In this business environment, media stocks should face pressure as the market inclines towards more cautious ad spending. Almost all TV operators remain in a defensive mode. It’s best to wait for clearer signs of ad revenue recovery. Out-of-home and cinema players should lead earnings growth in 3Q22-4Q22. PLANB seems the best play for now, driven by its biz expansion during COVID.
Ad spending rose YoY in Aug
Total ad spending in Aug was Bt8.6bn, up 27% YoY and 3% MoM. Six media categories reported YoY ad expenditure rises—cinema (up 5,000% YoY and 40% MoM), transit (up 82% YoY but down 8% MoM), in-store (up 78% YoY but down 1% MoM), outdoor (up 58% YoY and 1% MoM), radio (up 13% YoY but down 3% MoM), and TV (up 10% YoY and 1% MoM). Total OOH media (outdoor, in-store, and transit media) receipts jumped 68% YoY but were down 3% MoM. Total ad spending in Aug rose YoY from the low base related to COVID-19 last year. Almost all mediums dropped MoM, due to heavy rain.