Ad spending jumps 25% in Q1; digital TV takes rising share
In the first quarter of this year, advertising expenditure surged by 25 per cent to Bt32.96 billion from Bt26.37 billion, while terrestrial-based digital TV took a 26.47-per-cent share of total spending, according to the latest data from Nielsen (Thailand
The leading media-research firm also found that advertising budgets continued to migrate from traditional TV stations and cable/satellite channels to 21 digital TV channels (excluding 3HD, Channel 7HD and MCOT HD).
Nielsen found that from January to last month, digital terrestrial channels’ business was still on the rise, with combined advertising spending of Bt8.725 billion, or 26.47 per cent of the total.
However, traditional TV stations including Channel 3, the Army’s TV5, Channel 7, MCOT’s Modernine TV and NBT (Channel 11) suffered a 6.38-per-cent drop in ad spending to Bt14.42 billion, or 43.72 per cent of the total, from Bt15.39 billion in the first quarter of 2014.
Cable and satellite TV operators, meanwhile, faced a huge drop of 47.03 per cent, from Bt2.46 billion in the first quarter of last year to Bt1.3 billion. Nielsen’s survey covered only the top 56 cable and satellite channels.
Spending on newspapers, magazines, and outdoor and in-store media also headed downwards. Magazines suffered a drop of 15.31 per cent to Bt946 million. In-store ads fell by 13.58 per cent to Bt299 million. Newspapers witnessed a 1.85-per-cent decline to Bt2.91 billion, and outdoor ads were fairly flat with a 0.1-per-cent decrease to almost Bt1.02 billion.
In the first three months, ads via radio, cinemas, transit and Internet media experienced higher spending.
These figures were based on advertising rate cards provided by media owners in each segment, excluding discounts and other special offers.
Nielsen’s data also suggested that the top 10 brands showed improved confidence through increased advertising expenditure in March. For example, Toyota spent Bt171 million to advertise its passenger cars, up from Bt85 million in the same month last year. Tesco-Lotus invested Bt130 million, rising from Bt54 million.
An analyst at Phillip Securities (Thailand) said further improvements in the advertising industry could be seen this quarter because it was entering the high season for advertisers to invest to stimulate consumption in the domestic market.
A rebound in advertising had been noticed since the middle of last month, according to the analyst.
