Bec world will peg advertising rates

TV Channel 3 operator BEC World has decided not to raise advertising fees in October, because of the political and economic situation.

Vice president for finance Chatchai Thiamtong yesterday said a fee adjustment could come next January.

"We must be careful in making a decision to raise advertising rates. We learned in 2003-04 that the decision to raise advertising fees to increase revenue backfired," he said.

Despite the absence of the firm's usual fourth-quarter rate hike, BEC is maintaining this year's target of double-digit revenue growth from last year's Bt7.96 billion.

Chatchai added that ad revenue in July and August had grown year on year, despite the low season. The main factor driving revenue in those months is the new news programme "3-Dimensions", which is aired six nights a week and generates more income than its predecessors.

"We have to seek new channels in the current quarter to increase revenue. The rearrangement of TV programmes such as '3-Dimensions' news is an example of how we can raise advertising rates by adding a new programme," he said.

Channel 3 raised its ad rates twice in the first half. The first was for the soap-opera period before and after news programming, which was raised 7-10 per cent, and the second was for daytime programmes, which was increased 20 per cent.

Chatchai believes advertisers in the second half will not reduce their marketing budgets, despite the political turmoil and the economic situation.

Last month, the top 10 advertisers increased their spending with Channel 3 by 21 per cent from June and 39 per cent from the same month last year. Those advertisers accounted for 36 per cent of the company's advertising revenue in the month.

The next top 10 advertisers increased their spending 108 per cent from June and 153 per cent from the same month last year.

Chatchai said revenue this month was still good despite several special programmes, such as the Olympic Games broadcasts.

"Although there is some information indicating that advertising spending in the second half of the year will decline from the first half, I have a strong belief that the advertising industry has bright prospects. The advertising spending for Channel 3 in July could prove what I say," he said.