Kinetic plans to focus on in-store media to boost its brand reputation at retail stores

Surachet Bumrongsuk, Kinetic’s country manager, said last week that people usually spend at least 10 hours outside and this offered a huge opportunity for brands |and marketers to create brand awareness and encourage customers to purchase products.

In addition, out-of-home media such as outdoor, transit and in-store media anticipate a healthy expansion both in Bangkok and upcountry locations. In Bangkok, transit media is a key driver due to the extensions of the BTS and MRT lines, while an expansion of major upcountry retailers, particularly in second and third-tier cities, opens more doors for brands on the shelves to attract consumers.

Surachet added that out-of-home media in upcountry areas gradually became more important in terms of marketing communication. 

In the last decade, advertising spending via out-of-home media outside Bangkok represented only about five per cent of Thailand’s total out-of-home media investment. But this proportion has expanded to 30 per cent and it continues to grow.

“We have received many requests from clients who want to use out-of-home media with location-based strategies to reach specific customers in the provinces, where their gross domestic product is seeing strong growth,” Surachet said. 

“Communication and engagement via in-store media are also important in this regard. We also want to be a specialist in this area,” he said.

In-store surveys conducted by leading research firms VGI Global Media and dunnhumby (Thailand) found that 76 per cent of respondents made their purchasing decisions at shelf. 

Apart from improving sales, in-store media also provides a cost-effective alternative that helps products to enhance brand reputation and attract new customers, known as brand switchers.

To cash in on the consistent rise of in-store media both in Bangkok and upcountry, Kinetic will work closely with leading in-store concession operators like dunnhumby and VGI Global Media to manage advertising spaces in retail stores nationwide.

Due to the sluggish economy and weak consumer power, Kinetic expects to see stagnant growth in out-of-home media spending.

On the other hand, in-store media appears to be a different story. According to dunnhumby, advertising expenditure via in-store media is expected to grow as it did in the first half of the year, when it registered 33 per cent growth compared to the same period last year.