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Digital media grabbing radio ad revenue

By SUCHEERA PINIJPARAKARN

THE NATION

Published on December 26, 2009

Despite the expected economic recovery next year, radio stations in Bangkok may see flat or only slight growth in advertising revenue.

Competition from digital media, which have been steadily attracting ad spending away from radio, is the biggest factor.

While television, print media and radio are ad agencies' first, second and third choices, respectively, social-networking websites are fast emerging on the advertising radar.

This new medium stands to pull even more ad revenue away from radio, said Sirilak Pornsiripan, founder and managing director of Key to Radio, which operates FM 90 Balance.

Sirilak served as a consultant for ad agencies and radio stations for a decade before setting up her own company.

She said radio stations must fight fire with fire by developing their |own social-networking sites. For example, after Key to Radio started using its own homepage to promote FM 90 Balance, audience share increased, and the company plans |to start raising ad revenue through it in the near future.

FM 90 Balance also has a presence on Facebook and Twitter, Sirilak said.

Key to Radio is a small radio station. Some larger ones have actually shut down, due to falling advertising revenue and rising operating costs.

RS now operates two radio stations but will shut down one of them at the end of this month to focus more on cable TV, which generates more revenue. Grammy owns four radio stations, while MCOT owns six and Click Radio five.

Radio-ad spending in Bangkok will reach Bt4.8 billion this year, down 4 per cent from last year but better than industry expectations of a 10-per-cent decline.

Ad revenue has rebounded in the fourth quarter, which is a high season for the radio industry. The hot season is another busy period for advertising, but the political turmoil in March and April froze ad spending during that time this year, Sirilak said.

FM 90 Balance has been on air for a year now and taken in Bt50 million in ad revenue. Key to Radio expects that figure to increase to Bt70 million next year, in line with the economic recovery and greater brand recognition.

-- The Nation 2009/12/26

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