Thailand:increase in advertising spending

Amid concern over high household debt, IPG Mediabrands, a leading media agency, sees advertisers and product owners suspending or cutting their budgets for some media channels in the rest of this year, resulting in only a 5-per-cent increase in advertising expenditures for the whole year.

"High household debt is one of the key factors reflecting weak purchasing power in the local market. Many companies are now worried about their sales target for the rest of this year. This will inevitably have an influence on the pattern of ad spending via each media channel," Manee Eabe, managing director of IPG Mediabrands' Managlobal, said last week.

Besides the private sector, the Bank of Thailand is also concerned about the level of household debt at 78 per cent, or Bt8 trillion, of gross domestic product. The central bank is closely monitoring this and is ready to launch control measures if necessary.

Manee said that although the TV broadcasting industry, including free-to-air and pay TV, has changed rapidly due to new players, regulations and technology, the ad spending pattern has largely remained intact. Read more http://www.nationmultimedia.com/business/Small-increase-in-advertising-spending-tipped-for--30208911.html