According to Nielsen Thailand, ad spending via magazines in Thailand dropped by more than 25 per cent from Bt5.708 billion in 2011 to Bt4.227 billion last year.

Further bad news for the sector also hit the headlines this year. In the first two months, advertisers cut their budgets for the magazine channel by almost the same level as over the past five years.

“We believe that in this fast-changing in media landscape, some local publications have not been able to develop themselves to deliver the right content to serve new needs in the market,” Manee Eab, managing director of Magna Global, a leading media agency under IPG Mediabrands, told The Nation recently.

“Consumers’ lifestyle and behaviour changed, while mushrooming online publications were also offering almost the same types of content and information [as magazines] related to fashion, parents and kids, teens, gadgets and information technology, and so forth,” she explained.

This factor undoubtedly affected the market during the last couple of years, when a number of local and international branded magazines decided to exit the scene, she said.

For example, Praew and Star News magazines came to an end last year.

“It was also a result of oversupply in the magazine market in the last three years, after an influx of international branded titles,” she added.

However, some types of printed magazine, such as those covering home decoration, food and cuisine, automotive and travel, are still eye-catching among local readers, she suggested.

That said, existing magazine publishers should put more weight on how to capitalise on the digital trend in order to create the right form of content, through the right online platforms, to target readers, she stressed.

From an advertising buyer’s viewpoint, Manee said top-ranked titles would remain the most attractive for brands and advertisers.

It appears that Amarin Printing and Publishing, one of the country’s largest magazine publishers, agrees with this view.

“All of our magazines must be No 1 in their category to make sure that both readers and advertisers still stay with us,” chief executive officer Rarin Utakapan Punjarungroj told the media recently.

Rarin said her company was now focusing more on content development and distribution across platforms, particularly online and on-ground activities.

The company is also developing content from its top-ranked magazines to be up and ready for audiences across media platforms, ranging from conventional formats, on-ground events and television programmes to digital media outlets like websites and Facebook pages, she said.

“Other platforms will help us engage with more untapped audiences and pave the way for advertisers to communicate with them,” she added.

To survive in this sunset business, media academic Time Chuastapanasiri suggested that there were several possible ways to go for publishers.

Reducing the number of pages of each magazine or extending the frequency of publication is one example of how to achieve successful cost management, while transforming a magazine into free copy is another alternative, he suggested.

Recently, the publisher of a day, TV Pool and Spicy decided to offer the three top-ranked magazines as free-copy issues in order to expand its reader base after facing difficulties in seeking subscription-based revenue.

The minimum starting bid will be Bt75.654 billion, the price for which Jas Mobile Broadband won licence at the previous auction in December but defaulted last month by failing to pay the first instalment of the upfront licence fee.

All existing mobile operators, including True Corp, which won a licence at the last auction, will be allowed to bid. Jas will not.

The NCPO was expected to make the formal announcement late yesterday.

NBTC secretary-general Takorn Tantasith said there were two parts to the NCPO order – the holding of the auction, and a memorandum of understanding between Advanced Info Service and True Corp.

According to the NBTC source, under the MoU, AIS can roam some of its 900MHz users with True Move H Communication Universal Service (TUC) during the extension period of the 2G-900MHz service. TUC’s own 2G service will be officially launched on Friday.

Meanwhile, the 900MHz licence period of TUC will be extended to end at the same time as the new licence from the new auction. TUC got the licence on March 16. Currently the licence period is 15 years.

“This is the final solution that all relevant parties are discussing today. This should end all conflicts between the two operators and create fair competition for the industry. It will be a happy ending for all,” Takorn said.

AIS and True have disputes on many issues and both have filed complaints with the NBTC and the government about the 900MHz issue and the new auction.

TUC yesterday sent an urgent letter to the NBTC, and Deputy Prime Minister Wissanu Kreangam, against the AIS plan to extend the switch-off plan of its 900MHz service from April 14 to June 30.

According to True, its new 2G network is ready to serve all existing 900MHz subscribers as it has installed 22,000 base stations nationwide, covering the same number of users as the existing AIS network.

True suggested that the NBTC could give more time to AIS users to move to its and other networks. It said AIS had overstated its claim that around 7.8 million users would be affected from the shutdown of the service on Thursday. In True’s view only 480,000 users on the AIS network would be affected as the other 7.4 million are on AIS’s subsidiary, Advanced Wireless Network.

AIS had earlier announced that it would roam them with Total Access Communication (DTAC) and would make more investments to serve them.

True said that if AIS is allowed to keep using the spectrum, the NBTC should consider paying compensation to True on the amount that it will charge AIS for using the band during the extension period.

True won the licence for Bt76.3 billion.

True also asked the Central Administration Court to allow it to testify as an interpleader in the case whereby AIS had sought an injunction to order the NBTC to allow AIS to extend the 2G-900MHz service cut-off date from April 14 to June 30.

Earlier, AIS won a court extension for switching off the service, from March 15 to April 14.

