Other free television operators are expected to enjoy an increase in advertising revenues, following the closure of iTV at midnight last night, but people in advertising circles still believe iTV will lure back advertisers if the new management can maintain quality programming.

Ad people noted that advertisers would return only if iTV, now ranked third in terms of ad revenues after Channels 7 and 3, could maintain quality personnel and unique programming.

"iTV has a good brand that carries high value in terms of marketing. It depends on the new management whether it can maintain quality programming, particularly news reporting, which has been the signature of the channel," said Spa Advertising CEO Kitti Chambundabongse. "If its uniqueness cannot be maintained, iTV will no longer succeed in a business sense."

Stock analysts yesterday expected that as advertisers flocked from the debt-ridden broadcaster to other channels, MCOT, operator of Channel 9, would be the top gainer from iTV's closure. MCOT was first approached to run the channel, but yesterday the PM's Office said the Public Relations Department would take over iTV operations. The department runs Channel 11, which has the lowest ranking among six free TV stations.

Sicco Securities analyst Siriporn Pompetch commented that MCOT, operator of Channel 9, should reap benefits from ad spending, because Channel 9 was similar to iTV in terms of prices for ad time-slots and audience ratings. However, she said she could not project which channel would gain the most benefits.

Contrasting this, Channel 3 operator BEC World and Channel 7 operator Bangkok Broadcasting and TV charge about double what Channel 9 does for prime-time advertising slots. During super prime time - after 8.30pm - Channel 3 charges Bt420,000 per minute of advertising.

Moreover, Siriporn said Channel 9 should have more time slots for ad air time than do other stations.

Advertising Association of Thailand president emeritus Chaipranin Visudhipol said advertisers would not cut their media budget in the disappearance of iTV, but rather would reallocate their spending to other television channels that enjoyed similar ratings in such prime periods.

"As an ad agency, we'd like to see a diversified media industry with high value and capabilities. Great media variety will support our media planning to gain access to different segments of audience. We don't want our media budget to be piled into a few TV channels, or else society would be put at a disadvantage," said Chaipranin, who is also chairman of TBWA\Thailand.

"iTV itself has its own character and audience," he added.

Chaipranin said that the future of iTV depended on how the new management could reshuffle its business and financial structure and maintain quality staff within the organisation. Only then would advertisers make a U-turn.

A brokerage-house source said some agencies and media planners had reallocated their customers' ad budgets from iTV to other channels before the end of last year, because of uncertainties surrounding iTV's status.

As a result, iTV lost 5.2 per cent year on year in market share of ad spending in January. Meanwhile, Channels 3, 5 and 7 gained a higher share of ad spending for January, by 7.1 per cent, 4.2 per cent and 3.3 per cent, respectively, year on year.

Of total ad spending in January, Channel 7 recorded the biggest share of 28.9 per cent, followed by Channel 3 with 24.4 per cent, reported Nielsen Media Research group.

A marketing person at Channel 3 said agencies and media planners were now contacting her to buy ad time slots after iTV suspended its broadcasting. She said ad airtime this month was nearly booked.

Recently, Chatchai Thiamtong, vice president of Channel 3 operator BEC World, said the station's January and February ad revenues grew more than 20 per cent year on year. The growth was attributed to problems at MCOT and iTV.

He added that iTV had lost ad spending over the last three months, as advertisers lost confidence in the channel.

A source at Channel 7 operator Bangkok Broadcasting and TV said recently its ad air time in the past two months was sold out and fully booked.

Kwanchai Rungfapaisarn,

Sasithorn Ongdee

The Nation