Currently, alcohol ads can still run within restrictions on content and scheduling. But if passed, the new law would prohibit alcohol advertising from any public location, putting it under similar restrictions as tobacco advertising.
The proposal also raises the drinking age from 18 to 20 and reduces the number of legal distribution points.
The proposal, drafted by the Public Health Ministry, is now in the hands of the new military-installed Parliament for approval. A final response is not expected for at least another month.
Witawat Jayapani, chairman of the Advertising Association of Thailand (AAT) has been acting as the industry’s voice in consultations with the Parliament. He expressed the opinion that the ban will increase, not reduce, the consumption of alcohol.
Witawat also estimated current alcohol adspend at 2.6 billion baht (US$80 million), or two per cent of the market. “In terms of adspend for the market as a whole, it won’t be much, but some agencies will definitely be hit harder than others,” he said.
Sources in the industry point to Leo Burnett and Starcom, which handle major alcohol advertisers Heineken and Johnnie Walker, to be the most hard hit by such a ban. One source claimed that as much as 30 per cent of Burnett’s local revenue was made up from these two clients.
Another effect of such a ban, which some advertisers have begun implementing, is to transfer advertising dollars to lower price points. “If branding isn’t allowed, everyone will jump into a price war,” noted Witawat.
While the ban is unlikely to pass for another month, most agencies have also begun advising their alcohol brand clients to consider other promotional means. “We’ve been asking one of our clients to develop a corporate social responsibility programme to maintain brand awareness once the law has passed,” said an agency source. Similar sentiments have been echoed by other agencies.
“Five years ago, we knew (the Government) was eventually going to ban alcohol ads completely,” said Witawat, who also serves as CEO of Creative Juice\G1.