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Digital ad spending set to soar 38%, driven by mobile Internet and 3G

The Digital Advertising Association of Thailand (DAAT) has forecast a 38-per-cent surge in ad expenditure via digital media to more than Bt5.86 billion this year, while leading brands in the fast-moving consumer goods category will become key spenders over the course of the year.

Spending came in at Bt4.25 billion last year.

"The main factors continuing to drive the growth of digital advertising expenditure are the rise of mobile Internet penetration and the advanced 3G/4G broadband network across the country," Siwat Chawareewong, chairman of the association, said yesterday.

The penetration of mobile Internet will mainly be driven by the use of smartphones not just in urban areas but also in rural parts of the country when third-generation mobile broadband reaches those areas, he said.

"I strongly believe that by the end of this year, mobile Internet will reach more than 50 per cent of total mobile subscribers," he said. There are some 90 million mobile subscriptions at present.

Jitirath Supornjirapat, a specialist on digital media at Omnicom Media Group Thailand and also a member of the DAAT committee, said the association had also witnessed a huge increase in spending via Facebook and online video adverts, and this would be a key trend for this year.

Based on agency logs from 23 leading digital, creative and media agencies that have clients in 56 industries and segments, the DAAT predicts that the share of advertising spending via digital media will also increase this year, to 4.82 per cent from 3.56 per cent last year.

The 23 agencies represent more than half of the country's digital media agencies.

Supalurk Tangcharoensiri, digital director at Mec Global, a GroupM company, said that by volume, skincare preparations and motor vehicles would see the highest growth in digital advertising spending this year.

Advertising spending by skincare products companies is expected to be more than Bt643 million, followed by Bt501 million on auto adverts, he said.

However, of the DAAT's forecast of Bt5.86-billion spending via digital media, the telecom sector will still have the biggest share, with 14.73 per cent, followed by skincare products (11.87 per cent), motor vehicles (8.63 per cent), hair preparations (5.24 per cent), non-alcoholic beverages (4.81 per cent) and banks (4.51 per cent).

The DAAT's forecast excludes direct advertising spending via online media giants such as Facebook and Google, and does not take into account any risk factor from the country's current political unrest.


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