3G network 'set to spur digital ad spending'
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Digital advertising is forecast by mInteraction to account for 5 per cent of overall ad spending in Thailand next year, rising to 10 per cent by 2016.
Digital ad spending currently accounts for 3 per cent of an advertising market valued at Bt90 billion this year, the Group M subsidiary said.
Ad spending on mobile devices is also expected to expand rapidly after the 3G-operator licence auction, which is scheduled for October this year.
The availability of the 3G network is expected to be the official starting point for rapid expansion of mobile Internet usage, with a growth rate of between 50 and 70 per cent forecast for the 12 months following the auction, said Niklas Stalberg, mInteraction’s chief operating officer.
The company expects that by 2014 and 2015, ad spending on mobile devices will account for about 10 per cent of overall digital ad expenditure.
There are about 13 million smart phones in use in Thailand, of which around 8 million are either iOS-based or Android devices and the remainder either Symbian or BlackBerry phones.
While smart phones represent around 16 per cent of the total number of mobile phones in use in the Kingdom, ad spending on mobile device is not yet significant.
Stalberg said significant ad spending on mobile devices would begin after a 3G network becomes available in Thailand, which is expected to vastly increase the level of mobile Internet usage and eventually draw attention from advertisers.
Siwat Chawareewong, chief executive officer of mInteraction, said the company had arranged its annual marketing and digital media conference, “FOCAL2012”, to alert its clients to the need to prepare their advertising plans and budgets in alignment with the digital trend.
The company urged clients to concern themselves with four trends: high-speed mobile; always-on marketing; engagement with power consumers; and optimisation of intelligent tools.
The availability of high-speed mobile service is a key factor increasing the time that users spend on mobile devices, and therefore one that advertisers cannot afford to ignore, he said. Brands should, therefore, consider always-on marketing as a part of their digital ad planning, as well. “Consumers are always on, so brands should be always on, too,” he said.
The CEO said always-on marketing could be divided into three main forms: search marketing; listening to customers; and maintaining a presence on the Internet and social networks.
“Our recommendation, apart from campaign marketing, is that brands should consider an always-on marketing plan and budget, as well,” he said.
Moreover, brands should stay online more in order to keep in touch with customers, especially with a view to identifying and reaching power consumers, he said.
Last but not least, brands should utilise intelligent tools for measurement and monitoring in order to improve their digital planning and campaign performance.
Currently, the total number of digital searches in Thailand is about 18.5 million per day, which represents growth of 290 per cent from 2010. Some 20 per cent of the searches are undertaken via mobile devices.
“With more people searching, marketers have to pay attention to this phenomenon,” said Siwat.
