What To Know
- The adjustment comes in the wake of GDP growth expectations being cut from 2 percent to just 1 percent, combined with one of the weakest consumer confidence readings in recent years.
- While the 5 percent growth forecast highlights the industry’s resilience in the face of adversity, the shift in platform dominance signals a deeper transformation that will redefine how brands engage with Thai consumers.
Bangkok Business News: Forecast Slashed to Just 5 Percent
Thailand’s digital advertising industry is facing one of its most difficult years on record. The Digital Advertising Association of Thailand (DAAT) has sharply revised its 2025 growth forecast down to only 5 percent, the lowest figure ever recorded outside the pandemic years. This Bangkok Business News report highlights that the drastic downgrade is being driven by a sluggish economy, reduced consumer spending power, and growing uncertainty among businesses navigating inflation and political instability. The industry, which once enjoyed consistent double-digit expansion, is now grappling with realities that threaten to reshape the sector’s future.
The Digital Advertising Association of Thailand has sharply revised its 2025 growth forecast down to only 5 percent
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Economic Pressures and Declining Confidence
DAAT’s latest assessment indicates that total digital ad spending in 2025 will reach just over 33.1 billion baht. That figure is far below earlier projections of 10 percent growth. The adjustment comes in the wake of GDP growth expectations being cut from 2 percent to just 1 percent, combined with one of the weakest consumer confidence readings in recent years. Analysts note that negative inflation and stagnant household incomes are suppressing retail sales, leaving brands with little incentive to increase digital advertising budgets.
Advertising Categories Winners and Losers
From the review of 70 product categories and 18 different platforms, skincare retained its crown as the largest spender with 5.249 billion baht in advertising, a modest 4 percent rise. Non-alcoholic beverages surged with a 22 percent increase, while telecoms and dairy also posted double-digit gains. By contrast, the automotive industry slashed its spending by 17 percent, recording the sharpest contraction among major categories. Retail and vitamins also saw slight declines. The standout bright spots were cosmetics, which soared by 80 percent, and restaurants, which rose 40 percent, fueled by changing consumer habits and lifestyle-driven marketing campaigns.
TikTok has leapfrogged into second place, overtaking YouTube and narrowing the gap with long-time leader Meta
Image Credit: AI-Generated
Platform Wars TikTok Closes the Gap
The bigger story for 2025 is the seismic shift in the platform advertising hierarchy. TikTok has leapfrogged into second place, overtaking YouTube and narrowing the gap with long-time leader Meta. The short-video giant raked in 6.776 billion baht, representing a staggering 63 percent jump from last year and capturing 20 percent of the entire market. Meta still leads with 8.451 billion baht, though this marked a 3 percent decline, giving it a 26 percent share. YouTube slipped to third, earning 4.397 billion baht with just 1 percent growth. Other key categories included Creative platforms at 2.573 billion baht, Search at 1.941 billion baht, and Social networks at 2.112 billion baht, the latter suffering a steep 28 percent drop.
Shifting Media Channels
Industry observers point to live commerce as another rising star. Once a niche format, it has surged to become the second most important digital media channel, trailing only TikTok in momentum. E-commerce marketplaces, once dominant, have slipped in rank, while affiliate marketing is losing ground. Interestingly, Meta has managed to climb one position thanks to its vast user base, proving resilience despite declining ad revenue.
Outlook For 2025
Thailand’s digital advertising sector now faces a defining moment. With sluggish economic growth, eroding consumer confidence, and global disruptions continuing to weigh heavily, agencies and brands will need to recalibrate strategies. The explosive rise of TikTok, coupled with the steady gains in live commerce and niche product categories, suggests that the competitive landscape will not return to its old norms. While the 5 percent growth forecast highlights the industry’s resilience in the face of adversity, the shift in platform dominance signals a deeper transformation that will redefine how brands engage with Thai consumers. If businesses can adapt swiftly to new consumer behaviors and leverage innovative media channels, digital advertising could regain strength in the years ahead, but the pressure to evolve has never been greater.
For the latest on the Digital Advertising industry in Thailand, keep on logging to Bangkok Business News.
