Budget for digital ads expected to exceed spending on TV ads in 2024
The budget for digital advertising this year is expected to surpass television for the first time, in an evidence of the changing times.
Amid numerous challenges, traditional media that once dominated the market is facing stiff competition from new digital platforms.
Media Intelligence Group (MI Group) predicted that traditional media and TV will account for 35%, marking the first time TV will be surpassed since its inception. This shift is attributed to digital advertising aiming for a 45% share. Out-of-home and mobile media will account for 20%.
Pawat Ruangdejworachai, CEO of MI Group, revealed that the advertising budget this year is projected to be around 88 billion baht, a 3.4-billion-baht increase, or around 4%, over 2023, which closed at about 84.5 billion baht, growing by 4.3%.
Key changes in the advertising landscape for this year include a significant presence of digital advertising on various platforms such as Meta (Facebook, Instagram), YouTube, and online video, as well as strategies like Affiliate Marketing.
The TV advertising budget is expected to decrease by 2% in 2024. This marks the first year where TV advertising budgets will be surpassed by digital media. The prediction of a gradual decline in TV advertising budgets has been influenced by the emergence of new media, changing consumer behaviour, and an expected 2% decrease this year.
Moreover, marketers are leveraging marketing technology (MarTech) and data-driven communication to enhance the efficiency of advertising expenditures. This precise targeting in digital media is anticipated to contribute to a slowdown in the growth of the advertising industry over the next few years, Pawat said.
The expected breakdown in the next few years will be 30% for TV and traditional media, 20% for out-of-home media, and 50% for digital media. Traditional media is facing a continuous decline in advertising budgets, with digital and TV advertising expected to share a 50% split in the future, according to Pawat.
The shift from TV to digital advertising is a global trend, and Thailand is no exception. Digital advertising is becoming increasingly important for businesses of all sizes, and we expect this trend to continue in the years to come, Pawat added.
However, MI Group also found that the growth of digital advertising is being tempered by the economic slowdown. Advertisers are still cautious about spending money, and they are focusing on more targeted and measurable campaigns.
The economic slowdown is having an impact on all industries, including advertising. Advertisers are looking for ways to get the most out of their advertising budget, and they are focusing on more effective campaigns, according to Pawat.
