Digital ad spending strong despite political turmoil

Digital ad spending strong despite political turmoil

Digital advertising is expected to grow by 38% to 5.8 billion baht this year despite the ongoing political impasse, says the Digital Advertising Association of Thailand (DAAT).

"Digital media is proving to be an influential ad tool that can connect and communicate to target groups effectively. Although the political uncertainty continues, advertisers will still spend on digital media and cut the budgets for other media," said DAAT president Siwat Chaowareewong.

This reflects a change in consumer behaviour, widespread throughout the country, in which they consume more information via online channels thanks to the proliferation of low-priced smartphones.

DAAT yesterday reported digital ad spending grew by 53% to 4.2 billion baht last year.

Telecom, skincare and automobile companies are the top three ad spenders, representing 38% of total digital ad spending.

Mr Siwat said the DAAT saw a significant shift in ad spending from traditional media to digital media, particularly by consumer goods companies, bringing TV commercials to the online platform due to easy internet access by urban upcountry consumers.

Although digital media accounts for only a small amount of total ad spending, its proportion has increased every year, from 2.34% in 2012 to 3.56% last year and 4.82% this year.

Search engines are the most-used channel of digital ad campaigns, representing 19% of total digital ad spending.

While Facebook ads, video ads and mobile marketing are rapidly growing, particularly mobile marketing, which doubled in value last year.

Meanwhile, social media is declining its proportion, as Facebook advertising is more popular.

A Nielsen Thailand study shows that 36% of Thais aged over 35 use smartphones today.

Interestingly, older people are spending twice as long on chat applications than younger people are.

"Budget smartphones are a major factor boosting the expansion of digital media spending. The popularity of smartphones is not just confined to Bangkok and urban upcountry areas — it's also spread to rural areas," said Mr Siwat.

Do you like the content of this article?
COMMENT