The NBTC reallocated AIS’s 900MHz bandwidth last December after the company’s concession on that spectrum with TOT expired in September.

The NBTC had ordered AIS to shut down its 900MHz service in the middle of last month after the awarding the licence to TUC.

The Administration Court is expected to deliver its verdict today after the NCPO issued an order on the issue.

Mega derived 32.3 per cent of its sales from Myanmar last year.

The pharma has become a successful case study for international corporations doing business in that country.

“This growing market represents our top country by revenue of all the 31 countries where Mega Lifesciences is found.

“We are proud to be able to help local people with their health and wellness and we thank Myanmar for its support,” he said.

The large pharma distributes pharmaceuticals, vitamins and consumer products in the neighbouring country.

Now with more than 70 commercialised products, Mega leads the iron, calcium, vitamin E and liver supplement markets.

It is also the leading pharmaceutical and fast-moving-consumer-goods distribution company, representing more than 30 principals such as Kimberly-Clark, Pfizer, MSD, GSK Consumer Health and Sandoz under its Maxxcare arm.

Mega was the first international company to set up distribution operations in Myanmar and now represents roughly 15 per cent of the nation’s total pharmaceutical market.

To commemorate the occasion, a gala took place at the Myanmar Convention Centre in Yangon with more than 1,000 employees, partners and guests attending.

Mega forecasts continued double-digit growth over the five years until 2020 and hopes to expand its distribution network in Myanmar in line with growth estimates for the country.

Vitamins and supplements are the largest therapeutic category in this country of 53 million, accounting for about a quarter of the market.

“When we started in Myanmar, we wanted to make a difference in developing markets where there was a need to create access to world-class healthcare products,” Dhawan said.

“We were steadfast in our business-expansion decision to be one of the first into developing nations and grow as they expand.

“Thanks to this, Mega has experienced 10-to-15-per-cent growth annually in Myanmar.”

Chief executive officer Akapol Kittiratanapinan said Sherman was a domestic audio brand that had been with the Thai people for more than 18 years. The brand provides its customers with quality audio products for both indoors and outdoors, such as speakers, home-theatre applications, amplifiers and microphones.

He said the company would continue to build Sherman’s brand awareness and credibility in Thailand. However, the company also plans to expand the brand into the CLMV markets (Cambodia, Laos, Myanmar and Vietnam), while Thailand remains the manufacturing base for the export market.

According to Nicon’s market research, Thai-branded products are popular and trusted by CLMV consumers. Sherman is also one of their favourite brands. Therefore, going into this new market should generate additional sales of more than Bt100 million this year.

“We currently have a local representative in Laos. We are under negotiation with potential distributors in the rest of the CLMV markets,” Akapol said.

Nicon targets overall sales to reach about Bt1 billion, including exports, and hopes to become one of the leading players in the audio market this year. The company expects its annual sales to reach Bt1.5 billion in five years, about 20 per cent from export.

“I have been to CLMV countries and found counterfeit Sherman products. I realised that the name ‘Sherman’ from Thailand is valued in those countries. It became my starting point to secure my brand’s reputation from counterfeit, unqualified products and take the opportunity to expand the Sherman business,” Akapol said.

He added that in the audio-appliance market, lots of international brands had already entered the CLMV markets. However, there remains a gap in which Thai products can have a margin.

“Consumer behaviour and tastes in CLMV countries are quite similar to Thai consumer behaviour. They share the same traditional and religious culture and festivals, for example Songkran and temple fairs.”

He said the implementation of the Asean Economic Community at the end of last year would facilitate trade liberalisation within the region. The AEC will be highly beneficial to Sherman’s business for two reasons: tax benefit and logistics.

He said the company had a five-year plan to set up new manufacturing facilities, expanding from its current plant in Samut Sakhon. The expansion will cater to the regional expansion of its Sherman business. The company also plans to list on the Stock Exchange of Thailand within five years.

“The production capacity at our current factory is enough for only two to three years. Then we plan to expand our production to support business growth in five years.”

Akapol said the company’s ambition over the next five years was sustainable growth for the Sherman brand in CLMV, with Bt300 million in annual sales from those regional markets.

“For Thailand, Sherman will expand its distribution channels, with Bt1.2 billion in annual sales expected in five years’ time. The sales growth will be achieved by developing new strategic products to serve modern trade, strengthening relationships with traditional dealers, and exploring online channels.

“Sherman will raise its brand awareness and experience in new consumers, who are between 20 and 30 years old.”

He said Sherman was a trusted brand that had received the “Thailand Trust Mark” from the Ministry of Commerce. Communication to customers will mainly be focused on various media and channels such blogs, product reviews and market activities at sales points to reach the targeted customer group.

Moreover, reinforcement of the “Thailand brand” will also be a main strategy to expand into the online market, cashing in on the digital trend and popularity of online shopping.

Sherman is now available at online stores such as Lazada, Ensogo, iTrueMart and Comseven, representing 5 per cent of overall sales. About 70 per cent of sales are still from the modern-trade channel, and the remaining 25 per cent from appliance stores. Although the online proportion is still small, it is likely to increase dramatically and become a major marketing channel for the company in the near future.

