Nielsen reported yesterday that mainstream media were still being affected by the fragile domestic economy, as big companies like Unilever (Thai) Holdings, Toyota Motor Thailand and Beiersdorf (Thailand) decided to cut their advertising budgets from last year’s spending.

Advertising expenditure via analog TV stations fell by 11 per cent to Bt26.02 billion in the first half, spending via cable and satellite TV dropped by 17.4 per cent to Bt2.44 billion, and digital-TV ad spending decreased by 9.03 per cent to Bt9.57 billion.

Newspaper advertising saw a drop of 17.43 per cent to Bt4.93 billion, while outlays on magazine ads were reduced by 28.15 per cent to Bt1.5 billion.

Radio ads were almost stagnant with 0.57-per-cent growth.

However, out-of-home media, which consist of cinema, outdoor and transit ads, saw higher growth during the first six months, while Internet advertising surged by 77.56 per cent to almost Bt850 million.

Media Insight noted that the first half was not a good time for the automotive industry, so car companies had to tighten their belts by cutting advertising budgets.

Pawat Ruangdejworachai, vice president of Media Insight, a subsidiary of Media Intelligence, which is a strategic partner of Japanese public relations and advertising agency Hakuhodo Inc, said yesterday that in the first five months, vehicle sales in this country dropped by 6 per cent.

Major carmakers such as Toyota decided to cut their advertising budgets and conduct promotional campaigns instead in a bid to boost sales in the remaining months. From January to last month, Toyota Motor Thailand spent Bt1.22 billion to publicise its brands and products via different media, down from Bt1.48 billion last year.

Pawat said other key product categories such as soft drinks, insurance, telecommunications and mobile phones also tightened their belts.

He believes that while such trends continue, the overall advertising industry will remain in negative territory.