Thailand’s media spending to see 4% growth driven by online and TV
Anticipating a 4% growth in media spending this year, mirroring the trend from 2023, the market is set to be driven by online, TV, and out-of-home media. This predicted growth is attributed to political stability and economic stimulus initiatives introduced by the government.
The burgeoning e-commerce platform landscape has catapulted affiliate marketing into a key media tool for brands. This trend is particularly visible amid the rising competition between key players Lazada, Shopee, and TikTok, according to Pawat Ruangdejworachai, the President and Chief Executive of Media Intelligence Group (MI).
“Marketing technology and data-driven marketing will likely shrink advertising in traditional media to 20% in the next few years, while online is projected to comprise half of total spending by 2025.
“Thailand’s media spending will continue to grow by 4% in 2024, close to the 2023 level, thanks to the rebounding economy, tourism and government assistance measure.”
Potential hurdles in this path include high household debt, mounting living expenses, and the pressure on small and medium-sized enterprises.
MI forecasts that the overall media spending will reach 88 billion baht (US$2.4 billion) in 2024, marking a 4% growth from 84.5 billion baht (US$2.3 billion) in 2023. This follows a four-year consecutive increase after the dramatic drop in 2020.
Digital platforms continue to hold the majority share, accounting for 45% of total spending. Traditional media such as TV, newspapers, radio, and theatre account for 35%, with out-of-home and transit media making up the remaining 20%.
In comparison, in 2023, traditional media constituted 50% of the total, digital platforms claimed 35%, with out-of-home and transit media taking up the remaining 15%, reported Bangkok Post.
The sectors with the highest spending include personal care and beauty at 15 billion baht (US$419 million), followed by health and wellness (5.3 billion baht or US$148 million), automotive (3.6 billion or US$100.68 million), travel and leisure (2.7 billion baht or US$75 million), finance and credit cards (2 billion baht or US$55.9 million), and pet food and care (451 million baht or US$12.6 million).
“These expenditures reflected consumer behaviour leaning towards trends such as personal health and electric vehicles, with the increase of ‘buy now, pay later’ becoming more pronounced in advertising this year.”
Over the past two to three years, TikTok has established itself as a formidable social and e-commerce platform, rivalling Shopee and Lazada. Collectively, they are referred to as the ‘Three Musketeers’ of online shopping.
The digital landscape is becoming increasingly diverse, with no single platform attracting all user groups. Consumer sentiment is prone to change, influenced by socioeconomic divisions, resulting in stark spending preferences for either premium or budget-friendly brands.
Furthermore, Pawat highlighted the potential of affiliate marketing driven by the synergy of popular social media and marketplaces. Affiliate marketing is a model where affiliates earn a commission for every visit, sign-up, or sale they generate for a merchant.
MI predicts that the worth of Thai marketing utilising key opinion leaders will be around 5 billion baht (US$139.8 million) this year.
In related news, Thailand’s e-commerce landscape thrived in the past year, with foreign operators leading. Live commerce and affiliate marketing surged, shaping the competitive market.
