Friday 5 June 2009

selling out?

China Post: Lawmakers postpone reviewing of Chinese ads rules

Officials at the Taipei City Government estimated that the advertising outlay for Chinese products and services could reach at least NT$160 billion each year, four times the NT$40 billion ad expenditures of the domestic market.

Ok, VftH is in the culture business, not the business business, so this might be a little naïve,
but our understanding is that companies advertise to make money.
for each dollar they spend on advertising, they hope to get two, three or more dollars back in sales.
and if they don’t, they will stop spending money on advertising.
so if PRC companies spend NT$160 billion in Taiwan on advertising, they hope to take hundreds of billions more out of Taiwan in profits.
so we can see how allowing advertising is good for Taiwan’s advertising industry,
but how is it good for Taiwan?

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