Internet advertising in Thailand has second highest growth in Asean
INTERNET ADVERTISING revenue in Thailand is forecast to grow by 22.5 per cent in each of the next five years to hit US$89 million (Bt3.1 billion) by 2020 thanks to further household fixed-line broadband penetration, according to PricewaterhouseCooper’s gl
The report showed that fixed-line broadband penetration currently stood at 28 per cent of Thailand’s households.
With this growth rate, Thailand is ranked second among Asean countries after Indonesia, which should experience a compound annual growth rate (CAGR) of 35.2 per cent. By 2020, Indonesia's Internet advertising revenue is expected to hit $3.29 billion, thanks to growing Internet access penetration and a strongly performing economy.
In the third place, Vietnam’s Internet advertising segment is expected to grow at a CAGR of 18 per cent to reach $51 million by 2020, followed by Singapore, which will grow at a CAGR of 15.5 per cent to $616 million, and the Philippines, which is expected to grow at a CAGR of 14.8 per cent to $201 million.
In the period, PwC forecasts total global spending on Internet advertising to reach $260.4 billion, at a CAGR of 11.1 per cent.
Total Internet advertising revenue in Thailand reached $32 million in 2015, up from $14 million in 2011.
The consulting firm also estimated that CAGR of magazine and newspaper revenue in Thailand would be minus-0.6 per cent and minus-0.5 per cent respectively.
The report highlighted that total entertainment and media (E&M) spending in Thailand is expected to reach $11.5 billion by 2020, growing at CAGR of 5 per cent over the next five years. Globally, the average annual growth rate would be 4.4 per cent, from $1.72 trillion in 2015 to $2.14 trillion in 2020.
Nattaporn Phan-Udom, a partner at PwC Thailand, said the “live experience” remained a key differentiator in the digital world, and would play a major role in creating revenue for the E&M industry as a whole.
“With smartphones, consumers led by younger demographics can directly enjoy their live experience any time and anywhere, whether it be watching a show, a live concert on TV or tuning into football tournaments,” she said.
“As advances in digital technology continue to promote growth in the E&M industry, we expect companies and industry players to become more engaged and resonate with these consumers at both global and local levels.”
