Live Issue... Lack of ideas compounds misery for Thai radio firms

For the first half of 2009, research from The Nielsen Company reveals that revenue for radio plummeted 14 per cent to 2.8 billion baht (US$86 million) from the same period last year. That’s a similar slide as for magazines and newspapers, and far worse than the average five per cent decline across the ad market.

Analysts predict similar misery for Thailand’s radio market for the second half of the year, as several factors conspire to hold back the industry. The general state of the economy is, of course, one. But Rathakorn Surbsuk, head of The Exchange at Mindshare Thailand, says it’s a lack of ideas, rather than the global downturn, that’s hurting the medium.

“It’s an ideas and creativity crisis,” says Surbsuk. “If a particular radio format becomes a hit, other stations begin to copy it. We end up with all the stations having the similar playlists, styles and jingles, or even having commercial breaks at the same time. When radio stations become a ‘commodity product’, the only difference is price.”

Unlike Malaysia, where first-quarter spend rose by nine per cent year on year, there is no commercial radio body in Thailand to sell the medium to advertisers and help it grow. What’s more, Prirongrong Ramasutra, a Chulalongkorn University lecturer in mass communications, says the lack of an independent regulatory body to allocate frequencies and to issue licences for operators is the major factor in holding back community radio operations.

There are still radio operators doing well. Surbsuk points to Sky-High Network and A-Time radio as the top two performers in the radio industry who are still pulling in audience share and revenue. He adds that advertisers will only choose the top stations.

Bernard Sumayao, CEO of OMD Thailand, says the more successful stations are also thriving because of their presenters, he picks Seed Radio, Greenwave and Looktung Mahanakorn as some of the more successful stations in this regard. “Thailand is a country where celebrities and public personalities play a big part in influencing consumer sentiments,” he says. He adds that radio DJs are “highly popular across various media, not only radio” and likens radio personalities to a “merchandising outlet”.

“They are actively involved with their primary target market and make regular visits and personal appearances all over the country to promote consumer products,” says Sumayao.

Necessity appears to be forcing innovation. Triluj Navamarat, chairman of VivaKi Thailand, claims radio stations are now more open to support promotions, events and other audience communication initiatives to grow.

Surbsuk adds that, as advertisers invest more in price promotions, media owners and radio stations should be looking to integrate the medium into such promotions.

“This is a good time for the radio industry to get ready,” he concludes. “In a year or two, when the economy is better, advertisers will be ready to invest again.”

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