Advertisers, media agencies optimistic
Leading media and advertising agencies are optimistic that their business could rise as much as 12 per cent to Bt135 billion this year, provided there is no new political strife, as there has been strong ad spending through free-TV while alternative media is on the rise.The full launch of third-generation cellular services will also open more opportunities for local digital creative agencies. Businesses at large expect to experience intense competition as a result of high growth business including non-alcoholic beverages, skincare products, automobiles, telecommunications and retail.
Ad spending in alternative media, such as cable/satellite TV, out-of-home and digital media, enjoyed double-digit growth in 2012, but 60 per cent of total ad expenditure was still in TV.
Vichai Suphasomboon, CEO of Aegis Media (Thailand), the country's second largest media agency, said last week that quality content and production was the key to success for local TV broadcasters. Stakeholders keep investing in that area because strong television programmes remain attractive to local advertisers and boost their TV ratings.
Cable and satellite TV operators, which are mostly leading content producers, also follow the same track but local advertisers prefer to use those channels to communicate with segmented audiences.
According to leading satellite TV operators such as RS and Nation Broadcasting Corp, this year cable and satellite TV is expected to rise to 15 per cent of total ad budgets via television, double last year's 7 per cent. Out-of-home media, such as billboards, transit, in-store and cinema, were also expected to maintain double-digit growth this year as related businesses are expanding in first and second tier provinces.
Surachet Bumrongsuk, country manager at Kinetic Worldwide (Thailand), said this development was also the result of the migration of Bangkok residents to the provinces and the change in consumer lifestyles due to bulging purchasing power.
Ichaya Santitrakul, founding partner of leading independent media and advertising agency Brand Connections, said old-fashioned billboards were being converted into multimedia screens that let media agencies sell many ads on the same billboards.
Upcountry expansion of retail businesses such as Central Plaza, Index Living Mall, HomePro, Big C Supercenter and Tesco Lotus, as well as movie operators like Major Cineplex and SF Cinecity also opens more doors for media agencies that offer in-store, cinema and outdoor ads. The start of 3G cellular services this year is expected to help advertisers move quickly towards digital media, so some ad agencies are forming a digital and online unit to exploit this market. Due to fierce competition, advertising is still needed.