Pre-World Cup fever drives Thai adspend

BANGKOK: Adspend in Thailand shot up 16 per cent year-on-year in May to 5.4 billion baht (US$127 million), driven by pre-World Cup spending and an escalating mobile phone war. But interestingly, among companies tapping most strongly into football fever were those selling television sets to try to tap into a 30 per cent surge in demand.

In May alone, Samsung Electronics spent 46 million baht promoting its TV sets, compared with 3.45 million baht a year ago, making it to number five on Nielsen Media Research's list of top spenders for the month.

Its competitors were also big spenders during the month. Toshiba spent 12.2 million baht on advertising, while the figure for Panasonic distributor, Siew-National, was 13.6 million baht and Philips Electronics 13 million baht.

Meanwhile, pre-World Cup jitters saw non-sponsors taking measures to protect their turf, says Siri-Orn Cherpipatana-sakul, head of media at FCB Worldwide. Nike spent 9.7 million baht battling Adidas' advantage as official sponsor, against Adidas' own two million baht spending. Samsung's adspend for the month was 13 times the 3.5 million baht of JVC. At the same time, Pepsi earmarked 400 million baht for the first six months, dwarfing Coca-Cola's 250 million baht spend.

The quest for higher visibility led several advertisers outdoors, primarily to the kingdom's transit system. Pepsi and fellow brand, Mirinda, had their ads wrapped around nine of the 35 available train bodies, while Samsung had its ads on four, says Marut Arthakaivalvatee, marketing and sales manager of VGI Global Media.

Spending on transit ads - which also include tuk-tuk and bus bodies - was up 49 per cent in May to 57.5 million baht compared with the year earlier figure. But while adspend figures are expected to be even higher this month during the World Cup, the total spend for the year is still expected to show a modest 10 per cent increase, industry watchers say.

Advertisers are dipping into third quarter budgets to take advantage of the World Cup, says Parames Rachjaibun, president of the Advertising Association of Thailand. He expects that the third quarter will be fairly quiet for many.

Indeed, Pepsi has said that its six-month football-flavoured campaign represents three-quarters of its annual budget.

The no-holds-barred mobile phone war, however, is expected to continue, with the three major players - TA Orange, GSM Advance and DTAC - firmly entrenched among the kingdom's top five spenders.

Along with TV and newspapers, smaller media have also benefited from this spending. In May, TA Orange had its ads wrapped around 15 transit train bodies, and fought Telecom Asia and property companies for prime outdoor billboard space.

Siri-Orn noted that cinema screens filled up with ads from all three major mobile phone players as they reached for a slice of the teenage market.

TOP 10 BRAND GROUP ESTIMATED ADSPEND (baht '000)

    Brand                                   May        May       YOY
                                           2002       2001    change
1   Orange Mobile Phone System           68,869          -         -
2   Digital GSM Mobile Phone System      60,946     48,043       27%
3   Tourism Authority of Thailand        49,077     11,528      326%
4   DTAC Mobile Phone System             48,030     36,572       31%
5   Samsung Televisions                  45,960      3,452    1,231%
6   TV Direct Sales                      44,914     32,603       38%
7   Chang Beer                           40,943     37,662        9%
8   Singha Beer                          34,139     14,288      139%
9   Toyota Pickups                       33,932     19,605       73%
10  Pond's Facial Skincare Products      33,250     16,734       99%

Source: Nielsen Media Research (Thailand)