The digital media agency Media Intelligence Group (MI) has revised down its growth forecast for advertising and marketing spending in Thailand this year to 2.2%, representing 87.6 billion baht in total spending, from an earlier projection of 4.5% growth, citing unfavourable economic conditions.
Despite the economic slowdown, the company said there are still opportunities for brands by using a balanced mix of online and offline channels to navigate challenges.
MI also emphasised the importance of recognising the purchasing power of key targeted groups, ranging from retirees to migrant workers.
“We realise the challenge of economic turmoil from the recent earthquake, the decline of Chinese tourist arrivals and the US reciprocal tariffs that affect marketers’ spending,” said MI chief executive Pawat Ruangdejworachai.
The company’s revision is in line with the country’s GDP growth forecast, as well as the forecast for digital ad spending that is expected to grow 10% to 34.5 billion baht in 2025.
Mr Pawat said digital advertising, particularly social media, has become a “black ocean” market where brands struggle to stand out from their rivals.
Currently, some brands are spending 100% of their budget on digital channels.
According to the company’s in-house research unit MI Learn Lab, internet channels have a 30% share of total media spending in 2025, while influencers/key opinion leaders account for 20%. TV accounts for 29%, while out-of-home media accounts for 14.4%.
“A combination of internet channels and influencers account for 50% of the overall spending, while traditional media and offline channels account for the remainder,” said Mr Pawat.
MI Learn Lab discovered that brands relying solely on digital channels are experiencing a decline in sales performance.
Additionally, some brands may not reach their targeted audiences effectively, as certain consumer groups do not primarily engage with digital platforms.
This underscores the need for a diversified marketing approach that considers both online and offline engagement strategies.
For example, automotive brands that use a mix of media in the form of TV and out-of-home media along with online media post a better performance with regard to sales.
Offline media is still powerful, providing visibility for particular brands that use celebrities as presenters.
Mr Pawat said the product categories that spent less in the first quarter this year were smartphones, skincare, air conditioners, and automotive, while e-marketplaces increased their spending.
Brands should adopt a “sharp targeting” approach this year, focusing more sharply on eight key consumer segments that play a significant role in the economy and spend across different product and service categories, Mr Pawat said.
Eight key segments
The eight segments are people close to retirement age, migrant workers, inbound foreign tourists, office workers, service workers, members of Gen Z, farm labourers, and small merchants.
People who are close to retirement and seniors, numbering 18.6 million in total, are described as “silent but powerful buyers”. They prioritise self-care and support those around them. They are loyal to trusted brands and prefer cost-effective solutions, even though they may not be highly tech-savvy.
MI suggests brands should use Line, TV, YouTube, Facebook, out-of-home media and free sample giveaways to reach them.
Wichit Kunkongkaphan, head of international business development of MI Group, said there are around 10 million migrant workers in Thailand.
Initially, they aimed to save money and return to their homes but now they are opting to settle down long-term.
“These permanent migrant workers are spending more on grocery items and via e-wallets, while upper-income Myanmar expats spend on local property and at high-end restaurants,” said Mr Wichit.
Marketers can use their local language on Facebook, YouTube, and out-of-home media in order to reach them.