In Thailand, Skincare Vertical Tops the List of Digital Ad Spenders - eMarketer

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In Thailand, Skincare Vertical Tops the List of Digital Ad Spenders

Communications, beverage and motor vehicle sectors follow close behind

May 11, 2017 | Ad Spending

A facet of the beauty industry will lead all other verticals in digital ad spending in Thailand this year, according to a recent forecast from the Digital Advertising Association (Thailand), or DAAT. The digital advertising industry trade group expects that skincare will outspend all other verticals in digital advertising, laying out THB1.09 billion ($30.9 million) this year.

Top 10 Industries in Thailand, Ranked by Digital Ad Spending, 2017 (millions of Thai baht)

That’s more than is projected for communications firms, nonalcoholic beverage brands and motor vehicles, the other verticals in the Top 4.

DAAT reported that digital ad spending by skincare brands has surged since 2015, as has spending by nonalcoholic drink companies. Digital outlays from communications companies have remained relatively flat, while spending by motor vehicle firms has fluctuated.

DAAT also expects that the digital advertising duopoly of Facebook and Google, which exists in other regions of the world, is already being replicated in Thailand. The group estimates spending on Facebook ads will total THB3.17 million ($89,845) this year, while Google’s YouTube will command THB2.10 million ($59,520) in ad expenditures. That is more than DAAT projects will be spent on Instagram, instant messaging, search or Twitter ads.

eMarketer estimates digital ad spending in Thailand will total $416.3 million this year, and that figure will grow to $563.5 million by 2020. Digital will remain a small piece of total media ad spending in the country overall, accounting for 17.5% of all advertising outlays this year. By 2020, that percentage will grow to 22.7%, eMarketer projects.

Digital advertising does face a headwind in Asia-Pacific markets like Thailand in the form of ad blocking, particularly on mobile devices. PageFair, a company that provides ad blocking solutions to publishers, reported in February that 16% of internet users in Asia-Pacific used ad blocking on a mobile device. The Middle East and Africa had the next highest mobile ad blocking penetration rate—at just 2%.

“Digital users are coming up with unexpected changes that the buy side is not prepared for, such as ad blocking, particularly in Thailand and Indonesia,” said Shuba Krishnan, the director of business development for Malaysia-based ad technology firm Innity, in an interview with eMarketer.

Rahul Chadha

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