Agencies adapt to segmentation

Understanding consumer insight and effective media integration will allow marketers and brand owners to survive fierce competition, say advertisers.

Parames Rachjaibun, chairman emeritus of the Advertising Association of Thailand (AAT), said the global trend is moving away from the mass market and towards segmentation.

Marketers who lack the ability to truly understand consumer insight will face unfavourable responses.

He noted advertising agencies have to upgrade their roles from being traditional ad makers and brand consultants to assist clients in choosing the right media for the right target groups, based on effective consumer insight.

"Operators cannot attract customers with only product functions. Today, they need to persuade customers by creating positive emotions," he said.

On-Usa Lamliengpol, the AAT president, said advertising now requires two-way communication. Agencies must use multimedia to reach target groups as traditional media cannot ensure effectiveness. Different media outlets will suit different groups of clients.

This makes it difficult to predict which media will show the highest growth rate, as it will be based on consumer behaviour.

The AAT reported total ad spending in Thailand grew by 7% in the first seven months of this year. It expects growth of 10% to reach 116.6 billion baht this year.

Ad spending on TV, which accounted 60% of total ad spending, should grow by 2.5%, lower than the usual growth rate of 5-7% per year. Digital, outdoor and in-store media also showed positive growth this year.

People like to express themselves through interactive media so this sector is booming, said Ms On-Usa. Outdoor media is more influential because people stay out longer, she added.

The Adman Awards & Symposium 2012 under the Truly Madly Deeply theme has 137 entries from digital media, up from 107 last year. But qualified work that compares to international pieces number only nine.

"Digital media needs to create content to suit various needs. For example, the work must be interactive," said Viboon Leepakpreeda, joint chairman of the judging committee for Adman.

This year, there were 847 entries in total, up 12% from last year, with 142 entries in TV commercials, 130 in print, 132 in outdoor and ambience, and 137 in digital.

About the author

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Writer: Chadamas Chinmaneevong
Position: Reporter