Thailand's advertising market shows growth despite off-target digital spend

Nielsen last week released data showing a 4% increase in advertising spending in Thailand for the period January-April 2024 compared to the same period in 2023. This growth of over 1.25 billion baht aligns with predictions from Nielsen's 2024 Annual Marketing Report, which indicated that 82% of marketers in the Asia-Pacific (APAC) region anticipated increased advertising budgets in 2024, compared to 56% in 2023.

The Nielsen data reveals growth across various advertising channels:

• Social Media: According to the report, 8 out of 10 marketers believe the overall increase is primarily driven by social media ad spend.
• Linear TV: Traditional television advertising spending also saw a modest increase of 1%.
• Cinema: Cinema advertising experienced a significant increase of 35%.
• Online Advertising (Excluding Social Media): Online advertising expenditure outside of social media grew by 8%.

However, the report also highlights a potential concern for digital advertising effectiveness in Thailand. The average "off-target" rate for digital ads in the country is reported to be 44%, exceeding the APAC average of 33%. This suggests that a significant portion of digital ad spend might not be reaching the intended audience.

Traditional media holds steady

Despite the growth in digital advertising, traditional media channels like print and radio still hold a presence in the Thai market. However, these sectors experienced declines:

• Print Advertising: Print ad spending saw a significant decrease of 33%.
• Radio Advertising: Radio ad spending dipped by 2%.

These declines limited the overall growth rate of the Thai advertising market.

Nielsen emphasizes the importance of strategic advertising investments for brands and agencies in Thailand's increasingly complex media landscape. High-quality data and audience insights are crucial for maximizing return on investment (ROI) and achieving a competitive edge.

The report underscores the rising trend of multi-screen media consumption, with streaming services gaining popularity. Nielsen suggests that effective cross-media measurement will be essential for success in the evolving Thai advertising landscape.

Nielsen is a global leader in audience measurement, data, and analytics. The company leverages its understanding of consumer behavior across various channels and platforms to provide actionable insights for clients, empowering them to connect with target audiences effectively.