VGI Plc, an out-of-home (OOH) media firm, plans to grow in line with the expansion of new mass transit lines, using its audience profile to offer more financial and retail services.
"Global media is changing from traditional to digital, but one thing that never changes is targeting the right audience at the right time with the most impactful message and value for money," said VGI chief executive Nelson Leung.
He said OOH media in Thailand this year is poised for significant growth as it emerges from the challenges posed by the pandemic.
The OOH sector has proven to be resilient and adaptive, said Mr Leung.
With increasing economic activities, businesses recognise the advantages of OOH media in reaching their targeted audience, he said.
The technology, such as digital billboards, augmented reality, virtual reality and interactive displays is enhancing the effectiveness of OOH media campaigns, said Mr Leung.
"In 2024, we anticipate a surge in creativity and innovation within the OOH space, making it a pivotal platform for advertisers to connect with consumers in an impactful and engaging manner," he said.
"VGI will grow in line with the BTS's new line expansions, where media on BTS is our prime asset in Bangkok. VGI has received the right to manage media on 54 stations and 128 trains across the Green Line [core and extension zone 1] and Yellow Line. We see the opportunity to manage media on the Pink Line as well."
With the secured BTS lines and new lines, VGI expects to capture more media capacity for the advertising business. The company can utilise its tools to help brands do profiling on audiences based on station locations and passenger travel patterns.
"We are focusing on developing tools to enhance our advertising business to revolutionise how advertisers can connect with their target audience," said Mr Leung.
VGI measures its media impact through the entire customer journey, from awareness to sales conversion, he said.
According to Intage, a marketing research agency, BTS riders skew towards young, middle and upper-income earners and executives, with almost half in the middle- to high-income level.
Roughly 67% of skytrain users are 20-39 years old with an average household income of 107,000 baht.
Some 97% are aware of the ads on the BTS and can recall an average of three brands, with the top categories being IT/electronics, fast-moving consumer goods, and food and beverage.
Half of riders are animal lovers and are willing to pay for pet products, according to Intage.
VGI embraces data technology utilisation to analyse 40 million BTS riders, which generate 4.5 billion combined offline and online transactions for its hyper-targeting.
Office workers are also a strong target, with telecom service spending of 500-1,000 baht per month. There are 12.9 million office workers, of which 8.3 million work in an office. These groups are interested in financial investment, luxury lifestyle, entertainment, health and beauty. This is why VGI has a digital lending service to office workers through its Rabbit Cash.
"We believe our diversified business portfolio remains strong and will be able to generate growth in the future. This year, we will focus on improving our operations rather than continuing to invest," said Mr Leung.
However, if there are any interesting opportunities that can support the company's business portfolio, VGI will consider it carefully, he said.
He said VGI will continue to invest in Kerry Express (Thailand), as S.F. Holding, which will become Kerry's new major shareholder, has a strong market valuation and the logistics business still has good opportunities.
"Going forward, advertising remains our major revenue contributor," he said.
Yotin Thavikulwat, chief operating officer of Super Turtle Plc under VGI, which operates lifestyle shop Turtle Shop at skytrain stations, said the skytrain has a ridership of more than 40 million per month.
The shop plans to expand to 115 branches, up from 20 branches now, of which 60 will be on the Green Line, 23 on the Yellow Line, and 32 on the Pink Line, he said.