The agency, which depends on a predominantly local client base, has seen four key staffers leave the agency this year for higher paid positions elsewhere.
And associate creative director Jon Chalerm-wong - who recently topped Media’s annual creative rankings (Media, 25 June) - is also in talks to move overseas, said Witawat Jayapani, the agency’s CEO.
“We have always kept turnover low, but our talents are on top of the target lists for other agencies. We have to let them go with our blessings, because we can’t match rival salary offers,” said Witawat.
He also revealed that the agency is shifting to a consulting model to protect itself from the downturn, which has led many local clients to cut advertising from marketing budgets. This year, 55 per cent of Creative Juice’s revenue will be from consulting work while 35 per cent will come from advertising.
The remaining 10 per cent will be from below-the-line activity, Witawat said. “Advertisers have many choices now. They can go to freelancers or deal directly with production houses. There is no need for creative agencies. We need a stronger strategic path and to move into other areas.”
Thailand’s advertising expenditure between January to July this year grew by only 0.6 per cent, compared to six per cent in the same period last year. The annual inflation rate of the cost of advertising, typically around 10 per cent, means that the industry is facing negative growth.
However, adspend is only based on monitored and measurable above-the-line media. With many advertisers spreading their marketing budgets thinly among other initiatives such as events and interactive work, the picture does not look as bleak.
Still, compared to the 16 per cent adspend growth experienced between 2002 to 2004, it is unsurprising that most agencies are not optimistic about 2008.
“What Creative Juice is facing is not unique to them,” said a source at a rival 4As agency.
“Each of us is finding it hard to grow business with just advertising. Briefs and client demands are getting harder. It’s a tough game to play.”
The source also noted that while the general election - set for 23 December - promises to offer some semblance of stability to the nation, it is unlikely to bring immediate relief to the business community as the cabinet would take some time before settling in to their roles.
In the meantime, consumers are so concerned about the political situation that they “don’t feel good about spending money or enjoying life”, he added.
