Ad spending to rebound after rocky 2016
The advertising industry expects a clear recovery and 10% rise in total ad spending this year due to an improving economy and budget reallocation after the mourning period, says the Media Agency Association of Thailand (MAAT).
The group hopes that positive factors such as the improving economy, resumption of entertainment broadcasts on TV and reallocation of budgets will drive ad spending by 10% this year.
Last year saw total ad spending fall by 11% amid a slowing economy, weak consumption and a national mourning period after His Majesty King Bhumibol Adulyadej passed away on Oct 13. Consumers further spent less as overall farm product prices rose.
MAAT chairman Triluj Navamarat voiced confidence in the economic recovery and predicted ad spending on all media this year would grow by
10% to 144 billion baht.
The economic improvements will be backed by government investment in infrastructure megaprojects and stimulus measures to promote consumer spending.
“If there is no political unrest, natural disasters or unexpected international economic problems affecting Thailand, I believe that ad spending will recover significantly and reach 144 billion baht, a positive level like in 2014,” said Mr Triluj.
He said nearly all media categories had seen a big drop in spending last year, with the exceptions of cinema, transit, out-of-home and online media, which grew in a range of 10-30%.
By contrast, cable and satellite TV saw their ad spending fall the most by 43%, followed by magazines, which were down 30%.
Among big advertisers, the automotive sector last year spent massively on advertising, f ollowed by drinks and telecommunications.
Those sectors spending less included property, retail, food supplements, dairy products and hair care.
Meanwhile, digital media is becoming more accepted among advertisers. The country is seeing rapid growth in internet users thanks to easier accessibility, lower prices and faster broadband internet speeds.
MAAT predicts ad spending on digital TV this year will grow by 16% from 70 billion baht to 82 billion, while radio will see flat growth and newspaper and magazines will see a drop in ad spending by 22% and 20%, respectively.
But spending on the internet, transit media and cinema are expected to surge by 31%, 9% and 8%, respectively.