Thailand Digital Advertising Spend Public Deck Version
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1 Thailand Digital Advertising Spend
2 Introduction Conducted by DAAT in partnership with KANTAR TNS, the actual 2016 Digital Advertising Spending Survey reveals some appealing trends that will shape a change on the future of marketing and digital experiences. Internet penetration in Thailand surpassed the 50% mark in 2015 and is still growing. Those connected to the Internet are also heavy users, with a high daily usage rate via a number of devices. More than 80% of Thai connected consumers use the Internet every day, for an average of four hours (those using mobile) and five hours (those on PC). Thai consumers are spending more and more time online. They are using the Internet for every aspect of daily life - from messaging, gaming and watching video content, to banking, shopping and research. Digital advertising spending, therefore, show the sign of substantial increasing over the past years and is likely to keep moving upward in coincidence with the increasing online activities of Thai consumers. About DAAT The Digital Advertising Association of Thailand (DAAT) was founded in 2012 with the objective to benefit the industry, companies and consumers under the same direction. With collective support, advertisers should elevate the industry at the highest levels in the future. To support this objective the Association has been collecting and publishing digital advertising spending data since The reports keep track of the growth of spending on digital advertising in Thailand and are a valuable source of information to anyone in the advertising industry who wants to better understand the role of digital channels in the advertising landscape. The need for industry data on digital advertising spending will only continue to grow as the digital space becomes more and more central to consumers' lives and brands compete for their attention. DAAT provides this data on a yearly bases. This report presents the data of year
3 Methodology The data in this report is collected directly from advertising and media agencies through an anonymous process to ensure the confidentiality to client s information. The information they submit is based on their internal records of advertising spending. Disciplines Agencies have provided spending data on the following 13 digital advertising disciplines: Search SEO/SEM/Mobile Search KANTAR TNS market research firm operating in more than 80 countries and is part of the WPP group, helps conducting the survey for over 4 consecutive years. To improve the accuracy, before publishing the paper, participated agencies are given an insightful workshop to set the same understanding about the media type, industry sector include in the report as well as how to use the online survey program. TNS Thailand has collected and processed data from 25 agencies and aggregated the data to reflect total level. The data is split by type of digital advertising and by industry sector of the advertised brand. The agencies provided their data in an online survey. Display Online Video YouTube Ad Facebook Ad Instagram Ad Twitter Ad LINE Instant Messaging Social Native ad Creative Others All types of website banner displayed at the specific website position Video content promoted on specific position in the website All types including display, overlay, skippable video, non-skippable video, sponsored card All Facebook Ads including display and video format Display banner or video ad that appear on Instagram app All types of Twitter Ad that use to promote account, tweet or trend. Twitter Ad include display and video format Official Account/Home/Sticker Account set up and management Blogger / Influencer / Seeding / Tie-In Product in the content e.g. VRZO / Page Influencer (Facebook, Instagram) Advertorials on online publisher (Advertorials network) Online Video Production / Web Banner Production / Social Media Platform Management Other online spending or sponsorship support for website events 3
