Falling revenue, audiences spark BEC's ad rate rise

Chatchai Thiamthong, vice-president finance, BEC World, attributed this decline to higher cost of programming and the reduction of prime-time spot sales after a prime-time promotion package ended. However, Mana Jantanayingyong, managing director, MEC, said: "Channel 3's programme content seems to have lost its appeal among the mass audience." Increasing ad rates may not solve BEC's problems, as Wanee Ruttanaphon, managing director, Initiative Media Bangkok noted: "Advertisers don't increase their ad budgets as high as 10-15 per cent, so they tend to move away from the channel which has a higher cost per rating point." Advertisers and agencies fear this hike by Channel 3 may be a precursor to an industry-wide increase in ad rates. Decha Tangpanitansook, CEO, BBDO Bangkok, said: "Agencies will have to work harder to find other solutions." There has been a shift toward non prime-time slots by major spenders such as Unilever, noted MEC's Petch Phaewphraikul. Also, according to Wanee, ther eis an erosion of TV spending: "It was 60 per cent, now it is 57 per cent."