Industry Overview and Competition
1 TV program production business
Marketing and Competition 1) Industry Overview • Advertising Industry The advertising industry is directly impacted by the country’s overall economy. The economic expansion, coupled with fiercer competition, has resulted in continued growth in the advertising industry, evidenced by the advertising spending through media channels that has shown an uptrend, from Baht 92,035 million in 2007 to Baht 117,760 million in 2012, representing a CAGR growth of 5.05 percent. Advertising spending through media chanels in Thailand during 2007 - 2013 (F) (million) 130.000 +5.05% 117.760 CAGR 104.754 101.010 90.341 92.035 90.120
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Source: Nielsen Media Research and VGI Global Media Plc.
According to Nielsen Media Research, the advertising industry in Thailand is huge, with a total market value of over Baht 100 billion. The advertising spending through TV media, which links to the Company’s business, amounted to over Baht 60 billion per annum, accounting for approximately 60 percent of the total advertising spending in the entire industry. This high exposure to the TV media channels is attributable to the fact that TV is mass media and is the most popular among consumers in Thailand. The TV media can access as much as 98 percent of the population nationwide (according to the National Broadcasting Telecommunication Commission: NBTC). In addition, the TV media presents both visions and sound at the same time, while the advertising rate for head is low. Although the Thai economy in 2011 was negative affected by several negative factors, including the political instability and the global economic slowdown, the advertising spending during the first three quarters increased given that many product and service owners had tried to launch marketing strategies in order to attract their targeted consumers. They understood well that the economic slowdown prompted consumers to slow their spending, while they still had financial liquidity or strong purchasing power. However, in the fourth quarter of 2011 the flood crisis severely impacted the advertising spending atmosphere as the production sector had to suspend operation while the service sector was also negatively impacted. As a result, the overall advertising spending in 2011 showed a minor expansion of only 3.71 percent, representing a significant contraction from the growth of 11.83 percent reported for 2010. Matching Maximize Solution Public Company Limited