The Media Agency Association of Thailand (MAAT) is forecasting total advertising spending on all media outlets will fall 10% next year due to the ongoing economic fluctuation and unpredictable political situation.
Triluj Navamarat, the MAAT chairman, said the local economy remains weak and expects to face many uncertain factors next year as the military-led government is being challenged by unsolved problems lingering since Yingluck Shinawatra's administration.
These factors will lead to an expected 10% decline of ad spending next year, he said.
The MAAT, however, predicted that ad spending will improve 3-5% for a short period in the beginning of next year on the back of improving exports and the investment in big infrastructure projects.
"The improvement on ad spending will be for only the short term as the business sector reacts positively to government stimulus measures and infrastructure investments," he said.
Meanwhile, the overall economy still needs more measures to restore confidence and boost domestic consumption.
The MAAT is calling on media planners and brands to adjust their strategies during the economic slowdown. Ad agencies should advise brands and companies to use a mix of media to better reach target customers.
During the first nine months of this year, total ad spending dropped nearly 5.4% to 91.4 billion baht, according to Nielsen Co Thailand. Among all media outlets, ad spending on internet had the highest rise of 73.6%, followed by outdoor media at 34.2%.
On the other hand, ad spending on cable TV went down the most at 37.2% and then magazine 29.2%. Spending on digital TV went up 5.6%.
In the MAAT's prediction, ad spending on digital TV will drop by 14.4% while radio, newspaper, magazine and out-of-home media will see declines of 6.5%, 19.9%, 26.7% and 8%, respectively.
For the positive growth, spending on internet, transit media and cinema are expected to surge by 30%, 11.7%, and 3.2%, respectively. Cable and satellite TV will see their ad spending down by 4.8%.
Online advertising is sharply rising as the ad expenses are lower than traditional media.
In the first nine months, the MAAT reported a 6.1% decline in total ad spending on all media outlets.
Mr Triluj said digital TV is expected to see 6% growth in ad spending in the last quarter of this year as more brands and companies shift their ad budgets from analogue to digital TV channels.
Among all media outlets, Mr Triluj said print media is facing significant changes. Several magazines have been closed since last year and ad spending on newspapers is experiencing a big decline.
Free-copy magazines have gained increasing popularity, offering highly versatile media formats such as concept magazine, advertorials, and product launches.