Rising rates, beer war spark adspend boom in Thailand
<p>Adspend in Thailand is experiencing strong growth, thanks largely
</p><p>to the first rate hikes in two years - and an escalating war between
</p><p>beer marketers.
</p><p><BR><BR>
</p><p>As MindShare Thailand general manager Kelly Clarke put it, "Thailand is
</p><p>awash in beer and rate hikes".
</p><p><BR><BR>
</p><p>"Beer was the single biggest spending category in 1999 and we have also
</p><p>seen a whopping 106 per cent increase for Q1 2000 over the previous
</p><p>year," he told MEDIA.
</p><p><BR><BR>
</p><p>Statistics show that four beers are represented in the top 10 spending
</p><p>brands overall (Singha, Chang, Amstel, and Leo), with Mittweida not far
</p><p>behind.
</p><p><BR><BR>
</p><p>But spending is up in most categories as well, Mr Clarke noted.
</p><p><BR><BR>
</p><p>"Most notably, we are seeing strong growth for luxury goods especially
</p><p>cars, TV and mobile phones," he said.
</p><p><BR><BR>
</p><p>But the higher adspend is also a reflection of higher media rates.
</p><p><BR><BR>
</p><p>"Key suppliers are taking an extremely bullish stand on negotiations,"
</p><p>Mr Clarke explained.
</p><p><BR><BR>
</p><p>"Absolute rates are up for the first time in years, and the heavy bonus
</p><p>arrangements, introduced two years ago to encourage client spend, are
</p><p>disappearing fast."
</p><p><BR><BR>
</p><p>For agencies and clients, however, the biggest disappointment was that
</p><p>the economic crunch "didn't quite manage to kill off the TV quota
</p><p>system", Mr Clarke said.
</p><p><BR><BR>
</p><p>With two dominant TV stations and high demand, the quota system is back
</p><p>in force again.
</p><p><BR><BR>
</p><p>"More than ever, it will be important that media buyers have the best
</p><p>tools to optimise airtime allocation," Mr Clarke added.
</p><p><BR><BR>
</p><p>TV optimisation systems are not new, and most of the big media players
</p><p>have one system or another installed.
</p><p><BR><BR>
</p><p>However, these are international systems most often developed originally
</p><p>for the UK market, and as a result are sometimes less than ideal for
</p><p>application in other markets.
</p><p><BR><BR>
</p><p>And, according to Mr Clarke, few are being utilised properly.
</p><p><BR><BR>
</p><p>"Now that recovery appears well underway, media specialists should be
</p><p>investing in the development of better tools and better research," he
</p><p>said, noting that MindShare will spend "significantly" in several key
</p><p>proprietary projects this year, one of which is to develop a tailor-made
</p><p>TV optimisation system for the Thai market.
</p><p><BR><BR>
</p>
by
|
05/26/2000
Adspend in Thailand is experiencing strong growth, thanks largely
to the first rate hikes in two years - and an escalating war between
beer marketers.
As MindShare Thailand general manager Kelly Clarke put it, "Thailand is
awash in beer and rate hikes".
"Beer was the single biggest spending category in 1999 and we have also
seen a whopping 106 per cent increase for Q1 2000 over the previous
year," he told MEDIA.
Statistics show that four beers are represented in the top 10 spending
brands overall (Singha, Chang, Amstel, and Leo), with Mittweida not far
behind.
But spending is up in most categories as well, Mr Clarke noted.
"Most notably, we are seeing strong growth for luxury goods especially
cars, TV and mobile phones," he said.
But the higher adspend is also a reflection of higher media rates.
"Key suppliers are taking an extremely bullish stand on negotiations,"
Mr Clarke explained.
"Absolute rates are up for the first time in years, and the heavy bonus
arrangements, introduced two years ago to encourage client spend, are
disappearing fast."
For agencies and clients, however, the biggest disappointment was that
the economic crunch "didn't quite manage to kill off the TV quota
system", Mr Clarke said.
With two dominant TV stations and high demand, the quota system is back
in force again.
"More than ever, it will be important that media buyers have the best
tools to optimise airtime allocation," Mr Clarke added.
TV optimisation systems are not new, and most of the big media players
have one system or another installed.
However, these are international systems most often developed originally
for the UK market, and as a result are sometimes less than ideal for
application in other markets.
And, according to Mr Clarke, few are being utilised properly.
"Now that recovery appears well underway, media specialists should be
investing in the development of better tools and better research," he
said, noting that MindShare will spend "significantly" in several key
proprietary projects this year, one of which is to develop a tailor-made
TV optimisation system for the Thai market.
