Thailand's digital media spending is expected to reach 14.3 billion baht in 2018, leaping 16% from 2017, thanks to intense competition in digital services.
Facebook and YouTube remain powerful platforms, according to the Digital Advertising Association Thailand (DAAT) and Kantar TNS Thailand.
"Digital advertising spending in Thailand continues to grow because of changes in consumer lifestyle, business transformation and the government's policy of cashless payment and Thailand 4.0," said Arpapat Boondrod, chief executive of Kantar TNS Thailand.
In 2017, the growth of digital advertising spending was 31% or 12.4 billion baht, outperforming the estimate of 18%, or 11 billion baht.
Banks were one of the most active sectors to compete in digital, with spending in 2017 increasing by 65% to reach 847 million baht, shifting to the third-largest spender from sixth in 2016.
Meanwhile, the automotive and communication sectors remained the top two spenders with 1.2 and 1.1 billion baht, respectively. Banks surpassed skincare, which was expected to be in third place.
"In 2018, the top three spenders are expected to be the same as last year," Ms Arpapat said.
Among the top 10 advertising spenders this year, banks, skincare and non-alcoholic beverage are expected to have the highest growth spending at 27%, 27% and 20%, respectively, while automotive and communication retain moderate growth of 14 and 6%, respectively.
The only sector expected to reduce spending is cosmetics.
In terms of platform spending, Facebook remained the largest with 33% share, reaching 4 billion baht, followed by YouTube at 17% with 2.1 billion baht and display advertising at 11% with 1.3 billion baht.
Search engines captured 8% at 1 billion baht, social media (including Instagram) took 8% at 1 billion baht, creative earned 984 million baht, online video (not YouTube) 729 million, Line 627 million, native ads 235 million and others 175 million baht.
Facebook and YouTube combined captured over half of total digital advertising spending for the first time in 2017, up from 40% in 2016.
Ms Arpapat said that in 2018, Facebook and YouTube will maintain their leadership and social channels may capture more spending due to the use of Instagram.
In 2018, brands are expected to spend more on social listening and e-commerce with a goal of increasing the awareness and reach of users, but brands will increase user engagement.
Pongsupa Watcharasukum, manager of Kantar TNS Thailand, said Thais spend 39% of their time on traditional media and 61% on digital media.
A change in Facebook policy to reduce advertising reach and data breaches will have a low impact on the local market, she said.