Ad industry seen shrinking 14.5% in 2017

Ad industry seen shrinking 14.5% in 2017

A shrinking display of magazines at a stall near Chidlom intersection in Bangkok on August 7 this year. (Photo by Somchai Poomlard)
A shrinking display of magazines at a stall near Chidlom intersection in Bangkok on August 7 this year. (Photo by Somchai Poomlard)

Thailand’s media and advertising industry is about to end 2017 with a whimper, with revenue projected to plummet by 14.5%, the largest drop in 10 years, according to a media consultant.

The Nielsen Company (Thailand) Co Ltd data showed from January to November this year, ad revenue totalled 92.7 billion baht, down 5.7% from the previous year.

“However, ad agencies believe the total billings were more likely 78.8 billion baht, down 13.9%,” said Pawat Ruangdejworachai, media director of Media Intelligence Co Ltd.

Heavy promotion and discounts have cut prices by about 55% for digital media.

“When taking into account a special event in October, total ad revenue should be 85.8 billion baht, down 14.5%, the lowest in 10 years,” he said.

Digital media continued to be the one bright spot, with ad revenue seen surging to 12.8 billion baht this year, driven by a change in consumer behaviour, he said.

Online financial products, personal loans and leasing products spent more on ads.  

Fast-moving consumer goods --  products that are sold quickly and at relatively low costs such as packaged foods, beverages, toiletries, over-the-counter drugs and other consumables -- took the hardest hit in terms of sales since locally made products, especially cream and lotion, gained a bigger share, he said.

For next year, the trend will likely continue for these product groups but the overall industry outlook will improve, with growth of not less than 10% to 94.6 billion baht as the situation normalises.

Automobiles, telecommunications and mobile phones will likely be the largest spenders while ad spending by FMCGs remains the same.

In any case, competition will likely intensify among media, especially TV. While there are no signs of ad rate hikes, new content will be introduced. The TV channels at risks are those focusing on children and news.

Print media will continue on its downward spiral, especially magazines, several of which have closed this year, he said.

Mr Pawat declined to confirm the rumoured shutdown of the Thai-language women’s magazine Dichan and variety magazine Kusang Kusom, saying he had yet to receive confirmation.  

The survivors will likely be niche magazines such as those focusing on tourism, watches or amulets, he added.


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