Companies are starting to spend more on online-media content, which acts as powerful tool for brand-building.
Leading local interactive agency Thomas Idea yesterday said most companies now used about 2 per cent of their media budgets for online communications.
"But we expect that to increase dramatically in the next five years, to 8-10 per cent," said CEO Uraiporn Cholsirirungskul.
She said in developed markets like the US and the UK, businesses allocated more than half of their media budgets for online content. They also develop specific content, such as Web videos for broadcast only online.
"Many marketers have increased their online-media spending by almost 20 per cent this year, because they see the fantastic capability of digital media to be an effective tool for brand-building," Uraiporn said.
She cited Internet World Stats figures that showed there were now 1.6 billion Internet users worldwide, with 16 million of them in Thailand. Thai consumers spend more than 17 hours a week using social media like Facebook and Twitter.
Marketing and advertising researcher Nielsen recently reported local spending on Internet ads increased 90.9 per cent year on year last month, to Bt21 million.
"Many firms are learning and trying to understand the actual benefits of online media for their business," said Uraiporn.
She said consumer-product, real-estate, automotive, construction and banking firms in particular had become local pioneers in rolling out their own online communications designed to build their brands and strengthen relationships with their customers.
"One of our key accounts, Property Perfect, said 15 per cent of their revenue last year had been generated by online media," said Uraiporn.
Thomas Idea executive director and senior consultant Araya Choutgrajank said compared with offline advertising media like television, online media contributed key benefits that were interactive and measurable and had a global reach.
"One of the most valuable assets in the digital world is branding. Marketers should think very carefully about how their online assets respond to brand strategy," she said.
Araya said companies that already had a strong brand could use online media as a communication tool for promotional activities and to acquire sales leads and a new group of consumers. They can also create "viral" communications among consumers.
"Online media will also allow individual firms to manage their own corporate communications and digital branding. With digital media, consumers will be highly engaged and recognise a brand," she said.
Araya added that social media could also allow marketers to segment or track their customers effectively.
