The Nation



Only slight growth in ad spending in first 11 months

Nielsen reports that TV remains favoured medium, while online advertising sees surge

Advertising expenditure in the first 11 months of the year witnessed only slight growth to Bt105.7 billion from 104.2 billion in the same period last year, according to the latest media research by Nielsen (Thailand).

Nielsen reported yesterday that the media industry registered just a 1.46-per-cent year-on-year increase in advertising spending in the January-to-November period.

This figure is considerably lower than the recent full-year growth projection by the Media Agency Association of Thailand. It forecast that overall advertising expenditure in 2013 would be up by about 3-5 per cent against last year's level.

Wannee Rattanaphon, chairwoman of the MAAT, said strong financial performance by main advertisers would be a key indicator for the ad industry's growth this year.

"The more yield they manage this year, the more budget they will allocate for advertisements this month," said Wannee, while also acknowledging that some firms could cut their communication budgets to fund employees' year-end bonuses.

According to Nielsen, during the first 11 months of the year, advertising expenditure via radio, magazines, cinemas, and outdoor and in-store media all declined. Outdoor media fell by 9.33 per cent from Bt4.19 billion last year to Bt3.8 billion, while in-store media saw a 5.91-per cent drop from Bt2.55 billion from Bt2.4 billion. Cinema advertising was down by 3.21 per cent, from Bt7 billion to Bt6.8 billion; magazine adverts decreased by 1.18 per cent from Bt5.09 billion to Bt5.3 billion; and radio fell from Bt5.8 billion to Bt5.77 billion.

Television remained the main medium for advertisers, which spent Bt64 billion on TV commercials, up 2.4 per cent from Bt62.5 billion in the same 11-month period last year.

Meanwhile, there was a big shift towards online media. Advertising spending via the Internet enjoyed a 54.3-per-cent surge to Bt810 million from Bt525 million.

Apart from TV and the Internet, newspapers and transit media also saw growth. Transit media witnessed an 18.85-per-cent increase to Bt3.2 billion from Bt2.69 billion while newspapers saw 0.63-per-cent growth to Bt13.87 billion.

Nielsen reported a drop in advertising spending in first 11 months by Proctor and Gamble (Thailand) and L'Oreal (Thailand), while other top advertisers Unilever (Thai) Holdings, Toyota Motor Thailand, Beiersdorf (Thailand), Coca-Cola (Thailand), Total Access Communication, Advanced Info Service, Real Move and the Prime Minister's Office kept spending.

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