Spending may shed B4bn due to outbreak
Data analytics and AI to lead changes
More than 4 billion baht of digital ad spending could dry up in Thailand if the coronavirus pandemic continues to pose a threat, says digital marketing service provider YDM Thailand.
Data analytics and artificial intelligence (AI) tech are new trends for digital advertising because they help provide personalised content for consumers, said YDM.
Tanapon Subsomboon, chief executive of YDM, said in the past many brands were reluctant to embrace data and AI tech, but Covid-19 will trigger their adoption because it should improve brands' performance and returns on investment.
Over the past two months, brands have slowed their spending because of the pandemic, which subdued consumer sentiment.
"We estimate if the outbreak is prolonged, digital ad spending will see the slowest growth. The second and third quarters are normally a period when ad spending is high," Mr Tanapon said.
The ad spending budget could shrink by 4 billion baht from a total of 22 billion projected earlier, he said.
The best approach is to use the budget prudently to help ensure better performance and returns, said Mr Tanapon.
YDM is introducing data and AI tech strategies meant to help collect and trace customer behaviour as well as their intention to purchase.
The system will collect customer behaviour data from various online media channels, including Google, Facebook, Instagram and TikTok, where ads are placed.
With AI, the company can identify purchase intention through social engagement as well as from those who visit websites and mobile apps.
"This will help provide the right content or products to the right targets," he said. "The ad spending optimisation should be 10-400% better."
This approach is an alternative to traditional media buying.
"Media buying will focus more on target groups and profiles," said Mr Tanapon.
Nuttapon Kiettrisalpipop, media director of YDM Thailand, said AI will allow marketers to get to know each consumer segment so they can come up with personalised messages to reach them, something that could enhance sales opportunities.
"Data technology will track customer behaviour at each touch point, including Google searches, website surfing and use of social media and mobile apps," he said.
Mr Tanapon said companies will collect data that would serve property, auto, banking, gaming and other sectors.
"Brands will shift to have their own media channels, such as websites and mobile apps, to gain customer insight data for sustainable growth, rather than relying on e-marketplaces," he said.