Firm fears dip in outdoor media deals
Kinetic Worldwide (Thailand) fears a slight drop in its out-of-home media business after in-store and transit-media plans were suspended by many companies.
More than 300 modern trade and convenience stores have been|flooded.
While the flood has spread to several parts of Bangkok, 300 7-Eleven convenience stores and three Big C super-centres have been shut while Tesco Lotus has closed 70 Express outlets, four Talad stores and three hypermarket branches .
Country manager Surachet Bumrongsuk told The Nation yesterday that with this temporary shutdown, out-of-home media (OHM) this quarter were expected to witness single-digit growth year on year.
The company had projected a 20-per-cent surge in overall OHM spending from last year’s Bt7.2 billion but the natural disaster will slash growth to only 15 per cent, he said.
Many companies have delayed their advertising campaigns via in-store and transit media since September.
However, in the first nine months, OHM enjoyed 23-per-cent growth to Bt5.6 billion from Bt4.6 billion in the same period last year.
Outdoor media rose 15.7 per cent to Bt2.95 billion, transit media soared 26.3 per cent to Bt1.7 billion and in-store media gained 46.4 per cent to Bt916.3 million.
The agency believes that the overall OHM business will end up at Bt8 billion this year because the slowdown in the current quarter could be offset with the robust |performance in the first three quarters.
The flooding will hurt the OHM business until early next year because it will take two or three months for businesses to recover, while consumers need to tighten their belts to rebuild and repair their homes and property that were destroyed by the flooding, he added.
