The advertising market may continue to slow down in the second half of the year following the first half stalled, hurt by bad combination impacts of uncertain political situation, strength of baht, higher oil prices and economic slowdown, according to Kasikorn Thai Research Center.

Total advertising expenditures for the first half of 2007 decreased 0.48 per cent from the same period in 2006 to 43,603 million baht ($1.28 billion).

According to marketing information released by Nielson Media Research, ad spending by major media including TV, radios, newspapers and magazines fell 3.8 per cent in the first half to 38,707 million ($1.14 billion), compared to the same period last year.

Supermarkets and cinemas advertising however continued steadily rising due to provide better services that fit the lifestyles of metro people who spend longer hours in recreation during the weekends, the research house said.

Kasikorn predicted businesses may spend less in advertising due to cost effective policy, but overall market will be growing between two and four per cent on world university games and government’s charter referendum campaigns.

Businesses will do more with less amid tighter competition, the research house remarked. This means struggling ad agencies should differ themselves from the crowds by looking into new niche markets in the fields of their particularly skills.