2 Thai people spend 8 hours a day surfing the internet and social media, making it the fourth rank in the world, according to We Are Social. Many marketers have migrated their communications from traditional media to digital platforms, encouraging digital advertising to bloom and enjoy exponential growth over the past 10 years. In 2023, Thailand is now undergoing uneven economic recovery and political instability. Despite these uncertainties, Digital Advertising spending in Thailand is projected to grow further at double-digit rate of 13% by the end of 2023, reaching 28,999 million THB. In partnership with KANTAR, DAAT provides this data on a bi-annual basis. *This report presents the data of the actual spend for H1 2023 and forecast H2 2023. Market research consultancy firm KANTAR INSIGHTS THAILAND has collected and processed the data used in this report from 40 agencies via an online survey. The data is aggregated to reflect total levels, and split by type of digital advertising, platforms, and by industry. To maintain the confidentiality of all client information, all data is collected via an anonymous process and purely based on internal records of advertising spend. 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 2013. 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.
3 Agencies The audit was conducted in June – August 2023. Digital advertising spend data was submitted by 40 agencies. 1 Alpha 245 2 Brilliant & Million 3 Carat (Thailand) 4 CJ Work 5 Dentsu Creative 6 dentsu X (Thailand) 7 Digitas 8 Data First 9 Fareast Fameline DDB 10 GroupM (Thailand) 11 Hakuhodo International (Thailand) 12 I-Dac (Bangkok) 13 IPG Advertising – Mediabrands 14 IPG Advertising – BPN 15 IPG Advertising – Mediabrands Content Studio 16 IPG Advertising – Initiative 17 IPG Advertising – Reprise 18 IPG Advertising – UM 19 iProspect 20 Kinesso 21 mSix&Partners 22 MCFIVA (Thailand) 23 Media Intelligence 24 EssenceMediacom (Thailand) 25 Mindshare (Thailand) 26 MSL 27 Omnicom Media Group 28 Prakit Holdings Public Company Limited 29 Publicis Worldwide 30 Rabbit's Tale 31 RGB72 32 Saatchi & Saatchi 33 Showroom111 34 Starcom MediaVest Group 35 The Leo Burnett Group (Thailand) 36 Uppercuz 37 Viset Corp 38 Wavemaker (Thailand) 39 Winter Egency 40 Zenith (Thailand) Remark: Reported numbers are based on reported spending data of a sample of 40 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.
4 59 Categories deep dive to enable opportunities for marketers 18 Disciplines to explore digital trends
Disciplines Agencies have provided spending data on the following 18 digital advertising disciplines: Facebook Ads All Facebook ads product, installed App ads, Facebook Audience Network, Facebook Messenger Instagram Ads Display or video ads bought only for Instagram (100% separated from Facebook) YouTube Ads All YouTube ads product including display, overlay, skippable/non-skippable video, sponsored card Display Google Display Network, website banners displayed on website or applications Online Video Non-YouTube/Facebook Video ads on website or online video streaming applications e.g., Mellow, Netflix, Viu Creative Production Online Video production, web banner production, application production, and service and management Search SEO, SEM, Mobile Search Social Content sponsorship, digital PR, advertorials, and influencers LINE All LINE ads product e.g., official account, LINE TV, LINE stickers, game Native Ads Paid ads that match the look, feel and function of the media format in which they appear e.g., feeds, search, widgets, promoted listing. Twitter Ads All types of Twitter ads that use to promote account, tweet or trend, including display and video format Instant Messaging All types of ads via instant messaging applications e.g., Whatsapp/WeChat/Kakao account/campaign management and push messaging application Affiliate