RS sets its goals for the TV business for 2016, planning to invest 2 billion baht, the biggest investment by RS to date. The company will spend a billion on more than 30 new dramas, and 800 million on new content such as variety shows, sports programmes, and news. Meanwhile, it will spend 200 million on promoting its new channel numbers for the general public to acknowledge, as well as improve its IT systems across the board to prepare for future growth. This investment is expected to boost its rating effectively and increase its advertising rate by at least 50% in every time slot.
Mrs. Pornpan Techarungchaikul, COO of RS Public Company, projects that in 2016, the TV industry will grow, thanks to stimulation measures from the government, interest rate decrease, and the first home scheme, which should boost the economy in Thailand. As a result, companies will be more willing to spend on advertising, and advertising rates are expected to increase. In general, 2015 is either a decrease from or the same as last year because of the economic slowdown, resulting in companies reducing their advertising budget, especially among consumer products, automobile, and bank, who spend money more carefully.
Today, RS's main business is its TV business, and next year, RS will make the biggest investment ever. It has set aside 2 billion baht, divided into three sections. The company will spend a billion on more than 30 new dramas. About 800 million will be spent on new content such as variety shows, sports programmes, and news. Meanwhile, it will spend the remaining 200 million on IT systems, public relations, and brand awareness, especially regarding the new channel numbers announced by NBTC. The majority of its investment will fall on Channel 8, about 70%, followed by Channel 2, Sabaidee TV, and You Channel. This investment is expected to boost its rating effectively and increase its advertising rate by at least 50% in every time slot. In 2015, Channel 8's rating has almost doubled so far.
"There will be a slight growth in advertising next year, but I believe that TV channels with high ratings have the upper hand because they have a clear number of viewers. Brands and agencies are confident that they can reach out to their target customers. Thanks to the fierce competition in the digital TV industry this year, there are fewer players who are willing to fight for advertisement. However, we should not underestimate the situation, because advertising is a volatile matter, so we need to have a careful marketing plan which is flexible. Next year, we will set the advertising rates to be more suitable. We are a well-rounded entertainment company with potential growth in every area, so our advertisers are confident in us. We offer competitive rates and reach out to the right customers who are ready to close long-term deals within this year, which is about 50% of our total advertising. The remaining 50% will be based on rating in the future. We are sure that our rating in 2016 will continue to grow just like this year."
In 2015, RS's TV business is overwhelmingly successful, especially Channel 8, which has seen a significant growth due to three success factors. 1) The artists and team are professionals, and the channel can produce 95% of its content in house, which helps control the budget. 2) The channel has expertise in content, such as dramas, variety shows, news, and sports programmes, meeting the needs of all viewers, which is important in this industry. 3) It is experienced in setting the right marketing strategies for its positioning. About 60% of its viewers are in Bangkok and major cities, and 40% in other provinces.
Channel 2's rating is also doing well. It has been adjusted as an entertainment news channel, and is the most popular one in Thailand. New content has been added to meet the needs of the viewers. Sabaidee TV has also upgraded its content to attract more viewers. Therefore, the rating of every channel is according to plan. More than 90% of the content is produced in house, offering flexibility and better value for money. Ploen TV, a new channel, targets senior viewers, which is a high-potential group that not many players target. After just three months, its rating and feedback have been satisfactory.