Ad outlay poised to grow 4.5% in 2025
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Ad outlay poised to grow 4.5% in 2025

Strong sectors fuel marketing gains

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Tourism sector is one of the positive signs for the macroeconomy, which will drive marketing communication spending, says Mr Pawat.
Tourism sector is one of the positive signs for the macroeconomy, which will drive marketing communication spending, says Mr Pawat.

Marketing spending is projected to grow by 4.5% to more than 92 billion baht this year, driven by the rise of modern commerce, influencers, government stimulus schemes and a strong tourism sector.

Firms should embrace artificial intelligence (AI) to improve efficiency, says Media Intelligence Group (MI), an integrated solutions provider.

Thailand is the largest spender on marketing in Southeast Asia, accounting for roughly one-third of outlay per campaign, said MI. Ad spending last year rose 3.8% to 88 billion baht.

Despite lower domestic consumption and high interest rates, there are positive signs for the economy that will drive marketing spending, said Pawat Ruangdejworachai, president and chief executive of MI.

Mr Pawat said the increased adoption of AI in 2025 will include agentic AI, evolving from reasoners such as ChatGPT as well as chatbots.

"This year, AI is no longer an option. It will become do or die to help businesses reduce costs and increase efficiency," he said.

AI will evolve next year to become innovative, helping to lead research, then to drive organisations in the next stage, said Mr Pawat.

MI has equipped its employees with AI to increase their productivity. The company is considering agentic AI to optimise its media space bidding.

Other positive economic factors include the strong tourism sector, which is expected to welcome 40 million arrivals this year, coupled with growth of the meetings, incentives, conventions and exhibitions sector, as well as the rise of LGBTQ+ tourists after the Marriage Equality Act went into effect last month.

Brands are increasing their marketing spending to reach tourists, said Mr Pawat.

MI said Thailand is also becoming a global medical hub.

Thailand's culture content, mainly pop music, is driving the growth of the concert sector, while Boy and Girl love series as well as Thai cuisine and fashion also boost the economy.

Southeast Asia is expected to gain from the trade war between the US and China as large businesses signal more investment and the relocation of their manufacturing bases.

Meanwhile, the overall government stimulus programme, plus its 10 urgent polices, and medium to long term policies help to boost the economy.

"We witnessed strong brand spending in January and the Chinese New Year thanks to the government's Easy E-Receipt and digital wallet schemes," said Mr Pawat.

MI projected the marketing industry last year to be flat or decline, but the smooth transition to the new government resulted in no impact on spending.

In 2025, digital or internet spending will account for 42.3% of the total marketing spending, followed by 33.5% on TV and 16.6% on out-of-home ads.

Digital spending surpassed TV spending for a second year and may gain half of the total market in 2026.

The TV sector faces challenges from streaming content and fragmented media consumption, while news content become the main revenue source for TV and some TV channels may be shut down.

"We expect after the end of TV licences in 2029, there will only be 5-6 channels left from the existing 15," said Mr Pawat.

This year online spending will grow 15% from the 33.8 billion baht registered in 2024, according to MI.

Online growth last year doubled growth forecasts of 8%.

MI also expects brands to increase their spending on influencer marketing to increase sales.

"We estimate one-third of digital spending per campaign will go to influencers and those influencers will boost their content into social media platforms," he said.

"Thailand's spending on influencers is the highest in Southeast Asia."

MI estimates there are 3 million influencers in Thailand, accounting for 5% of the total population.

The sluggish economy is driving people to try to find more income through engaging with affiliate marketing, which involves more macro- and nano-influencers, said Mr Pawat.

In term of brands expected to increase their marketing spending this year, they comprise tourism, airlines, hotels, insurance, vitamins and medicine, state advertising, transport, food and parcel delivery, pet food and merchandise, and non-banks.

Reduced spending is expected from e-marketplaces, non-alcoholic beverages and restaurants, according to MI.

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