FRIDAY, March 29, 2024
nationthailand

Ad spending on track for second year of declines

Ad spending on track for second year of declines

ADVERTISING spending for this year is expected to show a drop of 7 per cent from 2016 to Bt91.1 billion, marking a second straight year of declines, a survey indicates.

Last year, Bt97.5 billion in spending was notched, Kantar Worldpanel's Media Update noted. For this year, television advertising expenditure is forecast to drop from Bt56.1 billion in 2016 to about Bt51.5 billion.
However, total advertising expenditure is expected to recover to Bt101.1 billion next year, with spending on television ads likely to increase to Bt58 billion.
Aitsanart Wuthithanakul, manager for new business development, Kantar Worldpanel (Thailand), said that the drop in advertising expenditures coincided the Royal Cremation of His Majesty the late King Bhumibol Adulyadej in October.
 The economic conditions in many business sectors have not yet recovered and caused advertisers to cut their media spending by more than 16 per cent on average this year. 
TV remains the key medium, with some shift in advertising to budgets to online video, while print and radio are still showing long-term declines.
Television’s share of total expenditure declined slightly from 61.2 per cent in 2015 to 57.5 per cent in 2016, and 56.6 per cent this year. However, the share of TV in total expenditure is expected to increase to 57.4 per cent next year.
The spending on digital media increased significantly from 7.5 per cent in 2015, to 9.7 per cent in 2016, and to 12.9 per cent this year. 
This share expected to increase significantly to 15.3 per cent next year. Social media accounts for the biggest share of total ad expenditures on digital media, at 44 per cent.
“For this year, digital media, including internet display, search engine ads, and social media, has already beaten newspapers for earning the second largest media expenditures after television," said Aitsanart.
He said that Thai consumers spent an increasing amount of time on the Internet. The average time increased from two hours a day in 2015 to 2.2 hours in 2016 and 2.5 hours this year. Thais have increased their time spent on out-of-home Internet, from 1.4 hours a day in 2015, to 1.6 hours last year, and 1.8 hours this year. 
However, the minutes per visit on Facebook has declined significantly from 29.9 minutes in 2015, to 23.5 minutes last year, and to 22.3 minutes this year.
“The number of Internet users in Thailand is increasing significantly. Currently, more than 75 per cent of Thai people can access the Internet, compared to only 49 per cent about two years ago. Smartphone ownership rate in Thailand is also increasing, to more than 83 per cent this year,” said Aitsanart.
He said that the survey showed there were an increasing number of online shoppers. 
The number of shoppers who bought a product once through an online channel rose from only 3.3 per cent in 2015 to about 10 per cent last year. The total value of online shopping transactions in Thailand increased from Bt916 million in 2015 to Bt4.39 billion last year. 
Some 79.5 per cent of individual shoppers in Thailand are aware than they can buy products via social media and 29.7 per cent of them have bought via this route at least once over the past 30 days. This is 4 per cent higher than the online channels offered by local retailers, such as 7-Eleven Online and Tesco Lotus Online. About 53.8 per cent of those who use Facebook everyday also spend heavily on fast-moving consumer goods.
 

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