BANGKOK — The media industry is facing major challenges due to changes in consumer habits and economic instability. A sharp drop in advertising spending has hit media companies worldwide, forcing many to make significant adjustments just to survive.
In Thailand, 2024 has been particularly tough for media outlets. Several have had to close, cut jobs, and delay salaries. These problems highlight both the difficulties and potential within the current media landscape. With the economy remaining unpredictable, shrinking advertising budgets are affecting print, TV, and online media. This has led to a steep decline in advertising revenue for many media companies.
To understand what lies ahead for Thailand’s media and advertising sectors, Khaosod English talked with Dr. Karine Lohitnavy-Frick, founder and Managing Director of Midas PR. She shared her insights on the current opportunities, necessary changes, and survival strategies in the evolving media industry.
With over 20 years in public relations, Dr. Lohitnavy-Frick established Midas PR in 2007. She provided valuable insight into the advertising industry in Thailand, where advertising is critical for media companies.
“Eighteen years ago, many agencies were skeptical about digital media. They relied heavily on traditional media like print, TV, and radio. Back then, PR was focused on news distribution, public relations, and event management. Now, the focus has shifted to digital platforms and social media. Brands connect with audiences through content marketing, influencer partnerships, and social media campaigns. Digital PR also uses tools for online reputation management and analytics, making strategies more measurable. A decade ago, PR depended on intuition and experience. Today, advanced analytics, AI, and automated data processing make campaigns more effective, especially online,” Dr. Lohitnavy-Frick explained.
The role of data and technology in PR has grown significantly. Unlike ten years ago, when PR strategies were based mostly on intuition, today’s use of advanced analytics, AI, and automated data processing allows for more effective and measurable campaigns, particularly online.
Thai Media Landscape
The founder of Midas PR highlighted several key trends and changes in the Thai media landscape. According to Karine, technological advancements and shifting consumer behaviors have greatly impacted the industry, with these changes accelerating over the past three years.
One major trend is the move from traditional media to online platforms, especially online video. Text-based media were the first to feel this shift, leading to a rise in various content consumption platforms. Social media sites such as Facebook, YouTube, and TikTok have become dominant, with YouTube leading in revenue and TikTok gaining popularity. For many Thais, YouTube and TikTok have become important sources of news.
Influencers and KOLs (Key Opinion Leaders) continue to play a significant role, but maintaining authenticity is crucial. Audiences are now more selective and demand genuine and relevant content. Influencers are striving to stay authentic and build trust, although this makes success more challenging in a competitive market.
The Thai media industry is also facing issues such as fragmentation, staff reductions, and a shortage of experts for effective PR content. Balancing paid and organic media remains essential. “We aim to educate our clients on the importance of high-quality, non-promotional content to improve media standards,” Karine said.
Karine also pointed out that Thai media competes on three fronts: against other media, KOLs, and social media platforms’ algorithms. Transparency and credibility are crucial. As Thailand serves as an ASEAN hub, there are opportunities to broaden coverage beyond domestic issues to include regional developments, potentially attracting a larger audience and increasing revenue. Despite the rise of digital and social media, traditional media like digital TV still holds value, particularly among older viewers, and remains a key part of the media ecosystem.
“Media freedom remains a challenge due to government regulations and defamation laws that limit journalistic practices. While trust in news is relatively high, media outlets must navigate this complex regulatory environment carefully,” she added.
The year has been challenging for Thai media, marked by events like the closure of Voice TV. Karine believes that both media professionals and the market need to adapt to these changes. “Media professionals must adjust to market demands, and the market must evolve to meet changing media consumption patterns,” she explained.
“Trends are driven by consumer preferences, which are moving towards more fragmentation, personalization, and individual connection. Both media and advertisers must address these changes.”
“It’s a two-way street,” she says. “Media professionals need to adapt to market demands, while the market itself must evolve to match the changing media landscape.” She notes that media consumption has dramatically changed, driven by consumer preferences for more fragmented, personalized, and individual content.
