFM are joining the market by many ways: in taxi, in ferry station… and they are also available in supermarkets, department stores, office buildings…” Ms.Lan agrees that competition should be in a legally and fairly way. She also committed to use good service as a competition tool. For example, the benefit of customer will be maintained by monitoring broadcasting time, duration… from market survey companies; in case of power failure (pre-informed), GFM will compensate to client by re-broadcasting. She also said that GFM is discussing with Television of Hochiminh City to produce a dedicated program for LCD screen of GFM, to make it more unique and more attractive to customers. Especially GFM will reduce 50% of price for clients signing advertisement contracts with at least 1 month broadcasting on all LCD screens in supermarkets. It is clearly that in this competition, advertisement clients will get benefit as well as their customers. At the beginning of 2008, there were 80% of clients to renew their contracts with GFM. Moreover, many famous brand names are becoming GFM’s clients such as Mitsubishi, Motorola, ANZ bank, Unilever, shampoo product of Henkel, P&G...