Media spending is expected to grow by 4% this year, similar to 2023, propelled by online, TV and out-of-home media as political stability and government economic stimulus drive demand.
The evolving landscape of e-commerce platforms has amplified the influence of affiliate marketing, emerging as a powerful media tool for brands amid competition between Lazada, Shopee and TikTok, said Pawat Ruangdejworachai, president and chief executive of Media Intelligence Group (MI).
Marketing technology and data-driven marketing will likely shrink advertising in traditional media to 20% in the next few years, while online is projected to comprise half of total spending by 2025, he said.
"Thailand's media spending will continue to grow by 4% in 2024, close to the 2023 level, thanks to the rebounding economy, tourism and government assistance measures," said Mr Pawat.
However, challenges include high household debt, soaring living costs and pressure on small and medium-sized enterprises.
MI expects overall media spending to reach 88 billion baht in 2024, growing 4% from 84.5 billion in 2023, rising for the fourth consecutive year after plunging in 2020.
Online still claims the largest share at 45% of total spending, while traditional media like TV, newspapers, radio and theatre account for 35%, followed by out-of-home and transit media at 20%.
Compared with 2023, traditional media made up 50% of the total, online 35%, and out-of-home and transit media 15%.
The industries spending the most comprised personal care and beauty at 15 billion baht, followed by health and wellness (5.3 billion), automotive (3.6 billion), travel and leisure (2.7 billion), finance and credit cards (2 billion), and pet food and care (451 million).
"These expenditures reflected consumer behaviour leaning towards trends such as personal health and electric vehicles, with the increase of 'buy now, pay later' becoming more pronounced in advertising this year," Mr Pawat said.
He said over the past 2-3 years, TikTok emerged as a dominant social and e-commerce platform, fiercely competing with Shopee and Lazada to become known as the "Three Musketeers" of online shopping.
Lazada reports 3.9 million unique visitors per month, while Shopee posts 2.9 million.
However, TikTok Shop users recorded growth of 415% in 2023.
Mr Pawat said the digital landscape has become more diverse, with no single platform covering all user groups.
Consumer sentiment fluctuates, influenced by socioeconomic divisions, leading to extreme spending preferences for either premium or budget-friendly brands, he said.
Mr Pawat said synergy of the more popular social media and marketplaces will also drive affiliate marketing.
Affiliate marketing is an arrangement where affiliates earn a commission for every visit, sign-up, or sale they generate for a merchant.
MI expects Thai marketing using key opinion leaders to be worth around 5 billion baht this year.