Marketing All types of ads via automated marketing program leading customers to click on affiliate links including pay-per-click, payper-lead, and pay-per-sale. TikTok Ads All types of TikTok ads, including display and video format E-Commerce All types of ads booked on e-commerce sites/ platforms/ marketplaces, such as Shoppee, Lazada, JD, etc. Online Audio Non-YouTube/Non-Facebook/Non-Line Audio ads on website or online audio streaming apps e.g. Spotify, Plern, Joox, Youtube Music Live + Live Commerce Live streaming to sell products instantly in any platforms e.g. Facebook, Instagram, TikTok, E-commerce (Lazada, Shopee) Others Other online advertising Sub-Disciplines Display Display Direct Display Ad Network Display Programmatic Online Video Online Video Direct Online Video Ad Network Online Video Programmatic YouTube Ad YouTube Ad Desktop Display YouTube Ad Mobile Display YouTube Ad Desktop Video YouTube Ad Mobile Video Meta (Facebook Ad and Instagram Ad) Facebook Ad Facebook Ad Desktop Display Facebook Ad Mobile Display Facebook Ad Desktop Video Facebook Ad Mobile Video Instagram Ad Instagram Ad Display Instagram Ad Video Live + Live Commerce Creative Creative Video Production Creative Web Banner & App Production Creative Social Media Platform Management Creative App Production LINE LINE Direct LINE Video LINE Display LINE Other Search X (Formerly known as Twitter) Instant Messaging Social Native Ads Others Affiliated Marketing TikTok Ads TikTok Ads Display TikTok Ads Video E-Commerce E-Commerce Display E-Commerce Video Online Audio Online Audio Direct Online Audio Ad Network Online Audio Programmatic NEW IN Y23 5
Industry Sectors Agencies have provided data split by the following industry sectors of the advertised brands. Category Industry Finance & banking Banks Insurance Credit/Debit Cards Finance Services Technology & Electronic Communications & Devices Computers Audio/Visual Electrical Products Electrical Products (Non Audio/Visual) Food & Beverage Alcoholic Beverages Non-Alcoholic Beverages Seasoning Products Snack Foods Dairy Products & Dairy Substitute Prod. Bakery & Chocolate/Wafers/Biscuits Dietary Products Vitamins & Supplementary Foods Foodstuffs Shops Food Outlets & Restaurants Retail Shops Online Commerce E-commerce Business Category Industry Education Educational Institutions Clothing Clothing & Underwear Footwear Personal care Cosmetics Skin-care preparations Personal Accessories Toiletries Hair Preparations Oral Products Household care Household Cleaners Household Equipment & Furnishings Household Insecticides & Pesticides Automotive Motor Vehicle Accessories Motor Vehicle Dealers & Rentals Motor Vehicles Motorcycles & Bicycles Oil & Lubricants Petrol Tyre Housing Real Estate Furniture & Furnishings Pharmaceuticals Pharmaceuticals Pet products Pet Foods & Pet Products Travel Transportation Travel & Tours Category Industry Others Photographic Products Office/Business Equipment Sundries Entertainment & Leisure Multi Sections Advertising Media & Marketing CD/DVD (Musical & Film Products) Agricultural Products Building Material & Machinery Government & Community Announcement House Ads Classified Jewelry& Accessories Websites/Websites and marketplace 6
Connecting to the internet becomes an indispensable of Thais’ daily life, especially via mobile phones… Mobile Internet Connections 101 million Penetration rate: 141% Source: We are Social (2023) Thai internet users 61.21 million Penetration rate: 85.3% +0.2% from 2022 7
Dependence on social media and internet encourages E-commerce and online shopping to prosper. Source: Krungthai Compass (2023) 6.5 - 7 trillion THB Thailand online shopping market value projection in 2023-2024 6% Growth/ year 1. Personal Care Products 2. Household Care Products 3. Beverages 4. Food Top products for online shopping 8
SPENDING
