BANGKOK — TV production houses, including Media of Medias, Work Point, JSL and Kantana, have formed their own sales teams and are snubbing ad agencies, the traditional service brokers.
Compounding the problem for the ad firms, broadcasters are offering discounts to producers to get them to do business directly. For example, a client paying 10 million baht ($230,000) for commercial slots will get extra free time.
Thai advertising guru Seri Wongmontha says the trend emerged after the economic crisis hit in 1997, and production houses and TV producers were forced to look for alternative ways to boost revenue.
Wongmontha warns that it is damaging the ad industry, as it can’t compete with companies that have their own production facilities and the advantage of direct bargaining over airtime rates.
However, Kantana chair Jareuk Kaljareuk says the TV industries have reached a critical point where they can handle many of the services they once had to rely on others to do. “Why use ad agencies to broker deals when we can now do the jobs ourselves?” Kaljareuk explains.