Digital ad spending in Thailand is expected to increase by 16% to 14.3 billion baht this year based on the ongoing digital transformation, which offers more effective tools in reaching individuals, says Supachai Parchariyanon, the president of the Digital Advertising Association Thailand (DAAT).
Mr Supachai, who is also chief executive of Mcfiva digital agency, said online advertising is growing rapidly and reaching broader audiences, causing marketers to shift their focus from traditional TV and print to online, with the aim of reaching the right target groups.
Digital ad spending in Thailand is expected to grow by 16% to 14.3 billion baht in 2018, up from 12 billion in 2017, helped by increases in connected mobile devices and faster wireless broadband speed.
"This year will see the highest spending on digital ads as the media landscape is changing," Mr Supachai said.
DAAT expects automobiles, telecommunications, non-alcoholic beverages, skincare and dairy products to be among the top 10 highest digital ad spenders in 2018, with total spending of 7.4 billion baht.
Mr Supachai said the growth of digital ads is a result of banking companies and government policies that promote a cashless society.
As a digital agency, he said Mcfiva is creating a new business model to support new growing businesses.
The company recently opened a new office under the vision "Mcfiva Transform The Future" with an aim to be Thailand's leading digital agency by partnering with many companies, local and international.
The working process of ad agencies in Thailand is totally outdated and can no longer make money, Mr Supachai said.
The big ad agencies are struggling with disruptive technology because negotiating power is limited when Facebook and Google can create effective ads online.
"Ad agencies need insight," he said, adding that the overview of ad agencies in Thailand is transforming because there are many more players than in previous years.
Mr Supachai said Mcfiva is adapting reforms to its entrepreneurship mindset, developing more effective staff and creating better tools to drive the company to be one of the most successful digital agencies in Thailand.
"We aim to be a private sector company that creates 1% of Thailand's GDP growth by applying innovation to our businesses to draw clients by spending more money on the media business," he said.
Last year, Mcfiva generated more than 100 million baht in revenue.