Unit in Million Baht Pre-COVID Peak of COVID COVID Recovery PostCOVID +13% +17% +53% +44% +32% +31% +36% +16% +8% +18% +4% Economic & Political instability 2,783 4,248 6,115 8,084 9,479 12,402 16,928 19,555 21,058 24,766 25,729 28,999 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 FC2023 Despite unhealthy economy and political instability, digital spending in Thailand is expected to spring back to double-digit growth again with 13% from last year. AC 1H 13,210 FC 2H 15,789 10
The 5 Highest Spenders Unit in Million Baht 11 2020 2021 2022 Motor Vehicles Non-Alcoholic Beverages Communications Skin-care Preparations Dairy Products & Dairy Substitute Prod. 2,713 1,993 1,979 1,922 1,717 2,897 2,680 2,580 2,162 1,657 Non-Alcoholic Beverages Skin-care preparations Motor Vehicles Communications Dairy Products & Dairy Substitute Prod. 2,535 2,467 2,414 2,004 1,539 Motor Vehicles Non-Alcoholic Beverages Communications Skin-care preparations Dairy Products & Dairy Substitute Prod. Interestingly, skin-care preparations are projected to outrank other industries in 2023. while former champions like Motor Vehicles and Non-Alcoholic Beverage remain stagnant, Retails rises to top 5 rank. Skin-care preparations Motor Vehicles Non-Alcoholic Beverages Communications Retail shops/ Stores 3,268 2,520 2,228 2,190 1,682 FC 2023
2023 Top Industry Spending Unit in Million Baht Overall, all industries are predicted to increase their spending in 2023. Especially Skin-care preparations and cosmetics that shows impressive growth of 32% and 139% respectively. Vitamins & Supplementary Foods still have an increasing growth. 12 11% 9% 8% 8% 6% 6% 5% 4% 2% 2%2% 2% 3% 3% 2% 2% 2% 2% 2% 2% Communications 2,190 Retail Shops 1,682 Cosmetics 1,405 Dairy Products & Dairy Substitute Prod. 1,622 Banks 1,276 Vitamins & Supplementary Foods 912 Insurance 927 Snack Foods 699 Real Estate 820 Pharmaceuticals 600 Household Cleaners 564 Electrical Products (Non-Audio/Visual) 511 Food Outlets & Restaurants 754 Hair Preparations 453 Credit/Debit cards 457 Personal Accessories 474 Oral Products 506 Others 5,130 Skin-care preparations 3,268 Motor Vehicles 2,521 Non-Alcoholic Beverages 2,228 FC 2023
Top 10 Spending Growth by Industries All top 10 spending industries are predicted to grow further in 2023. However, Non-Alcoholic beverage is believed to experience a slight decline. Banks and Insurance still signalizes healthy progress in 2023 with 2%, 21% growth. 14% -17% -5% -22% -6% -7% 27% 22% 11% 23% Actual 2022 701 691 1,025 462 1,657 1,268 2,581 2,681 2,897 2,162 859 769 1,255 587 1,540 1,196 2,005 2,535 2,414 2,467 912 927 1,276 1,405 1,622 1,682 2,190 2,228 2,521 3,268 Vitamins & Supplementary Foods Insurance Banks Cosmetics Dairy Products & Dairy Substitute Prod. Retail Shops/Stores Communications Non Alcoholic Beverages Motor Vehicles Skin-care preparations Unit in Million Baht 32% 4% -12% 9% 41% 5% 139% 2% 21% 6% Forecast 2023 FC 2023 AC 2022 AC 2021 13
28% 16% 8% 7% 7% 7% 7% 6% 5% 3% FC 2023 Discipline Spending Meta (Facebook & Instagram Ad) YouTube Ad Social 8,183 Online Video 4,751 X (Twitter) 346 1% Others 107 1% Online Audio 63 0% Native Ads 55 0% Live/Live Commerce* 22 0% Instant Messaging 0 0% * Added in 2023 2,254 2,153 E-Commerce 792 Creative 2,151 TikTok Ad 2,048 Search 1,974 LINE 1,474 Affiliated Marketing 949 14 FC 2023 Meta, albeit holding the ascendancy in the market, its share of spending is forecasted to decline from 32% in 2022 to 28% in 2023. Instead, YouTube soars to reach 4 billion THB again in 2 years. TikTok also skyrockets to gain more proportion from 4% to 7% in 2023. 3% Display 1,678 Unit in Million Baht
