2. Introduction
Thailand is adopting digital technologies in a rapid
pace. The penetration of smart phones keeps
increasing, fuelled by ever more affordable models
becoming available to the public. Penetration numbers
differ, but various sources agree that it rose above
30% in 2014 and is heading towards the 50% mark in
2015.
Thai consumers are spending more and more time
online. The global trend is that traditional television
viewing is moving towards viewing video online, and
we can expected this shift to emerge in Thailand also.
Digital advertising spending has been increasing over
the past years and is likely to keep moving upward in
coincidence with the increasing online activities of
Thai consumers.
The need for industry data on digital advertising
spending will become larger with the rise of the digital
space. DAAT provides this data on a yearly bases.
This report presents the data of 2014.
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 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.
DAAT - Digital Advertising Spend 2014
3. DAAT - Digital Advertising Spend 2014
Methodology
The data in this report and previous reports is
collected directly from advertising and media agencies
through a anonymous process to ensure
confidentiality to client’s information. The information
they submit is based on their internal records of
advertising spending.
Data for previous reports was collected by DAAT. As
the digital advertising industry is growing and
maturing, DAAT recognized the need to have the
process managed by an external party that is
specialized in data collection and reporting.
This report is the first with data collected by
international market research firm TNS. The company
operates in more than 80 countries and is part of the
WWP group.
TNS Thailand has collected and processed data from
20 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.
Disciplines
Agencies have provided spending data on the following
9 digital advertising disciplines:
Display All types of banner ads
Search All paid suggestions in search engine results
Social Community websites
Creative Web/Production cost
Mobile
All ads in mobile phone apps (except
Facebook and Instant messaging apps)
Facebook Ad All ads on Facebook
Video Advertisements shown in videos
Instant
messaging
Advertising in messaging apps; Line/ We
Chat
Others E.g. sponsorship
DAAT - Digital Advertising Spend 2014
4. DAAT - Digital Advertising Spend 2014
Industry sectors
Agencies have provided data split by the following
industry sectors of the advertised brands.
Group Category
Finance & banking
Banks
Insurance
Credit/Debit Cards
Other Finance
tech & electronic
Audio/Visual Electrical Products
Computers
Communications
Other Electrical Products (Non Audio/Visual)
Food & Beverage
Alcoholic Beverages
Non Alcoholic Beverages
Seasoning Products
Snack Foods
Sundries
Dairy Products & Dairy Substitute Prod.
Bakery & Chocolate/Wafers/Biscuits
Dietary Products
Vitamins & Supplementary Foods
Foodstuffs
Shops
Food Outlets & Restaurants
Retail Shops/Stores
Education Educational Institutions
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
House Ads
Pharmaceuticals Pharmaceuticals
Pet products Pet Foods & Pet Products
Other
Photographic Products
Office/Business Equipment
Transportation
Travel & Tours
Multi Sections Advertising
Media & Marketing
CD/DVD (Musical & Film Products)
Leisure
Agricultural Products
Building Material & Machinery
Classified
Government & Community Announcement
Websites
DAAT - Digital Advertising Spend 2014
5. DAAT - Digital Advertising Spend 2014
Agencies
The audit was conducted in February and March 2014.
Digital advertising spending data was submitted by 20
agencies.
List of agencies
1 Adapter Digital Co.,Ltd
2 Brilliant & Million Co.,Ltd
3 CJ WORX Co.,Ltd
4 Dentsu 360
5 Dentsu Young & Rubicam Ltd
6 Digital Groove Co.,Ltd
7 Flexmedia Co.,Ltd
8 Havas Worldwide Bangkok Ltd
9 IPG Mediabrands
10 iProspect (Thailand) Co.,Ltd
11 Isobar (Thailand) Co.,Ltd
12 J -Connect, J. Walter Thompson Bangkok Group
13 mInteraction Co.,Ltd
14 MCFIVA (Thailand) Co.,Ltd
15 Optimum Media Direction (Thailand) Co.,Ltd
16 Rabbit’s Tale Co.,Ltd
17 Starcom MediaVest Group
18 Syndacast Co.,Ltd
19 Winter Egency Co.,Ltd
20 Zenith Optimedia Co.,Ltd
DAAT - Digital Advertising Spend 2014
Remark:
Reported numbers are based on reported spending data
of a sample of 20 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.
8. DAAT - Digital Advertising Spend 2014
Total Spending
2012 2013 2014 FC-2015
+53%
+33%
DAAT - Digital Advertising Spend 2014
+43.95%
The digital advertising market in Thailand continues to grow and is expected to grow further in 2015.
