Thai adspend surges 8pc as upturn tipped

"Clearly everyone has been affected by the economic problems in the US, and by September 11. This year we are slowly moving ahead. There is some new business in the market, and existing clients who are increasing spending, but this is a gradual increase, said Mark Webster, Southeast Asia director for J. Walter Thompson.

JWT's own growth in the quarter was around 10 per cent, "very much as we expected", he said.

Budgets are being tied to actual sales performance, "even month-to-month sales", noted Bill Hickman, executive director at Siamese D'Arcy. "As the year progresses, we expect that clients will start unleashing their budgets, Hickman said.

For Siamese D'Arcy, the "better than expected showing at the April motor show for client General Motors was good news.

"Optimism is growing within the company and with that comes opportunities for us to do more with them, said Hickman. The agency also recently picked up the domestic account for the Tourism Authority of Thailand.

At Saatchi & Saatchi, expectations are more upbeat amid improving economic conditions. "This is the first time that I've seen a rise in foreign investment since 1997, said managing director, Oranat Asanasen, who sees full year adspend growth at "no less than 15 per cent".

Saatchi won three pieces of new business in the first quarter - including Sylvania Lighting, worth 20 million baht - that collectively pushed billings up 30 per cent, Oranat said.

Meanwhile, trends noted in the first quarter are largely expected to continue, with telecommunications remaining the most competitive sector, and Government, personal care and entertainment areas remaining strong.

"I expect to see television, typically the medium hurt most (in a downturn), pick up some steam, and also some growth in alternative media like cinema, transits and outdoor, said Hickman.

In the first quarter, cinema advertising grew an impressive 37.8 per cent, followed by outdoor advertising at 12.3 per cent.

Outdoor advertising has received a fair bit of press recently, with Wrap Inc the focus for "wrapping ads around private cars to use them as billboards-on-wheels. Car owners are committed to driving 1,000km a month for a fee of 3,500 baht.