BEC World's vice president for finance, Chatchai Thiamtong, said demand for advertising on commercial television had continued to grow, with makers of most consumer products increasing their budgets for advertising in the mass media.

According to AGB Nielsen Media Research, 59 per cent of the estimated Bt20.9 billion aggre-gate advertising expenditures this year will be spent on television. Newspapers will receive 19 per cent of ad spending and the rest will be spent on other media such as radio, periodicals, outdoor and in-store displays, and in cinemas.

Total advertising spending is expected to increase 4.3 per cent from last year's Bt20 billion.

Chatchai said the advertising industry had not suffered from the economic downturn spurred by rising oil prices. On the contrary, when companies seek to maintain their sales in a worsening economic environment, they increase their advertising budgets. This is especially true for mass-produced consumer products.

"We think the cost of advertising is the last thing manufacturers of consumer products will cut. This is different for niche products, such as real estate, telecommunications and motor vehicles. These sectors will cut advertising costs immediately when there's an economic drop, but they are not the main target for television," he said.

Buoyed by this trend, BEC World recorded revenue of Bt1.68 billion and a net profit of Bt436.2 million in the first quarter of this year, up 14 per cent and 184 per cent, respectively, compared with the same period last year.

The company recorded revenue of Bt6.4 billion and a net profit of Bt881 million in 2005.

The company is also considering expansion its programming into international markets by linking with companies in Japan, the US and Taiwan, all of which have Thai communities of up to 50,000 people.

Chatchai said the plan would crystallise in the second half of this year.

Somluck Srimalee

The Nation