Thai adspend tipped to show zero growth

<p>BANGKOK: The Thai advertising industry is expected to show zero </p><p>growth this year as spending levels have slowed to a snail's pace in the </p><p>third quarter, according to the latest figures by ACNielsen. </p><p><BR><BR> </p><p>The industry was already preparing for a tough second half of the year </p><p>due to the global economic slowdown, but the situation has been </p><p>exacerbated by the September 11 terrorist attacks in the US. </p><p><BR><BR> </p><p>Research figures show that media spending grew over the first nine </p><p>months of this year by seven per cent, but once inflation, media </p><p>packages and discounts are factored in, actual growth is likely to be </p><p>non-existent. </p><p><BR><BR> </p><p>"The ad market is flat and it is going down," said OMD managing director </p><p>Martin Dufty. </p><p><BR><BR> </p><p>According to ACNielsen's figures, media spending from January to </p><p>September totalled 39 billion baht (US$875 million). Last year's </p><p>spending reached 51 billion baht, a 23 per cent jump from 41 billion in </p><p>1999. </p><p><BR><BR> </p><p>However, while most media fared reasonably well compared to last year, </p><p>for instance, magazines showing a 20 per cent growth, a look at figures </p><p>for September paints a more realistic picture. </p><p><BR><BR> </p><p>TV saw an increase of six per cent, which in reality is a marginally </p><p>negative growth performance, but the second- largest media spending </p><p>category, newspapers, reported a 25 per cent drop. </p><p><BR><BR> </p><p>CIA Media Innovation managing partner Ichaya Santitrakul, who is also </p><p>vice-president for media of the Advertising Association of Thailand, </p><p>said advertisers were cutting their spends and looking at more </p><p>below-the-line activities, such as product placements in popular </p><p>television shows, event marketing and public relations. </p><p><BR><BR> </p><p>As the industry looks set to lurch into an uncertain year in 2002, </p><p>advertising rates are likely to remain at this year's level, at </p><p>best. </p><p><BR><BR> </p><p>The recent move by TV channels 3 and 7 to increase ad rates sparked an </p><p>uproar among leading agencies. </p><p><BR><BR> </p><p>It is likely that both channels will now drop their rate hike plans, </p><p>especially after Channel 7's prime-time advertising bookings fell by a </p><p>reported 30 per cent last month. </p><p><BR><BR> </p><p>"All media rates will not increase until the war has stopped, except </p><p>perhaps for popular magazines Dichan and Elle," claimed Ichaya. </p><p><BR><BR> </p><p>However, Ichaya predicted the mobile phone category would continue </p><p>spending. </p><p><BR><BR> </p><p>Mobile operators, AIS, DTAC and Digital GSM are the top three largest </p><p>spenders in the biggest-spending category. </p><p><BR><BR> </p><p>With the expected launch of the Orange mobile service at the end of next </p><p>year, market incumbents are poised to spend heavily to protect their </p><p>market share. </p><p><BR><BR> </p>