ADVERTISING

Ads embedded at the beginning of online video clips, mobile searches and mobile advertising will be the next big things in online advertising in Thailand in 2013, says leading online agency Topspace.

Thais rank fifth in the world in terms of time spent online, said Jakraphan Pwongkaew, vice-president for online media of Topspace (Thailand), under the umbrella of Sanook Online group.

He said Thailand's online advertising market is expected to grow by 30-40% in 2013, up from 2 billion in 2012, thanks to a sharp increase in the country's broadband penetration rate and the proliferation of smartphones and tablets.

"Major companies in Thailand will allocate more than 9% of their budget to online advertising in 2013, up from 5-7% in 2012," Mr Jakraphan said.

International organisations normally spend 10% of their total advertising budget on online.

Mr Jakraphan said pre-roll video advertising, or ads embedded at the start of online video clips, looks set to grow rapidly and become the most effective way of cyber advertising in 2013 due to the fact that it is one of the simplest ways to utilise the internet for sight, sound and motion.

Search engine advertising, particularly for Google, will remain an effective tool to attract potential buyers.

Mr Jakraphan also said Topspace is expanding its services into premium advertising networks, enabling advertisers to cover more websites at lower costs.

The company is in talks with thr top 10 websites in Thailand to join with its advertising network including the group's Sanook websites.

Topspace plans to start providing an advertising network service in March. This will increase its competitiveness against rivals.

He said automotive, consumer products and mobile phones and gadgets will remain the top three biggest spenders in 2013, similar to last year.

Topspace expects to see revenue growth of 35% in 2013, up from 25% in 2012, the same pace with the industry's growth. Mobile advertising will contribute 10% of total revenue.

Mr Jakraphan said the imminent third-generation wireless broadband service is likely to gain impact from mobile advertising within two years, followed by internet television.