Ko Aung Nyi Nyi Maw, general manager of Crony Computer Group Co., displays his company’s Phoewa website on a computer at his office in Kamaryut township, Yangon, on September 11. Pic: Lwin Maung Maung

CONFIDENCE that Myanmar is deepening its involvement in the worldwide web is at times the only thing sustaining local website operators, who usually make little or no money from online advertising, site owners and developers said.

Despite the regular addition of new Myanmar websites – hosted locally and abroad – and steady growth in traffic as the population becomes more internet savvy, most businesses were yet to recognise the potential of online advertising, sources said.

“There are very few businessmen interested in advertising online because they are still unaware of its benefits,” said Ma Cho Zin Aye, operations executive for www.planet.com.mm, a Yahoo! replica in Myanmar language that includes news, horoscopes, email services and discussion forums.

“Our website has been around since 2002 but we still can’t survive by relying on advertising.

“Here in Myanmar, most people think print media and TV commercials are more effective than online media. So they spend a lot of money on advertisements on these media but they don’t want to spend anything on online advertisements,” she said.

Research appears to back this. In a survey on advertising spending for 2006, Myanmar Marketing Research Development (MRMD) found that television accounted for US$10.6 million of the $17 million it says was spent last year. Billboards made up $1.1 million and the remainder went to print media, with weekly journals attracting $3.47 million, daily newspapers $1.08 million and monthly magazines $1.16 million.

Daw Lay Lay Win, MRMD assistant manager for media operations, said the market research firm did not include online advertising in its study and has no plans to in its 2007 report because “it is still in its initial stage and volumes are not at a level worth commenting on”.

Planet.com, which has clocked almost 4.9 million hits in less than five years, currently offers advertising space for either K50,000 or K100,000 per month depending on size.

Ko Aung Nyi Nyi Maw, general manager of Crony Computer Group Co., Ltd, said there had been virtually no interest from the business community in advertising on www.phoewa.com, a youth-oriented site it launched in May 2007 which is similar to Planet but without an email service.

“At the moment it is very difficult to earn anything from advertising on websites. That’s why we run internet centres, do computer servicing, and design and host websites to get money,” Ko Aung Nyi Nyi Maw said.

“A lot of people use our website and we have a lot of content, including information on education, entertainment and technical issues, which is all quick and concise.

“Plus, online is faster than offline media and it can be viewed 24 hours a day,” he said, adding the company hoped the site would breakeven within its first year.

Advertisements on Phoewa cost K50,000 per month.

“We have to keep reminding businesses that online advertising is another option for them. At present we can’t compete with offline media and TV commercials because they are more popular with Myanmar people. But I hope there will continue to be more and more internet users and people will spend more time online,” Ko Aung Nyi Nyi Maw said.

Ko Aung Phyo of Creative Web Studio, which has provided information on educational opportunities at www.myanmartraining.com since February this year, said the site was yet to turn a profit.

“I think there are a lot of users but the problem is connection speed. We need to upgrade infrastructure to attract more users,” he said.

The site offers advertising for K50,000 to K100,000 depending on size and position on the web page.

One Yangon-based businessman said online advertising made most sense for companies targeting consumers aged under 30, who make up the bulk of Myanmar’s internet users.

“But the problem is that some businessmen don’t have any awareness of IT and as such they’re not interested in online advertisements,” said the book publisher in his 40s, who asked not to be identified.

– Additional reporting by Htin Kyaw