June 24, 2014 00:00 By Watchiranont Thongtep
Thailand's advertising-spending forecast for this year has been cut from the previous estimate of 3.5-per-cent growth to a 2.2-per-cent decline due to political and economic uncertainty, according to the latest report by Magna Global, an international uni
The study covering 71 countries described the political uncertainty in the Kingdom as a significant event in the Asia-Pacific region, noting that it also caused the International Monetary Fund to cut its growth estimate for Thai gross domestic product significantly from over 8 per cent to 4.5 per cent.
In a previous Magna Global forecast, the Thai advertising industry this year was expected to see 3.5-per-cent growth from Bt135.8 billion in 2013.
Meanwhile, Indonesia has an election coming up, and this is expected to be an additional tailwind for ad spending beyond that country’s already strong fundamentals. South Korea continues to suffer from some political uncertainty regarding the transition to a new prime minister after the ferry disaster in April. Individually these are significant for each market, but taken as a whole, the Asia-Pacific region will see growth in 2014 that is comparable to Magna Global’s December forecast, it said.
Overall, this region is showing stronger growth in advertising spending than the global average and will account for 31 per cent of the total market by 2019, Vincent Letang, executive vice president and director of global forecasting at Magna Global, said yesterday.
Letang added that the global advertising economy returned to robust growth as digital media spending was growing by double digits while television was benefiting from the various non-recurring events of 2014. The only losers were other traditional media categories, which were losing market share at an accelerated rate.
According to the global advertising forecast released this month, Asia-Pacific growth will be 7.6 per cent this year and 6.9 per cent next year. This region will represent 29 per cent of global spending. China is now the largest market in the region, passing Japan on a combination of strong growth and depreciation of the yen.
Meanwhile, digital media will represent 26 per cent of total advertising spending in the region this year, up from 23 per cent last year.
Of total digital-media spending in the Asia Pacific market, mobile spending represents 19 per cent. This is the highest regional level outside North America.