Digital channels take hold among advertisers

Siwat Chawareewong, president of the Digital Advertising Association (Thailand) or DAAT, said yesterday that encouraged by the rise of online video consumption and new Internet mobile users, companies continued to invest in online activities to create a deeper engagement with target consumers and boost sales.

"With such good conditions, we have revised our forecast on advertising spending for this year from Bt8.134 billion to Bt9.869 billion after witnessing Bt4.129 billion in the first half," he said.

The telecommunications sector led the way in online advertising spending, followed by automotive, skincare and hair preparation, and banking and financial service. The rising stars this year have been real estate, snack foods and retailers.

Siwat said the digital advertising market in Thailand continued to grow significantly. The DAAT forecasts that spending on this type of advertising will see a 62-per-cent surge to Bt9.869 billion this year from Bt6.115 billion in 2014.

The forecast was derived from a collaboration of the DAAT and TNS Thailand, a media-research firm.

Arpapat Boonrod, managing director of TNS Thailand, said the amount spent by the real-estate sector via online media had grown quickly during the first half. It totalled Bt338 million, followed by hair-preparation products with Bt295 million, snack foods with Bt240 million, retail shops with Bt229 million and dairy products with Bt221 million.

The DAAT and TNS Thailand also questioned 17 digital agencies about the ad-spending habits they expected from their clients from the current quarter onwards. Agencies participating in the survey represent about 80 per cent of total digital expenditure.

The survey found that almost half of the agencies expected spending on digital advertising to rise by at least 30 per cent in the second half of this year compared with the first half.

"Thailand is truly ready now for e-commerce. The telecommunication infrastructure has been enhanced while online conversation is on the rise. Online payment systems have also been upgraded and are getting well accepted by local buyers, while logistics services are customer-friendly," Siwat said.

Given these conditions, consumers will need the right products in the right place and at the right time. Marketers should be equipped with resourceful information to respond immediately to the new requirements, he said.