SET-listed Master Ad Plc (MACO), the country's largest out-of-home (OOH) media company, is splashing out 500 million baht in the second half to expand its billboard network upcountry, aiming to cover all provinces within two years.
The move is aimed at doubling the revenue share of upcountry billboards to 60% and reaching more consumers and businesses nationwide.
Suparanan Tanviruch, Master Ad's newly appointed chief operating officer, said more than 91% of people in Thailand live outside of Bangkok. This presents an opportunity for the company to reach a larger population.
Master Ad's business direction this year will focus on investment upcountry for generating organic growth. The company will create engagement for clients' brands and avoid clustering strictly in urban areas such as Bangkok and the major provinces.
"We aim to put billboards in areas where people pass by daily and often visit, such as local communities, markets and stores, because the sight will somehow make them feel that advertising is part of their daily lives," Mrs Suparanan said.
The economic slowdown has hit media spending, leading advertisers to slash budgets. But Nielsen Thailand reported that OOH media, especially outdoor billboards and transit media, showed satisfactory growth of 17-19% during the first five months of 2016.
OOH media has an outstanding character, Mrs Suparanan said, as it does not require people's full concentration to sink in.
She voiced confidence that Master Ad would generate huge revenue and that OOH media would continue to grow.
Last year, the company generated revenue of 721 million baht and a net profit of 170 million baht. The first quarter of 2016 saw revenue of 193 million baht and a net profit of 43.3 million baht.
Mrs Suparanan predicts revenue to reach at least 1 billion baht by next year as the OOH media network expands.
Master Ad plans to use newer technology to support digital and OOH media. The company is in talks with a potential partner to launch more than 1,000 billboards.
Apart from expanding the network nationwide, Mrs Suparanan plans to hone the content and location of billboards to create sustainable growth.
MACO shares closed yesterday on the SET at 1.33 baht, down five satang, in trade worth 56.7 million baht.
