The trough for media ad spending in Thailand may have passed in February as the auto, telecom and dietary supplement segments, as well as summer activities, are giving a boost to outlays, says Media Intelligence (MI), a media planning and creative agency.
Media ad spending is expected to bounce back from last year, rising 8% year-on-year to 79.6 billion baht in 2021. Last year, spending plummeted 18.3% year-on-year to 73.7 billion baht, attributed to the pandemic.
"Thailand's media spending may have hit bottom in February, with a 7.8% year-on-year drop to 5.7 billion baht in the first two months of this year," said Pawat Ruangdejworachai, president of MI.
A rebound is projected from March, with 8% growth for this year, he said.
Media spending is expected to climb back to 89-90 billion baht in 2023, a level last seen in 2018, said Mr Pawat.
The positive outlook coincides with the arrival of Covid-19 vaccinations, while major industrial sectors are reviving their spending, including the automotive sector, particularly electric vehicle makers from China, which should stimulate existing players into battle through marketing campaigns, he said.
Other big spenders include non-alcoholic beverages, healthcare and beauty products, including hemp supplements, as well as telecom firms that are promoting 5G technology and e-marketplaces.
Spending on TV is expected to rise to 40.4 billion baht in 2021, up from 37.4 billion a year before, while spending via online channels is projected to increase to 21.7 billion this year, up from 19.6 billion a year earlier, said Mr Pawat.
Out-of-home media is projected to grow to 9.8 billion baht in 2021 compared with 9.1 billion last year.
"These are the top three media channels that are expected to grow as they are perceived as helping to boost sales performance," he said.
Facebook, Google Search and YouTube are still the leading digital platforms on which brands spend their budgets, said Mr Pawat.
Influencers are becoming more useful and could help marketers reach their targets, he said.
"With the full enforcement of the Personal Data Protection Act starting in June, this is likely to affect targeted advertising. Whichever media can help marketers reach their specific target groups will gain interest from brands and media agencies," said Mr Pawat.
Referring to the popularity of audio-based social networking app Clubhouse, he said this channel is likely to serve a niche market, with usage peaking during hot debates, such as political issues.
Summer is the high season for marketing activities, with several campaigns likely, said Mr Pawat.