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Online ad expenditure to rise 20% in 2010

By KWANCHAI RUNGFAPAISARN

THE NATION

Published on November 19, 2009

Local spending on online media is expected to rise by 20 per cent next year to about Bt2 billion, according to Thomas Idea, a Thailand-based online strategic consulting agency.

CEO Uraiporn Cholsirirungskul said many ad agencies had revised their budgets to allow for more expenditure on online activities.

Thailand's overall advertising expenditure posted year-on-year growth of 7 per cent last month, according to a Nielsen survey.

The survey also reported that overall media expenditure in the first 10 months of the year had dropped 1.46 per cent to Bt73.4 billion from the same period last year.

"There is tremendous growth potential for online media advertising, which represents only 2 per cent of overall ad expenditure, estimated at about Bt90 billion this year," Uraiporn said, adding that in the US for instance, total online media spending was as high as Bt200 billion a year.

"We have seen an increase in the use of digital marketing by business vendors such as application development for corporate sites, online campaigns and mobile Internet. In addition, there is a shift in consumer behaviour with people spending more time on social networking sites like Facebook, which has more than 300 million members worldwide. Of the 15 million Internet users in Thailand, 2 million are Facebook members," Uraiporn said.

She added that more and more local entrepreneurs were using online marketing strategies, especially for consumer, entertainment and IT products.

Thomas Idea pointed out that 2010 would be a challenging year for Internet service providers owing to rising competition from technological innovations. For instance, 3G and broadband Internet will become a major factor in driving the online penetration rate.

Marketers have to catch up with the evolving trend of integrated media in order to create digital marketing strategies that answer the needs of their businesses.

Uraiporn also mentioned the opportunity for export business. Now that the economy is getting better and purchasing orders are coming in, it is necessary for Thai exporters to apply digital marketing strategies to increase their opportunities. Online channels serve as window displays, she said, and if they are done up in an attractive manner, offering appealing features, they add value to the products and services.

She also highlighted the key online strategies that marketers need to look forward to next year.

Social media continue to power people's communication and relations, especially via sites like Facebook, Twitter and online blogs. For instance, Facebook users share more than 1 billion different kinds of content a week. However, she said, it was crucial to facilitate the rising number of user-generated content by implementing appropriate solutions and supportive functions.

Brands need to focus more on engaging the customer because online media gives potential buyers longer access to products or service information than TV commercials. Moreover, it allows bi-directional interaction with consumers, capturing their journey through the website. Campaign sites that successfully create brand awareness should engage users for at least three to six minutes.

Uraiporn said each company's customer relationship management database required a complex design strategy and integration. Scattered customer data and profiles must be centralised and integrated to provide the best value to marketers.

E-mail marketing maintains its power as a cost-effective tool to reach consumers by creating a suitable strategy for efficient electronic direct mail (eDM). This year, the number of e-mails sent to registered eDM members in the US and Canada has reached 79 per cent, with permission marketing playing a substantial role in targeted marketing.

Finally, Uraiporn said, content was king for search-engine optimisation, a strategy that should be implemented in line with the development of websites and Web content to be able to compete in the market.

-- The Nation 2009/11/19

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