Public relations firms cash in on hard times as businesses try to maintain image
In contrast to the advertising industry, which is expecting a flat year, the Kingdom's PR agencies hope revenue growth to exceed 20 per cent.
"Businesses seek the cheapest way to communicate with customers, and public relations can meet their need at this time of economic difficulty," said Nimitz Modrakee, chief executive officer of 124 Communications, the only PR agency listed on the Thai stock market.He said that unlike advertising, where growth fluctuated with the economy, PR would grow by at least 20 per cent this year. "Even during an economic downturn, every business needs to maintain a healthy image, and they usually seek the cheapest way to keep communication with their customers," said Nimitz. For example, he said a one-page advert in a major Thai newspaper cost about Bt800,000, which could fund PR activities for an entire year and often more effectively than conventional advertising. Thailand is unusual as Thai PR agencies lead international firms in many top positions. "We have been in the leading position for two consecutive years. In 2005 we achieved revenues of Bt118 million, up from Bt80 million in 2004," said Nimitz. The second biggest operator, Bangkok Public Relations, achieved revenues of nearly Bt90 million last year, following by MDK Consultants and Ogilvy PR with around Bt80 million each and Pimplus with less than Bt50 million. "The advantages of Thai PR agencies over international players is found in their flexibility and better understanding of the business culture and stronger connections with clients," said Nimitz. According to Chaipranin Visudhipol, president of the Advertising Association of Thailand, the advertising industry is expecting a flat year due to economic troubles as a result of the increase in oil prices and the political uncertainty. An injection of advertising cash is, however, expected during the World Cup. Although the industry predicted strong growth this year, the country's political instability has led advertisers to withdraw from long-term campaigns. Chaipranin said advertising spending in the first four months of this year had grown by only 4 per cent to Bt28.3 billion and was expected to reach only Bt88 billion for the whole year. Most of the spending went to television, which took about 56 per cent in 2005. Newspaper advertising was second, taking almost 20 per cent of expenditure, followed by radio and magazines at just over 8 per cent each. Kwanchai Rungfapaisarn The Nation
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