Mr Sermkhun expects event marketing activity to recover to 80% of 2019 levels next year.
The event marketing business in Thailand is expected to lose 5.6 billion baht in revenue in 2020 due to the Covid-19 pandemic.
Sermkhun Kunawong, managing director of CMO Plc, a creative event management company, said the event marketing industry had felt the impact of the pandemic since late last year, when the Covid outbreak -19 was first reported in China.
The situation reached a nadir in the second quarter of this year, which could lead to the industry shrinking by 40% by the end of the year, he said.
Event marketing services total around 14 billion baht per year.
Sermkhun said spending on marketing events in the fourth quarter of this year, which is normally peak season for the events industry, is not as good as expected.
Many companies including the Megabangna shopping center have canceled their year-end activities.
Companies that organize activities have reduced their spending budget by 30 to 40% year over year.
The overall event budget during New Year’s Eve is expected to drop by 50% from the normal spending of 300 million baht during the holiday season, he said.
Still, Sermkhun is optimistic about the outlook for next year, predicting that event marketing activity in 2021 will recover to 80% of 2019 levels, driven by automotive and communications companies expected to launch more. actively bring their new products to market.
“Feedback from the recent Motor Expo has been very positive and we are confident automakers will resume hosting their own marketing events to boost sales next year,” he said.
The financial sector, both banking and non-banking, is expected to be active in event marketing next year, boosted by booming online business.
Mr. Sermkhun expects event activity to return to normal in 2022, but the market landscape will be completely changed, with the market opting to hire more freelancers instead of full-time staff.
“As people are still concerned about the pandemic, we are offering hybrid services, both online and offline events. We plan to launch up to 100 online events next year, up from 40 events this year,” did he declare.
CMO itself expects to see a 30% drop in revenue this year and expects to recoup 90% of the revenue it made before the crisis in 2021.
However, Kreingkrai Kanjanapokin, chief executive of Index Creative Village Plc, a leading event organizer, said event business had been battered by the pandemic since the government lockdown measures from March and that its outlook remained murky, made worse by escalating protests.
“We previously forecast event industry revenue to fall 60-70% this year as most businesses canceled events, in line with social distancing measures and concerns about a possible second wave,” a- he declared. “But with the escalation of the protests, the contraction could exceed this level. The protests have made the situation worse. They are affecting consumer sentiment and psychology, while marketers have been reluctant to launch events to promote their products. “
According to Mr. Kreingkrai, the events sector is very sensitive. This is the first area where companies are willing to cut spending. He expected his company’s revenue to fall to just 460 million baht this year from 1.4 billion baht last year.
The company expects the business to resume growth next year with the launch of new projects such as Village of Illumination at Singha Park.