THE MEDIA Agency Association of Thailand (MAAT) has forecast a 4.5-per-cent increase in advertising spending this year to Bt141 billion, mainly encouraged by a growing terrestrial-based digital TV business and the digital-media boom.
However, the advertising industry is anxious about the volatile world economy, while the high level of household debts in Thailand could affect the bottom line.
"After experiencing a tough situation last year, we have set a conservative growth [target] of 4.5 per cent in this year's advertising spending from a year ago," MAAT chairwoman Wannee Ruttanaphon said yesterday. The association's forecast was mainly based on macroeconomic growth and developments in the media industry.
Wannee, who is also chairwoman of IPG Mediabrands, said that among key media, terrestrial-based digital TV, digital media and transit continued to enjoy growth, similar to last year's trend.
She noted that TV remained the key medium brands and advertisers use to reach a mass audience. This media segment represents more than 60 per cent of total ad spending.
However, free TV channels based on the old analog platform are being challenged by the new digital TV broadcasters. MAAT director Ratthakorn Surbsuk, a trading partner at GroupM Thailand, said the association expected to see a very small advertising-rate increase on traditional analog TV stations while digital terrestrial TV channels had the potential to raise average advertising rates by 40 per cent.