Digital marketing provider YDM Thailand aims for 880 million baht in total revenue this year, a 60% increase from 550 million in 2018, thanks to the acquisition of advertising agency FCB Bangkok and continued growth in online marketing in the country.
The company is focusing on online and offline integrated marketing to capitalise on the multi-channel marketing trend.
Last November, YDM Thailand, 25% held by Korea-based Yellow Digital Marketing, took over FCB Bangkok, an affiliate of US-based FCB International. This was the first acquisition in Thailand whereby an online marketing provider took over an offline ad agency. The purchase price was undisclosed.
Tanapon Subsomboon, chief executive of YDM Thailand, said synergy between online and offline marketing tools is critical for corporations to ensure success in brand-building and business marketing activities.
Although online marketing budgets have been growing at increasing rates among corporations for digital advertising, digital marketing alone is not enough to serve all related areas of branding awareness, ad campaign management, and communications strategy, especially for offline channels, he said.
According to Digital Advertising Association Thailand, the advertising budget for corporations in the country last year was 89 billion baht, of which 15 billion was spent on digital platforms.
Mr Tanapon said the ad budget for the digital platform has been growing by 30% year-on-year, for which the fastest-growing categories are automobile, smart devices and IT because these products require high consumer involvement on platforms.
Digital marketing this year may benefit from the upcoming general elections, with several parties planning to use digital media as a significant channel.
"Acquiring FCB Bangkok will help reinforce both online and offline strategies and push forward one-stop service marketing for both companies," Mr Tanapon said.
He said content that comes with technology and has communication that combines both online and offline methods will play a greater role in the future.
Thutiya Dissapanurat, managing director of FCB Bangkok, said the company previously found that some customers choose agencies according to the agencies' specific expertise.
The acquisition is expected to meet the needs of customers in a comprehensive manner because it is a collaboration of agencies with expertise in both creative and digital marketing, he said.
Last year, FCB Bangkok booked revenue of more than 100 million baht. After the acquisition, FCB Bangkok's revenue is expected to increase 15% from 2018.
Regarding the advertising business in 2019, Ms Thutiya said more advanced technology such as artificial intelligence and chatbots will be used to purchase advertising media and provide service to customers.