Although growth levels are coming down there is a strong momentum. If the planned spending for 2015 is
achieved, the total market will almost double from 2013.
Reported numbers are based on reported spending data of a sample of 20 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.
Spending in Million Baht
9. DAAT - Digital Advertising Spend 2014
2014 Spending by industry
18.1%
14.2%
8.7%
5.3%
4.7%4.5%
3.7%
2.8%
2.7%
2.7%
2.4%
2.3%
2.2%
1.9%
1.8%
22.0%
DAAT - Digital Advertising Spend 2014
The Communications sector is leading the way in
online advertising spending, followed by Motor
Vehicles. The beauty categories Skin Care
Preparations and Hair Preparations are the leading
FMCG categories on place 3 and 5. Banks claim the
fourth spot.
10. DAAT - Digital Advertising Spend 2014DAAT - Digital Advertising Spend 2014
2014 Fastest growing industries
The highest spending sectors are also the sectors that increased the most in absolute spending. The
increase from Oil & Lubricants is striking as it comes from a very low base level in 2013. In the ranking of
growth by percentage Oil & Lubricants is followed by other categories that came from a very low base level.
12. DAAT - Digital Advertising Spend 2014
2015 Spending by industry
18.4%
15.4%
8.8%
5.9%5.1%
4.4%
2.7%
2.5%
2.3%
2.3%
2.2%
1.8%
1.7%
1.5%
1.5%
23.5%
DAAT - Digital Advertising Spend 2014
Planned spending for 2015 shows a similar ranking
to 2014. Real Estate is an exception, dropping out
of the top 15 with spending decreasing from 173 to
116 Million Baht.
13. DAAT - Digital Advertising Spend 2014DAAT - Digital Advertising Spend 2014
2015 Forecasting fastest growing industries
Communications is expected to be the highest growth industry sector in 2015, followed closely by Motor
Vehicles. In the ranking of growth by percentage Pet Foods & Pet Products is followed by other categories
that came from a low base level.
14. DAAT - Digital Advertising Spend 2014
What’s hot in disciplines
15. DAAT - Digital Advertising Spend 2014
Spending by discipline
41.0%
28.1% 27.2%
20.2%
21.2% 19.7%
6.0%
16.0% 16.5%
11.1% 14.0% 15.6%
12.2% 9.1% 9.7%
6.2%
5.6% 4.4%
3.6% 4.5%
2013 2014 FC-2015
Others
Mobile
Instant Messaging
Social
Creative
Video
Facebook
Search
Display
DAAT - Digital Advertising Spend 2014
Online displays is still the largest discipline in 2014, but it is less dominant then before. Facebook and
Video advertising have grown in 2014. Facebook in particular saw strong growth in share of spending.
Shares are expected to stabilize in 2015.
16. DAAT - Digital Advertising Spend 2014
2011-2015 Spending by discipline
2011 2012 2013 2014 FC-2015
Display 48.1% 41.5% 41.0% 28.1% 27.2%
Search 14.7% 18.9% 20.2% 21.2% 19.7%
Facebook Not measured 5.3% 6.0% 16.0% 16.5%
Video Not measured 10.9% 11.1% 14.0% 15.6%
Creative production 25.5% 12.9% 12.2% 9.1% 9.7%
Social media 10.3% 6.7% 6.2% 5.6% 4.4%
Instant Messaging Not measured Not measured Not measured 3.6% 4.5%
Mobile marketing 0.8% 1.8% 1.9% 1.6% 1.2%
Others 0.7% 1.9% 1.6% 0.9% 1.1%
Total 100% 100% 100% 100% 100%
DAAT - Digital Advertising Spend 2014
17. DAAT - Digital Advertising Spend 2014
Spending by discipline 2014
18. DAAT - Digital Advertising Spend 2014
Spending
Agency
Outlook
Industry
Leaders Speak
19. 5%
10% 10%
24%
19%
5%
29%
<-50%
-50%
-40%
-30%
-20%
-10%
Nochange
10%
20%
30%
40%
50%
>50%
75%
75% of agencies expects to spend at least 30% more on digital advertising in 2015 than in 2014. Within agencies
that do digital advertising, their digital spending is now higher than their TV spending.
Please indicate the percentage of change for digital advertising spend that you expect for
your clients in 2015?
Agency outlook
DAAT - Digital Advertising Spend 2014
20. 14%
24%
33%
38%
62%
81%
86%
Other
CRM
E-commerce channel
PR
Sales
Engagement
Brand awareness
Building brand awareness and engagement are the top objectives of digital advertising, more than directly sales
related objectives. Agencies change their client engagement models in different ways to adapt to a changing
environment.
