Digital ad spending to hit Bt10 bn in 2017
AD SPENDING on digital media will reach Bt10 billion next year, encroaching on territory held by mainstream media such as television and newspapers, the Digital Advertising Association (Thailand) projects.
“The biggest ad spenders, particularly skincare products, are spending more on digital media than they did a couple of years ago, reflecting that online media have become the mass media for consumer goods,” DAAT president Supachai Parchariyanon said yesterday.
Based on research by the association and TNS Thailand, skincare products are among the fastest-growing industries by sales volume, followed by non-alcoholic beverages, banks, alcoholic drinks, and vitamins and food supplements.
The research report highlighted that digital advertising spending by the skincare segment was expected to rank No 2 with Bt974 million by the end of this year, representing 10 per cent of the total digital-ad industry, while the biggest spender is the motor-vehicle segment with Bt1.01 billion, mainly automotive dealers.
Norasit Sitivechvichit, vice president of the DAAT, said the telecom segment, which was No 1 last year, would fall to No 3 with Bt915 million as a result of the heavy investment on acquiring telecom spectrum from the National Broadcasting and Telecommunications Commission.
This study collected data from 24 digital media and advertising agencies, representing more than 80 per cent of the total industry.
Supachai believes that with the rise in mobile Internet users, advertising spending via digital media will exceed Bt10 billion next year, outpacing newspapers, which are currently ranked as No 2.
According to Nielsen and the DAAT, advertising expenditure on television in the first six months of this year ranked No 1 with Bt35.59 billion, followed by newspaper ads with Bt4.93 million and digital media with Bt4.73 billion.
Supachai suggested that brands and marketers should gain deeper understanding about how to use digital media effectively, not only for brand building but also for boosting sales.
“The crucial thing is that they should have data-analysis and social listening skills in order to respond to digital consumers’ needs promptly and effectively,” he said.
Among digital media channels, Facebook ads are expected to dominate the market with Bt2.84 billion or a 29-per-cent share by the end of this year, followed by YouTube with Bt1.66 billion and display ads with Bt1.62 billion.
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