The growth of digital advertising in Thailand is expected to slow to 8% this year, reaching 31 billion baht in value terms, compared with double-digit growth in 2023, with TikTok moving up from sixth to third place, trailing Facebook and Instagram under Meta as well as YouTube.
“After the new government formed and the economy recovered, digital advertising spending in Thailand grew 14% to 29.2 billion baht in 2023,” said Paruj Daorai, president of the Digital Advertising Association of Thailand (DAAT).
The estimates for digital ad spending in Thailand in 2023 and 2024 were prepared by the DAAT and the research firm Kantar. The survey included 66 industries covering 18 online disciplines via 33 agencies.
Despite slim GDP growth last year, digital ad spending continued as online lifestyles resumed post-pandemic, said Mr Paruj.
The top five industries for digital advertising last year remained unchanged. Skincare products led the way with ads worth 3.4 billion baht, followed by automotive (3 billion) and non-alcoholic beverages (2.39 billion).
Skincare ads are forecast to grow to 5 billion baht this year, while automotive and non-alcoholic beverages are projected to draw 2.9 billion and 2.5 billion, respectively.
Telecom and daily-use products are likely face a decline in ad spending, noted the survey.
Arpapat Boonrad, chief executive of Kantar Insights Thailand, said that in terms of spending by discipline in 2023, the value of ads on Meta-owned Facebook and Instagram declined 1% to 8.6 billion baht, but the company still held a dominant share at 30%.
Ads on Google-owned YouTube were worth 4.2 billion baht, accounting for a 15% share.
This year spending on TikTok ads is predicted to grow by 44% to 3 billion baht, comprising a 10% share, up from sixth place and a 5% share last year.
While Meta is forecast to have 3% growth, its market share is projected to decline to 28%, while YouTube is expected to attract ads worth 4.4 billion baht, with its share dipping to 14%, according to the research.
Social media is forecast to claim the largest chunk of spending with 2.5 billion baht, representing a 9% market share, followed by online video with 8%.
Channels posting double-digit growth comprise: e-commerce gaining 59%; online video up 19%; X (Twitter) rising 16%; and search gaining 15%.
Ms Arpapat said overall spending this year is promising for most industries and there is a possibility of significant spending growth in new industries.
Digital ad spending will be driven by live commerce and e-commerce, while social or influencer channels will be more widely adopted, she said.
The primary objective for digital advertising is to raise brand and product awareness and reach.
Driving brand consideration and live commerce should attract a larger budget this year, but lead generation would experience a decline, said Ms Arpapat.
Digital media tools and e-commerce marketing tools should still outrank other tools for a fourth consecutive year, she said.
The trend to watch is artificial intelligence (AI), which emerged as the second most interesting tool this year, rising from eighth last year, said Ms Arpapat.
Agencies need to adapt to emerging trends and changes driven by innovation and technology by embracing AI and automation, prioritising data-driven decision making, and focusing on personalisation and customer experience, she said.