Thailand
Thailand: Aero Media leaping onto Myanmar opportunity
Aero Media Co, the licence holder that manages advertising at 13 airports, is jumping on the media bandwagon at Yangon airport as a springboard to Cambodia, Laos, Myanmar and Vietnam (CLMV).
The company is joining forces with Myanmar’s leading out-of-home (OOH) media operator Rifle Media to set up the joint venture, Rifle Aero Media Co, aiming to capitalise on Myanmar’s fast-growing media market. Tatchai Patipoksut, managing director of Aero Media and director of Rifle Aero Media, said the partnership is intended to help Aero Media become the leading aviation media operator in CLMV.
Rifle Media is operated by locals and led by a Thai executive. Aero Media is starting its international market expansion with Myanmar, capitalising Rifle Media is operated by locals and led by a Thai executive. Aero Media is starting its international market expansion with Myanmar, capitalising on the growing number of passengers at Yangon airport, increasing from 1-2 million to 6-7 million people a year.
“There will be more than 10 million people per year at Yangon airport, providing a big opportunity for us to enter this emerging market,” he said.
Two new terminals at that airport were completed in 2016, with Terminal 1 serving international flights and Terminal 3 serving domestic ones. The airport is projected to serve 20 million passengers down the road.
“Yangon airport will strengthen our portfolio and serve as our first step in expanding our international footprint in CLMV, as well as Asia and other continents,” said Mr Tatchai.
He said expanding abroad requires local people to facilitate both operations and navigate related laws, including taxation and investment incentives.
Mr Tatchai said that Vietnam and Laos are the next two countries where Aero Media wants to make inroads because of their potential market sizes.
Rifle Aero Media operates various media at Yangon airport, covering 100 billboards, luggage belts, trolleys and aircraft bridges. Rifle Aero Media was established with UScopy million (31.2 million baht) in capital investment, with Rifle Media and Aero Media holding 70% and 30%, respectively.
Mr Tatchai projected revenue from Rifle Media will boost Aero Media’s total revenue by 8-10% or 40 million baht. That figure is expected to grow after expanding to more airports in Myanmar.
This year, Aero Media is expected to generate 450 million baht, up from 300 million last year, thanks to 2-3 megaprojects in 2018.
Wichit Pakdeepipattanapong, director of Rifle Aero Media, said Myanmar’s media industry, especially OOH media, is growing rapidly because the country has only opened up to international investment in recent years.
People are starting to absorb international lifestyles through increased internet penetration and the emerging OOH media will accelerate that trend, he said.
“Despite the sluggishness of Myanmar’s print and TV sectors, internet and OOH media are emerging and creating opportunities for Thai investors,” said Mr Wichit.
He said the media industry in Myanmar will grow significantly in the next few years as the country can learn the best practices from Thailand or Singapore.
Rifle Media operates 17 billboards in five major cities in Myanmar. The company’s top-three clients are in telecommunications, airlines and fast-moving consumer goods.
Source: https://www.bangkokpost.com/business/telecom/1439642/aero-media-leaping-onto-myanmar-opportunity