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Ad spending expected to rise as economy lifts

Ad spending expected to rise as economy lifts

BANGKOK: Total advertising spending on all media outlets is forecast to improve in 2017, driven by the economic rebound, massive investment in infrastructure megaprojects and the planned election.  Ad spending is expected to rise by 4%, in line with the World Bank projection that the Thai economy will grow 3.2%. The 4% growth in ad spending would be a big turnaround from the expected 10% fall in 2016, blamed on the economic slowdown and weak consumption and deepened by the period of mourning for the late King Bhumibol Adulyadej.  However, competition among media outlets will get more intense and advertisers will further shift their ad budgets to online media as it is more cost effective and reaches the younger generation consumers.

Wannee Ruttanaphon, vice-chairman of the Media Research Development Association (MRDA), said ad expenditure will surpass 103 trillion baht in 2017, barring unexpected incidents such as political unrest, disaster and terrorism, which cause people to slow their spending.  The recovery will be clearly seen in the first quarter of 2017 on the back of improving exports and state investment in big nfrastructure projects. “The improvement in ad spending in 2017 mostly depends on stimulus measures and infrastructure investment,” she said. Ms Wannee, who is also chief executive of IPG IPG Mediabrands Thailand, said the overall economy still needs more measures to restore investor confidence and boost domestic consumption in 2017.