Contrary to the global tendencies, the Georgian bank sector dominates on the domestic advertising market. Even the world’s major search engine of Google has banned advertising high interest-rate credits.
Completely different trends are recorded in the developed countries. Bank and finance sector advertisements are not registered even in top 10 advertised items. Technological companies are the most active ones in this respect.
What factors determine the domination of bank and finance products on the Georgian advertising market?
AD placement tendencies lead to making different conclusions, Zurab Kukuladze, editor-in-chief for the Banks&Finances newspaper, said. In general, the business sector carries out AD campaigns to develop products. Therefore, finance product is the most developed direction in our country. It is natural and logical that AD campaigns carried out by finance institutions prevail on the advertising market.
This tendency raises interest in terms of other aspects: How successfully will the economy work, when financial mediation is the most developed direction?
This signifies finance mediators own more financial opportunities than those who create wealth, Kukuladze noted.
“The finance sector takes resources from one instance and gives them to another, while real wealth is created by those units that are served by the finance sector. In the developed countries the finance sector has its own niche and everybody is aware of this niche very well. Consequently, no special marketing activity is required for financial services there. In Georgia, money is sold through marketing activities, i.e. the economy does not need the money that the finance sector offers and therefore, finance institutions try to sell this product through marketing”, Kukuladze noted.
The market registers demand for consumer credits, but the economy should rely not on this direction, bit on natural demands, for example, business loans, Kukuladze added.
Economic expert Emzar Jgerenaia talks about different tendencies on the Georgian advertising market.
“Media sector needs financial resources. Therefore, commercial banks create good opportunities for drawing constant financial resources. This is a subject of negotiations between banks and AD reception companies. The advertising market is developed, but this field is regulated by negotiations anyway. This is incorrect practice. It is better that the market principles regulate the field. Moreover, advertising market should be proportionally between radio and television stations.
Everybody wants to be shown by television, but accents are not made on real and professional information. The world practice clearly differentiates these aspects. TV commercials are very expensive there and it is unimaginable that TV commercials of any financial institutions be broadcast at CNN”, Jgerenaia noted.
In the last period, unlike Georgia, major financial resources were spent on advertising of telecommunication companies such as At&T” and „Verizon, as well as three automobile manufacturers – Chevrolet, Toyota, Nissan.