Thailand
Thailand: Ad spending still sluggish
The sluggish economy and lack of consumer confidence continues to cause subdued media spending, with year-to-date ad expenses dropping 2% from the same period a year earlier, says researcher Media Intelligence Co (MI).
“The local media industry will continue to decline because of the economic slowdown, while consumers are not willing to spend,” said Pawat Ruangdejworachai, media director of MI, noting the government’s stimulus has thus far failed to help boost the media industry.
Media industry spending fell 2% to 51.5 billion baht in the first seven months this year, down from 52.6 billion year-on-year.
Mr Pawat predicts spending to pick up in the final quarter as it is the festive season, pushing media expenses to 89.9 billion baht for the full year. Total spending last year stood at 89 billion baht.
Media spending on internet platforms this year is forecast to rise to 19.6 billion baht, accounting for 21.9% of the total. It is projected to reach 24.6 billion baht next year, accounting for 28.2% of the total, continuation of a lengthy trend.
“We expect spending on digital channels to continue growing over the next few years,” he said.
Media spending on outdoor ads, or out-of-home (OOH) media, is expected to hit 11.9 billion baht this year and 12.6 billion in 2020 because of mobile lifestyles and urbanisation.
The rise of spending on internet platforms and OOH media cannot offset the dip in other channels, particularly TV, which recorded a cavernous dip, said Mr Pawat.
People spend less time watching TV now, only two hours a day, he said.
TV ad spending is expected to drop to 40.5 billion baht next year, or 46.4% of the total. This would be the first time TV comprises less than half of total ad spending.
Spending on TV is projected to drop to 47.3 billion baht this year, 52.6% of the total, down from 47.7 billion last year. In 2010, media spending on TV accounted for 62.8% of the total.
Mr Pawat stressed media spending is not expected to bottom out next year because of a lack of positive sentiment, projected to fall 2.83% to 87.3 billion baht from this year. The property sector is slowing its outlay.
Source: https://www.bangkokpost.com/business/1730355/ad-spending-still-sluggish