Yet there are grounds for optimism, particularly in the TV sector.
The first change in Government in January saw a change in ownership of the largest national network, TITV. The channel that used to command the biggest ad share among TV networks was renamed TPBS and was transformed from a commercial to a non-commercial entity. As a result, a large amount of advertising shifted to Channel 3, owned by MCOT, which also owns Channel 9. Channel 7, owned by the army but licensed to a private company, also clinched more ad dollars, and the Government relaunched public service broadcaster Channel 11 and renamed it NBT, converting it into a commercial channel.
“Even though the situation looks grim, the closure of advertising on TITV was a win for all TV stations. If you look at it individually, all stations did quite well this year,” says Surin Krittayaphongphun, vice-president for marketing and sales at Channel 3.
Meanwhile, the growth of satellite channel ASTV, the opposition party’s network, has been a remarkable new trend in Thailand. Even though the channel has not attracted much advertising due to its political affiliation, it has been registering high viewership.
Overall, TV’s share of advertising dropped two percentage points to 57 per cent, according to Nielsen. Radio showed a minor increase while print retained its share of 17 per cent. Transit media witnessed significant growth as shooting oil prices forced people to use public transport.
Preeyada Vuttipakdee, CEO of ZenithOptimedia in Thailand, says media owners are becoming more flexible as a result of the crunch. “Print publications have started giving options like advertising in different geographical locations. TV channels are improving their content to attract advertisers.”
To that end, MCOT has started moving toward entertainment content in anticipation of more ad revenues and ratings. Channel 3, the country’s second-ranked TV station, is also applying a strategy to take market share away from rivals. Krittayaphongphun predicts that the country’s ad industry will increase three per cent next year.
Vuttipakdee says next year consumers will spend less on media like films and theatre, which could increase TV’s share. She also foresees cable TV becoming stronger due to the implementation of TV ratings by Nielsen, which will make cable TV measurable.
Cable TV could also gain from a new law - the Frequency Allocation Act - which will tighten the regulation of pay-TV advertising. A Thai media source agrees that cable channels can pick up since they have 15 per cent penetration and cheap media costs. So next year should see plenty of competition for ad revenues as the various operators raise their game.
“All media owners should look at improving their content,” says Krittayaphongphun. “There will be more competition, so everyone will need to be more proactive.”
The first change in Government in January saw a change in ownership of the largest national network, TITV. The channel that used to command the biggest ad share among TV networks was renamed TPBS and was transformed from a commercial to a non-commercial entity. As a result, a large amount of advertising shifted to Channel 3, owned by MCOT, which also owns Channel 9. Channel 7, owned by the army but licensed to a private company, also clinched more ad dollars, and the Government relaunched public service broadcaster Channel 11 and renamed it NBT, converting it into a commercial channel.
“Even though the situation looks grim, the closure of advertising on TITV was a win for all TV stations. If you look at it individually, all stations did quite well this year,” says Surin Krittayaphongphun, vice-president for marketing and sales at Channel 3.
Meanwhile, the growth of satellite channel ASTV, the opposition party’s network, has been a remarkable new trend in Thailand. Even though the channel has not attracted much advertising due to its political affiliation, it has been registering high viewership.
Overall, TV’s share of advertising dropped two percentage points to 57 per cent, according to Nielsen. Radio showed a minor increase while print retained its share of 17 per cent. Transit media witnessed significant growth as shooting oil prices forced people to use public transport.
Preeyada Vuttipakdee, CEO of ZenithOptimedia in Thailand, says media owners are becoming more flexible as a result of the crunch. “Print publications have started giving options like advertising in different geographical locations. TV channels are improving their content to attract advertisers.”
To that end, MCOT has started moving toward entertainment content in anticipation of more ad revenues and ratings. Channel 3, the country’s second-ranked TV station, is also applying a strategy to take market share away from rivals. Krittayaphongphun predicts that the country’s ad industry will increase three per cent next year.
Vuttipakdee says next year consumers will spend less on media like films and theatre, which could increase TV’s share. She also foresees cable TV becoming stronger due to the implementation of TV ratings by Nielsen, which will make cable TV measurable.
Cable TV could also gain from a new law - the Frequency Allocation Act - which will tighten the regulation of pay-TV advertising. A Thai media source agrees that cable channels can pick up since they have 15 per cent penetration and cheap media costs. So next year should see plenty of competition for ad revenues as the various operators raise their game.
“All media owners should look at improving their content,” says Krittayaphongphun. “There will be more competition, so everyone will need to be more proactive.”
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