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Ad industry seen shrinking 14.5% in 2017,

Ad industry seen shrinking 14.5% in 2017,

BANGKOK: Thailand’s media and advertising industry is about to end 2017 with a whimper, with revenue projected to plummet by 14.5%, the largest drop in 10 years, according to a media consultant. The Nielsen Company (Thailand) Co Ltd data showed from January to November this year, ad revenue totalled 92.7 billion baht, down 5.7% from the previous year. “However, ad agencies believe the total billings were more likely 78.8 billion baht, down 13.9%,” said Pawat Ruangdejworachai, media director of Media Intelligence Co Ltd.

“When taking into account a special event in October, total ad revenue should be 85.8 billion baht, down 14.5%, the lowest in 10 years,” he said. Digital media continued to be the one bright spot, with ad revenue seen surging to 12.8 billion baht this year, driven by a change in consumer behaviour, he said. Online financial products, personal loans and leasing products spent more on ads.   Fast moving consumer goods  products that are sold quickly and at relatively low costs such as packaged foods, beverages, toiletries, over the counter drugs and other consumables took the hardest hit in terms of sales since locally made products, especially cream and lotion, gained a bigger share, he said.

For next year, the trend will likely continue for these product groups but the overall industry outlook will improve, with growth of not less than 10% to 94.6 billion baht as the situation normalises. Automobiles

telecommunications and mobile phones will likely be the largest spenders while ad spending by FMCGs remains the same.