|
Digital advertising spending this year is forecast to jump by
two-thirds to a record 9.9 billion baht ($277.47 million) in
Southeast Asia's second-largest economy, according to the
Digital Advertising Association (Thailand) (DAAT). While that
lags the 44 percent and 53 percent growth in 2014 and 2013,
respectively, the near-term outlook for online advertising looks
sharp as advertisers increasingly target Thai consumers in the
virtual world. (GRAPHIC: Advertising spending: http://link.reuters.com/ran55w)
DAAT, which gathers data from 17 agencies that represent 80
percent of spending in the market, has recently upgraded its
growth forecast for digital ad spending to 62 percent from its
previous estimate of 33 percent. Social media like Facebook and
video ads on Google's YouTube account for the biggest share of
online advertising spending.
Stocks in Thailand's new media companies have soared.
Diversified media firm Plan B Media PCL has more than doubled
since its February debut, and analysts expect earnings growth to
top 50 percent this year. In contrast, the overall media and
publishing sector index has slumped. It is one of the worst
performers on the Thai stock market this year.
Overall advertising spending dropped 2 percent in the first
seven months, dragged down by a decrease in ad spending in
newspapers and magazines, Thakol Banjongruck, analyst at KK
Trade Securities, wrote in a note to investors. "Advertising
spending is expected to rise 3 percent this year based on the
country's GDP growth forecast of 2.5 percent. However, there is
some risk that growth may be weaker, because
slower-than-expected economic growth and political uncertainty
could prompt advertisers to hold off their advertising budget,"
Thakol said.
(Editing by Ryan Woo)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
|
