Muted ad growth expected

Advertising spending is expected to grow in a range of 3-6% in 2016 as advertisers hold back amid concerns about economic and political uncertainties, says Mindshare Thailand, a marketing and media company.

Issues such as the local economy, oil prices, geopolitics and natural disasters will make big advertisers warier with their budgets, said managing director Pathamawan Sathaporn.

The country’s economic growth is projected at 3-4% in 2016, up from a forecast 2.9% this year.

According to Nielsen Thailand, total ad spending surged 4.5% in the first 11 months of 2015 to 112 billion baht.

Digital advertising grew the most, rising by 173% to 19.4 billion baht, while spending on in-store media went down the most, falling by 66% to 607 million baht.

Ad spending still poured into analogue TV, which accounted for 53.2 billion baht or 47% of the total.

Mindshare predicts that viewer behaviour will change gradually, with digital media assuming a greater role as advertisers try to reach new-generation customers.

Ms Pathamawan said brands must develop campaigns that use all media channels, not just traditional TV.

“2016 will be the year of managing and analysing real-time data to meet an expectation of more connected consumer behaviour,” she said.

Despite the surge in digital media, traditional TV will continue as the main source of advertising for Thai people.

Meanwhile, the event organising business will be driven by the government’s stimulus measures and infrastructure investment after recording flat growth this year, said Kriengkrai Kanjanapokin, cochief executive of Index Creative Village Plc.

State agencies will move to spend their budgets on infrastructure projects as private companies aggressively organise marketing events to boost sales.

Moreover, Thais are spending more time outside the house, leading to a boost in domestic consumption.

“So marketers will have to carefully plan marketing events to serve [Thai people’s] changing behaviour,” Mr Kriengkrai said.

The events market, worth 12.3 billion baht, is expected to show flat growth this year because of the economic slowdown.

Index has been hired to put on New Year’s Eve countdown parties at CentralWorld and in Hat Yai, Chiang Mai, Udon Thani and Salaya in Nakhon Pathom province.