Meta YouTu be Ad Online Video Social Creativ e TikTok Ad Search Display LINE Affiliate d Marketi ng EComm erce Twitter Others Online Audio Native Ads Live/Liv e Comm erce Instant Messa ging FC2023 8,183 4,751 2,254 2,153 2,151 2,048 1,974 1,678 1,474 949 792 346 107 63 55 22 - AC2022 8,748 3,546 2,162 2,209 1,631 1,048 1,650 1,518 1,470 444 411 369 209 233 80 - 1 AC2021 8,072 4,195 1,786 2,249 1,991 362 1,665 1,591 1,629 296 153 271 429 - 78 - 0 Unit in Million Baht FC 2023 AC 2022 AC 2021 Meta still maintains its dominant position in the market in 2023. But it’s notable for video platform (i.e. YouTube, TikTok, Online Video) that climb up this year. E-commerce still shows robust growth together with Affiliated Marketing. 15 2023 Top Spending Industry by Discipline Meta (Facebook, Instagram) YouTube Ad Online Video Social Creative TikTok Search Display LINE Affiliated Marketing ECommerce X (Twitter) Others Online Audio Native Ads Live/ Live Commerce Instant Messaging NEW IN Y23 2021 vs 2022 8% -15% 21% -2% -18% 189% -1% -5% -10% 50% 168% 36% -51% 0% 3% N/A 218% 2022 vs FC 2023 -6% 34% 4% -3% 32% 95% 20% 11% 0% 114% 92% -6% -49% -73% -31% N/A -100%
0 500 1000 1500 2000 2500 3000 Vitamins & Supplementary Foods Insurance Banks Cosmetics Dairy Products & Dairy Substitute Prod. Retail Shops/Stores Communications Non Alcoholic Beverages Motor Vehicles Skin-care preparations Unit in Million THB Meta YT OLV Social Creative TikTok Search Display LINE Affiliated E-comm X (Twitter) Others Online Audio Native Ads Live Live Commerce Total Total FC2023 8,183 4,751 2,254 2,153 2,151 2,048 1,974 1,678 1,474 949 792 346 107 63 55 22 28,999 Skin-care preparations 874 750 226 61 303 516 130 142 55 21 98 90 1 2 0 0 3,268 Motor Vehicles 736 285 130 116 192 111 458 316 100 32 14 4 1 10 9 6 2,521 Non-Alcoholic Beverages 560 674 180 223 206 211 27 29 79 0 7 11 7 14 0 0 2,228 Communications 541 376 224 213 37 204 181 168 110 7 39 74 3 0 12 1 2,190 Retail Shops/Stores 316 96 90 87 89 63 44 56 186 592 52 9 0 1 1 0 1,682 Dairy Products & Dairy Substitute Prod. 540 473 91 201 61 70 85 33 28 2 33 2 2 0 0 1 1,622 Cosmetics 536 129 48 9 18 94 141 57 92 61 200 19 0 0 0 0 1,405 Banks 340 70 43 115 149 92 127 119 175 0 0 27 18 2 1 0 1,276 Insurance 369 57 75 41 35 34 135 125 48 6 0 1 0 0 0 0 927 Vitamins & Supplementary Foods 218 173 89 111 85 77 29 27 29 8 57 9 0 1 0 0 912 Unit in Million Baht 16 Top2023 Spending Industry by Discipline Meta is still in the top choice for all industries with highest spendings. Yet, Non-Alcoholic beverages increases their spending in YouTube to exceed Meta. Banks and Retails still invest in LINE while Cosmetics lavishly spend in E-commerce NEW IN Y23
AGENCY OUTLOOK
Technological trends impact on digital media New technologies have an impact on consumer behavior and media consumption. What are technological trends you think they will impact on digital media in Thailand? Artificial Intelligence has remained the most impactful technology in digital media since 2020. While Live has increased significantly in one year reaching the second rank, Virtual Reality has dropped its impact based on perspectives of agencies. Chat bot and Augmented Reality (AR)/ Metaverse are other crucial technology that play an important role in 2023. 18 77 59 52 39 34 27 20 16 11 5 Artificial Intelligence (AI) Live Chat bot Augmented Reality (AR)/ Metaverse Geo location targeting Game applications Virtual Reality Face & Voice Control Face & Voice Recognition Fingerprint Fig in % Base : All respondents (n=44) # 2023 Importance Ranking () 2022 Importance Ranking #1 (1) #2 (7) #3 (5) #4 (6) #5 (2) #6 (4) #7 (3) #8 (8) #9 (8) #10 (10) Significance at 95% compared to 2022
