Jump seen in ad spending via digital media
Play
Ad expenditure through digital media is expected to enjoy growth of 34.12 per cent to Bt3.73 billion this year, according to the Digital Advertising Association (Thailand), or DAAT.
The sector generated advertising revenue of Bt2.78 billion last year.
Though ad spending via digital media currently accounts for just 2.34 per cent of the overall Bt130-billion advertising industry, local advertisers and companies continue to pour in money via this leading-edge communication channel, as it enables them to create effective customer engagement in line with building brand loyalty.
The association predicts that this year’s proportion of ad spending through digital media will increase to more than 3 per cent of the total advertising industry.
The DAAT report found that last year the telecom sector was the biggest spender in digital media with Bt415 million, followed by skincare products with Bt200 million and automotive and related businesses with Bt198 million.
Siwat Chawareewong, chairman of the association, yesterday said the key reason that most advertisers and product-owners decided to spend their budgets through such channels was that consumer these days were increasingly seeking information related to the products they intended to buy. The Internet and social media are key sources of such information.
Importantly, customers are also likely to read comments or reviews on products via social media and related websites. Likewise, online marketing and promotion is crucial in getting consumers to make their final purchasing decision, he said.
Adding to this point, the DAAT predicts that by end of this year, automotive, skincare products and soft-drink businesses will be among the top spenders in digital media communication, due to fierce competition in each category.
The report also forecasts that by end of the year, ad spending via search engine will represent 16.22 per cent of total spending in digital media, up from 14.7 per cent last year, while spending via social media will be 12.68 per cent, against 10.33 per cent last year.
However, digital display ads are expected to see a decline, at 45.87 per cent of digital media spending, down from 48.07 per cent in 2012.
