KASIKORN RESEARCH CENTER (KResearch) projects that the growth of advertising industry in 2007 should be more than 5 percent, while the media most likely to advance next year will be low- cost media, e.g., media on in-stores, cinemas, advertisements on BTS sky trains, bus body and taxis, etc. Concerning the government move to ban ads and PR on all alcoholic beverages, on all forms of media 24 hours a day, this should have only a short-term effect in 2007. Findings show that ads for alcoholic beverages represent only around THB1.5-2.0 billion or 2-3 percent of the total of all advertising expenditures through all media. Lately, the Food and Drug Administration has become more flexible about this in allowing alcohol beverage commercials on the air on the condition that the ad content aimed at promoting a liquor company's corporate image through art, culture, traditions, nature or creative social activities instead of direct references to beverages. The content must not relate, or intend to promote alcoholic consumption, and must refrain from identifying the names of beverage brands, logos and/or slogans. However, the names of related companies, when not similar to an alcohol brand or contain alcohol-related words, is being allowed mention. If an alcohol company makes other products and uses the same logo, advertising for the non-alcohol product is allowed only if the logo is in a different color.
KASIKORN RESEARCH CENTER (KResearch) views that the competition in the advertising industry during 2007 will certainly intensify because of numerous factors, e.g., there will be pressure due to the competition between producers and among their sales agents because they will all want to increase their respective market shares with customers as consumers attempt to economize in response to higher costs of living. As a result, advertising agencies will have to adjust themselves. Besides this, the spending behavior of producers and retailers will likely become ever more careful as their other costs spiral. Thus, 2007 will be a year when advertising agencies will have to work harder to compete, and will have to come up with outstanding creativity to attract the market. Further, liaison between ad agencies and producers/retailers will need greater cooperation and clearer targets because the different target groups have highly divergent tastes. At the same time, each agency will have to enhance their potential to maintain their customer base and prepare to attract new customers through the quality of their personnel, where offering the best service, quickly solving problems or obstacles that customers are facing and showing competence in managing advertising budgets effectively will most impress customers.
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