4 Methodology Industry sectors Agencies have provided data split by the following industry sectors of the advertised brands. Group Finance & banking Tech & electronic Food & Beverage Shops Education Category Banks Insurance Credit/Debit Card Finance Audio/Visual Electrical Products Computers Communications Electrical Products (Non Audio/Visual) Alcoholic Beverages Non Alcoholic Beverages Seasoning Products Snack Foods Dairy Products & Dairy Substitute Prod. Bakery & Chocolate/Wafers/Biscuits Dietary Products Vitamins & Supplementary Foods Foodstuffs Food Outlets & Restaurants Retail Shops/Stores Educational Institutions Personal Care Clothing Household care Automotive Housing Pharmaceuticals Pet products Others Cosmetics Skin-care preparations Personal Accessories Toiletries Hair Preparations Oral Products Clothing & Underwear Footwear Household Cleaners Household Equipment & Furnishings Household Insecticides & Pesticides Motor Vehicle Accessories Motor Vehicle Dealers & Rentals Motor Vehicles Motorcycles & Bicycles Oil & Lubricants Petrol Tyre Real Estate Pharmaceuticals Pet Foods & Pet Products Photographic Products Office/Business Equipment Sundries Transportation Travel & Tours Leisure Multi Sections Advertising Media & Marketing CD/DVD (Musical & Film Products) Agricultural Products Building Material & Machinery Classified Government & Community Announcement Websites House Ads 4
5 Agencies The audit was conducted in Jan Digital advertising spending data was submitted by 25 agencies. 1 ADAPTER DIGITAL CO., LTD. 2 The Leo Burnett Group Thailand 3 BRILLIANT & MILLION CO., LTD. 4 Carat Thailand 5 Dentsu Media Thailand 6 Digital Groove Co.,Ltd 7 EGG DIGITAL 8 Ewit Co.,Ltd 9 Flexmedia Iprospect Co.,Ltd 10 Grey (Thailand) Ltd. 11 Havas 12 IPG MEDIABRANDS 13 Isobar (Thailand) Co., Ltd. 14 J. Walter Thompson 15 MCFIVA (Thailand) Co.,Ltd. 16 MINTERACTION CO.,LTD. 17 OgilvyOne Worldwide Limited 18 OmnicomMediaGroup 19 Starcom Mediavest Group 20 Syndacast 21 Thaiconnexion Co., Ltd 22 Vizeum Thailand 23 Winter Egency Co., Ltd. 24 ZenithOptimedia Thailand innovative co., ltd. Remark: Reported numbers are based on reported spending data of a sample of 25 agencies. DAAT estimates that the sample of agencies represents 80% of spending in the market. The numbers presented on this page are upgraded proportionally to reflect 100% of the market. 5
6 Spending Agency Outlook 6
7 Total Spending Spending on digital advertising continues to rise over time. The spending escalates 17% in 2016 to reach 9,477 million baht, and forecast in 2017 will increase by 24% deriving from contagious top spenders; Skin-care Preparations, Communications, Non Alcoholic Beverages, and Motor Vehicles. +44% +32% +17% +24% +53% 7
8 Industry Leaders Interview Point of view on Digital ad in Thailand 2017 is an important year because there will be a significant increase in media usage. There are a parts to this, one is consumer will consume more of digital media and the other is they will consume less of traditional media especially TV. Siwat Chawareewong CEO, minteraction We used to say that TV, radio, or magazine are traditional media but I say that now digital media is turning to traditional media. To simply put this, it is something that everyone must do, like we used to say that we must buy media on TV or newspaper, everyone must buy digital media now. Actually it has been growing this year and in I think we will see more of this trend starting mid of this year and we will see more of this, even mass products are investing in digital campaign. Rajsak Asawasupachai Digital Business Director, IPG MEDIABRANDS 8
9 Industry Leaders Interview Point of view on Digital ad in Thailand There is nothing like Digital Marketing in Thailand anymore. It is Marketing. We don t do Digital Marketing but we are Marketing to a consumer in the Digital Age. Digital has become such an integral part of everyone s life that we cannot ignore it. We have to therefore always start with a Digital first approach. The Thailand Digital industry has grown so rapidly year on year even as compared to the rest of SEA that we need to ensure that agency digital resources are able to keep up with the vast changes in technology. Rochelle Chhaya Managing Partner, Omnicom Media Group There is a definite trend in growth every year but this year it will be even more evident because there are multiple tools that will help optimized media budget. It is not split into online and offline budget but this tool will help determine which media our audience are at and what is the proportion. So the budget is all in one so the budget depend on customer behavior. Pacharee Permvongusawa Digital Director, Publicis One Digital 9
