Digital TV hits print media ad spending

Spending on traditional media such as newspapers and magazines is forecast to drop by 5% in the second quarter as digital TV continues to improve and TV content moves to every platform, especially online channels, said media company GroupM Thailand.

Rathakorn Surbsuk, GroupM’s trading partner, said print media had been in decline for a few years.

Meanwhile, GroupM expects digital and online media advertising will grow more than 30% in the second quarter as advertisers shift to spending more on online channels, which are increasingly popular and influential, especially social media.

Moreover, the digital TV industry is making progress and broadcasters are expanding to broadcast their content on the online platform.

GroupM’s clients always ask for online and digital advertising to be included in the package, said Mr Rathakorn.

“Many brands have shifted their ad budgets to alternative channels such as online channels and digital TV to increase their ad effectiveness,” he said.

Brands are now focusing on digital advertising, using it as the primary channel to communicate with new-generation consumers.

Digital ad spending grows every year due to the low performance of traditional media, he said, so advertisers, brands and marketers should take this opportunity to create more value for digital advertising to reach new target audiences.

The Digital Advertising Association of Thailand predicted that total spending on digital advertising will reach 9.9 billion baht this year, up almost 25% from last year, thanks to advertisers shifting from traditional to online media.

According to the Media Agency Association of Thailand, ad spending on digital TV last year totalled 20 billion baht, up from 8.5 billion baht in 2014, while spending on the internet was 1 billion baht, up from 950 million baht in 2014.

However, spending on newspapers and magazines last year declined 5% and 14%, respectively.

Mr Rathakorn also predicted that brands would not spend their ad budgets heavily in the second half because many of them spent a lot on marketing and sales campaigns to launch new products during the summer peak in April.

He said the government’s stimulus packages and infrastructure investments could prod consumer spending despite the economic slowdown.

“I hope the advertising industry will recover soon, but it really needs the government to implement measures to stimulate local consumption,” Mr Rathakorn said.