Total advertising spending on all media outlets is forecast to improve in 2017, driven by the economic rebound, massive investment in infrastructure megaprojects and the planned election.
Ad spending is expected to rise by 4%, in line with the World Bank projection that the Thai economy will grow 3.2%.
The 4% growth in ad spending would be a big turnaround from the expected 10% fall in 2016, blamed on the economic slowdown and weak consumption and deepened by the period of mourning for the late King Bhumibol Adulyadej.
However, competition among media outlets will get more intense and advertisers will further shift their ad budgets to online media as it is more cost effective and reaches the younger generation consumers.
Wannee Ruttanaphon, vice-chairman of the Media Research Development Association (MRDA), said ad expenditure will surpass 103 trillion baht in 2017, barring unexpected incidents such as political unrest, disaster and terrorism, which cause people to slow their spending.
The recovery will be clearly seen in the first quarter of 2017 on the back of improving exports and state investment in big infrastructure projects.
"The improvement in ad spending in 2017 mostly depends on stimulus measures and infrastructure investment," she said.
Ms Wannee, who is also chief executive of IPG Mediabrands Thailand, said the overall economy still needs more measures to restore investor confidence and boost domestic consumption in 2017.
Current measures include the 19-billion-baht cash handouts to low-income earners and the year-end tax break allowing people to claim a 15,000-baht personal income tax deduction on purchases.
GroupM, a world leading media investment management group, agrees that local ad spending will rise in 2017 along with global ad spending, which he believes will grow 4.3% to reach 19.8 trillion baht.
"Print media continues to lose the most share to online while TV remains resilient," said GroupM.
Media experts said 2016 was the worst year for ad spending in Thailand in the past five years as the industry was hit by the economic slowdown and unpredictable political situation.
According to Nielsen Co Thailand, total ad spending in the first 11 months of 2016 fell 12.5% year-on-year to 98.3 billion baht, with spending on cable TV shrinking the most at 42.3%, followed by magazines (-30.8%), newspapers (-20.1%) and analogue TV (-18.9%).
In November alone, ad spending sank 42.7% year-on-year to 6.1 billion baht because of the mourning period after the passing of the King. Spending on the internet saw the biggest rise at 72.2%, followed by outdoor media (29.3%) and transit media (10.1%).
Ad spending on cable TV saw the steepest dive at 62.7%, followed by analogue TV (-55%), magazines (-45.6%) and newspapers (-36%) because of the ban on entertainment content and advertisement on TV and radio during the mourning period.
The MRDA forecast total ad spending in 2016 would fall by 10% with traditional media like newspaper and magazine bearing the biggest brunt.
Ms Wannee suggested media planners and brands adjust their strategies during the weak economy, while ad agencies should advise brands and companies to use various media to better reach target clients.
In 2017, many brands and companies will shift their advertising budgets to cheaper media platforms such as out-of-home media and digital marketing channels. Meanwhile, media agencies should be more competitive in order to survive amid the shift to cheaper digital marketing.
The Digital Advertising Association of Thailand expects ad spending on digital media will reach 10 billion baht in 2017 as online media has become a mass media for fast-moving consumer goods (FMCGs).
The biggest spender on online media in 2016 was skincare products, followed by non-alcoholic beverages, banks, alcoholic drinks and food supplements.
Manrat Plaklumyong, chief digital officer of Media Intelligence, said digital ad spending is expected to enjoy a 20% growth in 2017, reflecting FMCG producers shifting more of their ad budgets to digital media to reach their target customers who spend more time online.