Ad spending takes a dip
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IT has not been a good year for the advertising industry as ad spending in the first 11 months suffered a huge drop of 9.8 per cent.
Ad expenditures fell to Bt93.8 billion from Bt104 billion in the same period last year, according to Nielsen (Thailand)’s media survey revealed yesterday.
Major brands trimmed their ad budgets following prolonged weakness in purchasing power. Among the top 10 brands this year, Toyota was the biggest spender at Bt943.9 million, promoting its passenger cars this year. However, this was down from Bt1 billion in the first 11 months of last year.
Second ranked Coca-Cola (Thailand) spent Bt863.8 million to publicise its Coke soft drink this year, which was a decrease from Bt941.6 million in the period last year.
Other top brands that tightened their belts were PTT Group, AIA Life Insurance, Isuzu pickup trucks, Wall’s ice cream and Honda passenger cars.
Ad spending via traditional media such as TV, radio, newspapers, magazines and cinemas inevitably witnessed a decrease. In the first 11 months, TV suffered a 8.0-per-cent drop to Bt58.9 billion from Bt64 billion. This figure excluded cable/satellite TV and the 24 terrestrial digital TV channels.
Newspapers drifted down 14.1 per cent to Bt11.9 billion from Bt13.87 billion, radio lost 11.3 per cent to Bt5.1 billion from Bt5.77 billion, magazines fell 17.3 per cent to Bt4.3 billion from Bt5.2 billion and cinemas sagged 20 per cent to Bt3.8 billion from Bt4.79 billion.
In-store media slid 28.5 per cent to Bt1.78 billion from Bt2.5 billion, while outdoor media faced a drop of 4.1 per cent to Bt3.66 billion
However, transit media and the Internet still registered better performances in the first 11 months. Major brands, particularly terrestrial-based digital TV broadcasters, kept spending via transit media to raise awareness. Transit media gained 6.1 per cent to Bt3.4 billion from Bt3.2 billion.
The Internet appeared to be a rising star this year. Encouraged by the arrival of YouTube Thailand along with the expansion of mobile Internet users, Internet ads rose 6.8 per cent to Bt865 million.
