TV channels eye better ad revenue in 2nd quarter
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SOME leading TV broadcasting players witnessed slow growth in advertising spending in the first quarter of this year.
“The high level of household debt and low purchasing power still remained key factors that the top advertisers considered before making a decision on ad spending in the first quarter. So business in this period was not so good, “ Surapol Perapongpipath, managing director of GMM One TV Trading, the operator of the “One” high-definition digital TV channel, told The Nation last week.
Although advertising via 21 terrestrial digital TV channels during January and February reached Bt5.35 billion, or 26.8 per cent of total spending, according to Nielsen (Thailand)’s data, Surapol suggested that this figure was below his expectation.
Surin Krittiyaphongphun, executive vice president of BEC World’s Bangkok Entertainment Co (BEC), said yesterday that advertising on digital terrestrial TV represented only 10 per cent of total spending via three analog, 21 digital terrestrial and 56 cable and satellite TV channels.
“Overall TV advertising in the first two months appeared to be stagnant. This is a different story for the TV production side, which has to bear higher costs” he said.
To manage such risk, BEC World decided to postpone its planned revamp of the schedules of its three channels – Channel 3 analog, 3SD and 3 Family digital channel – to around June from this month.
For One, Surapon hoped that the second quarter would improve, particularly after his channel added a new Thai drama on weekday evenings and variety and game shows.
The station was anticipating very positive feedback both from viewers and its advertisers –Unilever (Thai) Holdings, Toyota Motor Thailand, Procter and Gamble (Thailand), Coca-Cola (Thailand) and L’Oreal (Thailand). One targets Bt1.5 billion revenue this year. Another leading terrestrial-based digital TV channel, Workpoint Creative TV, operated by Workpoint Entertainment, will also add new branded content and seasonal programmes in its TV schedule. The company’s subsidiary Flagship Entertainment is joining with the Nok Air domestic airline to bring “The Angel season 2” back on Workpoint Creative TV, starting on July 12. This talent show, aiming to look for the best flight attendant for Nok Air, is part of its branded content strategy. The previous season was aired on Channel 3 last year.
Workpoint is also trying to control TV production costs in a bid to keep its profit healthy. The “Buddha of the World”, an Indian TV series, was a part of this strategy for the current quarter, as the cost for acquiring foreign TV programmes appeared to be lower than for in-house production of a drama series, according to an analyst at Bualuang Securities. Workpoint targets Bt2 billion revenue from its digital TV unit.
