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FRIDAY, September 30, 2022
nationthailand
Spending on media expected to maintain growth trend in 2022

Spending on media expected to maintain growth trend in 2022

WEDNESDAY, March 16, 2022
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Expenditure on Thailand's media in 2022 is on a positive trajectory, growing by 2.1 per cent to 5 per cent, although the level of daily infections and the Russia-Ukraine conflict could influence the growth direction, Media Agency Association of Thailand (MAAT) president Tharaputh Charuvatana said on Tuesday.

"The total industry media expenditure in 2021 was at 1.1 per cent, led by health businesses, consumer and household products, and electric appliances," he said.

He explained that the growth trend is continuing in 2022, particularly in businesses that serve the shift in consumer behaviour, who prefer “in-home-consumption” and “health” categories, while online channels are the most ‘go-to’ sources amongst media outlets.

The business sectors that will continue high spending on media includes non-alcoholic beverages, retail shops and stores, vitamins and supplements, oral products, and websites and applications, he added.

Spending on media expected to maintain growth trend in 2022

As for advertisement expenditure in 2022, growth will largely depend on the level of new Omicron infection cases per day. There are three scenario-projections as follows:

• Level 1, if the maximum number of infections is 11,000 per day. Ad market will likely grow up to 5 per cent.

• Level 2, if the maximum number of infections is 17,000 people per day. Ad market will likely grow up to 4 per cent.

• Level 3, if the maximum number of infections is 32,000 people per day. Ad market growth is reduced to 3 per cent.

Spending on media expected to maintain growth trend in 2022

He said another important factor is the war in Ukraine, as it will directly affect oil prices and the prices of consumer goods if the conflict prolongs, adding that MAAT viewed it as the worst scenario.

"However, the overall ad spending will remain positive, but growth will decline to 2.1 per cent," he said

Tharaputh added that out-of-home media will possibly grow the most, as travelling will become more common.

"As more people travel, people must be very careful by wearing a mask and strictly comply with government preventive measures," he said.

He said the online platform continued to grow, although not as much as last year, adding that a 10.2 per cent growth could be achieved.

Spending on media expected to maintain growth trend in 2022

"The total media market inflation in 2022 will be 5 per cent, with TV approximately 6.39 per cent inflation and out-of-home 3 per cent, while other media will have no inflation except media. Publications will be minus 5 per cent," he said.

Spending on media expected to maintain growth trend in 2022

Tharaputh emphasised that Thailand has passed the worst period from the pandemic and entered the third year, adding that the Omicron variant has not been able to infect people who have received three or more doses of vaccination.

However, he pointed out that tourists still travel to the country under the strict measures of the government.

"Currently, the main factor directly affecting business sentiment is the war between Russia and Ukraine, with other countries being dragged in. Therefore, the most important thing we can do is to support and promote domestic tourism and goods while the marketers may be agile and adaptive according to the current situation and we must believe that we can get through the tough times together,” he concluded.