Recovery of out-of-home advertising expected in Q4

Economy August 19, 2014 01:00

By Watchiranont Thongtep
The Nat

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After a slow first half, the out-of-home advertising industry is hoping for a comeback next quarter, according to Kinetic Worldwide (Thailand), a provider of such media.

“We expect to see signs of economic growth in the second half, particularly in the peak season that begins in the fourth quarter, as the National Council for Peace and Order presses on with national and economic reforms and restructuring,” Surachet Bumrongsuk, country manager of Kinetic Worldwide (Thailand), told The Nation.
Surachet said that in the current quarter, advertising spending across the board was slower than previously expected. However, many surveys have found that business and consumer confidence has revived, and the stock market is ahead. This will benefit not only the overall economy but also the out-of-home industry, especially when major brands come up with campaigns during the festive season at the end of the year, he said.
From January to June, total ad spending via out-of-home media, including in-store and transit media, saw a decrease of 11.5 per cent against the same period last year, mainly from the 41-per-cent decline of in-store advertising.
According to Nielsen, a decline in outdoor advertising by two key vendors alone hit this segment hard. However, the cornerstone of out-of-home media, billboards, actually saw ad spending increase by about 5 per cent year on year.
Surachet said most major top spenders such as Unilever, Beiersdorf, Coca-Cola and Cerebos had reduced spending via out-of-home media, particularly property projects and fast-moving consumer goods (FMCG). But spending by Internet providers, financial institutions, mobile-phone operators and airlines increased by 20 per cent.
In the first half, spending on transit media increased by almost 2.0 per cent, driven primarily by digital screens.
Surachet acknowledged that while expenditure on digital screens had improved, static transit media had decreased by 5 per cent.
Overall ad spending on digital screens increased by about 10 per cent from last year’s Bt1.8 billion, reflected by significant spending on BTS and MRT trains and stationary media in such places as offices, airports, shopping malls and roadside screens.