E-Commerce marketplace and fragmented media landscape significantly increase in posting challenges for digital marketers in 2023. Meanwhile the rest obstacles have become alleviated this year, digital marketers are still concerned about continuity in launching new tools of media platforms and new technologies changing efficiency to target audience. Challenges for Digital Marketers in 2023 66% Lack of specialized staff in digital advertising E-Commerce Marketplace is significant and plays a bigger role in Digital Marketing Consumers use online channel in more various forms, e.g. live broadcast Advertisers turn to produce inhouse digital advertising How to efficiently utilize consumer insight 59% 57% 45% Target positioning under data privacy regulations Continuous launch of tools from media platform e.g. Facebook, YouTube, LINE New emerging technologies applied in advertising that alter efficiency of ways to target audience* Creative brief is not clear/ similar to offline Fake or unqualify Audience on digital and social media. Adblock or applications that block ads What could be the challenges for digital marketers in 2023? #1 (1) #2 (6) #3 (5) #4 (2) #5 (3) #6 (4) #7 (7) #8 (N/A) #9 (9) #10 (10) #11 (8) Base : All respondent (n=44) 48% 45% 34% 32% 18% 14% 11% Significance at 95% compared to 2022 * Added in 2023 19 # 2023 Importance Ranking () 2022 Importance Ranking
Utilizing technology (AI and MarTech) is a key to fighting through changes in media consumption behaviors. Given that the political direction will become clear soon, a bloom in digital ad spending is expected in H2 2023, leading to more intense competition. To strive for further growth, AI and technology are critical factors in achieving success in the changing landscape. Hence, digital marketers are strongly suggested to embrace emerging technologies and innovation while developing expertise in niche areas. After the government formation, spending in digital ecosystem will bounce back, along with more active marketing activities. Especially, if the new government starts implementing policies to boost the economy. Government agencies and departments often invest in digital technologies and services. Depending on the new government's agenda, public sector digital spending can either increase or decrease. For instance, if the government emphasizes digitalization and modernization of public services, it could lead to growth in digital spending. As of now, we see consumers are engaging with brands across multiple platforms and devices. Revisiting omnichannel strategy is necessary to ensure consistent and seamless experience across various touchpoints, such as mobile, social media, websites, and physical stores. Digital marketing agencies should stay ahead of the curve by adopting and leveraging emerging technologies. This could include utilizing AI-driven tools for data analytics, investing in virtual reality (VR) or augmented reality (AR) experiences, and exploring opportunities in blockchain and cryptocurrency. Agencies should promote a culture that encourages creativity, innovation, and continuous learning. They should invest in R&D efforts, encourage experimentation, and provide resources for employees to stay updated with the latest trends and technologies. 20 AI and Marketing technology will play an important role to ensure delivery to target audience and seamless experience. Moreover, AI can enhance personalization, improve customer targeting, automate advertising campaigns, and provide valuable data insights for decision-making
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Industry Leaders The following persons have contributed their view: q Chanchai Pongsanan Managing Director, Online Supply-side Management & Head of Performance Marketing, dentsu q Eakchai Parichatikanon Chief Executive Officer, Winter Egency, Hakuhodo International Thailand q Pacharee Permvongusawa General Manager – Publicis Media q Pathamawan Sathaporn Chief Executive Officer, GroupM Thailand q Paruj Daorai Chief Executive Officer, Publicis Groupe q Rajsak Asawasupachai Managing Director – IPG Mediabrands Digital/ Matterkind KANTAR interviewed a number of industry leaders to get their view and expectations of the digital marketing industry. 25