Given the continued political turmoil and impasse for most of the first half of 2014, combined with the February general elections being declared null and void by the Election Committee, and a military-led power takeover in May, there was, effectively, no functioning Government in place till late August to administer the country and manage its stalled economy. Further, the country’s key tourism sector which accounted for approximately 12 percent of Thailand’s gross domestic product was significantly affected by the protracted tense political situation; whereby, after years of consecutive growth, total international arrivals declined 7 per cent year-on-year. Additionally, the slower than expected recovery of major global economies such as the United States, European Community, and Japan, together with the slowing China economy continued to affect Thailand’s export to these key markets, resulting in another Given the more stable political situation and ongoing government economic stimulus initiatives, Thailand’s overall macroeconomic environment is expected to improve in 2015. Accelerated budget disbursements, more positive consumer sentiment, increased private sector and public sector investments, improved inflation trends, and improved tourism sector with a targeted 10-12 per cent year-on-year growth in international arrivals and domestic tourism are all key factors to enable Thailand to achieve more positive economic growth in 2015. However, while contraction of -0.4 per cent year-onyear for full year 2014 exports.
Therefore, such an adverse political and economic environment resulted in very negative consumer sentiment and low domestic consumption, stalled agricultural subsidy programmes and payments, together with marginal private sector and new public sector investments. Thailand’s total gross domestic product was in a significantly negative mode for much of the year, and only managed to achieve a very marginal full year 2014 growth of 0.7-0.8 per cent year-on-year, mainly due to urgent economic stimulus and revival initiatives implemented by the interim military government in the fourth quarter of the year.
As with most business sectors, the media advertising sector was negatively affected for much of 2014 by the above-mentioned adverse economic situation and overall low consumer spending. It only bottomed out and started to turn around in November and December, due to improved consumer sentiment and expected year-end festivities and holiday-related spending. After years of positive annual growth, and subsequent to very marginal growth in 2013, total full year 2014 advertising spending was 124 billion baht, representing an increase of 6.6 per cent from the previous year. All advertising media categories showed significant decreases, especially for print media because of the economic situation, together with the continued downward trend in advertising through this platform in favour of digital and online media. Only the fast emerging popularity of various online and other digital media, driven by consumers’ increasing use of the internet and smart digital devices, together with the transit advertising media category, achieved positive year-on-year growth in 2014.