Thailand’s ad spend forecast cut to 2.2% in 2025 as economic tremors, falling tourism and tariff woes hit hard. Top firm warns brands not to rely solely on digital, urging a balanced media mix and sharper targeting across eight key consumer groups.
Thailand’s advertising industry is also feeling the strain of growing economic pressure. A slowdown in growth has led many firms to scale back, following challenges such as the Trump-era tariffs and, particularly, the March 28th earthquake. As a result, a leading intelligence firm has revised its projection for industry growth this year to just 2.2%. Notably, the shift towards digital advertising continues at a rapid pace. Currently, only 29% of national ad spending is allocated to terrestrial television—a platform that was once the dominant force in the market. However, there is a growing caution among industry leaders. Firms and agencies are being urged not to commit too heavily to digital channels at the expense of a broader, more balanced advertising strategy.
Thailand’s advertising and marketing spending is expected to grow by only 2.2% this year, according to the latest forecast from Media Intelligence Group (MI). That represents a downgrade from the earlier estimate of 4.5%, bringing the total projected spend to ฿87.6 billion.
The revision reflects mounting economic headwinds. These include a recent earthquake, a decline in Chinese tourist arrivals and reciprocal tariffs imposed by the United States. These factors have combined to reduce marketers’ confidence and budgets.
“We realise the challenge of economic turmoil,” said Pawat Ruangdejworachai, chief executive of MI. “It’s affecting spending across multiple sectors.”
MI urges caution as brands overinvest in digital while missing chances in traditional media channels
Despite the gloomy outlook, MI believes there are still opportunities for growth. However, brands must adjust their strategies to the current environment. In particular, they need to balance their investments across both digital and traditional media channels.
Digital remains dominant, but its effectiveness is under scrutiny. Some brands are now spending 100% of their budgets online. While this may seem modern and efficient, it often leads to problems. In crowded digital spaces, many brands fail to stand out.
According to MI’s research arm, MI Learn Lab, digital media will account for 30% of total advertising spending in 2025. Influencer and key opinion leader (KOL) marketing will contribute an additional 20%. Together, these channels will make up half of all media spending.
However, TV will still account for 29% of the total, while out-of-home (OOH) media will hold a 14.4% share. This means traditional media continues to play a significant role, especially for certain product categories.
Sales fall for digital-only brands as MI backs mix of online, offline and celebrity-driven strategies
Importantly, MI Learn Lab has found that brands relying only on digital channels are seeing a drop in sales. Moreover, some brands are missing their target audiences entirely. Not all consumers use or trust digital platforms. Therefore, a mixed media approach remains essential.
For instance, automotive companies using a blend of television, OOH, and digital have seen stronger sales performance. Offline media also offers something digital cannot—broad visibility and cultural resonance. This is particularly powerful when celebrities are used as brand ambassadors.
Furthermore, sampling campaigns, billboards, and free product trials continue to drive engagement, especially among less digitally active groups. These offline tools can complement digital campaigns and enhance overall effectiveness.
MI also revealed shifts in category spending. Smartphones, skincare, air conditioners, and automotive brands all reduced their marketing budgets in the first quarter of 2025. By contrast, e-marketplaces increased their spending significantly, taking advantage of rising online shopping habits.
MI calls for sharp targeting of eight key consumer groups including retirees and Gen Z consumers
To succeed this year, brands should adopt what MI calls a “sharp targeting” approach. This involves focusing on eight key consumer segments that have strong purchasing power and influence across categories.
These include retirees, migrant workers, foreign tourists, office staff, service employees, Gen Z consumers, farm labourers, and small merchants. Each group has distinct habits, preferences, and media consumption behaviours.
One especially powerful group is retirees and near-retirement consumers. There are 18.6 million of them nationwide. While they are not typically tech-savvy, they are loyal to trusted brands and prioritise value and self-care. Many support extended families and influence household purchases.
To reach them, MI recommends using Line, television, Facebook, YouTube, out-of-home media, and product sampling. This combination offers both familiarity and accessibility.
Localised ads urged as migrant workers settle long term and expand spending in high-end sectors
Migrant workers, another key segment, now number around 10 million. While many originally came to save money and return home, growing numbers are settling in Thailand long term. This has changed their spending habits.
“They’re spending more on groceries and using e-wallets,” said Wichit Kunkongkaphan, head of international business development at MI. “Upper-income Myanmar expats even invest in property and dine at high-end restaurants.”
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To connect with them, brands should localise content. Using native languages on Facebook, YouTube, and out-of-home media increases reach and relevance. These strategies can help brands tap into a growing, underserved market.
Overall, MI’s message is clear: don’t overcommit to digital at the expense of everything else. While online platforms are important, a one-dimensional strategy risks waste and underperformance. Instead, a carefully crafted, channel-diverse plan—one that recognises the needs of real people in different contexts—is more likely to deliver results in 2025.
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