Advertising sector struggles without clear policies

The government’s collection of opinions on amendments to the Advertising Activities Law has revealed the sector’s difficulties, as Keyvin Bi, vice-chairman of the Association of Advertising Agents of Macau, has pointed out that the lack of policies to promote industry development has obscured local advertising advantages and exacerbated ongoing challenges.

Speaking to the Times yesterday during a consultation meeting for the sector, Bi noted that there has been a significant change in advertising and the current business environment, emphasizing that both the local and mainland Chinese advertising industries are under considerable pressure, especially from major clients in the real estate and automotive sectors.

“Over the past few decades, advertising regulations in the gaming industry were not as stringent, but the situation has become much stricter now.

Many advertising spaces have disappeared – casino ads and taxi ads are now almost nonexistent, leading to a downturn in the market,” he added, highlighting that Macau lacks stimulus policies.

“New energy vehicle ads have adopted different sales models, and traditional media have also been greatly affected. While there are some bus ads in Macau now, the overall volume of advertising has still decreased significantly.”

He emphasized that while the current Advertising Activities Law needs to adapt to technological and market changes, it must also allow space for industry development.

Keyvin Bi

His association recently indicated that, due to the challenging economic environment, it anticipates a 10% to 15% decline in business for the advertising industry in the first half of the year compared to the previous year. This downturn is largely driven by advertising clients becoming more cautious and selective with their spending.

Referring to the fast-paced world of digital advertising, Bi emphasized the need to revise the current Advertising Activities Law, noting the emergence of new formats like social media posts, short video integrations, and live-streaming promotions.

“Macau’s key opinion leaders (KOLs) are utilizing external platforms that fall outside our existing legal framework. This situation raises a crucial question: What is the purpose of regulation in these circumstances?” he stated.

Bi believes that clear rules are not intended to restrict, but rather to establish a compliance framework that helps companies understand “what they can do and how to do it.”

To the Times, he stated, “Clearly defining what constitutes advertising and specifying when labeling is required can alleviate concerns for small- and medium-sized enterprises. This clarity encourages them to engage in online promotion without the fear of violating regulations, ultimately unleashing the potential for innovation and growth in the digital landscape.”

He described the update to advertising guidelines as essentially “drawing a line in the sand and giving the green light – the idea of setting clear boundaries while also permitting action.”

This includes refining standards for authenticity, simplifying processes for SMEs, and providing free compliance consulting.

Regarding the proposal to explicitly ban all types of gambling-related advertising, he emphasized the long-term significance of such restrictions, stating, “The goal is to encourage the advertising industry to shift toward broader sectors like tourism, exhibitions, and cultural creativity – areas where SMEs have a strong presence and can create more diverse business opportunities.”

Pointing out that the advantage of the advertising industry lies in the potential for integration between tourism and diversified industries, Bi suggested that this could be enhanced during the revision of laws and regulations.

He recommended that the government clarify compliance pathways for cultural and tourism advertising to encourage SMEs to develop unique promotional strategies by leveraging historical districts and intangible cultural heritage resources.

Additionally, he proposed supporting training in digital marketing technologies to help local businesses effectively utilize short video and live-streaming tools, thereby expanding their promotional channels.

“The integration of ‘tourism + culture’ in advertising is not only a business opportunity but can also amplify Macau’s urban charm through compliant promotion, creating a virtuous cycle,” he emphasized.

His recommendations also include measures for advertising content generated by artificial intelligence, requiring AI-generated images and copy to be clearly labeled as “AI-generated.”

He also advocated for copyright regulations to clarify the ownership of AI-generated content, reducing copyright disputes and enabling businesses to confidently adopt new technologies to enhance advertising efficiency.

Authorities clarify proposed ban

The Economic and Technological Development Bureau (DSEDT) held its first industry consultation meeting yesterday regarding amendments to the Advertising Activities Law. During the meeting, industry representatives raised concerns about a proposed ban on advertising gambling activities. In response, the authorities clarified that not all business activities, such as direct sales or exhibitions, fall under the Advertising Activities Law. Advertisements must provide information accessible to the general public and comply with advertising regulations.

The authorities also confirmed that they do not intend to make existing rules for exhibitions related to gambling or technology stricter.

Additionally, if a sponsorship only includes the name or logo of an integrated resort (IR) operator, there will not be any new, stricter regulations imposed. Essentially, current practices and standards will remain the same.