Digital TV hikes ad spending by 16%
ADVERTISING expenditure in January was up 16 per cent year on year to Bt9.52 billion, mainly thanks to higher spending on digital TV, transit media and the Internet, according to the latest report by Nielsen (Thailand).
The findings show that advertising spending in the analog, cable and satellite TV platforms had significantly shifted to terrestrial-based digital television.
Cable and satellite TV operators suffered a huge combined drop in advertising revenue of 62.26 per cent – from Bt795 million to Bt300 million – in January year on year, while for the analog TV incumbents the decline was 9.85 per cent (from Bt4.71 billion to Bt4.24 billion). The 24 digital TV players registered a combined Bt2.51 billion in advertising revenue for the new category.
The results supported previous comments made by Wannee Ruttanaphon, chairwoman of IPG Mediabrands and the Media Agency Association of Thailand, who said the broadcasting industry would be changed by the birth of digital TV.
Leading entertainment firms and TV production houses obtained licences from the broadcasting regulator to operate digital TV channels, resulting in quality programmes being offered to attract viewers and advertisers.
Transit media and the Internet were also key drivers of the advertising industry last month. Advertising investment via the Internet surged by 48 per cent from Bt52 million to Bt77 million year on year, while transit media enjoyed a 9.84-per-cent increase, from Bt254 million in January 2014 to Bt279 million last month.
However, advertising expenditure through radio, newspapers, magazines, cinema, outdoor media and in-store media declined.
Radio fell by 7.8 per cent to Bt336 million; newspapers witnessed a drop of 11.2 per cent to Bt833 million; magazines dipped 21.13 per cent to Bt265 million; cinema fell 0.68 per cent to Bt293 million; outdoor media suffered a drop of 9.33 per cent to Bt311 million; and in-store media witnessed a 16.48-per-cent drop to Bt76 million.
Unilever (Thai) Holdings was the biggest advertising spender at Bt562 million, followed by Toyota Motor Thailand, Procter and Gamble (Thailand), the Office of the Prime Minister, L’Oreal (Thailand), Coca-Cola (Thailand), Advanced Info Service, MCOT, Total Access Communication (DTAC) and Beiersdorf (Thailand).
