Brand connections banks on Alternative media, 3G

Apart from the rise in penetration by out-of-home media and 3G, cable and satellite TV operators are also investing in content development to lure advertisers, Ichaya Santitrakul, a founding partner at Brand Connections, said yesterday.

She said her firm saw a 40-per-cent spurt in ad spending via cable and satellite TV during first 11 months compared with the same period last year.

"Though the company’s clients believe that advertisement via free-TV channels is still important to reach mass consumers in the Kingdom, some of them are seeking affordable alternative media channels to help them create direct engagement with their targets," Ichaya added.

Importantly, because of strong demand from local advertisers that want to communicate via free-TV channels, local broadcasters will be able to raise their advertising rates in both prime-time or non-prime-time slots next year. The increases will be 10-15 per cent.

Facing such high costs, many local companies might turn to alternative media such as electronic billboards and outdoor, transit, in-store and digital media as well as cinema adverts. Once 3G cellular service is fully upgraded early next year, Brand Connections expects to see advertisers move quickly towards digital media.

In the coming year, the transformation from analog to digital terrestrial TV will be another factor opening more doors for advertising business, Ichaya added.

Given all these factors, the advertising industry anticipates growth in 2013 of 10-15 per cent or more.

Meanwhile, Prasert Eamrungroj, another founder partner, said that by end of this year, his 16-year-old company expected to reach a new high in billing at Bt2.05 billion from existing clients and with four new undisclosed accounts. This financial result would mark a surge of at least 20 per cent over last year.