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Advertising in the sector sees gradual increase in 2011

Advertising in the sector sees gradual increase in 2011

Construction and engineering advertising increased 19 per cent year-on-year in 2011, according to data from Indochina Research Ltd, making it the eighth most invested area in Cambodian advertising.

Construction and engineering companies spent about US$3,894,000 on advertising in the Kingdom through 2011, while accommodation companies, such as hotel and commercial property firms, spent $3,181,000 in the same period.

The amount spent on construction, engineering and accommodation advertising equated to 7 per cent of the total annual expenditure, the figures showed.

The growth in advertising over the last 12 months is a result of the increasing number of developments which have resumed construction in the period, according Asean Real Estate Vice President Keuk Narin.

While many companies have increased advertising campaigns, some projects are still struggling to sell units, he said.

“Houses in some developments are facing poor sales records, while others succeed,” Keuk Narin said. “The difficulties in selling are due to location, price and quality.”

He added that strong advertising campaigns don’t always translate into sales.

Phnom Penh-based project Chey Chumnah Borey continued a strong advertising campaign in 2011, but sales remained sluggish, according to Marketing Manager Sok Channa.

He highlighted the oversupply of housing developments in the capital as key factor behind Chey Chumnah Borey’s poor sales performance last year.

“Along with all the advertising, we even offered discounts and five year instalment schemes,” he said. “Hopefully it will pick up in the next few years.”

Sok Channa refused to disclose the company’s marketing budget.

Some companies, however, said they had benefited from marketing in the media last year.

“We attracted new customers to our project through advertising in the local newspapers and magazines,” said Kiev Sey Ha, deputy marketing manager of the Pengly Borey development.

He added that about 70 per cent of the units, priced between $30,000 and $100,000, have now sold.


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