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Ad Spending

Advert spending slides 5.7% in January-February

Return of normal investment in April: Nielsen

Advertising expenditure in the first two months suffered a 5.7-per-cent drop to Bt15.49 billion from Bt16.43 billion in same period last year, according to Nielsen (Thailand).

However, the media research firm believes that normal advertising investment will resume next month.

In January and February, spending via key media such as television, radio, newspapers, magazines, transit, in-store and even the Internet saw decreases. Spending via TV dropped by 7.61 per cent to Bt9.54 billion, while that via radio fell by 12.74 per cent to Bt733 million. Newspaper advertising faced a drop of 14.78 per cent to Bt1.8 billion, while magazines saw a 17.9-per-cent decline to Bt637 million.

Nielsen also found that alternative media such as transit displays decreased by 0.79 per cent while in-store advertising saw a drop of 15.42 per cent to Bt203 million.

The Internet was not immune, with a drop of 14.39 per cent to Bt119 million from Bt139 million in the first two months of 2013.

Only outdoor and cinema advertising still saw growth, of 1.96 and 56 per cent respectively.

Nielsen said major advertisers Unilever (Thai) Holdings and Procter and Gamble (Thailand) spent less on advertising than in the same period last year.

In February alone, the advertising industry witnessed an 8.35-per-cent decrease from Bt8.47 billion to Bt7.76 billion.

Wannee Ruttanaphon, chairwoman of IPG Mediabrands Thailand and of the Media Agency Association of Thailand, said the association had lowered its growth target for the industry to 3 per cent from the previous projection of 5 per cent because of the ongoing political unrest and the fragile economy.

The revised target was also in line with the new projection for growth in gross domestic product recently revised by the National Economic and Social Development Board. Last month, the NESDB cut its GDP growth estimate for this year to between 3 and 4 per cent from the previous projection of 4-5 per cent.

Wannee said she believed that advertisers were waiting to see how current circumstances play out before spending much money.

"But we see a slight improvement in terms of advertising investment this month and expect to see more spending from clients next month."

RS chief operating officer Pornpan Techarungchaikul said she expected the political situation would be solved soon and that next month advertising spending would bounce back.


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