Online ads to outpace others

Online ads to outpace others

4G, digital media in marketing spotlight

Online advertising is expected to grow by 60-70% next year, trumping modest growth in ad spending for all outlets, on the strength of digital media's growing popularity and the rise of 4G, says GroupM Thailand, a leading media investment company.

Kevin Clarke, chief executive of GroupM, said total ad spending next year would rise by 5% on economic improvements driven by state investment in infrastructure and some stimulus measures.

Among media outlets, online will outstrip print media as fourth-generation mobile technology prompts more Thai people to view online content.

Unlike conventional media, online media saw minimal effects from the economic downturn.

"When companies cut their ad budgets during the downturn, they still spent on online media because they know that they can still efficiently communicate and reach their audiences," said Bhitak Indraduta, GroupM's business development director.

This year, spending on online media will grow by 33% while total ad spending will stay flat at around 102 billion baht, according to the Digital Advertising Association Thailand.

Social media outlets have been gaining in popularity and are now the most popular tool for advertisers to reach target audiences anywhere and anytime.

"We are putting in an effort to boost online advertising, as it can help clients attract media opportunities at lower expense despite the economic downturn," Mr Clarke said.

Meanwhile, the emergence of digital TV last year changed the broadcasting landscape, rendering TV viewership more fragmented.

Among the 24 digital TV channels, some are likely to survive if they have a clear identity, the right viewership target and strong programming to grab eyeballs.

Mr Clarke said the entire ad industry had to change after the emergence of new ways to watch news and entertainment shows, ranging from TVs and computers to tablets and smartphones.

Mr Bhitak stressed that efficient media management during the difficult period would allow clients to achieve their sales growth potential.

The Media Research Bureau is pushing for a new TV rating agency that would also measure ratings for online media.

Advertisers would then have a reference to evaluate ad results on social media.

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