Thailand’s digital ad market to grow despite economic slowdown

Thailand's digital advertising market is expected to grow by 10% in 2025, reaching a total of 34.5 billion baht, according to a joint report from the Digital Advertising Association (Thailand) (DAAT) and Kantar (Thailand). 

This expansion is largely driven by continued growth in the skincare sector and the rapid rise of TikTok, which has now surpassed YouTube to become the second most popular platform for digital advertising. 

Despite concerns about household debt and a forecasted economic slowdown, the report predicts strong growth in digital ad spending, fuelled by strong consumer spending in key sectors such as fast-moving consumer goods, services and tourism. 

“We are forecasting a 10% increase in digital ad spending this year, despite economic challenges,” said Apapat Boonrod, managing director of Client Solutions, and Southeast Asia Growth Lead at Kantar (Thailand). "This growth is primarily driven by significant investment from key sectors, reflecting the overall resilience of the Thai consumer market."

The skincare sector continues to lead digital ad spending, with a 21% increase to 6.13 billion baht, as personal care spending rebounds in the post-pandemic era. 
 

The automotive sector, while still a major contributor with 2.98 billion baht, saw a slight 1% decline, potentially due to the rising promotional activity from Chinese electric vehicle brands. 

TikTok's rapid growth is another highlight of the report. The platform now accounts for 16% of the digital advertising market share, surpassing YouTube’s 15%, with a total spending of 5.51 billion baht. 

This surge in spending reflects the platform’s growing popularity, especially among Thai consumers who engage with its short-form video content and influencer-driven marketing. 

Meta (Facebook and Instagram) remains the dominant platform, capturing 26% of digital ad spending, although its market share has slightly decreased. 

Other significant contributors to digital ad spend include non-alcoholic beverages, dairy products, telecommunications, and retail, with the retail sector seeing a notable 14% increase in ad expenditure, indicating increasing competition.
 

The report also notes the growing importance of artificial intelligence (AI) in shaping brand marketing strategies. 
In 2024, Thailand’s digital advertising market grew by 8%, reaching 31.5 billion baht, well below the initially projected 16%. This slower pace was attributed to economic factors and reduced spending in sectors like automotive and insurance. 

“The projected 10% growth in 2025 offers marketers a clear framework for strategic planning,” said Paruj Daorai, president of DAAT. "This data, compiled from 33 leading agencies and spanning 70 industry sectors, offers valuable insights for reaching target audiences effectively."