“Customers’ behaviour is changing more and more into a digital lifestyle, starting from the process of finding information for making decisions on places to shop and music preferences.

“The company has initiated a ‘Smart Sound’ framework to integrate all marketing factors, namely the technology of product development, online distribution channels and international markets, as well as marketing communication to respond to the digital-lifestyle trend among consumers in a sustainable manner,” Akapol said.

AIS has 8.2 million such subscribers, of whom 7.8 million belong to its subsidiary Advanced Wireless Network.

Suphachai Chearavanont, chief executive officer of True, said yesterday that True’s 2G service will use the 900MHz and 1800MHz bands that True won licences for in auctions last December.

The National Broadcasting and Telecommunications Commission reallocated AIS’ 900MHz spectrum in December via bidding after AIS’ 900MHz concession with TOT expired in September.

The watchdog had ordered AIS to shut down its 900MHz service in the middle of last month after the NBTC awarded one of the two 900MHz licences to TrueMove H Universal Communication, a unit of True Corp.

However, AIS sought an injunction from the Central Administrative Court and the court allowed AIS to delay the cut-off to this Thursday.

Last Friday, AIS asked for an extension of the switch-off from Thursday to June 30.

On the same day, True asked the court to be an interpleader against AIS’s extension plan.

Suphachai said True has to fight against the extension because its new 2G network is ready and it hopes to secure many subscribers.

However, the National Council for Peace and Order is expected to seek ways to extend the 900MHz service cut-off date until the NBTC |finds a new 900MHz licensee.

The NBTC is preparing to hold the second 900MHz licence auction next month after Jas Mobile Broadband, the other winner, failed to pay the initial upfront fee for its licence by the March 21 deadline and forfeited the right to receive the licence.

The NBTC has welcomed all cellular operators except Jas to join the new bidding but Suphachai still will not confirm if True will participate.

It is still unclear whether the broadcasting industry will eventually stay with old players in TV rating services such as Nielsen or make the move to UK-based Kantar Media. But multi-screen ratings are what they want, whoever provides it.

Back in 2007, Bangkok Broadcasting and Television decided to set up BBTV New Media to manage websites and mobile applications for its Channel 7 station. In a previous interview, Pattanapong Nuphan, assistant managing director of BBTV, said it saw big potential in digital media.

Chakrapun Leelamasavat, managing director of BBTV New Media, said that after putting a lot of effort into developing its new-media platform, its main website and applications (ch7.com and BBTV Ch7), and its time-shift website and apps (Bugaboo.TV and Bugaboo TV), the broadcaster now enjoyed more than 20 million impressions per month.

Channel 7 is now leveraging its digital-media platform to provide live programme streaming and marketing activities via its mobile apps and website. Chakrapun said his firm had entered a partnership with Nielsen to help measure advertising ratings on BBTV’s online platforms.

New players in digital TV have also realised the importance of digital media and content management.

GMM Grammy, which operates the GMM 25 and One 31 digital television channels, recently hired Phawit Chitrakorn, former head of Ogilvy & Mather Thailand, as its new chief marketing officer to transform the 30-year-old music and entertainment giant into a provider of digital and marketing content.

“I am also here to help the company’s digital-TV business get ready for new [forms of] TV audience measurement,” said Phawit, who specialises in advertising and digital-media strategy.

Ong-art Singlumpong, executive vice president of Channel 8, told The Nation that digital media platforms offered an opportunity for the TV station to engage with young audiences.

According to a survey by the University of the Thai Chamber of Commerce, about 59 per cent of Thai teenagers watch TV programmes via conventional television sets, while 94.8 per cent said they watched TV programmes via connected devices such as smartphones, tablets and personal computers.

“To deliver their preferred content through convenient channels, Channel 8 has developed its official website, mobile applications and social-media network to respond to this new growing demand,” Ong-art said.

Bangkok Media and Broadcasting, the operator of PPTV, has invested heavily in digital-media development.

Kematat Paladesh, president of PPTV, said his company had earmarked about Bt100 million for developing digital content and media to work with third parties like Line TV and YouTube to make sure the content broadcast via free TV could also suit online demand and viewing behaviour.

“This new investment is part of our preparation for the coming multi-screen TV audience measurement,” Kematat explained.

With this new expansion, PPTV is eyeing a greater revenue stream through revenue sharing with third-party platform providers on top of income based on sponsorships and advertising.

However, some digital-TV operators have questions about the methodology of multi-screen TV rating. Patompong Sirachairat, chief operating officer of Mono Group, parent company of Mono29 digital TV channel, said his company was now fully equipped for digital media and content management, but he had no idea about how to measure content on different platforms under a single rating currency.

After relying heavily on imported content, Mono29 is now turning its focus more to producing local content to open more doors for sponsors and tie-in products, while holding full rights to the content to be provided via its website, mobile app and other media platforms.