A proposed restriction on the amount of screen space devoted to advertising by online newspapers could seriously affect their revenues, forcing many to close.
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| The proposed restriction on the amount of screen space devoted to advertising by online newspapers could seriously affect their revenues, forcing many to close |
Chairman of the National Assembly’s Committee for Culture, Education, Youth and Children Dao Trong Thi, made the comments during discussions on the draft Law on Advertising presented on November 3 by the Minister of Culture, Sports and Tourism Hoang Tuan Anh.
A recent survey by the committee showed that only three of 34 online newspapers in Vietnam, Dantri, VietnamNet and Vnexpress break even or make a profit.
If the amount of space devoted to advertising is curtailed, many online newspapers would not be able to cover their maintenance costs and staff wages.
Under the draft law, advertising would not be allowed to occupy more than 25% of a page’s total area.
However, Thi said this was a poorly considered measure as the use of graphics, animation and scrolling made the restriction largely pointless.
Currently, only online newspapers and online information pages need licenses for their operation, while individual blogs, emails and social networks are free from restriction, including those based on foreign servers.
According to the committee, most online newspapers, information pages and websites have advertising. Advertisements online now account for just 3% of total Vietnamese advertising market share. However, online advertising has great potential for growth and is set to become more common, appealing particularly to young consumers.
Advertisements via mobile phone messages and emails are far more used, and regulations related to their use should be included in the draft law, Thi noted.
The law will be further discussed at the on-going second session of the 13th National Assembly and is expected to be approved next year.
