Thailand’s Advertising Market Shrinks in 2025 as Digital Media Becomes Dominant
Industry leaders report a 1.63 percent contraction driven by economic pressures while digital platforms outperform expectations
Thailand’s advertising industry closed 2025 in contraction, defying earlier projections that anticipated a return to growth.
At the Adman Awards & Symposium, the Advertising Association of Thailand said the sector was weighed down by sluggish economic conditions, global trade tensions, foreign policy uncertainty, Trump-era tariff impacts and persistently high household debt, all of which curbed consumer spending and undermined market confidence.
Industry leaders described the year as one of the most challenging in recent memory, noting that the downturn coincided with dramatic shifts in media consumption.
Digital platforms, particularly online video services, continued their rapid ascent as consumers moved decisively toward on-demand viewing and mobile-first habits.
Rising engagement translated directly into higher digital advertising revenue, much of which flowed to overseas platforms.
The shift placed additional pressure on traditional media, especially television, where both viewership and advertising budgets continued to erode.
Executives stressed that traditional media companies must now transform into full-service solution providers capable of delivering measurable commercial value, rather than relying on selling conventional ad space alone.
Industry associations also expressed concern over declining purchasing power and emphasized the need for government stimulus to stabilize the market.
Despite overall contraction, digital advertising performed better than expected.
Analysts said this resilience was driven by sustained demand for essential goods, modest discretionary purchases intended to boost morale and periodic spikes in online shopping.
The Media Agency Association of Thailand estimated total advertising expenditure at around 107 billion baht, though tracked spending came in closer to 84 billion baht, reflecting a market decline of 1.63 percent amid volatility tied to tariff disputes, the Thailand–Cambodia border crisis and political transition.
Looking ahead to 2026, industry leaders anticipate signs of recovery, supported by national elections, the formation of a new government and renewed economic stimulus.
The digital sector is expected to remain stable in the first half before gaining momentum in the latter part of the year.
Advertisers are being urged to adopt more precise, transparent and privacy-aware strategies that reflect fragmented consumer behavior and shifting media habits across generations.
At the Adman Awards & Symposium, the Advertising Association of Thailand said the sector was weighed down by sluggish economic conditions, global trade tensions, foreign policy uncertainty, Trump-era tariff impacts and persistently high household debt, all of which curbed consumer spending and undermined market confidence.
Industry leaders described the year as one of the most challenging in recent memory, noting that the downturn coincided with dramatic shifts in media consumption.
Digital platforms, particularly online video services, continued their rapid ascent as consumers moved decisively toward on-demand viewing and mobile-first habits.
Rising engagement translated directly into higher digital advertising revenue, much of which flowed to overseas platforms.
The shift placed additional pressure on traditional media, especially television, where both viewership and advertising budgets continued to erode.
Executives stressed that traditional media companies must now transform into full-service solution providers capable of delivering measurable commercial value, rather than relying on selling conventional ad space alone.
Industry associations also expressed concern over declining purchasing power and emphasized the need for government stimulus to stabilize the market.
Despite overall contraction, digital advertising performed better than expected.
Analysts said this resilience was driven by sustained demand for essential goods, modest discretionary purchases intended to boost morale and periodic spikes in online shopping.
The Media Agency Association of Thailand estimated total advertising expenditure at around 107 billion baht, though tracked spending came in closer to 84 billion baht, reflecting a market decline of 1.63 percent amid volatility tied to tariff disputes, the Thailand–Cambodia border crisis and political transition.
Looking ahead to 2026, industry leaders anticipate signs of recovery, supported by national elections, the formation of a new government and renewed economic stimulus.
The digital sector is expected to remain stable in the first half before gaining momentum in the latter part of the year.
Advertisers are being urged to adopt more precise, transparent and privacy-aware strategies that reflect fragmented consumer behavior and shifting media habits across generations.
