Ad industry to expand amid growth of digital TV channels
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Mindshare Thailand predicts that the advertising industry will grow by 4-7 per cent next year while advertisers are likely to spend more on digital television channels.
Though a media survey by Nielsen (Thailand) for the first 11 months of this year suggested that advertising expenditure dropped by 9.8 per cent, Pathamawan Sathaporn, managing director of Mindshare Thailand, said yesterday that if spending via cable/satellite and digital TV channels through November were included, this year saw 5.4-per-cent growth.
This rise was encouraged by the launch of 24 digital TV channels along with an increase of mobile Internet users and the arrival of YouTube Thailand.
Pathamawan added that given these supporting factors, advertising investment next year would be positive, particularly spending via digital TV.
“We believe that digital TV’s share of total spending will rise to 20 per cent, in line with audience share,” she said. Currently, ad spending on digital TV accounts for almost 10 per cent of the total market.
Phayao Thamteersoonthorn, head of TV trading at Mindshare, said the digital-TV business was expected to seen intense competition next year. New players were preparing quality content to attract more viewers, while incumbent analog stations such as Channel 7, Channel 3, Modernine TV and TV5 were adjusting their marketing and content strategy to maintain their existing audiences.
She said digital TV stations, as they provide quality content to improve audience ratings, could raise their advertising fees. On the other hand, the analog channels would find it difficult to follow suit.
She added that analog TV operators should rethink their marketing strategies to engage better with their audiences. For example, Channel 3 opted to organise an event to promote its new drama programme line-up, while “Rueng Lao Chao Nee”, a morning news programme, is planning activities in the provinces to expand its audience base. Meanwhile, Channel 7 will refresh its content by utilising new TV production houses to seek more target groups.
Leading content providers that hold digital-TV licences, such as RS, GMM Grammy and Workpoint Entertainment, are also focusing more on their own television channels. GMM Grammy and Workpoint will stop producing TV programmes for Modernine TV and TV5 next year.
