|Bus advertising spaces up for auction in HCM City now have more flexible contract periods compared to advertising packages that did not sell well last year. – VNS Photo Ngọc Diệp|
HCM CITY – The HCM City Department of Transport’s Management Centre of Public Transport will organise an auction for 11 bus advertising packages for the fourth time on March 8 at Tân Bình District’s Auction Centre.
The previous three auctions on bus advertising packages failed to attract buyers, Trần Quang Lâm, deputy director of the department, said.
Lâm said the third auction was a failure due to a rising preference for online advertising and the declining popularity of bus and bus station advertising.
In addition, the strict three-year contract period might have driven away companies, he said.
Packages range from five to eight routes, applied to 1,570 buses. As opposed to a fixed three-year advertising contract period during the previous bids, bidders this time can sign up for one of three periods ranging from one, two or three years.
From February 18 to March 5, interested companies can visit the centre to submit their applications. A reserve fee corresponding to the contract length will have to be paid. Winners’ reserve fees will be turned into deposits to ensure that contracts are fulfilled.
Advertisements can be placed on 50 per cent of the buses’ left and right sides.
Nguyễn Quý Cáp, chairman of the HCM City Advertising Association, said that inflexible advertising contracts and high prices had driven companies away.
The first auction attempt in 2017 resulted in Japanese ad agency Koa Sha Media Việt Nam winning the bid for Package 1 (out of four packages) which included the best bus routes.
Trần Chí Trung, director of the management centre, said that timing could have been an issue as past auctions were held when companies had no need to advertise or were not held when they did have need.
Leasing advertising space on buses could yield up to VNĐ200 billion (US$8.6 million) a year for the city, which could help reduce bus subsidies. - VNS