“Both media and advertisers need to recognize and address these trends to stay relevant,” she adds. This shift is leading many media professionals to create content similar to that of KOLs, who are often seen as ‘individual media’.
Ads Trend & Spend
When assessing trends in advertising spending, Karine acknowledges that it’s challenging to pinpoint exact figures. PR budgets vary widely depending on the type and scale of services required, making it difficult to generalize from any single sample. Despite having a large client base, she admits that their experience may not fully represent broader industry trends.
“Overall, the industry seems to be recovering from the pandemic, with a 5-10% increase in clients’ budgets. As the economy improves, PR investments are resurging,” Karine notes. “However, we need to remain cautious. The manufacturing sector is facing a major crisis, which could have broader effects.”
A key shift is the focus of PR spending. Many clients are now prioritizing digital PR strategies, allocating more funds towards social media management, influencer partnerships, and online content creation. There is also a stronger emphasis on crisis and reputation management, with companies dedicating larger portions of their PR budgets to handle negative publicity effectively.
Karine highlights a positive trend: clients are increasingly investing in evaluation and measurement. “Companies are demanding clearer, measurable returns on their PR investments, leading to more detailed reporting and analytics,” she explains.
Looking ahead to the future of advertising from the first half of 2024 to 2025, Karine expects stability in the market. “Digital advertising will continue to grow steadily, TV will remain the largest share of media spending, and influencers will remain significant,” she says.
As for the proportion of advertising spending in the second half of 2024, Karine predicts, “In the second half of 2024, advertising spending is expected to be distributed as follows: TV media will likely continue to capture about 40-45% of the total media budget, digital media will account for approximately 35%, and out-of-home media will represent around 20%. These estimates are based on current statistics and trends, though they may change.”
AI Is All Around
Karine anticipates several new trends in Thai advertising, notably the rise of AI influencers, similar to what’s seen in the US. AI personas, created by clients and agencies, offer a cost-effective and engaging alternative to real influencers, who can sometimes be challenging to collaborate with. For example, The Nation TV’s AI news anchor, though currently more of a novelty, demonstrates AI’s potential in the industry without posing a threat to human jobs. However, it’s crucial for media professionals to become knowledgeable about AI to stay competitive.
“While Agoda’s AI persona has faced some criticism, it’s too early to determine if AI influencers will become a major trend in Thailand. Still, exploring these innovations could open new opportunities for the advertising industry,” Karine notes. “Concepts like Butterbear, which could be developed into AI personas, have significant potential in Thailand, where there is a strong affection for cute and charming characters.”
As AI increasingly influences the media industry, adjustments are needed in both media and PR agencies. According to her, the primary shift should be in our mindsets. “AI is a powerful tool for data analysis, media monitoring, sentiment analysis, and automating routine tasks. However, it struggles with creative writing, genuine creativity, and understanding the nuances of textual work. These aspects are uniquely human,” she explains. “Sometimes, using AI in advertising or news can seem insincere to viewers.”
She also points out the risks associated with AI, such as the spread of disinformation through generative AI. “The response to both the opportunities and threats of AI lies in enhancing our capabilities. This means developing AI literacy, educating ourselves and others about the risks, and learning to navigate the new landscape effectively.”
In addition to being the Chair and founder of Midas PR, an award-winning PR agency, Karine Lohitnavy-Frick also chairs PRCA Thailand. She explained that this organization aims to unite the PR industry and showcase the quality and value of PR work.
PRCA Thailand offers online learning opportunities for students and collaborates with about 15 agencies in Thailand to provide a thorough understanding of PR. The organization highlights the distinctions between advertising, marketing, and PR, emphasizing the unique and exciting aspects of a PR career. Partnerships with leading universities like Chulalongkorn, Thammasat, and online course Conicle help bridge the gap between education and industry.
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