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Published on November 17, 2007

The research centre said that the spending would be tiny as each candidate was allowed to spend no more than Bt1.5 million and bound as well by other stringent rules imposed by the Election Commission.

It expected that the most interesting media for political parties would be newspapers, the Internet and mobile phones.

"Thai advertising companies are also expected to benefit from higher demand from manufacturers who are pushing up sales in the last quarter of the year," the KRC said.

Thus, media spending throughout this year could range from Bt92 billion to Bt94 billion or 2-5 per cent up from 2006, despite the meagre 1.2-per-cent growth in the first nine months of this year. From January to September total ad spending was Bt67.3 billion.

By quarter, the spending in the third quarter of this year was the highest, at Bt23.66 billion or 4.3 per cent up from the same period last year. Ad spending in cinemas in the first nine months expanded 158.7 per cent on year and that on shopping centres' internal ads 125.4 per cent. But their combined value was only Bt3.6 billion, or 5.4 per cent of total spending. Meanwhile, TV, radio, print and billboard advertising, contributing 89 per cent of the total, have been hard hit by sluggish demand.

The KRC expects ad-spending growth next year could beat this year's level.

It noted that consumption and investment should pick up after the election and ad spending should increase. It is also highly possible that advertisers will focus more on product placements to put their products in television news programmes, series, game shows and talk shows, as well as event sponsorships.

The industry will also face persisting risks in the form of high oil prices, baht appreciation, interest rates and restrictions on the advertising of some products. This should result in cautious spending by advertisers who are ready to spend more on below-the-line activities to reach target groups for long-term benefits.

"The spending growth rate could be more than 4 per cent, but it is difficult to see two-digit growth as in 2005," the KRC said.

The Nation