10 2016 Spending by Industry Communications, Non Alcoholic Beverages, Skin-care Preparations, and Motor Vehicles are the biggest spenders in digital advertising for A large spending volume is from FMCG category; Non Alcoholic Beverages, Cosmetics, and Skincare Preparations which cost 930 Million Baht higher than
11 Industry Leaders Interview Point of view on Digital ad in Thailand Non Alcoholic beverage has the same picture as Household Cleaner which is quite clear that it normally comes from bigger firms, which is the shift or money from TV (in 2015 to 2016). Money in the range of 100 million is definitely for TV. Siwat Chawareewong CEO, minteraction Non alcohol beverage has the same trend as FMCG, offline budget doesn t exactly reducing but every brand is competing more in online world. We see every brand using online influencer so it s not just the media. And using campaign activity for prize. Like personal accessory, we will have to go to the store to learn about promotion but we can use budget to spread information to people in the area. When we walk into the store we will see promotion on our phone so we can convince them in real time. Pacharee Permvongusawa Digital Director, Publicis One Digital 11
12 FC 2017 Spending by Industry In Forecast 2017, those who are top 4 categories will remain top spenders. The spending is expected to grow around 24% comparing to last year with forecast of high growth in spending of Skin-care Preparations (36%) and Motor Vehicles (34%). FMCG category which are Skincare Preparations and Non Alcohol Beverages will continue to reserve high spending volume with main role to create brand awareness and engagement. 12
13 Top 5 Highest Spenders from Almost all top spenders are likely to be spent on digital advertising more, except Communications that might stay quite stable. Skin-care Preparations and Non- Alcoholic Beverages reveal constant increased spending, the trend is expected to convey to Spending in Million Baht The big bounce will be seen for Motor Vehicles which is dropped in
14 Disciplines in Details 14
15 Spending by Disciplines Growth by Percentage Forecast of big leap is expected in some relatively low spent disciplines; Native Ad, Instagram, and Twitter. 100 Native Ad 92% Native Ad seems to grow with utmost ratio of 92%. Spending in Million Baht Instagram 72% Twitter 52% Video 47% Youtube 38% Display 26% Search 23% Social 20% Facebook 17% LINE 13% Other 11% Creative 9% Instant Messaging N/A 0 15
16 Spending Agency Outlook 16
17 Agency Outlook Key tools for advertisers in 2017 are Monitoring (media optimization) and Analytic. Real Time Media, Dashboard, Monitoring Tools play the topnotch importance. Overall, which Digital Media tools are client interested and what tools will play a significant important role in % 63% 58% 50% Real Time Media, Dashboard, Monitoring Tools Programmatic (DSP/SSP) Social Listening Tool Data Analytic Platform (Ad-Serve/ Data Management Platform) 29% 25% 17% Ecommerce Bid Optimization Tools Messaging App 17
18 Industry Leaders Interview Point of view on Digital ad in Thailand It is heading in the right direction especially clients who internet plays an important role in driving sale, they would want to see the dashboard. They want to see things in real time like sales value with real time promotion. Siwat Chawareewong CEO, minteraction Yes this is quite true. With Data becoming more important it is essential for us to have real time dashboard. Because it is not just about reports and numbers anymore it is more about insights and understanding how we are impacting the consumer. This makes real time reporting and dash boarding very important. Programmatic is key as more ROI driven and data driven planning takes center stage. Rochelle Chhaya Managing Partner, Omnicom Media Group 18
19 Industry Leaders TNS interviewed a number of industry leaders to get their view and expectations of the digital marketing industry. The following persons have contributed their view: q Siwat Chawareewong CEO, minteraction q Norasit Sitivechvichit Managing Partner, Dentsu Media Thailand q Rajsak Asawasupachai Digital Business Director, IPG MEDIABRANDS q Pacharee Permvongusawa Digital Director, Publicis One Digital q Rochelle Chhaya Managing Partner, Omnicom Media Group 19
20 Digital Advertising Spending Purchase online at 499 USD Be available on April 4, For Offline purchase and inquiry, please visit KANTAR TNS (Thailand) 20
21 Snapshot of Full Report 21
22 Digital Advertising Spending
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