Thailand's ad spending across media outlets fell 5.7% in the first 11 months of the year to 92.6 billion baht, with magazines facing the biggest drop, according to market research firm Nielsen Thailand.
As advertisers shifted their budgets to online and out-of-home media, ad spending on traditional media such as magazines saw the biggest drop of 34.2%, falling to 1.78 billion baht in the 11-month period, followed by newspapers, dipping 20.5% to 7.07 billion, and cable and satellite TV, down 15.5% at 2.69 billion.
Despite the growing trend of brands using internet media outlets, internet ad spending fell 12.7% to 1.39 billion baht.
The biggest rise in ad spending was for in-store media, shooting up 38.5% to 860 million baht for the period, followed by cinema, which climbed 27.4% to 6.25 billion, and outdoor media, up 13.3% at 5.8 billion baht.
Nielsen reported that the sharp drop in ad spending on magazines has taken a toll, forcing many to shutter operations or shift online to stop the rot.
Nielsen predicts that print media, including newspapers, will be the hardest-hit sector in 2017.
Pawat Ruangdejworachai, media director of Media Intelligence, said Thailand's magazine industry is expected to get worse, with more shutting down next year because fewer advertisers want to put their ads in print media, citing lower exposure and higher costs than for either online or out-of-home media.
Mr Pawat said specialised magazines covering watches, travel and home decor, for example, will likely survive on the strength of sufficient sales volume for niche markets, not from advertisements.
He said many private companies are carefully shifting their media budgets to online and out-of-home media outlets, adding that media spending will resume next year as the economic outlook improves.
According to Nielsen, the biggest ad spender in the 11-month period was Unilever Thai Holdings with 279.7 million baht, up from 90.1 million in the same period last year.
TV Direct Co was next with 216 million baht, up from 11.5 million, and Procter & Gamble Thailand registered 203.8 million, up from 136 million.
