Magazines hit by low advertising growth

The Magazine Association of Thailand (TMAT) chairman, Thanachai Theerapattanavong, said that 20 leading magazines saw growth in sales and advertising in the first half of this year. However, he added several small magazines suffered losses due to the economic slowdown and the rising oil price.

The total advertising in magazines in the first half was valued at Bt490 million, pointing to an overall growth of only 2-3 per cent.

He said there were 40 new magazines in the first half of this year, compared with 100 new magazines launched in the whole of last year. Of the 40, six were shut down. He said the association expects launch of new magazines this year to be less than in the previous year.

Thanachai, however, said the magazine industry might be relieved by the recent decline in oil price and the fall in the price of newsprint in the second half of this year. He said new magazines could be launched in the last quarter of this year.

Most new magazine launches are in Thai as local publishers have purchased the rights to many of the most popular international magazines, Thanachai said.

Rarin Utakapan, a TMAT committee member, said that though foreign magazine titles have been popular in the past five years, the slowdown in the economy would compel Thai publishers to suspend buying foreign magazine titles.

"The investment in buying foreign titles is around Bt20 million while the Thai edition will cost only around Bt10-15 million," she added.

Rarin said there are about 1,000 magazines being published currently.

TMAT estimates that sales volume of the magazine industry in Thailand is expected to increase by 10 per cent and the growth would come from the expansion of bookstores.

She said that advertising planners had chosen to allocate their budget only to giant magazine publishers, adding the sluggish economy is a key factor in their decision.

"Media planners want to see their advertising tap target groups. This has affected small magazines," she added.

TMAT cooperated with Abac Poll Research Centre to do a research on Thai magazines and readership trends.

Noppadol Kannikar, director of Abac Poll, questioned 14,300 magazine readers across the country in November 2007 and found that over 60 per cent of respondents agreed that they read more books and magazines than before.

About 85 per cent of respondents bought magazines themselves.

The poll also found that men prefer to read technology magazines followed by news, information and sports. Among women, health magazines are their first choice, followed by beauty and fashion, said Noppadol.

The Abac poll also asked 10 media planners about their views on magazines. Most media planners said that magazines with the highest circulation and readership are their first consideration when deciding to advertise, followed by compatibility with product and advertising package.