BROADCASTING / RADIO SPENDING

Sky-High projects flat growth for first half

WORANUJ MANEERUNGSEE

Like many businesses, the radio industry projects flat growth in advertising revenue in the first half of this year, citing the New Year's Eve bomb blasts as a major negative factor. Retailers and beer brewers have also been pessimistic about the business outlook for the first half of the year. The book industry, on the other hand, anticipates that safety concerns will help to increase sales as more people opt to stay at home rather than going out to socialise.

Komsan Chetchotisak, the managing director of Sky-High Network Company, an RS Plc subsidiary overseeing the entertainment group's radio operations, expressed hope that the economy would pick up in the third quarter. In the best-case scenario, the overall industry would grow by 3% in 2007, the same as last year, he added.

According to the research agency ACNielsen, advertising spending on radio recorded limited growth of 3.2% from 2005, to 6.5 billion baht in 2006. Media spending overall grew at just 4.9% to 89.8 billion baht from the previous year.

Advertisers lately have been putting off spending as consumer confidence had been damaged by the blasts, according to Mr Komsan.

Sky-High Network manages three stations: FM Max 88.5, aimed at teenagers; FM Cool 93 aimed at 19-35 year olds; and Latte 106, aimed 25-45 year olds.

He said the firm had appointed actress Visa Sarasas as a brand ambassador for Cool, which has about 1.3 million listeners. It will also focus on customer relationship management to build up brand loyalty and awareness among listeners to maintain its position as the leading easy-listening station.

The firm said it had plans for other stations, but declined to reveal further details.It will spend between 100 million and 150 million baht on marketing this year, up from 85 million baht last year.

Sky-High projects 450 million baht in revenue for this year, up 20% from last year. It has also set an ambitious goal for its profit to reach 140 million baht, up from 65 million baht the year before.

The firm cut losses by returning FM 90 station to its original owner last August and is unlikely to look for a new station this year. He said the existing stations would be able cover all listener bases.

Bangkok Post
Wednesday January 31, 2007