Online marketing budgets set for big jump

Business organisations are expected to spend more budget on online marketing next year, especially on social media activities, including Facebook and YouTube, according to leading local online media agency Thomas Idea.

Uraiporn Cholsirirungskul, CEO of Thomas Idea, said local firms' spending on online marketing activities was quite low compared with many developed markets such as the US and Japan where organisations spent about 30 per cent and 26 per cent of their marketing budget, respectively. Both in the US and Japan online marketing campaigns are a key strategic channel to build brand, communicate and build relationship with potential clients.

"Local businesses are still in doubt about the return on investment from online marketing activities, whether such online campaigns will contribute to them. They also need measurable results from their online marketing campaigns," Uraiporn said.

However, online marketing is becoming an ever-increasing necessity. All business organisations will need to cope with the digital trend.

Thomas Idea yesterday revealed the 2012 digital marketing trends that corporates and brands should employ to get the best digital-platform integration strategy, in order to reach and engage targeted customers.

Uraiporn said the popularity of social network and the increasing number of mobile users, especially smart phones and tablets, will change the way marketers would communicate, acquire and retain their customers.

"With the growing trend of social network and new technology platforms, digital marketing will account for up to 15 per cent of overall marketing budget allocated by business firms next year, up from about 5 per cent this year. They will also allocate between 2 per cent and 5 per cent of total media budget to digital media," she said.

Uraiporn said Thai consumers increasingly spent more time online. Most marketers were already experienced with the trial phase of online marketing activities for two years. They had more understanding of digital space, and the benefit their brands would gain from the power of interaction and two-way communication. In addition, new online media networks, search, and social media had been regularly introducing new services to support online activities.

"There are more than 13.3 million Facebook members in Thailand, an increase from 6.1 million last year. Of the 13.3 million, 34 per cent are aged between 18 and 24, and 29 per cent are aged between 25 and 34. Twitter has more than 850,000 followers. There are more than 5 million views on YouTube daily. Social-media usage and interactions have radically increased since the flood crisis in October-November this year. People tend to go to the Internet as a primary source of information," said Uraiporn.

She said that there are about 21 million Internet users in Thailand, accounting for 30 per cent of the country's 69 million population.

As one of the experienced practitioners in the digital marketing and digital platform for more than 10 years, Uraiporn shared the digital marketing outlook with 7 digital marketing trends marketers must know in 2012.

n Digital marketing strategy: Corporates must find the right strategy and policy for all digital consumer touchpoints. For instance, Facebook dialogue policy, social network crisis management, and customer database clean-up policy must be put into consideration. Moreover, the policies must concern the integration of search, social media, e-mail marketing, mobile marketing, and other digital platforms to drive customers to revisit the site regularly.

n Digital platform integration: User experience design must provide the mechanics for users to participate in some form of Like, Share, Send, or Review. This would amplify the product/brand awareness and engagement of the online community.

n Social media for business results: The social media success is not measured by the number of fans only. More Web analytics, such as interactivity, brand talks, and real fan acquisitions, should be considered for the company to set objectives and get real return on social media investment.

n Branded content: The Internet allows users to consume and interact with various forms of content. More branded content will be created to engage consumers with stories and new brand experience through online video, movie, webisode, e-book, game, and mobile application.

n e/f/m-commerce: e-Commerce, f-commerce, and m-commerce will be the big winners next year. With the increase numbers of mobile devices, especially smart phones and tablets, consumers will progressively use their mobile devices to access, get more information, and make purchases through m-commerce apps and m-sites. It is important to direct an online customer to the brand's e-shop right away once he/she has the intent to purchase.

n Device+app+technology: More and more digital devices are available for consumers. Corporates must understand their target segments' behaviour on the digital devices and platforms they prefer. Choosing the right media strategy will be a bigger challenge for advertisers.

n Short-term promotion: The growth of online e-stores has boosted the numbers and frequency of promotions offered to customers. Short-term promotions, such as, two-day promos, exclusive two-day deals for Facebook fans, or three extended promotions after the first purchase will drive the online customer to purchase more. This would change the way store managers and marketers would plan promotional schemes.

In 2012, Thomas Idea will offer a full range of digital services, from online strategy consulting, to user experience design, large-scale application development, and 360-degrees digital marketing services. The services cover the seamless integration of all digital platform technologies, including Web application, mobile application, e-commerce, m-commerce, online campaign, e-CRM and social media.