Which of the following best describes most of your
clients’ objectives for digital ad spend?
10%
29% 33%
10%
43%
14%
29%
57%
48%
57%
38%
33%
Project basedRetainer basedEducation and trainingEmbedding specialized resources at client
More
Equal
Less
How has your engagement model with clients
changed over the last year?
DAAT - Digital Advertising Spend 2014
21. DAAT - Digital Advertising Spend 2014
Spending
Agency
Outlook
Industry
Leaders Speak
22. TNS interviewed a number of industry leaders to get
their view and expectations of the digital marketing
industry. Impressions of the interviews are included on
the following pages.
The following persons have contributed their view:
Khun Mike DeLosReyes
Managing Director, Mediabrands. Digital at IPG
Mediabrands
Khun Norasit Sitivechvichit
Digital Business Director, Dentsu 360
Khun Siwat Chawareewong
CEO, mInteraction
Khun Supaporn Jangcharoen
Executive Digital Director, Zenith Optimedia
Industry leaders speak
DAAT - Digital Advertising Spend 2014
23. DAAT - Digital Advertising Spend 2014
Insights
“Key misunderstandings about
digital
- Digital communication is not cheap!
- Creativity is not the only factor of a
successful online campaign”
“Digital as a Sale Channel
Digital marketing has transformed from
‘Communication tool’ to serve as
‘Distribution channel’.”
24. DAAT - Digital Advertising Spend 2014
Insights
“Did you know?
- You don’t have to be a graduate with
a degree in mass communication to
join working in this industry”
“There is a shortage of digital
know-how
There is a shortage of understanding
and human resources in the area of
digital and online marketing”
25. DAAT - Digital Advertising Spend 2014
It won’t take too long for our digital spending to grow
from 5% to 20%.
Khun Siwat Chawareewong
CEO, mInteraction
At this moment budgets for digital marketing
are not yet very large, but it has significantly
increased from 7-8 years ago. I would
approximate it to be 0.5% of total advertising
budget at that time. Even though it will not be
much larger than 5% now, that is about ten-
fold increase.
Thailand is still behind other markets. Europe is
30+%, Australia 20+ and approaching
30%, China 20%, Malaysia 10%. So we should
definitely see Thailand reaching 20% in the
future but how fast or slow remains to be seen.
Looking at China at 20% now, it won’t take too
long for us to get from 5% to 20%.
“
“
26. DAAT - Digital Advertising Spend 2014
Norasit Sitivechvichit
Digital Business Director, Dentsu 360
Last year was the wake-up call, this year, digital is the must
The digital industry is go for
‘full swing’ this year.
Some might say that digital
marketing became very
popular since the last
year, but actually last year
was just a wake-up call that
those who are in traditional
media need to be aware of.
“
“
27. DAAT - Digital Advertising Spend 2014
It is not true that digital campaigns are cheaper than traditional
ones.
Khun Mike DeLosReyes
Managing Director, Mediabrands.Digital at IPG Mediabrands
Cheap is not a reason for this market, but others
Clients ask why they have to spend the same
amount on digital media?
The answer is to ensure the same effectiveness of
the campaign.
Digital can create more awareness and more buzz
than the traditional media, but clients need to
spend enough budget to make this happen
“
“
$$$
28. DAAT - Digital Advertising Spend 2014
As technology changes, you don’t have to be a graduate with a
degree in mass communication to join working in this industry.
The required skill set has broadened
As technology changes, you don’t have to
be a graduate with a degree in mass
communication.
Certain skills may require people with a
background in social
science, economics, finance or even
engineering.
With digital/online marketing, it is no longer
a matter of marketing communication but a
whole value chain that requires deeper
analysis. It is not only about ‘click to’ or
about ‘budget spending’ but about
consumers’ actions, about value to our
customer’s organization and how things turn
into sales.
“
“
Khun Supaporn Jangcharoen
Executive Digital Director, Zenith Optimedia
30. DAAT - Digital Advertising Spend 2014
Full report
Crossed spending data by industry/discipline
Forecast 2015 by industry/discipline
Agency outlook , agency point of view survey
Inside interview from industry leaders
Inside by industry ,analyze spending by each industry
Crossed spending data in Excel
Find out more
31. DAAT - Digital Advertising Spend 2014
Full report
Report price
PDF + Excel = 499 USD
100 USD discount for DAAT members
Available at http://www.tnsglobal.com/thailand-digital-ad-spend-report