TV broadcasters back off plans to raise ad rates
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TV stations are putting on hold plans to raise advertising rates, as the domestic flooding as well as global uncertainties have flattened purchasing power and consumer confidence.
If there is a rate hike, it might not come until the second half of next year.
Kematat Paladesh, vice president for marketing at MCOT, the operator of Modernine TV, told The Nation yesterday that the company had revised its marketing and sales plan for this year and next. The move came after many provinces were hit by the flooding and the Bank of Thailand last week lowered its projection for 2011 growth in gross domestic product from 4.1 per cent to 2.6 per cent.
Many affected businesses will cut their ad budgets or delay their marketing campaigns from this quarter to the middle of next year, Kematat said.
MCOT had planned to lift its airtime rates for selected programmes this quarter, but after this crisis the company decided it must maintain the current rates until mid-2012.
However, the state enterprise will embark on a marketing strategy to increase revenue next year. This involves expanding its prime-time slots; increasing its self-produced shows from 38 per cent now to 51 per cent next year; revamping its non-prime-time programming; utilising its media network comprising radio, TV and digital platform; and organising events to support advertisers and companies.
Surin Krittiayaphongphun, vice president for marketing and sales at Bangkok Entertainment Company (BEC), which operates ThaiTV3, said the company was keeping its ad tariff steady until the middle of next year after witnessing just single-digit growth in ad revenue for November and December. It had aimed at double-digit growth during that period. Before this confirmation, ThaiTV3 had said it would hike ad rates this month.
ThaiTV3 also lowered its overall sales-growth target for this year to 10-11 per cent from 14-15 per cent.
The loss in business due to the flooding has also led some companies to postpone their marketing campaigns as well as ad spending until the second quarter of next year, Surin said.
DBS Research reported that the European debt crisis and the start of flooding in Thailand caused overall ad-spending growth to decelerate to 5.8 per cent in September, much lower than the 11-per-cent expansion registered in the first eight months. And with the floods worse than many had expected, advertising spending will remain much weaker until next quarter, it said.
It lowered its forecast for ad-spending growth to 6-7 per cent this year from 10-12 per cent, and for 2012 to 5-6 per cent from 8-10 per cent.
However, the research house noted that BEC should be less affected than MCOT because BEC was gaining market share with popular dramas and news coverage on the flooding crisis, while its profitability should recover before other media outlets.
