Creativity called for amid ad disruption

Creativity called for amid ad disruption

Logos of Netflix, the media service gaining popularity in Thailand. (Photo by Wichan Charoenkiatpakul)
Logos of Netflix, the media service gaining popularity in Thailand. (Photo by Wichan Charoenkiatpakul)

The advertising industry is no exception to the growing list of businesses that have been disrupted by digital technology, as consumers are less likely to view advertising.

Saharath Sawadatikom, managing director for creative and partner at CJ Worx, said magazines and newspapers have been in decline while Line TV has become very popular.

Advertising will decrease if Netflix replaces the premium market and consumers are likely to watch less advertising, he said.

Mr Saharath said teenagers are leaving Facebook for the Snapchat. Line and Facebook are used by parents, but teenagers don't want their parents to view them on social media, he said.

Just as consumer behaviour changes, so does the medium and media.

"The challenge for agencies is to change their mindset," said Mr Saharath.

"A transformation has taken place from one angle, not from others. The traditional structure has transformed to a digital structure. Technology is just a tool to deliver creativity to consumers."

Mr Saharath said this era is the beginning of the decline of social media. Time spent on social media is likely to decline as teenagers don't use it as much.

"This is the data era. Big companies have a great deal of data, so re-targeting becomes more important," he said.

Facebook just amended its global advertising policy requiring any advertisement posts to tag their clients, or else the brands will be penalised through decreased reach or pages closed down.

Meanwhile, YouTube will address a "non-skip ad" initiative in Thailand very soon.

"Line TV is growing, people are watching TV anywhere, anytime. The trend is shifting towards systems that allow consumers to choose what they watch and when they watch it, like Iflix, Netflix, Line TV," said Mr Saharath.

Dan Sornmanee, global brand lead at Line Thailand, said technology is involved with brands and products, and is rapidly bypassing media.

Technology has been greatly involved with communication and media, but it will now become more intertwined with peoples lives, he said.

"If you produce goods without technology, you will fail. Those who are in the agencies must transform themselves," said Mr Dan, who has been working in creative agencies.

Mr Dan said people working in agencies must aim for creative transformations.

"For those who work in the agencies, it's not only 'think different', but to be 'different and better'," he said.

Advertising Association of Thailand president On-usa Lamliengpol reiterates this sentiment, saying transformations are necessary for improvements.

Advertising today is redefined in the changing world of digital and people in the advertising industry are challenged. Many advertising companies are facing challenges with revenue.

"Every agency embraces changes and new approaches. Some acquire digital companies, some set up digital units. Digital, however, is not an add-on, it must be a new unit," she said.

Ms On-usa said agencies must focus more on customers and digital targets.

Creativity is backed up by data, leading to higher spending, she said. Creative works do not just build an awareness, but create brand engagement.

Vannaporn Ketudat, deputy director-general of the International Trade and Promotion Department, said advertising has generated hundreds billions in revenue to the country each year, with new creative companies born every year.

She said with advertising creativity, Thailand has become an advertising hub for Asean.

Vinit Surapongchai, chairman of ADFEST, said to see how far a country has developed, the creativity of people should be looked at.

Creative industry is one of the government's strategies to push toward Thailand 4.0.

ADFEST 2018, under the theme "Transform," will be held from tomorrow to March 24, at Royal Cliff Hotels Group, Pattaya, Thailand.

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