Thailand's Digital Advertising Market Projects Steady Growth Amid Economic Recovery
Digital ad spending in Thailand is forecasted to reach 35 billion baht in 2024, driven by economic rebounds and competition among major social media platforms.
Thai online advertising spending is expected to grow by 10% this year, reaching 35 billion baht, according to estimates from the Digital Advertising Association of Thailand (DAAT).
This forecast reflects a gradual recovery of the local economy and heightened competition within the digital sector, despite lower growth rates compared to previous years.
In 2023, digital ad spending increased by 14%, following an 8% expansion in 2024, marking a slowdown from the double-digit growth rates experienced in recent years.
Meta platforms such as Facebook and Instagram, alongside TikTok and YouTube, are projected to be the leading avenues for advertising expenditure in Thailand.
Notably, TikTok is expected to ascend to the second position in digital ad spending by 2025, surpassing YouTube, which held the position last year.
Arpapat Boonrod, managing director for Kantar in Thailand, noted that advertising budget constraints among brands are contributing to a cautious consumer spending trend.
The skincare sector is anticipated to see significant ad spending, leading other industries.
Kantar's survey revealed sustained growth in digital ad investment in Thailand, with the top five sectors projected to maintain their positions from the previous year: skincare at 6.1 billion baht, automotive and non-alcoholic beverages both at 2.9 billion baht, telecom at 2.5 billion baht, and daily products at 2.1 billion baht.
Meta continues to dominate the advertising market despite a projected decrease in its share from 28% in 2024 to 26% in 2025. Conversely, TikTok’s rapid growth is expected to elevate its value to 5.5 billion baht, making it the second-largest platform.
Factors contributing to continuous digital ad investments include a high penetration of digital media among the Thai population and the time spent online.
Kantar has revised its research methodologies for the years 2024 and 2025, now separating telecom from electronic devices in its findings, where steady growth is seen in electronic devices due to new brand launches.
Paruj Daorai, president of DAAT, highlighted that the slow economic recovery, budget cuts, and external market pressures pose ongoing challenges for marketers.
Additionally, he warned of the possibility of consumer fatigue towards online advertisements.
“Marketers need to stay agile and responsive to the rapidly changing landscape,” he stated, citing concerns regarding the political climate, regulatory changes, and competitive pressures from inexpensive imports, particularly from China, affecting local industries.
“Government policies that effectively address trade issues and attract investments are crucial to bolstering the Thai economy,” he remarked.
Amidst these economic challenges, consumer loyalty remains precarious, with individuals more likely to switch brands if their needs are met.
This forecast reflects a gradual recovery of the local economy and heightened competition within the digital sector, despite lower growth rates compared to previous years.
In 2023, digital ad spending increased by 14%, following an 8% expansion in 2024, marking a slowdown from the double-digit growth rates experienced in recent years.
Meta platforms such as Facebook and Instagram, alongside TikTok and YouTube, are projected to be the leading avenues for advertising expenditure in Thailand.
Notably, TikTok is expected to ascend to the second position in digital ad spending by 2025, surpassing YouTube, which held the position last year.
Arpapat Boonrod, managing director for Kantar in Thailand, noted that advertising budget constraints among brands are contributing to a cautious consumer spending trend.
The skincare sector is anticipated to see significant ad spending, leading other industries.
Kantar's survey revealed sustained growth in digital ad investment in Thailand, with the top five sectors projected to maintain their positions from the previous year: skincare at 6.1 billion baht, automotive and non-alcoholic beverages both at 2.9 billion baht, telecom at 2.5 billion baht, and daily products at 2.1 billion baht.
Meta continues to dominate the advertising market despite a projected decrease in its share from 28% in 2024 to 26% in 2025. Conversely, TikTok’s rapid growth is expected to elevate its value to 5.5 billion baht, making it the second-largest platform.
Factors contributing to continuous digital ad investments include a high penetration of digital media among the Thai population and the time spent online.
Kantar has revised its research methodologies for the years 2024 and 2025, now separating telecom from electronic devices in its findings, where steady growth is seen in electronic devices due to new brand launches.
Paruj Daorai, president of DAAT, highlighted that the slow economic recovery, budget cuts, and external market pressures pose ongoing challenges for marketers.
Additionally, he warned of the possibility of consumer fatigue towards online advertisements.
“Marketers need to stay agile and responsive to the rapidly changing landscape,” he stated, citing concerns regarding the political climate, regulatory changes, and competitive pressures from inexpensive imports, particularly from China, affecting local industries.
“Government policies that effectively address trade issues and attract investments are crucial to bolstering the Thai economy,” he remarked.
Amidst these economic challenges, consumer loyalty remains precarious, with individuals more likely to switch brands if their needs are met.
