Google's YouTube, the world's largest video-sharing website, unveiled a Thai-language site on Monday to offer affordable ad services in a move that could trigger huge consumption of local online video ads.
Ariya Banomyong, country head of Google Thailand, attends the launch of YouTube Thailand, the company's Thai-language version of the popular video-sharing website.
The website YouTube.co.th is also expected to broaden business opportunities for local online video creators and copyright owners to earn ad revenue.
Google initially planned to launch a Thai-language site a few years ago, but internet censorship such as the notoriously vague Computer Crime Act of 2007 posed a major concern to the company.
"YouTube Thailand is expected to raise digital ad revenue to 5% of total ad spending this year, up from 1% in 2011," said Ariya Banomyong, country head of Google Thailand.
Tom Pickett, vice-president for YouTube content in the US, said more than 100 hours of video are uploaded every minute on YouTube globally. More than 1 billion users visit YouTube each month, and 80% of its traffic comes from outside the US.
In Thailand, millions of hours of video are watched daily on YouTube, and one-third view via mobile devices. Most users in Thailand are aged 18-34.
Pornthip Kongchun, head of marketing for Google Thailand, said Google targets large companies and individual users ranging from broadcasters, music labels, artist and video creators. Its official partners in Thailand include Ford, Unilever, True Corporation, Samsung, Thai Air Asia X (TAAX) and Mindshare.
Anit Osathanugrah, chief executive of Digital Hub, a unit of consumer giant Osotspa, said the imminent fourth-generation (4G) wireless service, the proliferation of mobile devices and the launch of YouTube Thailand is expected to boost consumption of local online video ads.
Online advertising will account for 4.5% of total ad spending of 5 billion baht this year, up from 3.75% of 4 billion last year, he said. In developed countries such as the US and Japan, online ads account for 10-40% of the total.
"Thailand's online advertising will have exponential growth the next five years," Mr Anit said.
Display ads, search engine and social media remain the top three areas for online advertising, with 41%, 14% and 10% shares, respectively.
Video advertising is expected to grow by 20-30% this year thanks to the proliferation of 3G and 4G service, which will create wider mobile network coverage and higher internet speeds.
The budget airline Thai AirAsia (TAA) created a YouTube Thailand channel to market its services and products to Thais.
The country's largest low-cost carrier and its long-haul affiliate TAAX decided to partner with Google Thailand to take advantage of the localised YouTube platform to deepen its digital engagement with travellers. TAA's new video content will have information about products and destinations along with content to help develop a hub for the online travel community.
Mr Ariya said 35% of all travel searches in Thailand are on YouTube.